2010-09-06
The administration of President Benigno S. Aquino III could benefit from pursuing public-private partnerships (PPP) through the Bases Conversion and Development Authority (BCDA) to boost the coffers of the cash-strapped government, BCDA President and Chief Executive Officer Narciso Abaya said yesterday.
Abaya said PPP through government entities like the BCDA “provides a ray of hope to help augment the revenues generated by the government” amid the shortfall in the collection targets of the Bureaus of Internal Revenue and Customs for the month of July.
Executive Secretary Paquito N. Ochoa, Jr. said that these developments "complement current initiatives aimed at enabling the Department of Finance to hit and possibly exceed its revenue targets,” adding that exploring public-private partnerships through the maximization of our assets is one way we can raise much-needed funds for the government.
According to Abaya, BCDA is equipped with the experience and expertise to properly and profitably dispose of government assets within its jurisdiction. BCDA has raised P46.495 billion in disposition proceeds as of December 2009, he added.
Under the law, bulk of the proceeds from the disposition of former military camps and base lands will go to the AFP Modernization Fund to cover the military’s replication and relocation expenses.
Recently, SM Land, Inc. (SMLI) submitted an unsolicited proposal to develop a 33.1-hectare property in Fort Bonifacio.
Under the offer, SMLI will give an upfront cash of P2 billion and P25.9 billion secured revenues over 20 years. On top of these, SMLI has committed to advance the replication expenses of military facilities of the Philippine Navy, the Philippine Marines and the Philippine Army, which are presently occupying the property.
The BCDA has already published a notice of invitation for the submission of comparative proposals to challenge the unsolicited proposal of SMLI for the Bonifacio South property.
Abaya said that there is also a plan by BCDA to facilitate the construction of two major infrastructure projects in partnership with the Ayala Land, Inc. and the Campos Group, the cost of which will be shouldered by the private sector. The twin projects, which are expected to improve access from Bonifacio Global City to the eastern, northern and southern areas of Metro Manila and vice versa, have a combined project cost of P500 million.
Finance officials are under pressure to tap new sources of revenues for the government after the budget deficit hit an all-time high of P229.4 billion, or almost 70 percent of the total target of P325 billion for the entire 2010.
While July revenues amounted to P102.9 billion, or 4.6 percent higher than the P98.4 billion posted the previous 12 months, collection was still short of P7.6 billion.
“Every government agency must pitch in to address the deficit. We must institute austerity measures to streamline government and eliminate wastage,” Ochoa said.
Press Release
September 6, 2010
According to the National Economic Development Authority (NEDA), the government is aiming for up to P200 billion worth of PPP projects in 2011 and that many local and foreign businessmen have expressed interest in getting involved. Angara noted that aside from building up physical infrastructure projects, we also need to cultivate a strong R&D and S&T base for the country.
"With PPP's, our industry leaders can create new funding avenues for projects by partnering with the academe and tapping universities to conduct R&D and train personnel to fit into the workforce seamlessly," said Angara.
Angara, chair of the Congressional Commission on Science, Technology and Engineering (COMSTE), also pointed out two projects that would greatly benefit from PPP's, namely the Industrial Research and Development Institute (IRDI) and the Renewable Energy Research and Development Institute (RERDI) that have been initiated by COMSTE.
"These two projects were conceptualized after studying Taiwan's Industrial Technology Research Institute (ITRI), which is essentially a PPP that conducts R&D for private sector growth. ITRI is one of the key factors why Taiwan was able to achieve economic success," noted Angara.
Taiwan's ITRI has already signed a Memorandum of Understanding (MOU) with COMSTE in February 2009, to aid in the development of the IRDI and RERDI, including training and tech transfer.
Angara said, "by pushing forward with these type of programs we would be able to take the initiative in promoting the growth of R&D and S&T, which would enable us to leapfrog technology and create a better system of innovation."
"There are plenty of opportunities for international collaboration to improve the technical and manpower capability of our S&T institutions. We should pursue them aggressively. In terms of international consortia, we can partner with Taiwan, Korea and Japan who have advanced weather forecasting and disaster prediction capabilities," Angara urged.
The S&T hearing, which Angara headed as Chair of the committee, brought to light the problems plaguing the country's science and research institutions. Interestingly, several of of these agencies reported the existence of various foreign grants and international partnerships available to aid in the modernization of our research and disaster warning systems.
"There are so many grants available, there are aid agencies everywhere. But it's a competition for precious dollars. We have to organize ourselves and come up with a plan, because no country will ever give you a voluntary grant if you can't present a good program," Angara said.
Angara also called for the proper utilization of existing grants to the Philippines.
These contributions include the $3-million project funded by the Korean International Cooperation Agency (KOICA) for the Pasig-Marikina river basin and Japan's P2.095-billion grant to improve the country's radar systems, to build better bridges and provide master's degree scholarships through the Japan International Cooperation Agency (JICA). Both were established in 2009.
In 2008, the PAG-ASA received a $381,000 grant from the USA and a P17-million endowment from Australia to update its weather forecasting equipment and enhance its early-warning system, as well as to add to the natural disaster management resources.
"The government needs to be smart about utilizing these funds. It's not enough that we receive assistance from other countries or aid agencies. We ought to have something to show for it," he said.
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