Landbank supports PPP for school infrastructure project

Posted on . Filed under InfrastructureUseful Articles. Be the first to comment.

Land Bank of the Philippines (Landbank) recognizes the critical role of basic education in the country’s socio- economic and political development, hence the provision of financing facility for the Department of Education (DepEd) Public-Private Partnership for School Infrastructure Project (PSIP) Phase I.  DepEd-PSIP Phase I is one of the priority projects of Philippine government under its flagship program – Public-Private Partnership (PPP).  An infrastructure PPP, the DepEd-PSIP Phase I involves the design, financing, and construction of about 9,300 one-storey and two-storey classrooms, including toilets, furniture and fixtures, in the country’s Region I, III, and IV-A.  Under the build-lease-transfer structure of the PPP, the project includes a PhP16.28 billion (US$369 million) lease arrangement spanning a period of 10 years.  Lanbdbank extended a Php1.5 billion (US$34 million) financing facility to Citicore-Megawide Consortium, Inc. (CMCI), the private partner who won the PhP12.83 billion (US$290.8 million) lease contract Packages B and C under the DepEd PSIP Phase I project.  These two packages involved the construction of a total 6,544 classrooms in various cities, municipalities and provinces covering Regions III and IV-A.  This project highlights the government’s support to prioritize the provision of basic education as well as demonstrates the benefits of fostering partnerships among the public and private sectors, and civil society through projects and initiatives aimed at delivering basic education as means to achieve the national goals of poverty reduction and equitable wealth distribution.  Initially, the project will address the shortage in classrooms of public schools; supplements DepEd’s program by reducing the current backlog of around 66,800 classrooms in public schools nationwide; narrow down the wide disparities in classroom-student ratios across the country; achieve the ideal classroom-student ratio; arrest the classroom backlog which is estimated to increase to 148,665 by 2016; and to provide financing assistance to the private sector involved in the PPP projects of the government and in the process to contribute to the country’s attainment of its medium-term plan (Philippine Development Plan) and the Philippine President Benigno Aquino III’s Ten-Point Agenda for Basic Education. Landbank’s “Financing Facility for the Department of Education (DepEd) Public-Private Partnership for School Infrastructure Project (PSIP) Phase 1 was winner of the ADFIAP Outstanding Development Project Award 2014 under the Infrastructure Development category.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.