Dominguez welcomes unsolicited infra proposals
By Prinz Magtulis (The Philippine Star) | Updated July 4, 2016 - 12:00am
MANILA, Philippines - Unsolicited infrastructure projects will be welcomed under the Duterte administration as part of a review of the public-private partnership (PPP) program, Finance Secretary Carlos Dominguez III said.
I assure you that both the concept and the execution of the PPP program will be dramatically reviewed, he said in a statement yesterday.
The PPP program will, in the new dispensation, no longer be merely a PowerPoint presentation, Dominguez added.
Unsolicited projects pertain to proposals from the private sector to the government. The Aquino administration had rejected such proposals and pursued PPP through projects it studied on its own.
The PPP review would coincide with plans by President Duterte to seek emergency powers from Congress to address the heavy traffic situation in Metro Manila.
Sen. Franklin Drilon filed a semilar proposal last week which Congress will tackle once it opens session during Dutertes first State of the Nation Address on July 25.
We intend to take the traffic crisis by horns not only because of the grave economic costs of congestion, but also because of its adverse effects on the health and quality of life, Dominguez said.
Emergency powers, among others, would allow the government to open up private subdivisions to traffic and do away with procurement process for public projects.
Sought for comment, George Barcelon, president of the Philippine Chamber of Commerce and Industry, welcomed the news.
Unsolicited projects would anyway be just proposals. It will still be up to the government if they will push through with it, Barcelon said in a phone interview.
This (unsolicited proposals) is connected to the emergency powers they are asking, which is meant to really fast track the projects, he added.
Barcelon lamented that the Aquino government became overly cautious in awarding projects, resulting in only 12 PPPs being awarded in six years from a promise of 10 on the first year alone.
However, concerns were raised against both plans.
Cosette Canilao, former executive director of the PPP Center, said the previous administration did not accept unsolicited projects because they were prone to legal ramifications.
Most of the infamous PPP projects were unsolicited, she said in an e-mail.
She cited the controversial Terminal 3 of the Ninoy Aquino International Airport whose contract was invalidated by the Supreme Court in 2004.
The project, awarded to consortium Philippine International Air Terminals Co., led to a legal fight ending with the government being ordered to pay the firm around $520 million as just compensation.
Whats important (during Aquino) was to develop the framework and capacity of the government to undertake PPP projects, she said.
Meanwhile, Melissa Yan, deputy executive director of inter-agency Government Procurement Policy Board, said delays in public projects should not be blamed on the bidding process.
There are many facets in the procurement. I dont really think it is the one causing delays. It is generally a matter of project implementation, Yan said in a phone interview.
Saying the countrys procurement law is one of the best in the world, Yan stressed RA 9184 was intentionally made stringent to fight corruption.
Barcelon, for his part, expressed confidence in the Duterte government.
I am sure they will be able to strike a balance between fast tracking projects and ensuring due diligence, he said.
http://www.philstar.com/business/201...nfra-proposals
By Prinz Magtulis (The Philippine Star) | Updated July 4, 2016 - 12:00am
MANILA, Philippines - Unsolicited infrastructure projects will be welcomed under the Duterte administration as part of a review of the public-private partnership (PPP) program, Finance Secretary Carlos Dominguez III said.
I assure you that both the concept and the execution of the PPP program will be dramatically reviewed, he said in a statement yesterday.
The PPP program will, in the new dispensation, no longer be merely a PowerPoint presentation, Dominguez added.
Unsolicited projects pertain to proposals from the private sector to the government. The Aquino administration had rejected such proposals and pursued PPP through projects it studied on its own.
The PPP review would coincide with plans by President Duterte to seek emergency powers from Congress to address the heavy traffic situation in Metro Manila.
Sen. Franklin Drilon filed a semilar proposal last week which Congress will tackle once it opens session during Dutertes first State of the Nation Address on July 25.
We intend to take the traffic crisis by horns not only because of the grave economic costs of congestion, but also because of its adverse effects on the health and quality of life, Dominguez said.
Emergency powers, among others, would allow the government to open up private subdivisions to traffic and do away with procurement process for public projects.
Sought for comment, George Barcelon, president of the Philippine Chamber of Commerce and Industry, welcomed the news.
Unsolicited projects would anyway be just proposals. It will still be up to the government if they will push through with it, Barcelon said in a phone interview.
This (unsolicited proposals) is connected to the emergency powers they are asking, which is meant to really fast track the projects, he added.
Barcelon lamented that the Aquino government became overly cautious in awarding projects, resulting in only 12 PPPs being awarded in six years from a promise of 10 on the first year alone.
However, concerns were raised against both plans.
Cosette Canilao, former executive director of the PPP Center, said the previous administration did not accept unsolicited projects because they were prone to legal ramifications.
Most of the infamous PPP projects were unsolicited, she said in an e-mail.
She cited the controversial Terminal 3 of the Ninoy Aquino International Airport whose contract was invalidated by the Supreme Court in 2004.
The project, awarded to consortium Philippine International Air Terminals Co., led to a legal fight ending with the government being ordered to pay the firm around $520 million as just compensation.
Whats important (during Aquino) was to develop the framework and capacity of the government to undertake PPP projects, she said.
Meanwhile, Melissa Yan, deputy executive director of inter-agency Government Procurement Policy Board, said delays in public projects should not be blamed on the bidding process.
There are many facets in the procurement. I dont really think it is the one causing delays. It is generally a matter of project implementation, Yan said in a phone interview.
Saying the countrys procurement law is one of the best in the world, Yan stressed RA 9184 was intentionally made stringent to fight corruption.
Barcelon, for his part, expressed confidence in the Duterte government.
I am sure they will be able to strike a balance between fast tracking projects and ensuring due diligence, he said.
http://www.philstar.com/business/201...nfra-proposals