Megawide unit rescinds PPP deal for upgrade of Orthopedic Hospital

MANILA, Philippines – A subsidiary of Megawide Construction Corp. has terminated its contract with the government for the modernization of the Philippine Orthopedic Center (POC) under the public-private partnership (PPP) scheme.

In a statement yesterday, Megawide World Citi Consortium Inc. (MWCCI) said it has annulled the contract for the project with the Department of Health (DOH).

A notice of termination of the build-operate-transfer agreement for the project has been served by the firm to the DOH.

“This is a decision driven by the two-year delay in awarding of the certificate of possession, among others, and not one that was made lightly,” MWCCI said.

The firm participated in the bidding for the project with the view that Filipinos deserve an efficient hospital facility to complement the care and service already shown by the staff of POC.

“Despite difficulties, it is a project that we continue to believe in. We continue to support the DOH and this administration in their vision for inclusive healthcare for all Filipinos,” MWCCI said.

MWCCI bagged the contract for the project in 2013.

The P8.69-billion project involves the construction of a 700-bed capacity super-specialty tertiary orthopedic hospital to be located within the National Kidney and Transplant Institute Compound along East Avenue, Quezon City.

Under the contract, the winning bidder will be responsible for the design, construction, financing as well as operations and maintenance of the facility until the end of the 25-year cooperation period.

Upon the end of the cooperation period, the hospital will then be handed over to the DOH.

The modernization of the POC is among the five projects won by Megawide under the PPP program.

The other PPP deals awarded to Megawide are the Mactan-Cebu International Airport Passenger Terminal Building; PPP for School Infrastructure Project (PSIP) – Phase I; PSIP -Phase II; and the Integrated Transport System — Southwest Terminal.

Recognizing the critical role of the private sector in national development, the PPP program was launched in 2010 to accelerate the country’s infrastructure development and achieve sustained economic growth.