A strange creature called PPP
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The flagship projects of Noynoy under the so-called private-public partnership (PPP) scheme have not started and yet controversy is already hounding those that have been lined for bidding.
The problem is basic. Noynoy’s administration has failed to define how to implement these projects such as what really is a PPP scheme.
Many are led to believe that the PPP is patterned after the build-operate-transfer (BOT) scheme that was conceptualized to reduce costs for government in putting up infrastructure projects. Now it appears that this is totally not the case.
Even Sen. Ralph Recto, a Noynoy ally and a former Socio-economic Planning secretary, appears astounded to learn that the PPP scheme for the pioneer projects involving the mass transit lines would involve the government paying an operator of the railways lines P15 billion.
The government forking out money for the projects makes it totally different from the way the PPP was being sold to the public.
At the same time, it raised new fears about big projects again being the source of huge kickbacks, similar to the immediate past.
One recalls the many independent power producers where a regime made a heck of a lot of money, by way of commissions, and having the Filipino pay for fuel that was not even used and for which we still have to pay, which explains our very high power bills.
Recto who appears to have gotten hold of a proposed deal for the operations of the Metro Rail Transit and the Light Rail Transit lines, which deal was yet unclear whether separately or in consolidation, said that aside from a P15 billion offer supposedly as management fee, the operator would get access to tax perks, cheap loans and options to raise fares.
With the way that the financial incentives were set up, it appears that a favored group is already in line for the project.
A few weeks ago, Noy’s economic managers were all in China trying to peddle the PPP projects, revealing how many of these projects are not getting the interest of investors.
Noynoy had mentioned something like P200 billion in projects just for this year under the PPP which rightly makes many inquisitive about how exactly the deals are served, given the fact that it is now clear that once again, it is not investors’ money that will be plowed in, but the government’s, which means the Filipino taxpayers again.
Apparently, this is what is the version of Noynoy’s daang matuwid na binaluktot.
As usual, something again smells of the stinking corruption.
To successfully sell these projects, Noynoy and his wards should have a full grasp of how exactly the partnership between the government and private firms will go.
Moreover, his administration should settle dangling ends of past controversial contracts involving the government, such as the still unresolved dispute over the construction of a new airport terminal.
Thus far, even the concept of the PPP remains unclear that again adds to the impish doubts about the huge costs of the projects.
Making the whole PPP concept blurry may even be deliberate to allow more rooms to maneuver for whatever ends.
Giving Noy the benefit of the doubt, however, the lack of a solid framework on the PPP scheme tempts the conclusion that even his administration does not know what the creature really is.
For his administration to anchor its economic program on the success of the scheme, it is scary to entertain the thought that Noynoy does not even have a complete grasp of how to undertake these projects.
PPP and hundreds of billions of pesos of projects undertaken through the scheme don’t sound impressive but it appears that the concept had gone the way of the “straight path” and “No corruption, no poverty” battlecries of Noynoy.
All soundbites, hollow inside.
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