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PPPs and COVID-19: The Case of the Philippines
4th Meeting of the Infrastructure Financing and PPP Network of Asia and the Pacific
October 15, 2020
Eleazar E. RicoteAssistant Secretary and
Deputy Executive DirectorPPP Center of the Philippines
Ensure ecological
integrity, clean and healthy environment
Ensure safety and build resilience
Accelerate strategic
infrastructure development
Ensure peace and security
By 2022, to lay down the foundation for inclusive growth, a high-trust and resilient society, and
globally competitive knowledge economy
Philippine Development Plan 2017-2022
Achieve upper middle-income status by 2022
Government’s Response to COVID-19
On March 23, 2020, the Philippine Congress enacted the BayanihanAct (Republic Act 11469), which
allowed the President to "reallocate, realign, and reprogram" a budget of almost ₱275 billion (or
around $5.68 billion USD) in response to the pandemic.
On September 11, 2020, following Republic Act 11469, Bayanihan 2 (Republic Act 11949) was passed
into law which allocated ₱165.5 billion (or around $3.42 billion USD) for recovery interventions in response
to the pandemic and to bolster resiliency.
Government’s Response to COVID-19
• On March 27, 2020, IATF-EID issued Resolution No. 16 creating the
Technical Working Group for Anticipatory and Forward Planning (TWG-
AFP) to assess the impact of the pandemic and draft appropriate policy
recommendations that will help stimulate the economy and adapt to the “new
normal”.
• The Inter-Agency Task Force on
Emerging Infectious Diseases (IATF-EID)
was organized to respond to emerging
infectious diseases in the Philippines.
• On March 25, 2020, the IATF-EID laid
down a National Action Plan (NAP) to
implement and decentralize the system of
managing the COVID-19 situation.
TWG for Anticipatory and Forward Planning
The TWG, chaired by the National Economic and Development Authority (NEDA), is expected to provide recommendations on rebuilding confidence and adjusting to the “new normal”.
Its main objectives include:
1. To reduce uncertainty by making information available;
2. To recommend programs and strategies to mitigate the losses experienced by consumers and businesses; and
3. To recommend policies and programs to adapt to a “new normal” state of economic activities.
Priorities in the New Normal
Healthcare and Food Value Chain Solicited PPPs
Build, Build, Build (BBB) Infrastructure Plan
Key Implementing Agencies
• Department of Transportation (DOTr)
• Department of Public Works and
Highways (DPWH)
• Bases Conversion and Development
Authority (BCDA)
http://www.build.gov.ph/
• As of August 2020, there are 30 projects
(out of 104; 29%) in the BBB list that will be
financed thru PPPs.
• Sectors include:
urban redevelopment (including
disaster risk mitigation)
transport and mobility
water resources
power/energy
8
Transition to the New Normal and Ways Forward(for the Infrastructure Sector)
1. Realign expenditure priorities in 2021, provide more space for relevant
health-related expenditures, and improve the digital infrastructure.
2. Ensure unhampered movement of agricultural goods and services
through efficient transport and logistics systems.• This would involve the construction of better road and transport infrastructure and
other facilities for agriculture
3. Conduct comprehensive vulnerability and risk assessment of critical
infrastructure, particularly in areas considered as COVID-19 hot spots.• This would include public buildings that may be used as isolation or treatment
facilities
4. Construct and/or rehabilitate hospitals or designated quarantine
holding facilities in LGUs, airports, and major sea ports.
5. Under the Universal Health Care Law, strengthen the health system
through the establishment of facilities and laboratories and
acquisition of necessary hospital equipment to address COVID-19 and
possible recurrence of virus contagion, among others
Main Reference: We Recover As One Report prepared by the Inter-Agency Task Force for the Management of Emerging Infectious Diseases – Technical Working Group for Anticipatory and Forward Planning
9
Towards a Healthy and More Resilient Philippines
1. Intensify the implementation of the Prevent, Detect,
Isolate Treat and Reintegration (PDITR) strategy
2. Develop the PPE ecosystem
3. Support the agriculture sector, including urban
agriculture
4. Minimize disruptions in value chain and the
logistics sector
5. Extend financial assistance, retooling and
upskilling programs, alternative livelihood
programs and job matching services
6. Provide support for flexible learning opportunities
7. Financial and technical support to MSMEs
especially for digital transformation
8. Improve in the digital infrastructure
9. Continue implementation of projects on ecological
integrity
10. Reopen safely and sufficiently the public transport
system
Main Reference: Transcript of NEDA Acting Secretary’s Statement during the DBCC Budget Briefing on the FY 2021 Proposed Budget dated September 04, 2020
COVID19-Responsive PPP Center Services
Project Management and Development
• Extends technical assistance online for implementing agencies in the preparation, packaging, structuring, approval, and bidding of their PPP projects
• Considers the risks and impacts of COVID-19 in PPP project preparation and structuring
• Continued rollout of the Project Development and Monitoring Facility especially for fiscally-constrained local implementing agencies
Capacity Building
• Online delivery of activities to continue empowering implementing agencies with the competencies to craft well-structured PPP projects, and to adjust with the new normal
Policy Formulation and Advocacy
• Recommends policies in response to COVID-19 and to address PPP policy gaps mainly thru the amendment of the Philippine BOT Law
• Online assistance in the formulation of PPP Codes for local implementing agencies
Project Monitoring
• Virtual monitoring and facilitation in the implementation of PPP projects
• Assessment of impacts brought by COVID-19 in PPP contracts especially in terms of contingent liabilities
The PPP Center of the Philippines facilitates the implementation of the country’s PPP Program. It serves as a central coordinating and monitoring agency for all PPP projects in the country.
• Robust pipeline of local PPP projects in expanded priority sectors
• Institutionalization of reforms in the PDMF
• Develop sector-specific PPP guidebooks
• Enhancement of network of collaborative alliances
Short Term
(by 2020)
Medium Term
(by 2022)
Long Term
(within 6-8 years)
Inclusive and sustainable economic development
PPP Center’s Local PPP Strategy
• Successful showcase of projects for replication
• Development of an updated capacity-building PPP curriculum
• Acquisition of expertise for continuous project development
• Development of PPP network
• Nationwide operationalization of the PPP Project Information Management System
Local PPP ProjectsOnline Capacity Building Activities
Conduct of online trainings and seminars depending
on the development needs and requirements of the implementing agency
Introduction to PPP concepts or PPP 101
Concept note formulation
Project prioritization Management of
unsolicited proposals Financial and
economic analysis of PPP projects
The Proposed PPP Act (Amendments to the BOT Law)
Address the concerns of Local Government Units (LGUs) in undertaking PPP
Projects, especially amid the pandemic and related future events
Autonomy in project approval
Capacity to establish local PPP codes
Capacity to develop local projects that are pandemic-responsive
Provide adequate measures to protect public interest
Avoiding onerous provisions in PPP contracts
Increased competition in the procurement process
Regulation of PPP contracts
Avoidance of conflict of interest
Management of project risks, including pandemic-related risks
Post-project impact evaluation
Enable efficient, timely, and pandemic-responsive delivery of public services
More streamlined and online/virtual processes
Strengthened resources to develop projects
Allowing unsolicited proposals even for priority projects, subject to a clear set
of rules and processes
SALIENT FEATURES
14
Public-Private Infrastructure Advisory Facility (PPIAF) COVID-19 PPP Rapid Response Program
• The PPIAF, as supported by the World Bank Group,
helps developing-country governments strengthen
policies, regulations, and institutions that enable
sustainable infrastructure with private-sector
participation.
• Through the Rapid Response Program, the Philippines
can request short interventions of remote, targeted
technical advice to undertake a fast assessment of the
impact of COVID-19 on the Philippine PPP Program.
• Option 1: Focus on the study of high- and portfolio-level fiscal
implications of COVID-19 on selected PPP projects• Lead: Department of Finance
• Option 2: Focus on bringing global best practices on adjusting
requirements for infrastructure contracts as a result of the
pandemic• Lead: National Economic and Development Authority
• The PPP Center is one of the co-implementing agencies for both options.
PPP Project Database Updates (as of August 31, 2020)
PPP Projects by
STATUS
PPP Projects by
SECTOR
52%
10%
8%
3%
6%
21%
17Under
Construction
92 Operational
15Pre-
Construction
10 Terminated
37 Concluded
6 For
Verification
SECTOR
No. of
Projects
Transportation 32
Airport 6
Ports 4
Rail 4
Terminal 3
Roads 15
Water and Sanitation 55
Power 40
Property Development 15
Information Technology (IT) 13
Agriculture/Food Security 13
Solid Waste Management 4
Education 2
Health 2
Tourism 1
TOTAL 177
PPP Project Database Updates
Region No. of Projects
Nationwide 14
NCR 31
Luzon 87
Visayas 25
Mindanao 20
TOTAL 177
PPP Projects by
GEOGRAPHIC
LOCATION
177 Projects in the Database
• 86 Projects (2010-present)
• 82 Projects (1990-2009)
• 8 (For verification)
PPP Projects by
TYPE OF IMPLEMENTING
AGENCY
53%
27%
19%
25 PROJECTS
USD 0.32 Billion**
*Does not include Joint Ventures and PPP Projects prior to 2010. **Total cost does not include projects with no estimated costs or those with costs yet to be finalized
as of August 31, 2020Procurement Stage
USD 0.02 Billion 5
Approval StageUSD 0.24 Billion 1
19Development Stage
SOLICITED
Status of PPP Projects in the Pipeline*
30 PROJECTS
USD 38.59 Billion**
UNSOLICITED
Competitive Challenge StageUSD 0.46 Billion2
Approval StageUSD 37.74 Billion25
2Evaluation Stage
USD 0.31 Billion
No. USD (bn)
National 13 0.08**
Local 12 0.25**
No. USD (bn)
National 26 38.13**
Local 4 0.46**
Negotiation Stage1 USD 0.08 Billion
USD 0.07 Billion
As of August 31, 2020, the PPP Center is assisting local implementing agencies in the development and evaluation of 16 local PPP projects
5
Priority Sectors Regions
4
2
2
Luzon - 4
M. Manila - 5
Visayas - 5
Mindanao - 2
Water Supply & Sanitation
Solid Waste Management
Vertical Infrastructure / Government Property Development(e.g. town centers, city halls, public markets)
Tourism
3Others(e.g. IT, transport)
Local PPP ProjectsLocal PPP Projects
Local PPP ProjectsEmerging Sectors for PPP Projects in the New Normal
CLIMATE CHANGE
www.ppp.gov.ph
PPPCenter.Philippines
@PPP_Ph
Public-private-partnership-Center-of-the-philippines
PPPPinas
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