Cosette Canilao says Government can still save health PPP project

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Cosette Canilao says Government can still save health PPP project

According to Cosette Canilao, the head of Philippines's PPP Center, the government could save the new Philippine Orthopedic Center (POC) PPP project.

This announcement comes after Megawide Construction Corp. announced last month that is had terminated its contract for the new POC PPP project. At that time Megawide World Citi Consortium Inc. (MWCCI), a subsidiary of Megawide Construction Corp. reported in a statement:

"Megawide has terminated the contract for the modernization of the Philippine Orthopedic Center with the Department of Health. This is a decision driven by the two-year delay in awarding of the certificate of possession, among others, and not one that was made lightly."

"Despite difficulties, it is a project that we continue to believe in. We continue to support the DOH and this administration in their vision for inclusive healthcare for all Filipinos."

Cosette Canilao said that under the terms of the contract, the health department has three options: contest the notice of termination of the deal, allow the deal to end, or convince Megawide to proceed with the project.

The firm won the tender process for the project on 11 December 2013, and later, in March 2014 the project achieved commercial closure. Construction works was scheduled to start in September 2014. According to sources, the company would have spent more than P400 million (US$8.45 million) as of February this year on hiring of consultants and mobilization of contractors.

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