Go Cordova! Go BHAGs (Big-Hairy-Audacious-Goals) via PPP
What are the three big-hairy-audacious-goals (BHAGs) of Cordova, Cebu? How can public-private partnerships (PPPs) achieve these BHAGs?
Collins and Poras in Built to Last describe a BHAG as a “commitment to challenging, audacious—and often risky—goals and projects toward which a visionary company channels its efforts” to stimulate progress. This small municipality wants to do big and high-impact projects, and innovate and engage the market.
BY pursuing PPP projects, Cordova breaks away from smallness to greatness when its three PPP projects come on stream. From being a third-class town dependent on the internal revenue allotment, Cordova envisions to be a first-class self-reliant city.
This is the “moon” or “big mountain” Cordova has to climb. And it has started its ascent. Under the leadership of its former mayor, now Presidential Adviser on Legislative Affairs, Atty. Adelino Sitoy, Cordova adopted its PPP Ordinance in April 2014. It was one of the first municipalities to have its PPP framework. Cordova, to date, has awarded two big-ticket PPP projects and it is planning a third.
(1) Largest LGU-awarded Reclamation Project.With the confirmation from the provincial government of Cebu, Cordova awarded a 1,500-hectare reclamation project. Under a joint-venture (JV) arrangement, there will be land reclamation and horizontal development. The new island will host facilities for mixed-use, office, commercial/residential districts, commercial development, institutional centers and public use.
Cordova will not spend a single centavo for this project as the project developer, SM Prime Holdings Inc., will shell out the total project cost, estimated to be close to P140 billion. The benefit, however, will not be confined to the municipality. Cebu Province and the Philippine Reclamation Authority will have a share in the 765 hectares alloted for the government.
(2) New third bridge in Cebu. Through another JV agreement, Cordova will be at the other end of the third bridge in Cebu. This 8.25-kilometer bridge will connect Cebu City, a highly urbanized city, with Cordova. Under the JV, at no cost to the two local government units (LGUs), the city and municipality shall each receive a share of 1 percent of the annual toll revenues. The winning proponent, Metro Pacific Tollways Development Corp., will spend close to P28 billion.
This project is a BHAG not only because of its impact and magnitude. This is a PPP where there are two government agencies acting as partners with the private-sector proponent.
(3) Bridging four provinces with four bridges. Cordova, together with other LGUs, is dreaming to connect four provinces in the Visayas with four bridges under four JV arrangements not by the national government but by the provinces of Negros Oriental, Cebu, Bohol and Southern Leyte. As drawn, the Cebu-Bohol link shall be connected at Cordova and Jetafe, Bohol. Soon, this dream will become a reality.
All BHAGs start with a vision. Cordova has taken the first step and the challenge of undertaking big, hairy, audacious, even risky projects, all intended to serve the general welfare and for better quality of life of the people. The greater challenge now is doing it.
Go Cordova! Go BHAGs via PPP!