IN 2010, the incoming administration put great faith in the public-private partnership (PPP) concept as a vehicle for improving infrastructure and engendering growth.
It was not successful.
Why not?
I believe that a significant factor was the lack of a full and frank dialogue between the public and private sectors. The public sector seemed to be nervous that the private sector would manipulate projects so that vast profits would be made. The private sector believed that the public sector made onerous demands which caused the potential project to be unviable.
An example of a proposed PPP project was at Bacolod-Silay airport which required an investment of P20.26 billion. It was not at all clear how this investment would be recouped. In fact, the government representatives made it clear that revenue-making activities, such as airport fees would always be under their control. It is unsurprising, therefore, that the project, first proposed in 2013, has never been implemented.
What does the airport need? It needs a longer runway so that larger aircraft can come.
What else?
Not much. Bacolod-Silay is a provincial airport and does not need high-end emporia, restaurants, bars, etc. With improved electronic communications between customers and airlines, the passengers can arrive at the required time, board the plane and go. Passengers do not need or want luxurious airport lounges etc.
A longer runway is expensive but does not need P20 billion.
We need better communications between the public and private sector representatives if the PPP scheme is to be viable.
PPP projects are still being sought but they need to be properly thought out.
For example, the Cavite government has submitted an offer to build a P508-billion airport on reclaimed land at Sangley Point. This is another potential PPP project which will be a joint venture between investors and the Cavite local government unit. The project would need to secure clearance from the Civil Aviation Authority and the Manila International Airport Authority to coordinate flights between the two air hubs.
Once again we have a potential projects whose costs are quantified. But it remains debatable as to whether the project is viable. The benefits need to be quantified as well.
As far as airport developments are concerned, I believe there should be more emphasis on making provincial airports capable of attracting non-stop international flights. This would provide a much-needed boost to our tourist industry.
***
Locally, it is good to hear the Mayor-elect Jerry Treñas has considered the PPP concept for a much-needed upgrade to Iloilo City’s slaughterhouse and public markets. There is recognition that there are aspects which can be better run by the private sector.
Successful PPP projects need good communications between the public and private sectors. So it is gratifying that there are consultative meetings organized by the Philippine Chamber of Commerce and Industry-Iloilo Chapter.
Viable projects can then be identified and implemented.
We hope they will be successful for all concerned./PN
