Alvarez urges DOTr on latest PPP bid: Back to the drawing board

Rep. Pantaleon “Bebot” Alvarez. INQUIRER FILE PHOTO / RICHARD A. REYES

Back to the drawing board.

This was the call of Speaker Pantaleon Alvarez to the Department of Transportation (DOTr) about the roll-out of this administration’s first public-private partnership project (PPP) — a P108-billion auction for the modernization and operation of five regional airports.

READ: Duterte administration rolls out first PPP project

Alvarez attended the House transportation committee hearing Wednesday to scold Transportation Undersecretaries Bobby Lim and Raoul Creencia supposedly for their business interests.

When the latest PPP auction ad came out on the regional airports development, Alvarez questioned the 30- to 35-year period for the winning bidder in the operation and maintenance of the airport development.

Alvarez was incredulous that the airport improvements would take that long when the contract for the Ninoy Aquino International Airport (Naia) Terminal 3 which was built from “ground zero” only provided a 25-year period.

“Imagine, 30 to 35 years only for improvement investment? Glaring masyado ‘yan. At the most, sa built-operate-transfer contracts at the most 25 years ang average. Kita mo agad ang kalokohan,” said Alvarez, who served as Transportation secretary during the Arroyo administration.

Alvarez made the statement as the Duterte administration is offering the Bacolod-Silay, Davao, Iloilo, Laguindingan and New Bohol (Panglao) airports for bid to private sector investors, but on an individual basis.

This unbundling meant that the bidders would make a separate offer for each airport, unlike during the previous administration when the five airports were grouped into two separate packages.

The bidding for the airport improvement in the previous administration was postponed because it came too close to the May 2016 elections.

Lim, the Undersecretary for Air Operations, told Alvarez that the 30-year period was a result of technical studies based on the capital expenditure required to fix the airports, as well as the rate of return of investors.

Lim said the decision was retained based on the agreement during the previous administration.

To which Alvarez retorted incredulously: “Naniniwala ka sa wisdom ng previous administration, that they were doing the right thing, personally?”

Alvarez advised the department to hold off its advertisement of the auction, especially as he plans to file a bill to make the Civil Aviation Authority of the Philippines (CAAP) into a purely regulatory body.

He said the bill seeks to strip CAAP of its powers to develop and operate airports, and to merge all airport authorities into one airport corporation to be the sole developer and operator of the country’s air gateways.

Alvarez said the auction for the airport development should also consider the capacity of the runways if it could last 30 to 35 years.

The Speaker warned the department of trapping government in a contract that would not be advantageous to the state.

“Tinatalo mo lang yung gobyerno sa kontrata,” Alvarez said.

Alvarez urged the department to “go back to the drawing board” if it does not want to face a slew of cases pertaining to the latest PPP project.

“I would suggest, go back to the drawing board. Pag-isipan niyong mabuti, para hindi magpatong-patong kaso niyo,” Alvarez said.

During the hearing, Alvarez also scored Lim and Undersecretary for Legal Affairs Creencia for protecting business interests in the recent deal that sealed the Metro Rail Transit (MRT) common station, which was placed near Trinoma allegedly to favor business interests.

He had earlier called for their resignation over conflicts of interest. JE

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