Government to allow firms to impose fees on PPP infra projects

MANILA, Philippines - The Aquino administration will allow the private sector to earn from their investments in infrastructure projects under the public-private partnership (PPP) scheme by letting them slap user and regulatory fees, Socioeconomic Planning Secretary Cayetano Paderanga Jr. said.

This way, he said, the private investors can earn from their investments in the PPP projects.

“The government, for its part, will provide investors with protection against regulatory risks. On the other hand, the private sector shall commit to the completion of the PPP infrastructure project and be allowed to earn from their investments through user and other fees,” Paderanga said.

Paderanga, assured, however, that details of the projects including the fees would be carefully evaluated.

“The government’s PPP program will focus on transparency in transactions, utmost accountability in commitments, and a level playing field,” he said.

He also said that an integral part of the PPP program is the launch of the PPP center, which is an attached agency of the National Economic and Development Authority (NEDA).

“The PPP Center, which is an attached agency of NEDA, has facilitative functions that include appraising the PPP potential of the project at pre-feasibility study stage and providing advisory and technical assistance and facilitation in all stages of the PPP life cycle,” he said.

The PPP Center would also be in charged of monitoring and evaluating the development, approval and implementation of the PPP program, particularly facilitating resolution of PPP-related policy and project concerns.

Furthermore, the center would effectively integrate PPP in the planning, programming and budgeting processes and policymaking.

This way, he said the government could realistically plan and provide resources for projects where the private sector’s participation may be maximized.

On Monday, the government launched the first five infrastructure projects under the PPP scheme.

The five projects are the P1.6-billion Daang Hari-South Luzon Expressway (SLEX) Link Road Project; the P10.59-billion Ninoy Aquino International Airport (NAIA) Expressway Phase II Project; the P7.7-billion Privatization of the Light Rail Transit (LRT) 1 Operation and Maintenance Project; the P6.3-billion Privatization of MRT 3 Operation and Maintenance Project and the ambitious P21-billion NLEX-SLEX Connector Project.