[ad_1]
Prinz Magtulis (Philstar.com) – January 12, 2021 – 4:01 pm
MANILA, Philippines – Apparently fed up with unenforceable private sector plans, the finance chief said the state is ready to modernize the Ninoy Aquino International Airport (NAIA) if investors offer to do so and do not meet the government’s demands.
Finance Secretary Carlos Domínguez III raised the idea and expressed his dismay to private investors who tried but failed – or even withdrew – from the long-anticipated and delayed project to decongest one of the world’s worst airports.
“We are telling the private sector to make up its mind because if not, NAIA will do it for itself,” Dominguez told entrepreneurs at the Philippine Management Association conference on Tuesday.
“It may not be as good as the private sector (proposal), but their plans cannot be implemented anyway, so what is the point of discussing that? NAIA is ready to do it, “he added.
Under Duterte’s management, NAIA’s rehabilitation was anticipated to accelerate and initially garnered interest from a consortium of six conglomerates, including Ayala Group and Aboitiz Group. However, in the end, the consortium withdrew from the project last year after the administration rejected a review of its plans that was intended to make the NAIA financially viable while pandemic travel restrictions are in effect.
Then a new bidder, Megawide Construction Corp., submitted a proposal, but the Manila International Airport Authority, which offers the NAIA renovation as a project, withdrew the company’s commitment at the insistence of Domínguez and the acting secretary of socio-economic planning Karl. Kendrick Chua. Both believed that Megawide did not have the financial capacity to mount the P109 billion project, something the firm, backed by Indian investors, objected.
“The only thing they’ve seen so far is that they have capital, but we haven’t really seen it,” Domínguez said.
Currently, MIAA is evaluating other proposals for the NAIA Project from Philippine Airport Ground Support Solutions Inc. and San Miguel Corp.
Domínguez himself had insisted on not giving in easily to the demands of private investors in projects at the expense of the government, including guarantees that translate into contingent and tax-paid debts. This is a big reason why he and the rest of President Rodrigo Duterte’s economic managers had previously rejected public-private partnerships (PPPs) as the primary mode of infrastructure development.
Contingent liabilities under review
It was also this position that prompted him to support Duterte’s unilateral cancellation of the water contracts in Metro Manila, allegedly over “onerous” provisions that put the public at a disadvantage. Since then, a new contract had been drawn up and is currently being negotiated between the government and the water companies, Manila Water Company Inc. and Maynilad Water Services Inc.
This aloof attitude toward PPPs eased somewhat in recent years after delays affected government-initiated and funded projects, including loans from foreign donors. The pandemic added to the implementation problems, but despite that, Domínguez continues to give in entirely to paying more to private investors, even if it means getting the projects off the ground.
“You want us to bend every time, we won’t. This administration is not going to do it, ”he reiterated.
In fact, Domínguez even went one step further, saying that he had ordered a reassessment of all existing contingent liabilities of the government, including those of PPPs and state pension funds. The finance agency oversees government owned and controlled corporations, including the Social Security System and the Government Services Insurance System.
“We want to give the public a good view of what our real responsibilities are so that our decision making is based on facts. That too (will be done) with APPs. I don’t know how much (the liabilities are there) but they are quite huge, ”he said.
[ad_2]
