The Philippines Public Private Partnership Experience

___________________________________________________________________________

2015/FMP/PPP4/008

Session: 3

The Philippines Public Private Partnership

Experience

Submitted by: Philippines

4th Public Private Partnership Experts Advisory Panel Meeting Tagaytay, Philippines 4 March 2015

PPP Program is geared towards

INCLUSIVE GROWTH

PPP as one of the strategies

to accelerate

INFRASTRUCTURE

DEVELOPMENT

Private sector as

PARTNER IN

DEVELOPMENT

PPP Center as the

CHAMPION FOR

PUBLIC-PRIVATE

PARTNERSHIPS

3

Per Executive Order No. 8, s. 2010, as amended by

Executive

Order No. 136

signed last 28 May 2013:



BOT Center renamed as

PPP Center



Expanded mandate

:

o BOT Law

o Joint Venture arrangements o Other PPP arrangements



PPP Center to directly report to the

PPP Governing Board



PPP Center Services:

o Provide advisory services

o Facilitate development of PPP projects

o Manage the Project Development and Monitoring Facility o Capacitate national implementing agencies and LGUs o Advocate policy reforms

PROJECT PREPARATION AND DEVELOPMENT PROJECT REVIEW AND APPROVAL PREPARATION OF BID DOCUMENTS PQ & BID EVALUATION CONTRACT AWARD AND IMPLEMENTATION  Capacity Development  Pre-investment financing (PDMF)  Advisory services (legal, technical,

financial matters)

 Preparation of PPP

transaction documents (bid documents, draft contract, etc)  Monitor project implementation and contract compliance  Participate as non-voting observer of BAC

 Provide advice during

procurement process

PPP Center is involved in every part of the project cycle,

ensuring that projects are bankable, transparent and advancing public interest.

PROJECT PREPARATION AND DEVELOPMENT

PROJECT REVEW & APPROVAL/ PREPARATION OF BID DOCUMENTS

PQ & BID EVALUATION

CONTRACT AWARD & IMPLEMENTATION

Enhanced Legal & Regulatory Framework

 Revised BOT Law Implementing Rules and Regulations

 EO 78 mandating the inclusion of Alternative Dispute Resolution mechanisms in PPP contracts

 Revised Joint Venture Guidelines

 PPP Code for Local Government Units

 Establishment of the Contingent Liability Fund in the annual General Appropriations Act (GAA)

Next Steps

 Enactment of the PPP Act

 Issuance of Policy Circular and Guidelines on Pipeline

Development, Termination Payments, Viability Gap Funding, Material Adverse Government Actions, and PPP Best Practices  Institutionalization of the Contingent Liability Fund into the PPP Act

7

Developed Robust PPP Pipeline

 9 awarded projects with a total value of USD 2.90 Billion

 50 projects in the pipeline in various stages of development

amounting to over USD 21 Billion

 40 Projects with Project Development and Monitoring Facility

(PDMF) support

 22 renowned PDMF panel of consulting firms

Next Steps

 Hiring of independent consultants through the PDMF  Probity advisory for big-ticket projects

Building Capacities

 PPP Manual for LGUs and NGAs

 PPP Capacity Building Program for national implementing and oversight agencies, LGUs, and government corporations

 Implementation of the LGU PPP Strategy

Next Steps

 Development of PPP Knowledge Management Portal  National Govt. Agency (NGA) PPP Manual

 Institutional Partnerships with Infrastructure New South Wales Australia and Japan International Cooperation Agency

9

Improvements in the PPP Process

 New PPP Appraisal Process  Conduct of Market Sounding

 Conduct of One-on-One meetings with Prequalified Bidders

Next Steps

 Strengthening framework, processes, and inter-agency coordination in implementation of awarded projects  Enhancing the PPP monitoring framework

Status _Projects No. of Estimated Cost

(in billion USD)

PROJECTS UNDER IMPLEMENTATION

Awarded 9 2.89

Other projects for implementation 2 2.13

Sub-total 11 _5.02

PPP PIPELINE

Projects under procurement 11 6.31

Projects approved for roll-out 5 6.69

For approval of relevant government bodies 2 8.65

Projects with ongoing studies 13 TBD

For procurement of consultants 6 TBD

Under conceptualization or development 13 TBD

Sub-total 50 _21.65*

TOTAL 61

_26.67*

“In the ASEAN region, Philippines ranked highest

in terms of PPP readiness…”

--

(By the Economist Intelligence Unit as commissioned by the Asian Development Bank)

Result: Overall Index

Analysis of a benchmark index and learning tool that assesses the

readiness and capacity of countries in the Asia-Pacific Region to carry out sustainable, long term PPPs

Ranking Criteria:

 Legal and regulatory framework (25%)  Institutional framework (20%)

 Operational maturity (15%)  Investment climate (15%)  Financial facilities (15%)

 Sub-national adjustment factor (10%)

PPP CENTER

recognized as

“Best Central

Government PPP

Promoter”

It is the

LONE ASIAN

entry

in the category

and the

LONE ASEAN

The World Bank described the Philippines as the next “Asian miracle”; HSBC estimates it to be the 16th _{largest economy in the world by 2050; and the country’s growth rate is projected} to be one of the highest in ASEAN in the next few years. We identify key opportunities in the infrastructure and consumer sectors in the Philippines and share insights on doing business in the country.- International Enterprise Singapore

“

accelerating in the Philippines under the current administration and its P3 center” –

Moody’s Investor Service

“While the Philippine government must take primary responsibility for investing in public

infrastructure, public-private partnerships (PPP) are an important part of the

solution…..By giving the private sector a stake in nation building, we believe the

country can move that much closer to meeting its infrastructure needs” – Foundation

for Economic Freedom

“Philippines is known globally as having one of the best

PPP policy”

15

BACKGROUND



Serves as a

central database

for the PPP Program (e.g.

contracts, project documents, policies, issuances, references,

knowledge products, etc.)



Serve as primary source of reliable PPP information



Provides venues for information sharing, dialogue and

consultation with public/private/ local/national and

international PPP stakeholders



Helps provide fast and reliable systems to facilitate

timely/efficient report generation



Supports the full range of knowledge requirements of all its

internal and external users

KM Portal Information Systems

Developed

Under Development



Virtual Data Room

 Web-based facility for information dissemination during bidding process  Intended Users:

Prospective investor, Implementing Agencies’ Project Officers, and PPP Center’s Project Officers  Will utilize Secure Socket

Layer (SSL) Certificate from trusted Certificate Authority (CA)



PPP Center Website



Project Information and

Management System



Consultants Management

System



Document Management

and Tracking System



E-Library



Intranet



Repository of PPP-related information:



Policies;



legal and regulatory framework;



tender process;



sample contracts;



PPP best practices;



list of private firms, consultants, and experts

involved in PPP projects; and



list of PPP projects undertaken by APEC

economies.



Interconnectivity of KM Portals in the APEC region



Serve as platform for PPP information sharing

among APEC member countries



Provide standard contract templates for APEC member

economies



Serve as a guidance document incorporating PPP best

practices (contract provisions to include, among others,

Material Adverse Government Action, Termination

Payment Regime, and Alternative Dispute Resolution

Provision)



Aims to streamline the drafting of PPP concession

agreements and thus reduce due diligence cost



Encourage private sector participation in PPP projects