PPP Programme: Not Likely To Be A Total Success


BMI View: The Philippines public-private partnership (PPP) programme continues to move up the gears, with its largest road project, the Cavite-Laguna expressway, launching its prequalification process on July 22. Although this once again highlights the strong potential for opportunities in the Philippine infrastructure sector, the lack of maturity in the country's business environment continues to present considerable execution risks to the programme. With President Aquino's term in office coming to an end in 2016, time is running out for these PPP projects as we believe a change in government could result in these projects being shelved.

The prequalification phase for the 47.02km, four-lane Cavite-Laguna (CALA) expressway started on July 22 2013 and is scheduled to end by September 23 2013. The PHP35.4bn (US$820mn) project will be awarded under a 35-year public-private partnership (PPP) contract, where the successful bidder would be responsible for financing, designing, constructing, operating and maintaining the CALA expressway. The project is expected to start construction works in January 2015 and be completed in December 2017.

The progress with the CALA expressway, the largest road project under the PPP programme, once again highlights the strong potential for opportunities in the Philippine infrastructure sector. Beside the road project, we have also seen some progress among the other projects under the PPP programme (see chart below). Some of the key milestones are:

  • Far From Completed
    The Philippines - Projects Under PPP Programme

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This article is tagged to:
Sector: Infrastructure
Geography: Philippines