Thursday, November 28, 2024

Solon Calls For Transparency On Fees, Toll Of PPP Projects

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Solon Calls For Transparency On Fees, Toll Of PPP Projects

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Pay-per-use public infrastructure, such as roads and airports, should be affordable to end users and must be considered – and even disclosed – from the outset, Deputy Speaker and Batangas 6th District Rep. Ralph Recto said on Thursday.

In a press statement, Recto pointed out that the use of public-private partnership (PPP) projects should be priced the way they are built.

“Kung magkano babayaran sa toll, pamasahe o paggamit ng mga imprastrakturang ito, dapat frontloaded, hindi sa backend at kung kailan tapos na ay saka lang ibubulaga sa taumbayan (Toll fees to be paid for the use of such infrastructures should be frontloaded, and should not come as a surprise to the people towards the backend when the project is already finished),” he said.

He said willingness-to-pay surveys and public consultations must be done exhaustively in considering PPP projects, and these must be highlighted in disclosures and “not reduced to a fine print, nor hidden.”

He also noted that the same “sensitivity to consumers” should cover information technology projects, which he described as a “boom industry in the bureaucracy.”

“Reasonable pricing for the use of infrastructure projects is a must to allow low-income groups to enjoy it. Otherwise, if priced too high, it defeats the objective of inclusivity,” Recto said. “Fees, tolls, charges and other payments must be calibrated carefully because too high will be a barrier to some users, while setting it too low might result in taxpayer subsidies.”

The former senator was referring to qualified cases of viability gap funding when a shortfall in the number of users triggered the contractual obligation of the government to shoulder the difference.

He suggested that in disclosing the projected payment for use, the amount can be a range, or a minimum amount, “which is better than leaving it blank or keeping it a secret.”

“And people would have no qualms of paying if they see that the benefits outweigh the cost, as in the case of many PPP projects,” Recto said. (PNA)

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