INFRASTRUCTURE 47

Gov’t rolls out 3 PPP projects…

The Aquino administration has so far this year put on the auction block 3 infrastructure projects under its fl agship Public-Private Partnership (PPP) program. Earlier, the government committed to roll out 8 PPP projects within 2012. Of the 3 PPP projects that have been rolled out, one will soon be awarded. Meanwhile, few others among the promised projects have moved along the project processing phase.

n July 20, the Public Works department began soliciting pre-qualifi cation proposals for the NAIA (Ninoy Aquino OInternational Airport) Expressway Phase 2 project. This is a P15.5-billion undertaking that would extend the existing NAIA Expressway from Sales Road in City to the planned Las Vegas-style casino complex, the PAGCOR along Bay (please see related article). This is the 3rd project to be put on the auction block this year (please see table). In the 1st half of 2012, the government was able to roll out the PPP for School Infrastructure Project (PSIP) Batch 1 and the Light Rail Transit (LRT-1) South Extension and Operations and Maintenance. Winning bidders have already been chosen for the 3 contracts of the PSIP Batch 1; contract awarding is eyed by September, while groundbreaking is slated for October. Meanwhile, the South Expressway) Connector Road project, and the LRT-1 South Extension is now in the pre-qualifi cation phase Bohol and Mactan airports are lined up for NEDA evaluation. and is expected to complete the bidding process in early 2013. Apart from these projects, there are now 11 other projects These projects are among the 8 projects that the Aquino in the PPP pipeline as of August 18 (please see table). These 11 administration had earlier committed to roll out within 2012. projects are in the various stages of project preparation, i.e. either Project roll out refers to the various steps of the bidding process undergoing business case preparation or feasibility studies. The from publication of the invitation to pre-qualify to bid until the pipeline lists a total of 20 projects, including the abovementioned. actual bidding. While the other projects that will be bid out So far, the -SLEX Link Road project is the only this year were not disclosed, there are indications that the list PPP project that has been awarded to a private proponent. It could include projects in the more advanced stages of project was awarded to Ayala Corp. in December 2011, and is expected processing. For instance, 2 health PPPs and the -Laguna to start civil works within the 4th quarter of 2012. At the time (CALA) Expressway have already secured NEDA-ICC CabCom the PPP program was launched in November 2010, there were (Investment Coordination Committee-Cabinet Committee) originally 10 priority projects slated for rollout within 2011. approval, as the NLEX-SLEX (- However, delays pushed back the auction of these projects. Now,

The roll out of the 8 committed PPP projects could increase GDP growth by an additional 2 percentage points, but not this year.

Philippine Alert August 2012 48 INFRASTRUCTURE

LIST OF PPP PROJECTS PRIORITY PPP IMPLEMENTING CIVIL WORKS PROJECT TITLE PROJECT COST STATUS / ISSUES PROJECT LIST OF AGENCY TIMEFRAME NOV 2010 AWARDED PROJECT (2011) Private proponent Ayala Corp. to submit proposed Daang Hari-SLEX Link design revision and costing to accommodate design DPWH 2012-2013 P1.96 billion Road Project concerns for future SLEX expansion. Revisions not expected to affect timetable. PIPELINE OF PPP PROJECTS (as of August 18, 2012) Citicore Investment Holdings-Megawide Construction Corp. (Regions III and IV-A contracts) and BF 1. PPP for School DepEd 2012-2013 P16.4 billion Corporation-Riverbanks Development Corp. (Region Infrastructure Project I contract) designated as winning bidders. Awarding expected by Sept. and start of civil works by Oct. Pre-qualifi cation of bidders ongoing. Deadline of South 2. LRT-1 South Extension 3 DOTC/LRTA 2012-2015 P59.2 billion submission for pre-qualifi cation documents extended Extension and O&M from Aug. 22 to Sept. 28. 3 O&M 3. NAIA Expressway DPWH 2013-2015 P15.5 billion Invitation to pre-qualify to bid published on July 20. Project (Phase II) 3 4. Vaccine Self- Approved by NEDA-ICC (CabCom) on April, still Suffi ciency Project DOH -- P453 million awaiting NEDA Board approval (Phase II) 5. Modernization of the Approved by NEDA-ICC (CabCom) on May, still Philippine Orthopedic DOH -- P5 billion awaiting NEDA Board approval 3 Center 6. CALA (Cavite-Laguna) DPWH 2014-2017 P43.3 billion Approved by NEDA-ICC (CabCom) on July 12. Expressway Project has secured the “no objection” notice from DOTC, allowing the private proponent, MPTDC, to 7. NLEX-SLEX Connector DPWH 2014-2015 P20.1 billion use the PNR airspace for the road alignment. This Road Project clears the way for submission of the project terms for NEDA evaluation. Swiss challenge eyed by Oct. 8. New Bohol (Panglao) DOTC 2013-2015 P8 billion Submitted for NEDA-ICC evaluation on June 15. Airport 3 9. Mactan-Cebu International Project structuring ongoing, submission for NEDA Airport Passenger DOTC -- P10.2 billion evaluation eyed within 3Q2012. Terminal (Terminal 2) Development 10. LRT-2 East Extension DOTC/LRTA NEDA Board approval deferred pending results of a 3 years P11.9 billion and O&M market study commissioned by Pres. Aquino 3 11. Automatic Fare DOTC -- P1.8 billion Still under project preparation Collection System 12. Privatization of the O&M auction still eyed before yearend despite Laguindingan Airport DOTC -- P1.8 billion airport development completion being pushed back 3 O&M from Dec. 2012 to Sept. 2013.

13. Privatization of Puerto To be determined DOTC 2013-2015 Bid terms for O&M contract still under preparation. Princesa Airport O&M (TBD) 3

14. Integrated Transport DOTC 2013-2016 TBD Feasibility study ongoing System 15. New Centennial Water MWSS -- P25 billion Feasibility study ongoing Supply Source Project 16. Grains Central Project DA -- P1.25 billion Feasibility study ongoing 17. Angat Hydro-Electric Power Plant (AHEPP) Auxiliary Turbines Nos. MWSS -- P1.6 billion Feasibility study ongoing 4 & 5 (Rehabilitation and O&M) 18. Balara Water Hub MWSS -- P20 billion Still under project development 19. Establishment of Cold Chain Systems Covering Strategic DA -- P5.3 billion Still under project development Areas in the 20. Logistics Support on the Agri-Fishery DA -- $34.9 million Still under project development Products Supply Chain Sources: PPP Center, websites of other government agencies, and press statements

Philippine Alert August 2012 INFRASTRUCTURE 494 only 8 of the 10 priority projects fi gure in the latest PPP pipeline. and the operations-and-maintenance of the completed NAIA Excluded from the latest pipeline are the Metro Rail Transit Expressway Phases 1 and 2 as a toll way for a period of 30 Line 3 (MRT-3) project and the Bicol airport. MRT-3 still has years. The completed NAIA Expressway will have a total unresolved ownership issues, while the Bicol airport has recently length of approximately 8.75 kilometers (including ramps). been approved by the NEDA-ICC for government fi nancing. The NAIA Expressway Phase 2 was originally designed The roll out of the 8 committed PPP projects this year to end at , but at the request of investors in could increase the 2012 GDP growth by an additional 2 the PAGCOR (Philippine Amusement Gaming Corporation) percentage points, according to Finance Undersecretary Gil Entertainment City the expressway was extended to the Beltran. This would boost the offi cial GDP growth target of waterfront development. This is intended to provide a 5-6% in 2012 to about 7-8%. However, this is not likely to convenient access between the country’s gateway at NAIA happen. Even if all of the 8 projects were awarded within the and the planned tourism hub. The Entertainment City is a next 4 months, any impact on GDP would not be felt until 120-hectare gaming and entertainment complex that is currently next year when civil works will commence for most of these. being developed by 4 PAGCOR licensees (please see box). The expressway extension project has an estimated cost of P15.5 billion. To support project fi nancing, the government through PAGCOR will open a P6.5-billion Infrastructure Support …as DPWH solicits bids for the NAIA Facility (ISF) that will extend a soft loan to the project’s private Expressway Phase 2 project proponent. This debt facility is pooled from the funds contributed by Entertainment City licensees. The Public Works department The Public Works department has rolled out the NAIA (Ninoy disclosed that the loan is payable within 10 years at 0% interest rate. Aquino International Airport) Expressway Phase 2 project, The bidder with a fi nancial proposal requiring the lowest amount which would extend the existing NAIA Expressway (Phase to be borrowed from the ISF will be named the winning bidder. 1) to the PAGCOR Entertainment City. The project, which The project is currently in the pre-qualifi cation phase. The is part of the Urban Expressway System, invitation to pre-qualify to bid was published on July 20. So far, 13 would improve access to NAIA and support the development fi rms have expressed interest in the project. Among these are: San of the Entertainment City. This is the 4th PPP project to be Miguel Corporation, D.M. Consunji, Inc., Metro Pacifi c Tollways launched by the Aquino administration, and it has so far Corporation, and Ayala Corporation. Project auction is eyed attracted the interest of 13 fi rms. towards yearend, while the civil works are expected to commence in 2013 and to be completed within 2 years (please see timeline). The latest project to be rolled out by the Aquino administration Once completed, the NAIA Expressway will improve access under its centerpiece Public-Private Partnership (PPP) program to and from all 3 NAIA terminals by facilitating the effi cient fl ow is the NAIA Expressway Phase 2 project. This will extend the of traffi c between the airport and Roxas Boulevard, Diosdado existing 1.6-kilometer elevated NAIA Expressway (Phase 1) that , and the Entertainment City. It will also runs from the Metro Manila until Sales Road in Pasay support the development of the Entertainment City, which is City. Phase 1 began construction in 2003 and was completed expected to attract an estimated 1 million tourists annually. This in 2010. Phase 2 involves the construction of a 4.83-kilometer, expressway is a component of the Metro Manila Urban Expressway 4-lane elevated expressway from the terminus of Phase 1 to System, which envisions a network of high-standard expressways Roxas Boulevard, Diosdado Macapagal Boulevard, and the that would serve the metropolis. The NAIA Expressway will PAGCOR Entertainment City along Manila Bay (please see connect the (SLEX)/Skyway with box). The project also includes adjustment works to Phase I, the Manila-Cavite Toll Expressway. It is expected to reduce the construction of a feeder road within the Entertainment City, average travel time between Skyway and Roxas Boulevard from 24 minutes to 8 minutes, benefi tting some 80,000 travelers per day.

NAIA EXPRESSWAY (PHASE 2) PROJECT TIMELINE ACTIVITY DATE Approval by NEDA Board May 30, 2012 Publication of the Invitation to pre-qualify to bid July 20, 2012 Pre-bid conference August 10, 2012

Deadline for the submission of pre-qualifi cation documents September 18, 2012 Notice of pre-qualifi cation October 2012 Bid Submission* December 2012/January 2013

*Indicative; Sources: DPWH,NAIA Expressway Project: Information Memorandum, press statements

This is the 4th PPP project to be rolled out since the PPP program was launched.

Philippine Alert August 2012 50 INFRASTRUCTURE

NAIA EXPRESSWAY (PHASE 2) PROJECT

Implementing Agency: Department of Public Works and Highways (DPWH)

Project Description: The project involves the construction of an elevated expressway that will extend the existing NAIA Expressway Phase I. The new expressway will run from the terminus of Phase I at Sales Road in Pasay City to Roxas Boulevard, Diosdado Macapagal Boulevard, and the planned PAGCOR Entertainment City along Manila Bay. The project has 4 components, these are:

a) Phase I Adjustment Works: Adjustment to the 0.6-km Phase I viaduct to achieve operations standards similar to those to be set for Phase II, thus enabling seamless travel operations b) Phase II Works: • Design and construction of a 4.83-km, 4-lane extension of the NAIA Expressway from the terminus of the existing Phase I to Roxas Boulevard, Diosdado Macapagal Boulevard, and the PAGCOR Entertainment City, following the existing road alignments over Sales Avenue, , Domestic Airport Road, and NAIA Road; • Design and construction of ramps to Terminals 1, 2, and 3 of NAIA, and to other strategic locations • Provision of toll plazas and toll operating equipment c) At-grade Entertainment City Works: Design and construction of a 2.22-km, 4- to 6-lane at-grade feeder road within the Entertainment City (operations-and-maintenance of this sections to be turned over to the government upon completion) d) Operations and Maintenance: Operations and maintenance of the entire NAIA Expressway (excluding the feeder road within Entertainment City) as a tolled Expressway for a concession period of 30 years.

Legend: Red line- NAIA Expressway Phase II Yellow lines- Ramps to NAIA Terminals 1, 2, 3, and other strategic locations Blue line- PAGCOR Entertainment City feeder road

Project Cost and Financing: Total Cost: P15.5 billion Civil works- P11 billion (c/o private proponent) - May tap P6.5-billion Infrastructure Support Facility or ISF (from PAGCOR Entertainment City Licensees: Bloomberry Resorts and Hotels, Inc.; Travellers International Hotel Group; Belle Corp.; and Tiger Resort Leisure and Entertainment, Inc.) Right-of-way acquisition- P1 billion (c/o government)

Civil Works Timeframe: 2 years Financing Scheme: Build-transfer-operate

Status: • Memorandum of agreement for ISF signed between DPWH and PAGCOR on July 18 • Invitation to pre-qualify to bid published on July 20, deadline for submission of pre-qualifi cation documents set on September 18

Sources: DPWH, PPP Center, Presidential Communications Development and Strategic Planning Offi ce (PCDSPO), NAIA Expressway Project: Information Memorandum, press statements .

Philippine Alert August 2012 INFRASTRUCTURE 515

The NAIA Expressway Phase 2 project is the 4th PPP project to The approval of FIT rates did not concur with the interest be rolled out by the Aquino administration since the infrastructure of opposing groups. Nonetheless, it does not favor supporters program was launched in November 2010, and the 3rd to be put entirely on their desire for higher rates as it lowered the on the auction block this year. The Daang Hari-SLEX Link was approved FIT rates from that proposed. The ERC only the 1st PPP project auctioned; it was awarded to Ayala Corp. in accepted NREB’s methodology in setting the FIT rates, which December 2011. This was followed by the roll out of the PPP is based on the technology used in generating electricity for for School Infrastructure Project and the LRT-1 (Light Rail each RE resource so that the FIT rates simply refl ect the cost Transit Line 1) South Extension project in the 1st half of 2012. of constructing and operating the proposed RE facilities. Size and other factors in generation were not considered. However, the Philippines already has the highest ERC approves lower FIT rates electricity rate in Asia (see table). With the approval of FIT rates, power rates will increase by 5 centavos per kilowatt After a year of deliberation, the feed-in tariff (FIT) rates hour (kWh) on top of the recent hike of about 69 centavos in for hydro, biomass, wind, and solar resources have been Luzon, 61 centavos in Visayas, and 4 centavos in Mindanao. approved by the Energy Regulatory Commission. The Department of Energy (DOE) and industry players, such as the Philippine Solar Power Alliance and Eastern Petroleum The Philippine Energy Regulatory Commission (ERC) has Corp., have welcomed the release of these FIT rates. However, approved FIT rates for new projects generating electricity from some industry players have found the rates unacceptable renewable energy (RE) sources on July 27, except for ocean putting in doubt their investment plans, especially the solar thermal resources as it is still subject for further study. Compared power investors. PhilNewEnergy, Inc. said that the rates would to the proposed rates by the National Renewable Energy Board be very challenging for most smaller players. SunConnex (NREB) in May 2011, the approved FIT rates are lower (see table). and Eco-Merge Philippines Inc. announced that they will be A FIT rate for every RE resource, except geothermal, is reassessing the effect lower FIT rates would have on their mandated under the Renewable Energy Act of 2008. The policy planned projects. Since the FIT rate is an amount that will has been beset by confl icting views from government and cover part of the cost in establishing RE plants, lower FIT rates interest groups on the level of the FIT rates. Furthermore, the suppose lower profi t and slower rate of return for developers. decision was delayed by more than a year after the submission The DOE has noted economy of scale, through suffi cient of NREB’s recommendations while the ERC deliberated on it. installation targets, as a necessary move to give some support to NREB’s proposal had suggested FIT rates that impose an RE development projects. It approved lower targets for wind and increase of 12 centavos to electricity rates for all consumers. solar (see table) to allow only a few of these power plants due to Supporters had insisted that the impact of these FIT rates is their ineffi cient and expensive technology in generating electricity, temporary and will eventually subside. Opposing groups, however, which requires a back-up baseload power plant to offset fl uctuations. had negated this notion and insisted further delaying the approval With the lower FIT rates, as ERC said, it can only ensure the since imposing FIT rates will only increase electricity costs and the development of more effi cient solar and wind power plants. Philippine economy is far from being ready to absorb the impact.

FEED-IN TARIFF RATES APPROVED FIT RATE (P/KWH) PROPOSED FIT RATE (P/KWH) INTERNAL RATE OF RETURN (%) Hydro (run-of-river) 5.90 6.15 16.4 Biomass 6.63 7.00 17.0 Wind 8.53 10.37 16.4 Solar 9.68 17.95 16.4 Note: According to RE Act of 2008, geothermal is not included in the FIT program.

2011 AVERAGE ELECTRICITY RATE ELECTRICITY RATES ($ PER KWH) FOR BUSINESS USE FOR GENERAL USE Korea 0.06 0.07 Indonesia 0.08 0.08 Taiwan 0.09 0.07 Malaysia 0.09 0.10 Vietnam 0.10 0.07 India 0.12 0.09 Myanmar 0.12 0.12 Hong Kong 0.13 0.13 Thailand 0.14 0.11 Philippines 0.19 0.25 Source: The 22nd Comparative Survey of Investment-Related Costs in 31 Major Cities and Regions in Asia and Oceania (2012) by the Japan External Trade Organization (JETRO). Power rates are expected to increase by 5 centavos per kWh because of the FIT rates.

Philippine Alert August 2012 52 INFRASTRUCTURE

INSTALLATION TARGETS NREB PROPOSED 3-YEAR DOE APPROVED 3-YEAR INSTALLATION TARGETS INSTALLATION TARGETS (MW) SIZE (MW) WORTH (P MILLION) Hydro (run-of-river) 250 891 250 Biomass 250 760 250 Wind 200 552 220 Solar 50 170 100 Ocean 10 126 10 TOTAL 760 2,499 830

FIT rates are valid for 20 years. They will be subject to On July 17, President Aquino inaugurated Phase 2 of the adjustment after 3 years, which will be based on infl ation AWUAIP. This is a P5.2-billion project that involved the of currency exchange rates, on the period of generation rehabilitation of the dilapidated section of Angat Dam’s Aqueduct (peak or off-peak periods), and on capacity installation No. 5 (AQ-5), as well as the construction of a new aqueduct (AQ- (whether the targets are met or not). As for FIT rates of ocean 6) and interconnection facilities (please see box). This is intended thermal, the schedule of its release is yet to be announced. to optimize the conveyance of raw water from Angat Dam to the La Mesa and Balara water treatment plants in . The Phase 2 of Angat Dam rehab project project was fi nanced through a preferential loan from the China inaugurated Export-Import Bank, with Chinese fi rm China International Water and Electric Company (CWE) as the project contractor. The 2nd phase of the 3-phase Angat Water Utilization and The AWUAIP is a 3-phase project for the rehabilitation of the Aqueduct Improvement Project (AWUAIP) was recently Angat Dam aqueducts (please see box). The project was conceived inaugurated. Phase 2 involves the repair of the main water after an evaluation made in 2005 showed that AQ-5 was losing delivery system, and is considered as the most crucial com- 400 to 600 million liters of water per day (MLD) to leakages due ponent of the project. Despite controversies that threatened to the aqueduct’s deteriorated physical condition. A total of 2,000 to stall its implementation, Phase 2 was completed ahead MLD of raw water—equivalent to half of Metro Manila’s water supply— pass through AQ-5 daily. The AWUAIP is designed to of time.

SEQUENCE OF EVENTS ANGAT WATER UTILIZATION AND AQUEDUCT IMPROVEMENT PROJECT (AWUAIP) DATE EVENT 2005-2006 Implementation of Phase 1 2006 Phase 2 is slated for Asian Development Bank (ADB) fi nancing The Arroyo administration ends loan negotiations with the ADB, and instead seeks funding from the China Export- January 2007 Import Bank Pres. Arroyo suspends AWUAIP Phase 2 negotiations, due to the onslaught of controversies involving China-funded September 2007 projects (e.g. NorthRail project and National Broadband Network). 2009 Negotiations with China about AWUAIP Phase 2 resume “Limited competitive bidding” among 3 Chinese fi rms is conducted for AWUAIP Phase 2. The competing fi rms were: 1. China International Water and Electric Corp. (CWE) 2. China Harbour Engineering Co. Ltd. 3. China CAMC Engineering Co. Ltd. Mid-2009 CWE was eventually awarded the contract for Phase 2; Philippine Large Diameter Pressure Pipe Manufacturer Association (PLDPPMA) begins calling for the re-evaluation of the contract due to bidding irregularities committed by MWSS. March 2010 Early mobilization activities for Phase 2 begin, ahead of offi cial contract commencement scheduled for May 2010 Under the new administration, PLDPPMA renews call to re-evaluate and rescind Phase 2 contract; MWSS conducts an February 2011 investigation on the allegations made July 2012 AWUAIP Phase 2 is completed, 10 months ahead of the target completion in March 2013

The Angat Water Utilization and Aqueduct Improvement Project will recover 400 to 600 MLD of water lost daily to leakage.

Philippine Alert August 2012 INFRASTRUCTURE 535

ANGAT WATER UTILIZATION AND AQUEDUCT IMPROVEMENT PROJECT (AWUAIP)

Implementing Agency: Metropolitan Waterworks and Sewerage System (MWSS)

Project Objective: To ensure water supply security in Metro Manila by promoting the effi ciency and safeguarding the integrity of water conveyance.

Project Description: AWUAIP is a 3-phase project for the rehabilitation of Angat Dam aqueducts to optimize raw water conveyance from the Angat Dam to the La Mesa and Balara water treatment facilities in Quezon City.

PROJECT PROJECT COST/ PROJECT PROJECT PROJECT DESCRIPTION PROJECT STATUS COMPONENTS FINANCING CONTRACTOR TIMELINE • Construction of a P1.5 billion/ 5.5-km bypass of the Unnamed Filipino 2005-2006 Phase 1 National government COMPLETED deteriorated section of contractors fi nancing Aqueduct No. 5 • Construction of a new 9.9-km Aqueduct No. 6 P5.2 billion/ • Rehabilitation of the China International March 2010-July Preferential Buyer’s COMPLETED, dilapidated section of Water and Electric 2012 Phase 2 Credit from the INAUGURATED ON Aqueduct No. 5 Company China Export-Import JULY 17 • Construction of Bank interconnection facilities UNDERGOING ADB- • Repair of Aqueducts 1, Completion in Phase 3 -- -- FUNDED FEASIBILITY 2, 3, and 4 2013 STUDY

ANGAT DAM DISTRIBUTION SYSTEM

Sources: Metropolitan Waterworks and Sewerage System (MWSS), Offi ce of the President, Philippine Information Agency, and press statements

Philippine Alert August 2012 54 INFRASTRUCTURE

recover the water lost to leakage. Phase 1 involved the construction Finally, Phase 2 was completed in July 2012. The project of a bypass structure that will convey water during the repair of is often cited for its early accomplishment, with completion the deteriorated aqueduct. Work for this began on 2005 and was coming some 10 months ahead of the original target that was completed in 2006. Phase 2, which is the most crucial component March 2013. The MWSS said that the project benefi tted from of AWUAIP since it involves the repair of the main water delivery a fast-tracked implementation that included 1) the early start system, was scheduled to start immediately upon completion of of activities ahead of the offi cial contract commencement; Phase 1. Work on Phase 2, however, was deferred due to issues 2) efficient project management; and 3) the advanced that hounded the project (please see sequence of events). The construction methodology adopted by the contractor, such civil works for this eventually commenced in March 2010. as the use of new technologies and increased manpower In 2011, while already on project implementation, the AWUAIP without any additional cost to the government, among others. Phase 2 fi gured in a controversy stemming from allegations made Meanwhile, the MWSS revealed that AWUAIP Phase by a group of steel pipe manufacturers. The Philippine Large 3, which will dovetail Phase 2 and repair the remaining Diameter Pressure Pipe Manufacturers Association (PLDPPMA) aqueducts, is reportedly “in the works”. The Asian accused the Metropolitan Waterworks and Sewerage System Development Bank (ADB) had already committed to extend (MWSS) of committing bidding irregularities, among other an undisclosed amount to finance the feasibility study things. The PLDPPMA complained that they were not allowed that will look into structural strengths of the remaining to participate in the 2009 bidding for steel pipe suppliers with aqueducts. Phase 3 is expected to be completed in early 2013. MWSS limiting the bidding to 3 Chinese fi rms. Since that time, Once completed, the AWUAIP will “prevent the unabated the PLDPPMA has repeatedly called MWSS’ attention to this loss” of water due to leakage, and will augment water supply issue, but was largely ignored. With the change in administration, in MWSS service areas in Metro Manila and the provinces of the group continued to call for the re-evaluation and rescinding and Cavite, covering some 15 million residents. Another 6 of the contract. By February 2011, the MWSS had launched million residents in City and province formerly an investigation on the allegations of PLDPPMA. There was without water service are also seen to benefi t from the project. no indication that project implementation was suspended. The contract was not rescinded, and the project was pursued. MWSS offi cials have previously explained that the “limited competitive bidding” was compliant with the procurement law.

Philippine Alert August 2012 INFRASTRUCTURE 555

STATUS OF BIG TICKET INFRASTRUCTURE PROJECTS AS OF AUGUST 2012

IMPLEMENTING FUNDING CIVIL WORKS PROJECT TITLE PROJECT COST STATUS / ISSUES AGENCY SOURCE TIMEFRAME Citicore Investment Holdings-Megawide Construction Corp. PPP for School (Regions III and IV-A contracts) and BF Corporation-Riverbanks Infrastructure Project DepEd PPP 2012-2013 P16.4 billion Development Corp. (Region I contract) designated as winning (Batch 1) bidders. Awarding expected by Sept. and start of civil works by Oct. Pre-qualifi cation of bidders ongoing. Deadline of submission of pre-qualifi cation documents moved from Aug. 22 to Sept. 28. Meanwhile, the DOTC will undertake a feasibility study on a LRT-1 South Extension DOTC-LRTA PPP/ODA 2013-2015 P59.2 billion proposal to further stretch LRT-1 to Dasmarinas, Cavite. The DOTC said that this may be added to the project, but explained that it will not interfere with the ongoing bidding. Project has been excluded from the latest PPP pipeline. Project MRT-3 Privatization DOTC-LRTA PPP -- P6.3 billion structure reportedly being fi nalized. Ayala Corp. to submit proposed design revision and costing to Daang Hari-SLEX Link Road accommodate South Luzon Tollways Corp.’s (SLEX concessionaire) DPWH PPP 2012-2013 P1.96 billion Project design concerns in anticipation of future SLEX expansion. Revisions are not expected to affect timetable. Project already given the green light by Pres. Aquino. For submission to NEDA-ICC in August 2012. This is considered part NAIA Expressway DOTC-TRB PPP 2013-2015 P25.4 billion of Citra’s existing Skyway franchise, and would only need the approval of the TRB and the NEDA. Invitation to pre-qualify to bid published on July 20; deadline of Phase II DPWH PPP 2013-2015 P15.5 billion submission of pre-qualifi cation documents set on Sept. 18. So far, 13 fi rms have purchased pre-qualifi cation documents. The project is presently being evaluated by the (TRB), with approval eyed by yearend. SMC-Citra, Skyway Stage 3 DOTC-TRB PPP 2013-2015 P25.4 billion meanwhile, had said that the consortium will shoulder the construction of the 3-km common road that will serve both the Skyway 3 and the NLEX-SLEX Connector. Approved by NEDA ICC-CabCom (Investment Coordination Committee-Cabinet Committee) on July 12. The ICC asked for CALA Expressway DPWH PPP/ODA 2014-2017 P43.3 billion clarifi cation on a few project details, but this is not expected to change the decision. The project is presently awaiting NEDA Board approval. Airport completion was pushed back from Dec. 2012 to Dec. P7.9 billion (const.); Laguindingan Airport DOTC ODA/PPP 2008-2013 2013, but O&M roll out is still expected within 2012. The project P1.8 billion (O&M) structure for the O&M is currently being fi nalized. Feasibility study for O&M contract is ongoing. Bidding for O&M Puerto Princesa Airport DOTC ODA/PPP 2013-2015 P4.5 billion (const.) is expected to commence within 4Q2012. Korean ODA-funded Development construction will start within 2013. DOTC- Mactan International Mactan-Cebu Airport Development PPP 2013-2015 P5.8 billion Finalization of project structure is ongoing. International (Passenger Terminal) Airport Authority Clark Airport Feasibility study is ongoing and is due to be completed by DOTC-CIAC PPP 2013-2016 P8 billion (Budget Terminal) September. Bicol (Daraga) Airport NEDA-ICC has recently approved plans for the construction of the DOTC NG 2012-2015 P4.8 billion Development new domestic Principal Class 1 airport. Scheduled to be partially opened in May 2013. Target year of -Pangasinan-La DPWH PPP 2009-2014 P14 billion completion and operation was moved to 2014 from 2012 as Union Expressway construction of a segment was disrupted by right of way issues. Preparatory works are now in progress. Project to be implemented in mid-2013. Korean ODA will fi nance the road improvement for a Samar Pacifi c Coastal Road DPWH ODA/NG 2013-2016 P1.8 billion 28-km segment (26%), while the national gov’t will cover 37 km Project (34%). 40% of the project has already been completed through previous funding from the gov’t. Angat Water Utilization Phase 3, which involves the repair of aqueducts numbers 1 to and Aqueduct 2012-2013 4, is reportedly “in the works”. ADB has committed to fi nance MWSS -- Improvement Project (Phase 3) the feasibility study looking into the structural strengths of the (Phase 3) aqueducts. MWSS North Concession MWSS and provincial government signed a memorandum of Area Project (formerly agreement on July 12. Currently for procurement of a transaction MWSS PPP -- P11 billion known as Bulacan Bulk adviser. The transaction advisory service was recently approved Water Project) for PDMF support. The Philippines has recently signed a $207.9-million loan National Jalaur River Multi-Purpose agreement with the Export-Import Bank of Korea for the Irrigation ODA/NG 2013-2016 P11.2 billion Project Stage 2 construction of the project. Public bidding is expected in Jan. Association 2013, while civil works will begin in June 2013.

Philippine Alert August 2012