MANILA, Philippines - The Department of Finance (DOF) is keeping a close watch on all infrastructure projects under the government’s public-private partnership program.
This is to ensure that no project would unnecessarily add to the government’s contingent liabilities, Finance Undersecretary John Sevilla said in a recent interview.
He said the Finance department is actively involved in planning PPP projects to ensure that the projects do not become costly to the government in the long run.
If not, he said, such projects would “put pressure” on contingent liabilities.
“Every PPP project has a liability impact,” Sevilla said.
Sevilla said the Finance department is particularly looking at two PPP projects to ensure that these would not unduly burden state coffers.
“We are actively involved in the drafting of the contracts,” he said.
These are the $1.4-billion LRT Line 1 Cavite Extension and Operations & Management contract as well as the $377.5-million Ninoy Aquino Expressway Phase II road project.
The two projects are among PPP projects which the government has targeted to roll out this year.
The government’s PPP Center is preparing to bid out the LRT Line 1 project next year and is currently preparing to roll out the Ninoy Aquino Expressway Phase II road project.
So far, the government was able to bid out the Daang Hari Project and the $239-million PPP For School Infrastructure Project Phase I.
In 2010, the Aquino administration launched its PPP program as its flagship project for infrastructure investments, saying that this would help spur economic growth without burdening the fiscal health that much.