The Aquino administration recently announced its strategy in spurring growth and investment in the country. The national government will spend more than P180 billion ($4.15 billion) for infrastructure projects, 25.6 percent higher than the 2011 allocation.
All the infrastructure projects are collectively referred to as Public Private Partnerships (PPPs). According to the PPP website, a PPP is a contractual arrangement between the government and the private sector to deliver public infrastructure and public services.
This year, the government is targeting 10 to 12 PPP projects. Some of the major PPP projects are the P6.3 billion Metro Rail Transit Line 3, the P7.7 billion Light Railway Transit Line 1, the P1.6 billion Daang Hari-South Luzon Expressway link road, the P10.6 billion Ninoy Aquino International Airport Expressway Phase 2, and the P21 billion North Luzon Expressway-South Luzon Expressway connector road.
Infrastructure expenditures will increase the country’s GDP. It will improve investor sentiments and it will create more jobs in this struggling economy. Private corporations will become more efficient and more companies will play be able to partner with the government in improving society.
We, however, think that labelling the PPP projects as a God-sent idea is a shallow public relations (PR) attempt. For years now, even before Aquino’s administration, many roads have already been built through PPPs. Partnering with private corporations makes the government look more efficient, but in reality, some government officials use PPPs to buffer their corruption attempts.
The PPP initiative, as ideal as it may seem, is not immune to corruption. Considering the amount of money on hand, the government should monitor PPP allocations as overbudgeting and underspending are two words that always go together. Corporations also honor this duality; the government should ensure that corporations are not “too efficient” and they stick to the contract’s stipulations. Moreover, the administration should look into the bidding processes to make sure that the Filiponos get the best value for their taxes.
The government needs to look at the projects and consider them based on inclusive growth. Citizens fund these projects; hence, they should benefit from them. Many of the projects such as the LRT expansion will only benefit specific residents. In other words, the government should ensure that all Filipinos, if not majority of them, will benefit from the PPPs.
The administration needs to focus more on the feasibility and integrity of PPP projects. The government also needs to learn to honor its own word. It needs to secure the interest of the investors that will spend on PPP projects. Payments must be made on time and delays should be unacceptable since news about PPP projects travels fast, lest we want investors to bring their money somewhere else.
The lack of infrastructure projects in the country have long been a national issue.Let us just hope that private corporations will be able to check and balance the powers of the government in such projects, and not tolerate the whims and caprices of officials in power.