Economy


Vehicle inspection system project structure approved




Posted on August 19, 2014


THE MOTOR Vehicle Inspection System (MVIS) project, which is in the government’s pipeline of public-private partnership (PPP) initiatives, is now up for approval of the National Economic and Development Authority -- Investment Coordination Committee -- Cabinet Committee (NEDA-ICC-CabCom).

Asked about the status of the project, PPP Center Executive Director Cosette V. Canilao said in a text message: “For ICC CabCom approval.”

Project Development Officer Iris G. Templo of the Department of Transportation and Communications’ (DoTC) Office of the Undersecretary for Planning and Project Development said yesterday that the project structure of the MVIS was finalized just this month.

Project structures are finalized by the initiative’s implementing agency -- in this case, the DoTC and the Land Transportation Office (LTO) -- in partnership with the PPP Center.

Approval by the NEDA-ICC-CabCom, meanwhile, is needed for the project to be discussed by the NEDA Board chaired by President Benigno S. C. Aquino III.

When the said board approves the plan, the project’s implementing agency can bid out the initiative.

The MVIS project will involve the creation of testing centers for heavy duty, light duty and two-wheeler vehicles across the country.

According to the PPP Center’s Web site, these facilities shall include, in line with global best practices:

• vehicle lanes with standalone structure and automated inspection equipment;

• an administrative area;

• a parking area and test driving lanes;

• a boundary wall and utilities;

• an IT system for automating the entire process, enforcing sufficient security measures and provide interface with LTO database; and

• an optional area for future expansion.

The project will be implemented under the build-operate-transfer scheme, the PPP Center said in its Web site. It is estimated to cost P19.30 billion and will involve a twelve-year cooperation period, inclusive of design and conceptualization.

The PPP Center noted that approximately 7.45 million vehicles are required to be inspected under the provisions of the Clean Air Act and other relevant laws and guidelines issued by the LTO.

This number is expected to reach 8.5 million by the end of year 2016, 13.35 million by 2021 and 34.75 million by 2036, it said, highligting the project’s viability.

For the MVIS, the private partner will develop, operate, and maintain a network of testing centers that will perform vehicle inspection for all vehicles in the country.

“The MVIS is expected to play a crucial part in ensuring that the projected rapid growth in the motor vehicle population of the Philippines is environmentally sustainable and also safe for the citizens,” the PPP Center said.

“It also aims to improve the efficiency, effectiveness, reliability, and transparency of motor vehicle inspection in the country,” it added.

PPPs form part of the Aquino administration’s infrastructure program for speeding up the country’s economic development.

To date, the government has rolled out seven PPP projects: the Daang Hari-South Luzon Expressway Road Link Project, the PPP for School Infrastructure Project Phases I and II, the Modernization of the Philippine Orthopedic Center, the Automatic Fare Collection System, and the Mactan-Cebu International Airport Passenger Terminal Building.

In his State of the Nation Address last month, Mr. Aquino mentioned that his administration has rolled out more PPPs than the last three administrations, which approved six PPPs all in all.

In a July 18 economic forum hosted by BusinessWorld, PPP Center Deputy Executive Director Sherry Ann N. Austria said a measure amending the Build-Operate-Transfer Law or Republic Act 7718 is expected to be passed by Congress in the first semester of 2015. The said amendment, she noted, is expected to help ease bottlenecks in the current PPP program. -- BCPB