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


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


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.


DOTC rolls-out P4-B ITS South Terminal PPP


31 July 2014


ITS South


View or download Invitation to Pre-qualify and Bid


Prospective bidders are invited to submit applications to pre-qualify and to submit bids to finance, design, construct, operate and maintain the Php4-Billion Integrated Transport System (ITS) – South Terminal for a period of 35 years, the Department of Transportation and Communications (DOTC) announces in an Invitation to Pre-Qualify and Bid released today.

The ITS-South Terminal project aims to provide a central transport terminal where all modes of transport will be available in one location ensuring efficient and seamless travel for commuting public. The 4.70 hectares south terminal will be located near the Food Terminal Inc. compound in Taguig City.

The Build-Transfer-Operate (BTO) contract for project will be awarded through competitive bidding. It will follow the two-stage system for soliciting bids under the procurement rules and procedures of the Build-Operate Transfer Law or Republic Act No. 7718 and its implementing rules and regulations.

In this process, bidders are first pre-qualified based on minimum legal, technical and financial requirements set by the DOTC. Only bidders who pre-qualify shall be invited to prepare and submit their technical and financial proposals to the Special Bids and Awards Committee (SBAC) for evaluation.

Interested parties have until October 6, 2014 to submit all their pre-qualification documents to the DOTC-SBAC. Invitation documents will be made available starting August 6.

The new terminal will connect passengers from the Laguna/Batangas side to the 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.


Php24.4-B Bulacan Bulk Water Supply PPP attracts 15 interested bidders

Press Release
18 July 2014

The Php24.4 Billion Bulacan Bulk Water Supply Project (BBWSP) of the Metropolitan Waterworks and Sewerage System (MWSS) under the Public-Private Partnership (PPP) program has attracted 15 prospective bidders from the local and international groups.

The prospective bidders that bought prequalification documents from the MWSS include Manila Water Company Inc., Marubeni Corp. of Japan, Filinvest Development Corp., Abengoa of Spain, Megawide Construction Corp., San Miguel Holdings Corp., First Balfour, Inc., Maynilad Water Services, Inc., Prime Water Infrastructure Corp., Korea Water Resources Corp or K-Water, Aboitiz Equity Ventures, Datem Water, Inc., Sojitz Corp., New San Jose Builders, Inc. and Acciona Agua of Spain.

In response to the request of prospective bidders to extend the submission of prequalification documents originally slated for August 5, 2014, the Pre-qualification Bids and Awards Committee (PBAC) of MWSS during the prequalification conference last July 17, 2014 extended the submission date to an additional 45 days. The new deadline is set for September 19, 2014.

The BBWSP aims to address the water supply requirements of municipalities in the province of Bulacan, thereby reducing groundwater extraction and use of deep wells which are being discouraged due to adverse environmental impact. The project intends to supply treated bulk water to water districts in Bulacan province through the construction, operation, and maintenance of facilities for abstraction, treatment, and conveyance of treated bulk water supply.

The project would be procured through a competitive public bidding using performance or output-based approach in accordance with Republic Act No. 7718 also known as the Revised Build-Operate-and-Transfer (BOT) law.