Source: Business World, 18 April 2012

By C. H. C. Venzon

THE TRANSPORTATION department is set to publish before the end of the month the invitation to bid for the expansion and management of the Light Rail Transit Line 1 (LRT-1), a Cabinet official said yesterday.

“We are on track. We will publish the invitation to bid before the end of this month,” Transportation Secretary Manuel A. Roxas II told reporters.

This comes as the National Economic and Development Authority Board, chaired by President Benigno S. C. Aquino III, late last month approved 12 projects endorsed by the Transportation department, including the P60-billion expansion and management of LRT-1 which is in the list of public-private partnership (PPP) ventures.

Detailing the latest development on the project, Mr. Roxas said set to be bid out before end-April is the P30-billion civil works for the construction of the 11.7-kilometer (km) Cavite extension from the existing 20.7-km stretch, which runs from Baclaran in Pasay City to Roosevelt in Quezon City.

The winning bidder, he reiterated, will control the operation of and management of the existing railway, and the entire stretch upon completion of the Cavite extension.

Mr. Roxas in February said that the civil works will cost P40 billion-P50 billion, but later on noted that changes have been made as a result of further studies.

The other P30 billion, the official said in the briefing, will be spent for 152 train coaches that will be up for bidding to Japanese firms. The project will be funded through a development assistance from the Japan International Cooperation Agency (JICA).

“The bidding for the rolling stock will follow within this year, maybe within six months, but we will finalize first the loan agreement,” Mr. Roxas said

Mr. Roxas said the government opted to fund the acquisition of coaches to avoid pass-on cost to customers through higher fares should the future LRT-1 operator purchase the units.

“If [the winning bidder] will be the one who will shoulder [purchasing of] coaches, it will levy the additional expenses through a higher fare,” he said.

“The initial agreement is that the bidding of the coaches will be [exclusively] offered to Japanese firms,” Mr. Roxas explained. “If we would allow other countries to participate, the interest of the JICA loan will be higher.”

Interest rates on the JICA loan will be at 1.4% if the government opts to open the bidding to all countries, unlike the 0.2% rate if exclusively offered to Japanese firms.

“So we chose the one that the government will get bigger savings,” he said.

Mr. Roxas said the government would need 152 additional coaches once LRT-1 has been extended to Bacoor, Cavite.
For his part, Hernando A. Cabrera, Light Rail Transit Authority spokesperson, in a text message yesterday said that 108 coaches are currently plying LRT-1, with three or four coaches per train.

The government originally offered separate operation and maintenance contracts for the LRT-1 (P7.7 billion) and Metro Rail Transit-3 (MRT-3, P6.3 billion), but these were combined in a PPP deal offered last year.

Mr. Roxas, however, shelved the project — which would have been the first PPP to be auctioned off — when he replaced Jose P. de Jesus at the Transportation department, citing the need for further review. He had earlier said that the project would be split and that the LRT-1 deal would be prioritized. — C. H. C. Venzon

Source:  Philippine Star, 18 April 2012

By Helen M. Flores

MANILA, Philippines – The Department of Public Works and Highways (DPWH) plans to bid out two more infrastructure projects under the government’s Private-Public Partnership (PPP) scheme before the end of the year, officials said yesterday.

Public Works Secretary Rogelio Singson said the next PPP projects lined up for implementation are the North Luzon Expressway (NLEX)-SLEX connector project and the Ninoy Aquino International Airport Expressway phase 2.

Singson said the DPWH had scheduled the bidding for the P33 billion worth of projects before yearend.

“These projects would be done this year but not yet within the quarter,” Singson said.

Ayala group has bagged the P2-billion Daang Hari-South Luzon Expressway link road, the government’s first road project under the PPP system.

The schedule for the submission of bids for the four-lane elevated NAIA Expressway will be in July, with the approval of the contract the following quarter, Singson said.

The NAIA Expressway has a total length of 5.2 kilometers, starting from Sales St. to Andrews Ave., Domestic Road, MIA Road. and ends at Roxas Boulevard in Pasay City.

Around P13.58 billion will be spent for the construction of the NAIA Expressway, which include a toll plaza and five on and off ramps.

The submission of bids and notice of award for the NLEX-SLEX Connector is also scheduled within the year, the DPWH chief said.

In this project, the DPWH will construct a 13.4-kilometer four-lane elevated expressway to link the existing SLEX and NLEX passing through Metro Manila and utilizing the existing PNR alignment as its route.

The project costs P19.984 billion, he said.

Source: Business Mirror, 16 April 2012

By Cai U. Ordinario

WITH additional funds for public-private partnership (PPP) projects from three donors expected in the next few months, the National Economic and Development Authority (Neda) said more projects may be rolled out this year.

Neda Director General Cayetano Paderanga Jr. said the Asian Development Bank’s (ADB) disclosure of a possible total of $18.5-million grant for the PPP projects from the Australian and Canadian governments and the Manila-based multilateral development bank itself is a “vote of confidence” for  PPP initiatives of the Aquino administration.

Canberra’s share would come from the Australian Agency for International Development (AusAID) and Ottawa’s from the Canadian International Development Agency (Cida).

For 2012, the Neda and the PPP Center expect to roll out a minimum of eight PPP projects. But the Neda could not say outright if the additional funds meant more projects were possible.

“They’ve been very helpful, ADB, AusAID and Cida, in helping us to equip ourselves to be able to be more effective in the lines of developing projects. So we think of this [$18.5-million grant] as a vote of confidence in what the Philippines has been doing and [in President Aquino’s] program on public-private partnerships,” Paderanga said.

He added that counterpart funding for the $18.5-million grant will be covered by the P160 million in PPP allotment in the government’s 2012 budget and by  PPP funds of the Department of Public Works and Highways and the Department of Agriculture, and the Project Development Monitoring Fund (PDMF) of P550 million.

The PPP Center disclosed that among the projects expected for rollout this year as of March 2012 are the Automatic Fare Collection System, Balara Water Hub, Cala Expressway (Cavite and Laguna Side), Cold-Chain Systems Covering Strategic Areas in the Philippines; Grains Central Project and Mactan-Cebu International Airport Passenger Terminal Building.

Other projects include Modernization of  Philippine Orthopedic Center, New Bohol (Panglao) Airport, New Centennial Water Supply Source, North Luzon Expressway-South Luzon Expressway Connector Road, Operation and Maintenance of Angat Hydroelectric Power Plant Auxilliary Turbines 4 and 5; Operation and Maintenance of Laguindingan Airport, Operation and Maintenance of Puerto Princesa Airport and Vaccine Self-Sufficiency Project Phase II.

Documents obtained by the BusinessMirror earlier showed that another 43 PPP projects are in the pipeline, including 15 projects to be implemented by the Department of Transportation and Communications, around nine by the Department of Public Works and Highways, eight by local government units and two each by the Department of Agriculture and the Metropolitan Waterworks and Sewerage System.

Also in the pipeline are one project each for the education, justice, finance, foreign affairs and national defense departments; Technical Education and Skills Development Authority; Land Transportation Office; National Irrigation Administration; and Office of the Solicitor General.

Source: Business Mirror, 12 April 2012

By Cai U. Ordinario

THREE donors are poised to extend an additional $18.5 million for the Project Development and Monitoring Facility (PDMF) and capacity-building needs of various local governments nationwide as a result of the progress made by the government in pushing its public-private partnership (PPP) initiative,.

The PDMF is a revolving fund managed by the PPP Center used to finance pre-investment studies for PPP projects. The center earlier said the P550-million PDMF may dry up by mid-year because of the various PPP studies it has already financed.

Asian Development Bank (ADB) Philippine Country Director Neeraj Jain told reporters the PDMF may receive additional funding of $15 million from the Australian and Canadian governments, while another $3.5 million will be extended for capacity-building activities.

“[We proposed to] provide additional $15 million. This proposal will be subject to the approval of the board of directors. By the end of this month, we would sign an agreement with the government to provide an additional $15 million for the Project Development and Monitoring Facility. We are very bullish on it. We think the government is coming to a point where it can really launch a very sustainable rules-based PPP program,” Jain said during a briefing for the launch of the Asian Development Outlook (ADO), the flagship publication of the Manila-based multilateral development bank.

Jain said that when the board approval is secured and the agreement is signed by the end of the month, the government’s PPP initiative would receive a $15.5-million boost from ADB and the Australian government.

This will include the initial $12 million to help replenish the PDMF and some $3.5 million that will be extended for capacity building of local government units (LGUs). Jain said that by the end of the month, some $15 million would have been extended by the Australian government for PPPs and $0.5 million would have been extended by the ADB.

The remaining $3 million, Jain said, may be secured in the next two to three months from the Canadian government, which is still in the process of “considering” the proposal. If this funding is secured from the Canadian government through the Canadian International Development Agency (Cida), the additional fund will be added to the PDMF.

In an earlier briefing, the PPP Center said around P284 million of the P550-million PDMF has already been used to finance the pre-investment studies of 10 of the 16 PPP projects to be rolled out this year. The other six projects’ pre-investment studies have been financed through implementing agency funds and donor assistance.

Apart from the 16 projects for rollout this year whose pre-investment studies have already been funded, the PPP pipeline still includes 43 other projects that have not yet undertaken pre-investment studies. These are crucial in project preparation and evaluation because they cover the design and scope of the project as well as give a sense of how much a project will cost to implement and complete a project under a PPP scheme.

Documents obtained by the BusinessMirror showed that this pipeline includes 15 projects to be implemented by the Department of Transportation and Communication; nine by the Department of Public Works and Highways (DPWH); eight by the Local Government Units (LGUs); and two each for the Department of Agriculture (DA) and the Metropolitan Waterworks and Sewerage System (MWSS).

The list of pipeline projects also include one project each for the Department of Education, Department of Justice, Department of Finance, National Irrigation Administration, Department of Foreign Affairs, Office of the Solicitor General, Department of National Defense, Technical Education and Skills Development Authority, and the Land Transportation Office.

Source:  Business World, 11 April 2012

THE PHILIPPINES and Qatar have agreed to create an investment fund totaling $1 billion for prospective projects in the country the Gulf state may participate in, a Palace spokesman said on Wednesday.

Presidential Spokesperson Edwin Lacierda said officials of the Department of Trade and Industry (DTI) and of investment house Qatar Holding LLC are laying down the groundwork for the fund, “whose authorized capital would be in the range of $1 billion.”

“It’s a joint investment fund…subject to the study to be conducted by DTI and Qatar Holding LLC,” Mr. Lacierda explained to reporters.

Qatar Holding LLC is wholly owned by Qatar Investment Authority (QIA), said Mr. Lacierda. Since 2006, QIA has invested in strategic private and public equity as well as in other direct investments, according to the agency’s Web site.

“The structure of the fund, the contribution of each party to its capital, the terms and conditions for its establishment and operation shall be subject to the specific agreement of the parties,” he added.

Mr. Lacierda said that the fund is tied to the bilateral memorandum of understanding signed last Tuesday in the presence of President Benigno S. C. Aquino III and Sheikh Al-Thani to explore investment opportunities in the Philippines.

“There is a provision there which says that parties would explore investment opportunities in the Philippines in various sectors including but not limited to natural resources, commodities, energy, agriculture, infrastructure, and to study the establishment of the fund,” Mr. Lacierda noted.

Mr. Lacierda said talks between the two leaders last Tuesday had been a good opportunity for the Philippines to explore trade potentials.

“The President asked Qatar to consider importing jewelry, garments, consumer electronics, personal products and halal [items],” said Mr. Lacierda.

“There are around 10,000 halal products that are available in the Philippines,” he noted.

MORE PROSPECTS

He added that Mr. Aquino had also informed his Qatari counterpart about the “resurgent furniture-making industry” in the country, saying the Philippines could supply high-end quality furniture for the Gulf state.

Mr. Lacierda said Mr. Aquino had also invited Qatar to consider outsourcing architectural construction, interior design and engineering services from the Philippines.

He also invited Qatar to join the fourth Philippine Energy Contracting Round for coal and petroleum.

PRIORITY INFRASTRUCTURE

On the other hand, Mr. Lacierda said the Qatari delegation expressed “keen interest in tourism, energy, and infrastructure,” with possible involvement in the country’s public-private-partnership (PPP) program.

In those talks, Philippine officials gave a list of PPP projects, including mass transportation, airports, sea ports and the food supply chain facilities.

“We also mentioned the PPP to the Sheikh and then their Minister of Economy and Finance [Yousef Hussain Kamal],” said Mr. Lacierda. “They were very interested in the areas of energy and tourism… They expressed interest in the privatization efforts of the Philippines, in areas of infrastructure.”

“They also expressed interest in increased flight frequency to the Philippines,” said Mr. Lacierda.

Mr. Lacierda noted that the Sheikh had suggested the two parties “meet on the PPP,” whereas the Qatari minister had asked for copies of pre-feasibility studies already conducted on the projects, prior to the proposed second meeting.

Of a list of several prospective PPP projects unveiled in late-2010, only one, so far, has been awarded — the P1.96-billion Daanghari-South Luzon Expressway Link. Ayala Corp. signed the project contract last April 3. – JPDP

Source:  Zambo Times, 12 April 2012

MANILA — The revolving fund for Public-Private-Partnership (PPP) projects, dubbed “Project Development and Monitoring Facility,” will receive US$ 15.5 million this year.

Asian Development Bank (ADB) Country Director for the Philippines Neeraj Jain, in a briefing Wednesday, said bulk of the funding amounting to US$ 15 million will come from the AusAid while US$ 500,000 will come from the ADB.

He said the proposal for the grant has been sent to ADB’s Board of Directors and up for approval by the end of this month.

“We are very bullish on it. We think the government is coming to a point wherein it can really launch a very sustainable viable PPP program,” he added.

The PDMF has an initial P550 million funding, which was pooled from funds contributed by the governments of the Philippines, Australia and Canada.

The share of the Australian government was put in under ADB’s Capacity Building Technical Assistance Project.

The fund will be used to finance pre-investment activities like preparation of project prefeasibility studies, feasibility studies and financial models, development of PPP options, project structuring, providing transaction advisory services during the bidding process and preparation of contract documents.

The government has announced 10 projects under the PPP but only one has been awarded — the Daang Hari-South Luzon Expressway Project, which was awarded to Ayala Corporation.

PPP projects expected to be bidded out this year include the vaccine PPP, the extension of the Light Railway Transit Line 1 (LRT-I), and the School Infrastructure Project. (PNA)

DCT/lgi/JS

Source:  Interaksyon.com, 12 April 2012

MANILA, Philippines – Three foreign donors will provide the Philippines another $18.5 million to help move forward the Aquino administration’s Public-Private Partnership (PPP) Program.

Neeraj Jain, Philippine country director of the Asian Development Bank (ADB), on Wednesday said the Project Development and Monitoring Facility (PDMF) will receive $15 million and another $3.5 million from the Australian and Canadian governments to help build the capacity of local government units (LGUs) taking part in the PPP.

“This proposal will be subject to the approval of the board of directors. By the end of this month, we would sign an agreement with the government to provide an additional $15 million. We are very bullish on it. We think the government is coming to a point where it can really launch a very sustainable rules-based PPP program,” Jain said.

The PDMF is a revolving fund used to bankroll feasibility studies for PPP projects. The PPP Center earlier said the P550 million PDMF may have to be replenished by the middle of the year so more studies can be undertaken.

Source:  Zambo Times, 11 April 2012

MANILA — An official of the Asian Development Bank (ADB) expects more efficient implementation of the public private partnership (PPP) program in the country as the government puts in strengthened rules and processes.

ADB Country Director for the Philippines Neeraj Jain, in a briefing Wednesday, said delay in the bidding of the PPP projects identified by the government is in line with improvement of the processes, which are targeted to ensure the efficient implementation of the various infrastructure projects.

The government is putting in more stringent rules on the bidding of the PPP projects and is doing away with unsolicited project proposals unlike in the past.

Jain said taking in unsolicited projects is still among the rules in PPP project implementation but pointed out that it is better for the government to bid out the infrastructure projects for these to be pursued effectively.

“Soothing worries on unsolicited proposals is better because it would provide for a more robust way to increase PPP participation,” he said.

Jain cited that based on the experiences in India, among other countries in the region, it is better for the government to prepare projects and bid it out.

“Once the government reaches certain threshold, and I’m very confident it can reach that threshold now, we will begin to see a number of projects come to its implementation,” he added.

The government has, to date, bidded out one of the 10 PPP projects announced in 2011. This is the Daang Hari-South Luzon Expressway Project, which was awarded to Ayala Corporation.

PPP projects expected to be bidded out this year include the vaccine PPP, the extension of the Light Railway Transit Line 1 (LRT-I) and the School Infrastructure Project. (PNA)

LDV/JS