Philippines to try hybrid PPP model

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Philippines to try hybrid PPP model

Philippines' Government is considering a new hybrid public private partnership (PPP) model for the development of infrastructure projects. 

Through this new scheme, the government would build the facility initially and private sector would be in charge of operations.

Officials of the new government believe that this model reduces construction costs as the government can undertake this process cheaper. In addition, the private sector is more qualified to run operation of the projects regarding its experience in the matter.

According to sources, Budget Secretary Benjamin E. Diokno said:

“My proposal is a hybrid type. The government will build the facility initially -- of course, using private contractors... then you bid out who will manage”.

“We will hike infrastructure spending from a low 5% to a high of 7% of GDP (gross domestic product)... Specific infrastructure projects to be pursued by the Duterte government include small, medium and large-scale projects that will be done in all regions -- both highly developed and lagging-simultaneously, not sequentiall”.

The Duterte administration expects to launch 17 PPP projects by end-2017. So far, the government has a total of 53 projects in the PPP pipeline with a total expected investment of PHP890.9 billion for infrastructure projects.

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