MANILA, Philippines - The signing of the government’s first Public Private Partnership (PPP) project hit a roadblock due to issues concerning the title for the proposed P2.5 billion transportation hub in Parañaque City.
The signing of the concession agreement between the Department of Transportation and Communications (DOTC) and MWM Terminals led by Filipino-owned Megawide Construction Corp. last Wednesday was suddenly called off.
MWM Terminals president Oliver Tan said in a statement that the consortium is confident that the issues concerning the 4.59-hectare project site for the Integrated Transport System (ITS) – Southwest Terminal would be resolved soon paving the way for the signing of the 35-year concession agreement.
“These technicalities are inherent in infrastructure projects such as this. MWM Terminals shares the DOTC’s vision in improving critical infrastructure for nation building. We believe the DOTC will take the necessary steps to resolve the matter quickly and efficiently,” Tan said.
Last Jan. 23, the DOTC awarded the PPP project to MWM Terminals after it submitted an annual grantor payment (AGP) of P100 million edging Filinvest Land Inc. that offered an annual grantor payment of P650 million.
AGP are payments to be made by the government to the concessionaire and the lowest AGP the better for the government.
DOTC spokesperson Michael Arthur Sagcal said in a text message that the process for titling reclaimed land was tackled during the one-on-one meetings for the PPP project.
“Unfortunately, MWM Terminals was not present to make these clarifications then. We do not see a problem in expounding on the process at this point for MWM’s comfort,” Sagcal said.
According to Sagcal the project should not be delayed since it would mitigate traffic in the metropolis.
“We feel that this should not cause any further delays to the project since it will have a profound impact on managing traffic in Metro Manila, improving convenience for commuters, and instilling road discipline among public utility vehicles,” Sagcal said.
The proposed terminal in Paranaque City would connect passengers coming from Cavite to other urban transport systems such as the future Light Rail Transit line 1 (LRT) South Extension to Bacoor in Cavite, city bus, taxi, and other public utility vehicles plying Metro Manila.