IN 2010, the incoming Aquino administration introduced the concept of public-private partnerships. The idea is that the private sector would boost financing for infrastructure projects. This has merit, but to be successful I believe that it is necessary to have an articulate dialogue between the public and private sectors. We need debate, preferably in public, in which ideas can be exchanged. A static process, in which a project is conceived by government instrumentalities, and which is then thrown out to the private sector, is less likely to come to fruition.
A local example, put forward by the government side a few years ago, consisted of a P20.26 billion project to enhance Bacolod-Silay airport. As far as I know the private sector was not enthused by the project as defined. What is necessary is for agreement to be reached between the public and private sectors as to what is required.
In the case of a provincial airport, for example, we do not need a prestigious building with upmarket emporia. The provincial airport is not a hub. It is a facility in which passengers either start or complete their journey. They do not spend much time in the airport. In fact, passengers now have efficient on-line communications with airlines so that they can time their arrival at the airport at or near the scheduled departure time of the aircraft.
What, therefore, does Bacolod-Silay airport need? Under current conditions and more particularly in post-pandemic circumstances, all that is required, possibly, is a longer runway so that eventually more substantial aircraft may take advantage of the facility.
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Potentially suitable projects are coursed through the Public-Private Partnership (PPP) Center. As of April 2021, it is reported that 63 PPP projects worth P7.25 trillion are in the pipeline.
I believe it would be helpful if these projects were publicized. Approximately half of these projects are in the transportation sector: airports, roads, railways, and ports. A national conversation would ensue if the projects were exposed to public scrutiny. Priorities could be established.
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Lockdowns are inconvenient for all and irksome for many. But lives are saved from the resulting avoidance of contracting COVID-19.
Another consequence from quarantine protocols is that many have less opportunity to spend. Some, on fixed incomes, are finding that savings are an unexpected benefit.
For example, Pag-IBIG Fund members collectively saved P10.67 billion under the agency’s voluntary Modified Pag-IBIG 2 Savings program in January-May of this year. This is a record high.
Is it possible for government bonds to be issued in order to attract savers to invest in PPP projects?
We hope so./PN
