By Mia A. Aznar
Monday, January 24, 2011
THOSE interested in going into the government’s public-private partnership (PPP) will find that the processes are still very similar to the build-operate-transfer (BOT).
Although the official guidelines are yet to be released by the National Economic Development Authority (Neda) central office, Neda 7 project investment budgeting division head Boy Tagalog said those familiar with the BOT process will find that the PPP has the same principles.
“The principle is that there will be no cash outlay on the part of the government and that the private sector is allowed to charge a fee to pay for their investment,” he
explained.
The difference, he said, is a more rigid evaluation of the kind of projects that are proposed for PPP.
He said the feasibility study of a project that is proposed under PPP undergoes economic, financial and technical feasibility evaluations. Tagalog added that they will also determine if fees the private entity wants to collect from the public to pay off the investment is reasonable within a prescribed period.
For now, Tagalog said that as far as Central Visayas is concerned, no government agency has announced solicitations for a PPP project and they have not received any proposals from private entities wanting to fund a project through PPP for this year.
Like with the BOT, Tagalog said any private entity that wants to fund a project through PPP will make their proposal to a government agency or local government unit, depending on the kind of project they would want to undertake.
He believes that by next year, such undertakings could take place.
President Benigno Aquino III recently renamed the BOC Center to the PPP Center and transferred it from an attached agency of the Department of Trade and Industry to the Neda.
In his executive order signed in September, Aquino said processing for solicited PPP proposals should be completed within six months.
Published in the Sun.Star Cebu newspaper on January 25, 2011.
No comments:
Post a Comment