New Albay Airport Benefits from PPP Initiative

Partial view of the current tarmac and airport terminal building of Daraga airport. It is being relocated on a new site far from the effects of Mayon

The new airport in Daraga town of Albay, otherwise referred to as the southern Luzon international airport, is Bicol’s share in the PPP project being initiated by the PH government. Funding for its construction and completion will be sourced thru the new initiative.

The national government and its intrumentalities, departments or officers are strongly-pushing and pursuing the PPP projects to the max.

Looking at the projects now on the drawing tables of their mindset, we made a listing and summary for easy reference.

The government will be wholly responsible for the civil works of at least five of these projects, which will be turned over to a private sector concessionaire for operation and maintenance (O&M):

* the $170-million expansion of the Light Rail Transit (LRT) Line 1, to be turned over to a concessionaire at market prices;

    * the $140-million expansion and privatization of the Metro Rail Transit-3 under a scheme similar to the LRT-1 deal;
    * the $700-million LRT-1 South extension, where O&M will be worth $800 million;
    * the $120-million LRT Line 2 East extension with O&M worth $100 million; and
    * the privatization of the $28-million Laguindingan airport in Misamis Oriental with O&M at $5 million.

    In addition to operation and maintenance, partial funding of construction by private sector investors is necessary for the six projects below:

    * the 27.6-kilometer Cavite-Laguna Expressway worth $262 million. The six-lane Cala Expressway is a vital access between Cavite Economic Zones, NAIA and Metro Manila and Batangas Ports.

    * an elevated 4.9-kilometer expressway worth $235.33 million that will link the Skyway and Manila-Cavite Coastal expressway to the Ninoy Aquino International Airport (NAIA) terminals. (It is Phase 2 of the Ninoy Aquino International Airport Expressway);

    * the North Luzon Expressway-South Luzon Expressway link worth $467 million, The Nlex-Slex (North Luzon-South Luzon Expressway) will bridge the North to South Luzon industrial beltway;

    * a new $120-million airport in Panglao, Bohol;
    * the $97-million rehabilitation of the airport in Puerto Princesa, Palawan; and,
    * a new $71-million airport in Daraga, Albay.

    The private sector will be tasked to put up and operate the terminals for all the proposed airports, save for the one in Laguindingan, with the government taking care of the “airside” development such as runway construction, Transportation and Communications Secretary Jose P. De Jesus said.

    Other PH department of public works and highways probable priority projects:

    * South section of C-6 Expressway (Global City Link);
    * Phase 2 of Central Luzon Expressway (Cabanatuan to San Jose);
    * R-7 Expressway; and,
    * Calamba-Los Baños Expressway.

    All of the above are a combined multi-billion infrastructure projects, the most ambitious of the public works department, projected to hasten development in the countryside (sic).

    These PPP projects are ready for implementation in 2011 as its feasibility studies are already finished.

    Thinking aloud now. Some, if not all, of these projects are leftover of the Arroyo government?

    Over to the readers:
    What do you think of these?

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