The Philippine government’s plan to secure a loan from the Asian Development Bank (ADB) for the P175 billion Bataan-Cavite Interlink Bridge has raised a pertinent question: why not consider the Build, Operate, Transfer (BOT) model and let the private sector bear the expenses? History has shown that BOT arrangements can be an effective hedge against impractical government spending, corruption, bribery, incompetence, and failed and unrealized expensive projects.

The Department of Public Works and Highways (DPWH) confirmed the conclusion of its two-week discussions with the ADB’s Fact-Finding Mission, aiming to obtain loan approval for the project by November. However, it is crucial to recognize that global creditors like the ADB typically impose interest rates of at least 1% to 2% for developing member countries. While these rates may appear relatively low, a 2% interest rate on a $2 billion loan equates to $20 million that Filipino taxpayers would have to shoulder. That’s over P1 billion per year!

The DPWH meetings, held from June 16 to July 5, focused on assessing the overall project readiness, laying the groundwork for the preparation of the loan agreement for the 32-kilometer Bataan-Cavite bridge project. The ADB aims to approve the loan in the third quarter of 2023 and is co-financing the project with the Asian Infrastructure Investment Bank (AIIB). The initial tranche of the $1 billion loan facility will be split between ADB ($650 million) and AIIB ($350 million).

The construction of the Bataan-Cavite bridge is scheduled to commence in 2024, with the project divided into seven contract packages. The first packages will cover the on-land components, including the five-kilometer Bataan Land Approach (Package 1) and the 1.35-kilometer Cavite Land Approach (Package 2). The subsequent packages involve Marine Viaducts in the North and South (Packages 3 and 4) spanning a total length of 20.65 kilometers. The remaining packages comprise the North Channel and South Channel Bridges (Packages 5 and 6), measuring 2.15 and 3.15 kilometers, respectively. The 7th package encompasses project-wide ancillary works.

The 32.15-kilometer Bataan-Cavite Interlink Bridge, spanning four lanes, will connect Barangay Alas-asin in Mariveles, Bataan, with Barangay Timalan Concepcion in Naic, Cavite. Notably, about 80% of the structure will be built over the sea, traversing Corregidor Island through two navigational bridges: the 400-meter North Channel Bridge and the 900-meter South Channel Bridge.

Apart from its significance in reducing travel time between Bataan and Cavite from over five hours to approximately 45 minutes, the bridge is expected to alleviate traffic congestion in Metro Manila, lower transportation and logistics costs, and create economic opportunities for the two provinces and their neighboring regions.

Meanwhile, real-world examples demonstrate the viability of the BOT model for large-scale government projects such as roads and bridges. The following are just a few examples of BOT projects in other countries:

1. Confederation Bridge (Canada): The Confederation Bridge, linking Prince Edward Island and New Brunswick, was constructed under a BOT model. It is financed, operated, and maintained by Strait Crossing Development Inc. (SCDI), ensuring efficiency and reducing the risk of corruption often associated with government projects.
2. Dartford Crossing (United Kingdom): The Dartford Crossing, comprising the Queen Elizabeth II Bridge and Dartford Tunnels, was developed using a BOT model. The private company, Dartford River Crossing PLC, financed the project, reducing the bureaucratic red tape often encountered in government-led initiatives.
3. Sydney Harbour Tunnel (Australia): The Sydney Harbour Tunnel was built under a BOT arrangement. The private consortium, Transfield-Kumagai, financed the construction and operation of the tunnel, demonstrating how private sector involvement can circumvent corruption and bribery that can plague government projects.

In countries like the Philippines, where corruption has been a persistent issue, adopting the BOT model offers several advantages:

• Mitigating Corruption: The BOT model can help address corruption concerns, as private sector entities assume responsibility for financing and managing projects. This reduces opportunities for corrupt practices and embezzlement of public funds.
• Curbing Bribery: With the private sector taking charge, the likelihood of bribery and illicit payments can be minimized. BOT arrangements create a transparent and competitive environment, discouraging under-the-table deals and promoting fair business practices.
• Streamlining Processes: The Philippine government has faced challenges related to bureaucracy, red tape, and inefficiencies within the Department of Public Works and Highways (DPWH). Adopting the BOT model can bypass these hurdles, allowing for faster decision-making, streamlined processes, and more efficient project execution.
• Accelerating Project Completion: Government-led projects in the Philippines often suffer from delays and prolonged completion timelines. BOT arrangements, driven by private sector efficiency and financial incentives, can expedite project delivery, saving time and reducing costs.
• Leveraging Expertise: BOT projects enable the private sector to bring their expertise, technical knowledge, and project management skills to the table. This can result in higher-quality infrastructure, improved project planning, and better risk management.

By leveraging the BOT model, the Philippine government can capitalize on the benefits of private sector involvement, mitigating corruption risks, reducing red tape, and ensuring timely project completion. It fosters transparency, efficiency, and innovation while addressing the challenges posed by corruption and bureaucratic inefficiencies that have hindered the progress of government-led initiatives in the past.