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PPP projects generate foreign investor interest in Philippines
Publication Date : 18-09-2012
Key infrastructure projects being pushed by the government under its Public-Private Partnership (PPP) programme have elicited significant interest from several foreign corporate investors.
This was disclosed by PPP centre executive director Cosette Canilao, who said a number of Chinese, British and Japanese companies have bought prequalification documents with the aim of participating in the bidding for two key projects—the LRT Line 1 Cavite Extension project and the Naia Expressway Phase II project.
For the LRT Line 1 project, 33 firms bought prequalification documents from PPP centre, Canilao said. For the Naia Expressway Phase II project, she said there were 17 companies that bought prequalification documents.
“There were several investors who have signified interest to participate in the bidding for the projects, although we expect consolidation or the forming of groups [among those that bought prequalification documents] in time for the bidding,” Canilao said in a press briefing by economic officials of the current administration yesterday.
“Interest in PPP projects has significantly increased even among foreigners. There were several Japanese companies, one or two Chinese firms, and several European companies,” Canilao added.
Under the PPP programme, the government invites private enterprises to invest in public infrastructure. The objective is to help meet the country’s need for infrastructure development even as the government continues to suffer from a budget deficit.
The LRT Line 1 project calls for the extension of the mass transport system to the south of Metro Manila, particularly from the Baclaran to Bacoor in Cavite. The project likewise entails the enhancement of its operation and management.
The Naia Expressway Phase II project calls for the construction of an elevated expressway starting at the existing Skyway toward the existing Naia terminals.
The LRT Line 1 project is estimated to cost US$1.4 billion while the Naia Expressway project will be worth $377.6 million. The government targets to bid out the two projects, plus six more PPP projects before the end of the year.