DOTr considers PPP for projects with limited funding

MANILA: The Department of Transportation (DOTr) is turning to the private sector to support the completion of transport infrastructure projects that require additional funds through the Public-Private Partnership (PPP) scheme.

DOTr Secretary Jaime Bautista stated during the general meeting of the American Chamber of Commerce of the Philippines (AMCHAM) on Wednesday that recent changes made to the Build-Operate-Transfer (BOT) law's implementing rules and regulations (IRR) give “balanced sharing between the government and private sector.”

“We are therefore actively pursuing the PPP scheme to overcome financial challenges for these vital transport projects,” Bautista said.

These projects include the privatization of the Epifanio Delos Santos Avenue (EDSA) Busway, a network of seaports, 10 provincial airports, and the Cebu Bus Rapid Transit.

Bautista voiced confidence, noting that recent legislative changes ensure “PPP will not be disadvantageous to Filipinos.”

“[These projects will> increase Filipinos’ efficiency and productivity by providing safe, affordable, convenient, and accessible transport,” Bautista stated.

According to him, the PPP scheme offers private sector partners “reasonable rates” of return on investments, incentives, support, and undertakings.

Bautista cited San Miguel Corporation, a private partner in the Metro Rail Transit Line 7 and the New Manila Airport in Bulacan.

He said that the involvement of AMCHAM members in DOTr transport projects would help strengthen bilateral ties between the Philippines and the United States.

He also extended an invitation to the Swiss Chamber of Commerce of the Philippines to invest in the country's major infrastructure and transport projects.

Previously, Bautista stated that the Marcos administration is looking into PPPs to help reduce financing for a number of large-scale projects in order to rebalance cash flow following large expenditures related to the COVID-19 pandemic.

Photo from Philippine News Agency

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