BY ISMAEL AMIGO

1ST-APLUMA NATIONAL PRESIDENT

 

THE Public-Private-Partnership or PPP is labeled as one of the flagship projects of the Aquino administration.

 

The Asian Development Bank (ADB) said PPP describes a range of possible relationships among public and private entities in the context of infrastructure and other services. Other terms used for this type of activity include private sector participation (PSP) and privatization.

 

The ADB added that the three main needs that motivate governments to enter into PPPs for infrastructure are: to attract private capital investment; to increase efficiency and use available resources more effectively; and to reform sectors through a reallocation of roles, incentives, and accountability.

 

President Aquino, for his part, explained that PPP could reduce the cost of projects for the government by including private entities to finance some infrastructure projects.

 

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But Sen. Ralph Recto is saying otherwise. The former head of the National Economic Development Authority (NEDA) said the government would have to shell out P15 billion to the winning bidder for the Light Rail Transit-Metro Rail Transit (LRT-MRT) privatization.

 

The LRT-MRT privatization is being put under the PPP program to spare the government from subsidizing the operation of the railway system. The government shells out between P7 billion to P8 billion to maintain low fares for MRT and LRT.

 

The winning bidder, Recto said, is also set to enjoy tax holidays, cheap loans from state banks and an almost sure option to jack up fare prices.

 

Instead of saving the government billions of pesos, the PPP would be detrimental to the government as it needs to part with a huge amount to pay the winning bidder, contrary to what P-Noy is trying to picture PPP.

 

If this pushes through, the PPP will have a new meaning: Palpak na Proyekto ni P-Noy.

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As the two crucial mass transport systems in the country, the government should not put LRT and MRT on the hands of the private sector as it would be open to abuse.

 

If a private company takes control of MRT and LRT, it can raise fares anytime it wants, putting the public at a disadvantage.

 

Instead of privatizing MRT and LRT, the government could use the P15 billion that it would give to the winning bidder to improve the services of the two railway systems.

 

This way, President Aquino can show the public that he is sensitive to their needs.