PPP conversations #10 with Metro Pacific Tollways Corp.
ALL over the world, public-private partnerships (PPPs) are undertaken for roads. In the Philippines road infrastructure is done through either build-operate-transfer, build-transfer-operate, joint venture, concession or procurement arrangements with national government agencies, local governments or government corporations.
Metro Pacific Tollways Corp.(MPTC) has done and continues to operate over 200 kilometers of road PPPs in North Luzon Expressway (Nlex) and Cavite Expressway (Cavitex) and will soon complete three more—Cavite–Laguna Expressway (Calax), Nlex-South Luzon Expressway (Slex) connector road and Cebu-Cordova link expressway.
MPTC President and CEO Rodrigo Franco shares his insights on the need for resource exchange, the readiness of the government and the private sector to enter into such collaborative arrangements, and the successes and risks of PPPs. He calls on us to support and be patient with this alternative development strategy. Thank you MPTC for keeping the PPP flame burning.
• What is your concept of PPP?
PPP is a joint endeavor of the government and private entities to
deliver essential services, especially infrastructure, to the public. As its resources and capabilities are never enough, the government through the PPP Program contracts private- sector entities to help deliver basic services. The government and its private-sector partner share the risks and rewards of the endeavor. The private entity generates returns from a stream of payments either from the government or the recipient of the services.