PPP Center Press Release
28 March 2012

Launch of PPP Manuals for LGUs

Some 180 Visayas and Mindanao mayors and their deputies were briefed on Monday in Iloilo City on getting public-private partnership (PPP) projects underway during an assembly wherein a three-volume LGU manual on the proper preparation of PPPs was also launched.

Socio-Economic and Planning Secretary Cayetano W. Paderanga led ceremonies on the landmark publication of the manual in the presence of ranking representatives of donor countries and global financial institutions who affirmed the significance of PPPs to spur inclusive growth all over the country.

Opening the first Local Government Units (LGU)-PPP Forum for Visayas and Mindanao Regions, Paderanga noted that economic benefits of PPPs by LGUs will reach more people nationwide and have the tremendous potential of surpassing the total gains of PPPs done with national agencies.

He noted, however, that successes of LGUs with PPPs can only be achieved with utmost transparency and accountability in the conduct of the entire breadth of processes to form well-prepared projects that are attractive to the private sector. “This is the only way this can succeed,” Paderanga said as he referred to the Aquino administration’s thrust of economic recovery on the premise of good governance and transparency.

“Now is the time to take advantage of the positive conditions of our financial standing in the global financial community,” Paderanga said.  “We are currently enjoying improved ratings from international financial institutions. Our peso is much stronger, we have lower interest rates, and we have enhanced our long-term peso-bond market. This makes us very attractive to financial institutions that are willing to lend longer for housing and infrastructure financing.”

Speaking on behalf of Local Government Secretary Jesse Robredo, DILG VI Regional Director Evelyn Trompeta urged local governments “to sustain the momentum of growth through PPPs which will suit local contexts and needs.”  She said DILG directives and polices are in place to support this flagship program for infrastructure and social services development.

PPP Center Executive Director Cosette V. Canilao informed the local government executives that the manual serves to supplement the services that the PPP Center is making available to LGUs to charge up their capacities to initiate PPPs in their locales.

Also joining the forum were British Embassy Deputy Head of Mission, Mr. Trevor James Lewis, Asian Development Bank (ADB) Country Director Neeraj Jain, ADB Country Economist Aziz Haydarov, Atty. Evelyn Jiz of the Local Governance Support Program for Local Economic Development and Development Academy of the Philippines Senior Vice President Magdalena Mendoza.

Executive Director Canilao said the PPP Center also manages resources that have been committed by donor countries to enable the country to access expertise and international competence in this sphere.  She stated, however, that in the end, what would fuel the PPP program among LGUs is their political will and commitment to see the PPP projects through.

Development partner agencies led by the ADB, Australian Agency for International Development (AusAID) and the Canadian International Development Agency (CIDA) have provided support to the PPP Center to strengthen its capacity as the government’s focal unit on PPPs. AusAID, through ADB, provided additional funding of US$6 million (six million US dollars) to Project Development and Monitoring Facility that augmented P300 million allocated by the government.  ADB also extended assistance on module development for the manual. The British Embassy has provided vital support to PPP Center on capacity building programs.

To help illustrate the successes of LGUs on working together with the private sector, Koronadal City Mayor Peter B. Miguel, M.D., presented how the city now enjoys integrated automated systems to efficiently generate revenues, track compliance among constituents, and for risk-reduction responses in cases of emergencies.

The experiences of Cagayan de Oro and Mandaluyong cities on public market buildings were also presented respectively by Ms. Estrella Sagral and Atty. Ernesto Santos to showcase how infrastructure improves services, increases employment generation and support micro, small and medium enterprises.

In Koronadal’s case, Mr. Alberto Morales, chairman and CEO of Geodata Solutions, Inc. said, the ICT project led the company to hire some 50 percent of its current work pool from Koronadal due to transfer of technology successes.

Engineer Rodel Laureles of the Department of Finance’s Municipal Development Fund Office expounded on PPP funding for local government units from MDFO.

The panel of the resource speakers at the Vis-Min forum also tackled queries of the LGU executives such as stability of projects in view of tenure of office of elective officials, help lines, funding and initiating capacity building sessions with the PPP Center.

Executive Director Canilao provided the assurance that PPPs with LGUs are viable. She said the entire process, itself, of preparing projects, if done with utmost transparency, appropriate competitive tendering, and compliance with the pertinent rules, stands as the declaration of the soundness of the projects.