MANILA, Philippines - The Aquino administration is luring Chinese investors to its public-private partnership program (PPP) for infrastructure through a four-day roadshow in Beijing and Shanghai.
Finance Secretary Cesar Purisima led the four-day road show which started on Monday and will end on Thursday, April 14.
“We want to encourage our Chinese investors to put their money in the Philippines and invest in our infrastructure projects. We want to deliver the message that the Aquino administration is committed to transparent negotiations with them unlike before when dealings have been veiled in backroom exercises,” Purisima said.
A number of Chinese investors have already shown interest in bidding for the first five PPP projects announced by the government last month, specifically for contracts for the operation and maintenance for the Light Rail Transit line 1 and Metro Rail Transit 3, Purisima said.
According to the program, the Philippine delegation is expected to hold meetings with the China Contractors Association, power provider State Grid of China Corp. and China Railway Engineering, among others.
The delegation will also pay a courtesy call to China Vice Premier Wang Qishan in a bid to boost our bilateral relations with China, now the second largest economy in the world.
Other members of the delegation are Secretaries Rogelio Singson and Gregory Domingo of the Public Works and Trade departments, Transportation Undersecretary Ruben Reinoso Jr., Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr., BSP Investor Relations Executive Director Claro Fernandez and PPP Center Executive Director Philamer Torio.
The PPP, considered as the Aquino administration’s centerpiece economic program, aims to tap private sector participation in 80 large-scale infrastructure projects worth P740 billion that will be undertaken from 2011 and beyond.
Under the PPP scheme, the government would be tapping the help of the private sector to fund the different projects.
The five initial 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 Metro Rail Transit (MRT) 3 Operation and Maintenance Project and the ambitious P21-billion NLEX-SLEX Connector Project.
The P1.6-billion Daang Hari - Slex Link Road Project is a new 3.68-kilometer, four lane road that will pass through the New Bilibid Prison. It will connect Bacoor, Cavite to the South Luzon Expressway near the Susana Heights area.
According to DOF data, the proposed linkage will complement the Cavite-Laguna-east-west highway and will address the requirement for additional access between Metro Manila and Cavite where rapid urbanization and consequent worsening of traffic situation is being experienced.
The P10.59-billion NAIA Expressway Phase II Project involves the construction of the Skyway and Manila-Cavite Coastal Expressway. It aims to provide vital access to NAIA Terminals 1, 2 and 3.
The P7.7-billion privatization of LRT 1 operation and maintenance, meanwhile, aims to integrate LRT-1 operation and maintenance to a private sector service provider during the interim period of three to four years. After this, the LRT Line 1 South Extension Project contractor is expected to assume overall responsibility for the integrated LRT Line 1 and MRT Line 3 systems.
A similar project is the P6.3-billion privatization of MRT 3. This project aims to integrate MRT Line 3 operation and maintenance to a private sector service provider during the interim period of three to four years.
Of the five projects in the initial list, the one with the highest cost is the NLEX-SLEX Connector which amounts to P21 billion.
The project involves the construction of a 13.4- kilometer, four lane elevated expressed way over the Philippine National Railway right-of-way which will run from Caloocan to Makati.
“The project, which is elevated over PNR right-of-way, aims to close the gap and complete the north-south Luzon industrial beltway transport axis by connecting NLEX and SLEX. The project will contribute to decongest Metro Manila traffic, particularly EDSA,” a briefer of the project showed.
The project also aims to provide 24-hour access to Manila ports by providing faster, safer and comfortable means of transport facility.