THE DEPARTMENT of Transportation (DOTr) is seeking investors to take part in public-private partnership (PPP) projects. We hope these investors can be found.
The PPP concept has received much support, especially since 2010 when the Aquino administration recognized its potential contribution to infrastructural development.
I believe that PPP may enjoy more success if government agencies are proactive in recognizing the value of private sector entities in producing viable PPP projects. We see potential projects in which the costs are identified with precision, but where their benefits are less apparent. It is true that they are described but in order to make good decisions we need to make a rigorous assessment that can be adequately defended against detractors. In other words, the benefits need to be adequately quantified.
An example is DOTr’s aim to privatize at least ten regional airports. The background to the current position in DOTr’s failure to obtain budgetary approval of its plans. It had proposed a budget of P28.3 billion to fund the construction and upgrade of 50 airports nationwide.
I expect many government departments make budgetary claims knowingly in excess of what they are likely to receive. Unfortunately, DOTr has only received P2.49 billion for its 2023 aviation development projects. This, of course, means that it receives less than 10 percent of its claim.
The next step is for Transportation Secretary Jaime Bautista to negotiate with the private sector to assess the viability of possible regional airport projects. I hope the negotiations are fruitful. What is needed is for both the public and private sectors to discuss the projects in detail and to realistically quantify the benefits.
Do we need a longer runway? Do we require better facilities in the airport terminal, or can we make do with a somewhat spartan environment for waiting passengers? Will an upgraded airport attract airlines to provide direct international flights?
We also need input from other government departments such as the Department of Tourism (DOT) to help in the process of determining priorities? DOTr has mentioned three international airports, namely Bohol-Panglao, Laguindingan, and Bicol for modernization. Will DOT be able to facilitate these projects to help ensure viability?
It is worth mentioning that over 90 percent of the population has never made a journey by air.
Is this vast majority being fairly treated when DOTr’s meager budgetary claim of P800 million for new seaports was peremptorily rejected?/PN
