Metro Manila (CNN Philippines) — The government is turning to the private sector for the necessary improvements of the country’s main gateway and the EDSA busway.
Meanwhile, commuters can only tighten their belts more to cover fare hikes after the government stopped subsidizing transport costs of the EDSA Bus Carousel.
Will privatization lead to a more convenient and comfortable public transportation after years of supposed neglect? Experts and government officials weigh in.
Better services at a cost
If the air traffic closures at the Ninoy Aquino International Airport (NAIA) during the busiest times of the year were any indication, the main gateway is long overdue for drastic reforms.
But as with any service, better transportation will come at a price that commuters must pay.If NAIA or EDSA busway were to be privatized, public policy think tank Infrawatch PH said the government has the responsibility to negotiate project costs down to reasonable levels. Dapat i-rehabilitate yung NAIA, pero ano yung presyo? Para alam natin ano ipapataw sa tao. ‘Pag mataas ang project cost, ang mga tao ang magpapasan nito in terms of terminal fees,” Infrawatch PH convenor Terry Ridon said on CNN Philippines’ special “Pangulong Marcos: Ang Unang Taon.[Translation: NAIA should be rehabilitated, but at what cost? So that we know what will be imposed on people. If the project cost is high, the people will bear it in terms of terminal fees.]
By the first quarter of 2024, NAIA could possibly be in the hands of a private operator, according to the Department of Transportation (DOTr). The agency said negotiations between the government and interested private firms are underway.
The DOTr has pegged the NAIA rehabilitation project to cost ₱141 billion.
Meanwhile, the DOTr is working with the Public-Private Partnership (PPP) Center to assess the feasibility of privatizing the EDSA busway, which offered free rides to the public this pandemic.
The EDSA Carousel has been met with long lines of passengers that prompted transport officials to look for a solution in order to upgrade the busway’s facilities to meet global standards.
Private sector to the rescue?
For DOTr Secretary Jaime Bautista, the private sector can assist in many local infrastructure or development projects when the government has insufficient funding.
Private sector can move faster, and at the same time, private sector can also help fund many projects. We have very limited fiscal space, very limited budget in terms of project implementation,” Bautista said.Three power outages already hit NAIA this year, with the first and worst one yet occurring on New Year’s Day – affecting tens of thousands of travelers. It was due to a defective air traffic management system.
“‘Pag na-privatize yung Manila International Airport (or NAIA), definitely there will be improvements in the infrastructure,” the DOTr chief said. “Terminal 3, for one, is an old terminal. It has been there for almost 30 years. So, it will require a lot improvements in terms of infrastructure.”
[Translation: When the Manila International Airport is privatized, there will definitely be improvements in the infrastructure. Terminal 3, for one, is an old terminal. It has been there for almost 30 years. So, it will require a lot of improvements in terms of infrastructure.]A consortium composed of the country’s top conglomerates recently pitched a ₱267-billion plan to upgrade NAIA to transportation and aviation authorities. The consortium requests a 25-year concession period for the multi-phased master plan.For urban planner and architect Jun Palafox, the country “ideally” needs around 400 airports by 2050, six of which would be in Central Luzon, Metro Manila, and Calabarzon.Airports and seaports are the business cards of the country. If you enter the airport and you’re not a satisfied tourist, you’ll never become an investor,” Palafox said.
