EU Investors Express Interest in PPP Projects

PRESS RELEASE
01 October 2014

Quezon City – The showcase of the Philippines public-private partnership (PPP) projects to foreign and local investors was one of the highlights of President Aquino’s official four-nation European tour. A pipeline of over fifty (50) PPP projects estimated € 16.01 Billion were presented to European investors.

Investors’ meetings in Spain

In Madrid, President Aquino, together with national government agencies’ (NGAs) officials, attended seven business meetings with different foreign companies.

Globalvia, one of the world’s leading companies in the management of infrastructure assets, plans to participate in the tender of the operation and maintenance of the Light Rail Transit (LRT) Line 2.  Abengoa, a Spanish multinational company and Acciona (Acciona Agua) bought pre-qualification documents for the Bulacan Bulk Water Supply Project.

Other Spanish companies that have expressed strong interests on different PPP projects are Grupo Actividades de ConstrucciĂłn y Servicios (ACS), Ineco, and Indra Sistemas.

PH PPP Conference in Brussels

An estimated one hundred European and local investors attended the Conference on Public-Private Partnership Program for Infrastructure Projects in the Philippines in Brussels, Belgium. PPP Center, Embassy of the Philippines in Belgium, Department of Trade and Industry (DTI), Association of European Chambers of Commerce and Industry (EUROCHAMBRES), and Friends of Europe organized the conference.

Executive Director Cosette V. Canilao presented the country’s investment opportunities in the Brussels conference.

“We have over 50 projects in the pipeline in different stages amounting to about EUR €16 billion”, she announced.

She also stressed the important role of the private sector in sustaining PPP in the country even after PNoy steps down in 2016.

“We have not just the government but also the private sector as partners to ensure that PPP continues beyond this administration”, she said.

Meanwhile, President Aquino stressed during the conference that public-private partnerships are worthy initiatives because of the benefits that they provide to all parties involved and to the citizens.

“All of you know that PPPs are regarded as ideal ventures precisely because all parties do benefit from them: private enterprise can profit by putting their expertise and knowledge and other resources to good use”, he said.

PH-FR business forum and LRT Line 1 Ext project ceremonial signing

PPP projects were also highlighted during the Philippines-France Business Forum organized by the Mouvement des Entreprises de France (MEDEF) International and the Department of Trade and Industry (DTI) held at the Intercontinental Paris Le Grand Hotel Opera Ballroom.

In the forum, Executive Director Canilao highlighted the growth of the PPP pipeline from 47 projects amounting to EUR 6.24 billion the previous year, to 57 projects at EUR 16.01 billion at present. As of September last year, there were only 3 awarded projects.

President Benigno S. Aquino III, together with Executive Director Canilao and national government agencies’ (NGAs) heads, witnessed the ceremonial signing of two agreements of the recently awarded Light Rail Transit Line 1 Cavite Extension and O&M Project on the sidelines of the Business Forum.

The first is the Technical Services Agreement between RATP Developpement and the Light Rail Manila Consortium and the second is the Engineering, Procurement and Construction Agreement between Bouygues Publics Travaux, Alstom Transport and Light Rail Manila Consortium, for the design and construction of the Manila LRT Line 1 Extension Project extending the line by 12 kilometers and the addition of eight stations.

This coming Thursday, October 2, the contract signing ceremony of the Php 65 billion pesos LRT Line 1 Cavite Extension will be held at EDSA Shangrila. The winning consortium is the Light Rail Manila Consortium of Ayala and MPIC.

 

Aquino to highlight PPP projects during EU visit

PRESS RELEASE
15 September 2014

 

The Philippines led by President Benigno S. Aquino III will showcase the country’s Public-Private Partnership infrastructure projects in a bid to expand its trade relations and secure investment deals with its European counterparts. The President will lead a four-nation official tour of Europethat will cover Spain, Belgium, France, and Germany.

One of the highlights during the four-nation EU official tour is the PPP Infrastructure Conference. The conference to be held in Brussels, Belgium on September 16 will promote the Philippines’ infrastructure projects under its Public-Private Partnership Program.

Among the big-ticket PPP projects to be featured in the Brussels PPP infrastructure projects conference include the USD 2.73 Billion Laguna Lakeshore Expressway Dike Project of the Department of Public Works and Highways, and the USD 542.22 Million Bulacan Bulk Water Supply project of the Metropolitan Water Works and Sewerage System. The conference will also feature transportation projects, including airports, massive transport terminals, and rail lines.

PPP Center Executive Director Cosette V. Canilao is set to present to European investors a pipeline of over fifty (50) PPP projects estimated at US$ 20 Billion or approximately EUR € 14 Billion.

“This is a huge opportunity for the Philippines to pitch our PPP Infra projects and let European investors know that we have built up a major deal flow in which they can participate in. Our investment climate is ripe for investors to bring their business to the Philippines,” Canilao pointed out.

“Our credit ratings are at an all-time high as evidenced by major international rating agencies’ successive upgrades. We made significant strides in the world competitive index. Clearly, now is the best time to invest in the Philippines,” Canilao added.

The PPP program is a flagship program of the Aquino administration. Recently, a leading provider of credit ratings, research, and risk analysis cited the accelerating PPP infrastructure projects of the present administration.  Moody’s Investor Service stressed that this is despite the constraints on regulatory framework in the country.

 

View PPP Investment Brochure 2014 (3MB)

Gov’t hires int’l PPP advisor for its biggest PPP project

Press Release
03 September 2014

 

Quezon City – The government commissioned a renowned international law firm and project advisory company as transaction advisor in the procurement of the Php 122.81 billion pesos worth Laguna Lakeshore Expressway Dike Public-Private Partnership (PPP) project of the Department of Public Works and Highways (DPWH).

Through the PPP Center’s Project Development and Monitoring Facility (PDMF), the Jones Day of the United States was engaged to conduct due diligence review of the project feasibility study, manage the project’s bidding process, prepare PPP transaction documents and provide advisory support to DPWH.

Jones Day is an international law firm with 41 offices worldwide and considered as the third largest law firm in the world. Jones Day will provide PPP transaction advisory support to DPWH together with its sub-consultants ARC Developments International Pty Ltd. of Australia, Jacobs Engineering Group of USA, Puno and Puno Law Offices, and Engineering Development Corporation of the Philippines.

The Laguna Lakeshore Expressway-Dike (LLED) Project has already attracted at least 20 bidders which include Ayala Land Inc., Metro Pacific Tollways Corporation, Muhibbah Engineering BhD of Malaysia,  JV Power and Wealth Corporation, Megaworld, Minerales Industrias Corporation, GT Capital, Leighton Contractors of Australia, Egis Projects S.A. of France, LT Group, Laguna Lakeshore Consortium (D.M. Wenceslao Group), Filinvest Land, Macquarie Securities (Phil.) Inc., San Miguel Corporation, Megawide Construction Corporation, Aboitiz Equity Ventures, JG Summit Holdings, PT Star Line of Indonesia, State Properties Corp., and Alloy MTD-Hashin-Vista Land Consortium.

DPWH announced earlier that interested companies have until October 16 to submit pre-qualification documents for the LLED project.

The LLED project has an estimated concession period of thirty-seven (37) years inclusive of seven (7) years for design and construction and thirty (30) years for operation and maintenance. It will be financed mainly by the private capital with no government subsidy, except for the right-of-way costs.

The project has two components: road dike and land reclamation. A 47-kilometer flood control dike on top of which will be a high speed six-lane expressway will be constructed. The expressway-dike will run on a mainly off-shore alignment at least 500 meters away from the western shoreline of Laguna Lake, including pumping stations and floodgates. It will start at Taguig, passes through Muntinlupa and Calamba, and ends in Los Banos at its boundary with Bay, Laguna.

The project’s second component is the reclamation of about 700 hectares of foreshore and offshore areas, west of the dike, in Taguig and Muntinlupa, for mixed land uses. This component will support the private financing for the construction of the entire project, especially the expressway-dike.

When the Project is completed, it will protect more than 200,000 households or around a million residents living in low-lying communities and save billions of pesos damages to more than 5,000 factories and commercial establishments affected by yearly flooding. It will also improve the environmental condition of the Laguna Lake, promote economic activities, and provide opportunities for developing new business and residential district in the reclaimed areas.

 

PPP Transport Terminal Sparks Interest from Investors

Press Release
03 September 2014

 

The PHP 4 Billion transport terminal to be constructed south of Metro Manila has sparked interest from the country’s biggest investors. Prospective bidders Ayala Land, San Miguel Corp., Datem Construction, Filinvest, and Megawide are set to attend the pre-qualification (PQ) conference for the Integrated Transport System – South Terminal of the Department of Transportation and Communications this Wednesday, September 3. All five investors are currently in the process of preparing their PQ documents which they will submit on October 2014.

ITS-South is one of the two transport terminals up for bidding under the PPP program. Recently, the DOTC issued its Invitation to Prequalify and Bid for the Integrated Transport System Southwest Terminal last July 2014.  The ITS Southwest Terminal drew the interest of prospective bidders Ayala Land Inc., San Miguel Corp.,  Metro Pacific, D.M. Wenceslao and Associates Inc., Robinsons Land, Megawide,  Filinvest, Ayala Corporation, State Properties, and Expedition Construction Corp. to construct the PHP 2.5 billion terminal.

The construction of the terminals is a result of Administrative Order No. 40, mandating the DOTC to operationalize the permanent ITS terminals. With the terminal in operation, it will help maximize road use by reducing the volume of vehicles plying EDSA, improving traffic conditions.

The terminals will interconnect the different transport modes and services. Specifically, the South Terminal will connect passengers from the Laguna/Batangas side to other urban transport systems such as the future North-South Commuter Rail (currently the Philippine National Railways), city buses, taxis and other public utility vehicles that serve inner Metro Manila.  The terminal will include a passenger terminal building, arrival and departure bays, public information systems, ticketing and baggage holding facilities and park-ride facilities.

 

PPP Center advocates probity advisory in PPP procurement

Press Release
29 August 2014

The Public-Private Partnership (PPP) Center of the Philippines organized a two-day roundtable discussion introducing the significance of probity advisory services in PPP procurement to key implementing, oversight and regulatory agencies involved in the country’s PPP Program. This is part of the Center’s policy initiative to further institutionalize due diligence, transparency and accountability in government’s PPP undertakings.

Ms. Erin Flaherty, Executive Director for Transport, Social and Cultural Infrastructure of Infrastructure New South Wales (INSW) Australia and Mr. Warwick Smith, a probity advisory practitioner from Procure Group Ptd Ltd., were the resource persons during the roundtable discussion held at Crowne Plaza Manila in Ortigas, Pasig on August 28-29, 2014. Both speakers shared their experience in the use of probity advisory services in PPP procurement of infrastructure projects in New South Wales, Australia.

Probity advisory is an internationally recognized best practice in PPP procurements that ensures PPP projects’ ability to stand legal and procedural scrutiny by harnessing independent review and advice at all stages of procurement decisions and processes by the concerned institutions and/or committees. Its observance and documentation ensure diligent, transparent and credible processes resulting in getting the most competent private partners.

“By introducing probity advisory in our PPP procurement, we’re building up the current confidence of local and international business communities on the credibility and competitiveness of the country’s PPP procurement policy and practice,” said PPP Center Executive Director Cosette V. Canilao.

The roundtable discussion ultimately aims to strengthen the country’s PPP Program and its institutions and is supported by the Asian Development Bank and the governments of Australia and Canada through its Capacity Building Technical Assistance to the Philippine PPP Program (CDTA).

“We are very happy to be involved in this initiative of the Philippine PPP Center. It’s a worthwhile process. And we would like to let you know that we are very supportive of this.” Ms. Erin Flaherty reassures of the Government of Australia and Infrastructure New South Wales’ commitment to provide assistance to the PPP Center in building up the country’s PPP Program.

Early this year, the Philippine PPP Center forged a twinning arrangement with INSW with the intent of bringing into the county INSW’s experience and expertise in undertaking successful PPPs. Early this year, the Philippine PPP Center forged a twinning arrangement with INSW with the intent of bringing into the county INSW’s experience and expertise in undertaking successful PPPs.

Local Government and Water Districts Assisted Developing Local Water and Sanitation PPP Business Cases

Press Release
29 August 2014

In collaboration with the Water and Sanitation Program (WSP) of the World Bank, the Public-Private-Partnership Center (PPPC) conducted a two-day PPP business case development workshop for selected local government units (LGUs) and water districts (WDs) with local water supply and sanitation utility projects. USAID’s Be Secure Project focused on the development of selected local water systems, also co-organized the activity.

Nine (9) LGUs and four (4) (WDs) participated in the activity. These include Davao del Sur Province; Tayabas City; Tacloban City; El Salvador City; Mankayan, Benguet; Baggao, Cagayan; Pantukan, Compostela Valley; San Mariano, Isabela; Laguidingan, Misamis Oriental; General Santos City Water District; Metro Cotabato Water District; Metro Iloilo Water District; and Cagayan de Oro City Water District.

To assess and provide suggestions on how make said business viable as PPPs, a panel of government agencies and development partners providing some support and/or technical assistance in local water and sanitation project development was formed. Aside from the PPP Center, the panel included the National Water Resources Board (NWRB), Department of Interior and Local Government (DILG), the Municipal Development Fund Office of the Department of Finance (MDFO-DOF), the Local Water Utilities Administration (LWUA) and the WB-WSP.

PPP Center Director Eleazar E. Ricote, who opened the activity in behalf of the PPP Center Executive Director, stressed the critical importance of having all institutions helping LGUs and WDs realize local water development requirements “get their acts together”?, to facilitate complementation of resources and inputs instead of duplication and competing with each other.

He also noted the significant contribution of the NWRB through its Accredited Technical Service Providers (ATSPs) who were mobilized to provide direct technical assistance to the LGUs and WDs in developing their respective business cases.

The workshop culminated in a dialogue with private sector representatives – financial institutions and lenders, water and sanitation providers/suppliers, contractors and engineering companies – who shared their insights and suggestions on how these projects can best be structured as PPPs.

Financing for said local water and sanitation projects which are generally small and medium, was a major concern raised by LGUs. Mr. Paul D. Lazaro, First Vice President for Financing, Infrastructure, Environment, Logistics, Development Department of the Development Bank of the Philippines (DBP) responded to this.

“Being a development institution, we don’t categorize how small the project is. There is a developmental role that we play. We are trying to look into those small water supply systems where we can come in because we do finance small and medium enterprises. We have the facilities to provide financing. Aside from financing, we at DBP can also extend technical advice. We view projects more holistically.”?

Regional Workshops on PPPs Help Ramp Up LGU Participation

Press Release
12 August 2012

NEDA Regional Office II and VII get orientation-workshop on PPPs 

The Public-Private Partnership (PPP) Center conducted a series of orientation-workshops on Public–Private Partnership in the Philippines for the Regional Offices of the National Economic and Development Authority Regional Office in regions II and VII.

For Region II, the two-day capacity building event was held last August 5-6 at the Pamegafanan Hall of the NEDA RO2 complex in Tuguegarao City for Region II. Participants to the workshop included Administrative and Planning Officers from the municipalities of Peñablanca and Baggao, both in Cagayan; the municipalities of Aurora, Cabagan and San Mariano in Isabela; and Ambaguio in Nueva Vizcaya.

Another orientation workshop was held in Region VII last August 7-8 in Cebu City at the Harolds Hotel through the collaboration of the NEDA RO VII and the Cebu Chamber of Commerce and Industry. A total of 53 participants attended the workshop, the majority came from the LGUs.

The event was designed to apprise NEDA staff and selected LGUs with the significance of public-private partnerships in realizing local goals and objectives.

Emphasis was placed on the threefold objectives of the orientation-workshop, which included: to provide participants with an overview of the PPP concepts and framework in the Philippines; to provide Local Government Units (LGU) with a basic understanding of the PPP option for development projects; and to enhance the technical capacities of the participants on project preparation and development processes for PPP.

Director Eleazar Ricote of the Capacity Building and Knowledge Management Services of the PPP Center served as resource person for the orientation-workshop. Among the topics discussed included PPP and sustainable local development; understanding the PPP process; and an introduction to the PPP Center and its services. Afterwards, Director Ricote led a workshop on proposal preparation and refinement, thus providing inputs that will help participating LGUs craft proposals that would attract private sector interest.

 

 

Technical Workshop Series Towards Establishing PPP Guidelines in Southeast Asia

 PHOTO RELEASE

12 August 2014

 

The Public-Private Partnership (PPP) Center of the Philippines serves as resource institution in the ongoing efforts of the ASEAN to establish PPP guidelines for member countries.

PPP Center Director Eleazar E. Ricote presented to the regional audience the country’s PPP policy, institutional, program and project experience, initiatives and reform efforts as inputs to the Guidelines initiated by the Economic Research Institute for ASEAN and East Asia (ERIA) during the Technical Workshop Series Towards Establishing PPP Guidelines in Southeast Asia held at Nay Pyi Taw, Myanmar last August 11, 2014.

The PPP Center, recently recognized by the 2014 Partnership Awards as the Best Government PPP Promoter, takes on an active role in the ASEAN’s agenda of regional sharing and exchange of PPP knowledge and experience.

In December 2014, another round of ASEAN PPP Forum will be held in Manila, with the PPP Center as co-organizer.  This is aimed at collaboratively strengthening PPP institutions in the region, consistent with the integration agenda and possible cross border infrastructure and development projects.

 

Invitation to Prequalify to Bid for the Laguna Lakeshore Expressway Dike Project

Invitation to Prequalify to Bid for the Laguna Lakeshore Expressway Dike Project of the Department of Public Works and Highways

 

 

PPP Center capacitates Department of Agriculture on project dev’t

PRESS RELEASE

08 August 2014

 

The Public-Private Partnership (PPP) Center conducted a three-day workshop on PPP Project Development and Concept Note Preparation for the Department of Agriculture (DA) last 4-6 August 2014 at the Bohol Plaza Resort and Restaurant, Panglao Island, Bohol.

The workshop provided various DA operating units and attached agencies guidance on the elements in the identification, selection, and prioritization of PPP projects. It also introduced participants to the preliminaries of developing and preparing PPP proposals for the agriculture sector.

This capacity building initiative is aligned with DA’s efforts rebuild its PPP project pipeline as supported by Department Order No. 04, Series of 2013 “Guidelines in the Development of PPP Projects in the Department of Agriculture”.

Workshop participants included the DA PPP Unit, Agribusiness and Marketing Assistance Service (AMAS), Philippine Center for Postharvest Development and Mechanization (PhilMech), Philippine Carabao Center (PCC), Philippine Fisheries Development Authority (PFDA), Bureau of Animal Industry (BAI), Bureau of Plant Industry (BPI), Bureau of Soils & Water Management (BSWM), Philippine Fiber Industry Development Authority (PhilFIDA) and the DA Regional Field Office VII.