Philippines approves three PPPs worth $3.2bn

Three new approvals have brought the number of projects in the country to 17, and one of the latest will be worth a groundbreaking PhP123bn.

The Philippines approved three public-private partnership (PPP) projects last week, collectively worth PhP140 billion (€2.3 billion; $3.2 billion), which the government hopes will further strengthen its track record in transportation infrastructure and air traffic development.

The projects include: the Laguna-Lakeshore Expressway Dike Project; the Laguindingan Airport Development Operations and Maintenance Project; and the New Bohol Airport Development Operations and Maintenance Project. The implementing agencies are respectively: the Department of Public Works and Highways (DPWH); the Laguna Lake Development Authority (LLDA); and the Department of Transportation and Communications (DOTC).

The Laguna-Lakeshore Expressway Dike Project, worth PhP122.8 billion, is raising much interest from the industry, not only being the most expensive of all Aquino administration PPP projects to date, but also the first one involving such extensive offshore road works in the Philippines.

Aimed at lessening traffic and flooding within the highly commercially and industrially developed south Manila Laguna Lake periphery, it involves a 47-kilometre (km) flood control system supporting a high-speed six-lane expressway, running offshore and entailing up to 700 hectares of land reclamation. Works are deemed to last seven years and the concession 30 years. According to local press, the ambitious project has already produced interest from Metro Pacific Tollways Corp., Ayala Corp., and AlloyMTD.

The Lagunindingan Airport project, worth PhP14.62 billion, covers all operation and maintenance of existing facilities, expansion or construction of new terminals, enhancement of airside facilities, and equipment installations required by international standards. The Laguindingan airport is expected to open northern Mindanao, most southern of the principal islands, to tourism.

The Bohol airport project, costing PhP2.34 billion, entails a 30-year concession for the operation and maintenance of the airport, as well as the provision of additional facilities and other necessary improvements to enhance passenger safety, security, access, passenger and cargo movement efficiency, and operational efficiency. According to a note by the PPP Center, the coordinating and monitoring agency of the Philippine PPP Programme, these works are to prelude airport expansion.