Solon urges House to drop PPP schemes in 2012 budget
By Charlie V. Manalo 09/13/2011Act Teachers Rep. Antonio Tinio yesterday called on members of the House of Representatives to remove funding from public-private partnership (PPP) schemes in the proposed 2012 national budget.
In his 2012 proposed budget, President Aquino claimed the use of PPP approach on social services will finally resolve the shortages of infrastructure, such as school buildings and hospitals. For the Department of Education (DepEd), he proposed P5.0 billion for school building construction through the PPP scheme. The private sector will finance and build classrooms while government pays them an annual amortization over a period of several years.
Tino, however, argued that public infrastructure projects financed by PPPs will end up costing the taxpayers more.
In the budget deliberations last week, Tinio faced Rep. Joseph Emilio Abaya, chairman of appropriation committee, with questions on the practicality of using PPP schemes over the traditional government financing. He claimed that financing public infrastructure through PPP scheme may turn out to be more expensive, citing experiences of Canada and United Kingdom to support his point..... MORE
Source: The Daily Tribune
URL: http://www.tribuneonline.org/nation/20110913nat1.html
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