Top conglomerates eye PPP projects

MANILA, Philippines - Several of the country’s top conglomerates have expressed renewed interest in the government-approved public-private partnership (PPP) projects.

These companies are just waiting for the terms of reference to gauge the viability of previously announced but amended PPP ventures and new projects being offered, executives said.

“We will bid if we think it’s viable,” Metro Pacific Investments Corp. (MPIC) chief finance officer David Nicol said in a text message.

Ramon S. Ang, president and chief operating of San Miguel Corp., said the diversified conglomerate will join PPP biddings.

For its part, the country’s oldest conglomerate Ayala Corp. (AC) remains open to bid for PPP ventures, said managing director and head of corporate strategy John Eric Francia.

Hans Sy, president of integrated property firm SM Prime Holdings Inc., said the group will review the PPP projects and will join at least one auction.

Late last week, the National Economic and Development Authority (NEDA) board chaired by President Aquino approved seven major infrastructure projects worth P184.2 billion, including revisions in the government’s PPP scheme.

For instance, the cost estimate for the Light Rail Transit Line 1 Cavite extension project was increased to P64.9 billion from P60 billion. The concession agreement for LRT1 was revised to address five major issues: real property tax, power rates, warranty on the structure, fare adjustments and the negative bid given a failed auction in August wherein only MPIC submitted its technical and financial proposal but without partner AC.

“We are looking at costing for the LRT Line 1 but like other bidders, we will form our own view of the likely final cost,” Nicol said.

The NEDA board also approved the sweetened concession agreement for the P17.5-billion Mactan Cebu International Airport.

Pre-qualified firms expressed their commitment to participate in the auction.

“It’s Mactan that we’ve been waiting for. Mactan is the one I am really after,” Sy said.

MPIC is also bidding for the airport project, Nicol said.

Megawide Construction Corp. will definitely join the bidding, said Louie Ferrer, the company’s vice-president for marketing and corporate information officer.

Other projects approved by the NEDA board are the P62.7-billion Metro Rail Transit 7; the P24.4-billion Bulacan Bulk Water Supply Project of the Metropolitan Water and Sewerage System; the P5.6-billion Department of Health Modernization of the Philippine Orthopedic Center, the P1.4-billion MRT-LRT common station; and new projects like the P7.7-billion development of transportation system at Food Terminal Inc. and Philippine Reclamation Authority.