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2015/FMP/PPP4/008 Session: 3

The Philippines Public Private Partnership Experience

Submitted by: Philippines

4th Public Private Partnership Experts Advisory Panel Meeting

Tagaytay, Philippines4 March 2015

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PPP Program is geared towards

INCLUSIVE GROWTH

PPP as one of the strategies

to accelerate

INFRASTRUCTURE

DEVELOPMENT

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Private sector as

PARTNER IN

DEVELOPMENT

PPP Center as the

CHAMPION FOR

PUBLIC-PRIVATE

PARTNERSHIPS

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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

o Monitor implementation of PPP projects

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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

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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

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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

Contract Standardization

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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

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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

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Status No. of

Projects

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*

*This does not include projects with no estimated costs yet.

“In the ASEAN region, Philippines ranked highest

in terms of PPP readiness…”

--Infrascope 2011 Study (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%)

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PPP CENTER

recognized as

“Best Central

Government PPP

Promoter”

It is the LONE ASIAN

entry in the category

and the LONE ASEAN

entry to Partnerships

Awards 2014

The World Bank described the Philippines as the next “Asian miracle”; HSBC estimates it tobe the 16th largest economy in the world by 2050; and the country’s growth rate is projectedto 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 businessin the country.- International Enterprise Singapore

“The P3 markets in the Philippines and China are expanding with deal flow

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”- Japan International Cooperation Agency (JICA) Director

General Hidetoshi Irigaki for Southeast Asia and Pacific Department

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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

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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

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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

through transparent and predictable contract terms