PPP to resolve Philippines Orthopedic Center modernization issue

MANILA, Philippines – The Public-Private Partnership (PPP) Center is set to give this week a memo to President Aquino and the economic managers on remedies available to the government following the termination of the deal that seeks to modernize the Philippine Orthopedic Center (POC). 

“The PPP Center is preparing a memo to the President and economic managers regarding the process, remedies and consequences under the contract,” PPP Center executive director Cosette Canilao said in a text message. 

She said the memo would be given to the President on Monday. 

“It’s up to the DOH (Department of Health) how to move this forward,” she said. 

Earlier, Megawide World Citi Consortium, Inc. (MWCCI) which bagged the PPP deal covering the modernization of the POC terminated the contract for the project because of delays.

“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 also cited other issues which negatively affected the project such as the displacement of current POC employees; the implementation of the Philippine Health Insurance Corp.’s new case rates policy in mid-2014; and the difficulty or delay in appointing the independent consultant.

The Build-Operate-Transfer Agreement for the project was signed in March last year. 

The project covers the plan, design, construction as well as operation of a 700-bed specialty orthopedic hospital inside the National Kidney and Transplant Institute in Quezon City during the 25-year cooperation period. 

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

MWCCI is a subsidiary of Megawide Construction Corp. which won other PPP projects such as 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.

Despite the decision to terminate the contract for the modernization of the POC, Megawide looks forward to other PPP deals the DOH will offer. 

The PPP program, launched in 2010 is meant to address the country’s infrastructure needs and promote sustainable economic growth.