The Transportation Department abandoned the auctions for the P108.2-billion contracts to develop, operate and maintain five regional airports under the public-private partnership scheme.
“We received confirmation that the procurement of the much-anticipated Regional Airport PPP Projects [Development, Operations and Maintenance of New Bohol (Panglao), Davao, Iloilo, Laguindingan and Bacolod Airports] has been terminated,” the PPP Center said in a statement.
The PPP Center said the implementing agencies”•the Transportation Department and the Civil Aviation Authority of the Philippines “• decided that the projects would be implemented through other modes.
The Regional Airport PPP Projects were originally approved under a bundled PPP structure by the Investment Coordination Committee and the National Economic and Development Authority board.
The Neda board approved the unbundling of the five airport projects in November 2016.
The five provincial airports in the PPP are the P20.26-billion Bacolod-Silay International Airport, the P30.4-billion Iloilo International Airport, the P14.62-billion Laguindingan Airport, P2.34-billion New Bohol (Panglao) Airport and P40.57-billion Davao International Airport.
The Transportation Department earlier pre-qualified Maya Consortium led by Aboitiz Equity Ventures, Philippine Airports Consortium of Metro Pacific Investments Corp., San Miguel Holdings Corp.-IIAC Airport Consortium, GMR-Megawide Consortium and Filinvest-JATCO-Sojitz Consortium for the projects.
“While the PPP Center believes in the credibility of these airport projects structured as PPP, and gratefully acknowledges the solid interest of the private sector, we respect DOTr’s and CAAP’s authority and their decision to terminate the projects,” the agency said.
The PPP Center said despite the latest development, it remained ready and committed to support government agencies in their infrastructure and development projects.
“The critical foundations of the PPP program have been laid down, and the institutions, both in the public and private sectors, are ready to deliver,” it said.
The agency said the effectiveness of the PPP program was shown by the awarded PPP projects that were now benefitting countless Filipinos such as the Mactan Cebu International Airport Passenger Terminal Building, Naia Expressway, PPP for School Infrastructure Project and the Automated Fare Collection System or Beep Card.
“It is clear that PPPs remain as a viable option in the procurement of infrastructure projects, especially those that require an integrated approach [i.e. design-build-operate-maintain] in order to save on procurement timing, reduce interface risks, and avail of private sector’s technology and efficiency,” the PPP Center said.
The PPP Center, as the main driver of the PPP program, said it continued to collaborate with government agencies and the private sector to fulfill the country’s infrastructure requirements, significantly contribute to the government’s “Build-Build-Build” program and deliver much-needed public services.