8 PPP projects billed as key to faster growth

MANILA, Philippines - The Philippine economy could grow by an additional two percentage points this year if the government is able to bid out all eight infrastructure projects under its public-private partnership (PPP) program, a Finance official said.

Given these estimates, Finance Undersecretary Gil Beltran said the Philippine economy has the potential to grow by seven to eight percent this year from the official target range of five percent to six percent if the PPP projects are rolled out as planned.

However, Beltran noted that state spending has been improving.

At the same time, he said that spending would improve further if the PPP projects planned for the year would be bid out.

Latest data from the Department of Budget and Management showed that total disbursements amounted to P668.431 billion from January to May, 13.1 percent higher than comparable disbursements in 2011.

“The GDP can have additional two percentage points if all the planned PPP projects are rolled out this year,” Beltran said.

Among the PPP projects set to be rolled out this year is the P15.77-billion Ninoy Aquino International Airport Expressway project which has a total length of 9.37 kilometers and is expected to ease traffic going to and from the Manila International Airport at the NAIA complex.

Furthermore, it will also provide direct links to passenger terminals 1 and 2, including the International Cargo Terminal.

The DPWH project will be implemented under the Build-Operate-Transfer law and its implementing rules using the Build Transfer and Operate (BTO) contractual arrangement.

With the NAIA Expressway Project up for bidding, PPP Center executive director Cosette Canilao said the government is on track to hitting its target to bid out eight PPP projects this year.

“We are seeing projects being rolled out. We are confident that we will hit our target of eight projects for 2012,” Canilao earlier said.

The Aquino administration launched its much-touted PPP project in 2010.

Under the program, the government would partner with the private sector to put up key infrastructure projects in the country.