I’m very optimistic about the success of President Rodrigo Roa Duterte’s infrastructure program. In addition to the aggressive stance of the Department of Public Works and Highways (DPWH) and the Department of Transportation, private groups are coming up with their own ideas and submitting these for government approval.
Private-sector participants in government-initiated projects, such as those under the Public-Private Partnership (PPP) program rely only on what the government decides, but unsolicited proposals rely on the creativity of the private sector.
Many unsolicited proposals are coming out, which are all good, and because financing will come from the private sector, we can expect that many of these will be realized. The private proponents crafted the projects, so it’s reasonable to expect that they would work hard to make it successful.
The first unsolicited proposal under the Duterte administration, which was submitted on July 5, 2016, was for the construction and operation of a nine-kilometer, 11-station elevated light rail transit line that would run from Diliman in Quezon City to Lerma Street in Manila.
The proposal of East West Rail Corp. and Alloy MTD Group, which includes a 30-year concession, is now undergoing review by the technical working group of the Investment Coordination Committee for review.
I know for a fact that all big groups now are furiously preparing feasibility studies for their projects. Some have already submitted unsolicited proposals, including the following:
A partnership between AC Infrastructure Holdings Corp., the infrastructure arm of Ayala Corp., and SM Investments Corp. submitted to the DPWH last March 31 a P25-billion proposal to design, finance and build an 8.6-kilometer elevated toll road from Sta. Mesa in Manila to the Mall of Asia in Pasay.
The project includes the operation and maintenance of the toll road for 35 years.
San Miguel Corp. (SMC) has submitted to the Department of Transportation a plan to build a new airport in Bulacan province. The project, which is estimated to cost P700 billion, will be built and financed by SMC without any guaranty or subsidy from the government. The proposed airport, which will initially have four runways (against the single runway of the Ninoy Aquino International Airport), can serve 100 million passengers a year.
Metro Pacific Investments Corp. (MPIC), the local investment arm of the Hong Kong-based First Pacific Group, is conducting a feasibility study for a six-kilometer expressway that will link the Manila-Cavite Expressway (Cavitex), which is also operated by MPIC, to Sangley Point in Cavite.
All-Asia Resources and Reclamation Corp., a consortium led by tycoon Henry Sy and the Tieng family, proposes to build an international airport, seaport, economic zone and real estate components in Sangley Point. The airport component of the P1.3-trillion project will have a capacity of 90 million passengers a year and may start operating in as early as five years.
Based on these developments, I think that by next year we will be seeing a flurry of projects being started – from north to south.
Unsolicited proposals are a big thing, and these might end up as the best infrastructure policy that the government has ever done. Private groups are more eager in submitting their own projects now because of the Duterte administration’s welcoming attitude toward unsolicited proposals, which was in contrast to the unenthusiastic attitude of the previous administration.
Together, the government-initiated projects and the unsolicited undertakings by the private sector should help the Philippines to score big in the field of infrastructure.
When completed, these projects will also cement the upward trajectory of the economy and sustain fast-paced growth.
(For comments/feedback e-mail to: mbv.secretariat@gmail.com or visit www.mannyvillar.com.ph)
2 comments
very good read.
Please fasttrak the construction of the new International airport in Bulacan and the C6 road (Bulacan,Rizal,Metro Manila,Laguna Cavite expressway) and please fix portion of Marcos Hi way damaged by the previous typhoon going to Infanta, Quezon. This will truly expand and decongest Metro Manila. More infrastructure program should be implemented in Rizal, Bulacan and Infanta, Quezon. Where there are more available lands for development. While Laguna and Cavite has already high concentration of infrastructure program in place. The government should develop an International seaport in Infanta to decongest port of Manila and a cargo railway from Infanta to Metro Manila to deliver container vans coming from the port of Infanta. LRT Line 2 can be extended upto infanta, Quezon along with an expressway from Metro Manila to Infanta Quezon.