17 July 2014
GenSan City Mayor Ronnel C. Rivera and PPP Center Deputy Executive Director Atty. Sherry Ann N. Austria signed the internship program agreement that will capacitate the city government on PPP project implementation. Also present in the signing are Vice Mayor Shirlyn L. BaĂ±as-Nograles, 17th Sangguniang Panlunsod (SP) members and department heads during its regular SP session.
The internship program agreement is part of the Centerâs strategy program on engaging LGUs in public-private partnerships. Preceding the agreement signing, the Sangguniang Panlungsod, sponsored by City Councilor Brix T. Tan, approved the cityâs PPP Code that serves as a basis for undertaking the project as PPP and for the participation of the LGU interns in the program.
Based on the agreement, the PPP Center will provide hands-on training and assistance to the cityâs PPP Board, PPP Technical Working Group facilitated by the City Economic Management & Cooperative Development (CEMCDO), and PPP Selection Committee who are in charge of project development and bid management of its identified PPP projects. Specifically, the PPP Center will mentor the PPP team of GenSan in the areas of project development, project bidding and competition, and project implementation.
The IEDRT in GenSan City was identified as a priority strategic economic support project of the city that will spur infrastructure investments to improve its ability to serve as a regional food-trading center of South Cotabato, Sultan Kudarat, Sarangani and General Santos City (SOCKSARGEN). The project seeks to improve the physical and institutional linkages among the various stakeholders of the cityâs food chain industry. It also aims to benefit the locals by creating a network of food market-related activities that will spur the cityâs economic development while also expanding access to quality and healthy food at a regional scope.
In support of the project, the City has also enacted the following resolutions and issuances: Sanggunian Resolution No. 535 for the approval of the project for PPP implementation and Sanggunian Resolution No. 536 which authorizes the mayor to enter into the Internship Program Agreement. The Regional Development Council also supported the agreement by enacting the Regional Development Council XII Resolution No 27. This resolution endorses GenSan project for PPP financing and implementation.
Photo by City Mayor’s Office, General Santos City
PPP Center’s Letter to the Editor of the Philippine Daily Inquirer pertaining to the June 17 editorial titled “PPP dilemma“and a Biz Buzz item titled “Flimsy technicality“ (Business, 6/16/14), both of which touched on the disqualification of San Miguel Corp. (SMC) from the Cavite-Laguna Expressway (Calax) project of the Department of Public Works and Highways.
“PPP refutes items on SMC disqualification“
This pertains to the June 17 editorial titled “PPP dilemma“ and a Biz Buzz item titled “Flimsy technicality“ (Business, 6/16/14), both of which touched on the disqualification of San Miguel Corp. (SMC) from the Cavite-Laguna Expressway (Calax) project of the Department of Public Works and Highways.
1. The editorial stated that “during the NAIA Expressway bidding in July 2013, its lone competitor, Metro Pacific Investments Corp., submitted a noncompliant bid security that had a multiple-drawdown feature, when the bidding rules clearly required a single drawdown.“
We wish to set the record straight: The Special Bids and Awards Committee (SBAC) of the DPWH, in a resolution dated April 15, 2013, stated that it found the technical proposals of Optimal Infrastructure Development Inc. and Manila North Tollways Corp. (Metro Pacific Investments Corp.) to be responsive to the requirements of the Instruction to Bidders, in form and substance. Both bidders submitted compliant bid securities that conformed to the tender document template provided to all bidders.
This was supported by the Technical Evaluation Report prepared by the Technical Working Group and DPWH advisors. Thus, the SBAC recommended the qualification of both bidders and the subsequent opening of their respective financial proposals.
We also take exception to the allegation that the “DPWH allowed a âviaduct or tunnelâ design to accommodate the request of the eventual winning bidder, Ayala Corp., despite a written objection lodged even before the PPP project was opened for bidding.“
The fact is that all prequalified bidders of the Daang Hari-SLEx Link Road Project, namely, Ayala Corp., South ExpressLink Corp. and Joint Venture of DM Consunji and CM Pancho, were allowed to submit alternate designs prior to the bid submission of the project. All bidders were advised of the technical changes through the issuance of Bid Bulletin No. 8, which informed them of the amendments to the Conceptual Engineering Design (CED) for Segment II of the expressway and appurtenant structures. Bid Bulletin No. 8, in relation to the Instructions to Bidders, explicitly required that the CED for Segment II include preliminary design drawings of roundabout, viaduct or tunnel to connect with the SLEx or Susana Heights Interchange at any convenient scale.
At this juncture, it bears mentioning that written amendments in the bidding documents were allowed in the 2006 Implementing Rules and Regulations (IRR) of Republic Act No. 7718 (Revised Build-Operate-and-Transfer Law), which was the governing IRR at the time the project was tendered. Section 6.3 of the IRR explicitly required that these amendments be issued to all bidders within a reasonable time to allow them to consider the same in the preparation of their bids, duly acknowledged by them prior to bid submission and so indicated in their bids. These requirements were strictly and faithfully observed during the procurement process of the Daang Hari-SLEx Link Road Project.
2. The Biz Buzz item “Flimsy technicality“ quoted Jose Mari Lacson, head of research at Campos Lanuza & Co., as saying: “But the disqualification [of SMC from the Calax project] now puts the agency and the PPP Program in a bind. By sticking to their guns, the results plus other recent decisions imply the government favors certain PPP bidders.“
On the contrary, the decision of DPWH-SBAC to stick to the rules and its bulletins, and to faithfully observe the requirements of the Revised BOT Law and its IRR, implies fairness and consistency in applying the same to all bidders, without favoring one or some of them.
The reference to “other recent decisions“ is misleading and unfounded as Lacson neither specified what these were, and neither did he provide factual proof as to how certain bidders were favored.
These facts are indisputable and are supported by official documents of the tender processes undertaken by the SBAC, in accordance with the rules, guidelines, instructions and bulletins officially made available to, and duly acknowledged by, all biddersâincluding SMC.
âSHERRY ANN N. AUSTRIA,
Deputy Executive Director,
Public-Private Partnership Center,
NEDA sa QC, Edsa,
Diliman, Quezon City
04 July 2014
More than a hundred Board of Trustees and Directors from fifty-five (55) Government Owned and Controlled Corporations (GOCCs) attending the Orientation Seminar on Public Sector Governance organized by the Development Academy of the Philippines (DAP) were briefed about the PPP Program and its legal and institutional framework, in separate sessions last 23 May, 13 June, and 2 July 2014.
Dir. Eleazar E. Ricote, PPP Centerâs Director for Capacity Building and Knowledge Management, particularly discussed with them the PPP/BOT Law, the PPP Programâs pipeline, and recent policy and institutional improvements. He also briefed them on the PPP procurement processes and requirements, as well as the challenges that GOCCs should consider as PPP implementing or contracting agencies.
âThere was eagerness among them to better understand how private sector financing and efficiencies can best be harnessed through PPPs. This is very encouraging for the PPP Program since these board directors and trustees are the critical policy and decision makers in their respective GOCCâs PPP priorities and initiativesâ, Ricote remarked.
Spearheaded by the DAPâs Center for Governance, the orientation seminar on public sector corporate governance aimed to equip Appointive Directors of GOCCs with the knowledge to effectively perform their functions in ensuring transparent, responsible, and accountable governance.
20 June 2014
President Aquino approved yesterday three new PPP projects collectively worth approximately Â Php140 billion during a NEDA Board meeting boosting further the viability of the countryâs PPP program. The projects include the Laguna-Lakeshore Expressway Dike Project of the Department of Public Works and Highways (DPWH) andÂ the Laguna Lake Development Authority (LLDA), Laguindingan Airport Development, Operations and Maintenance and the New Bohol Airport Development Operations and Maintenance Project of the Department of Transportation and Communications (DOTC).
In the same meeting, the Board also approved the PhP9.35 billion bid of the Light Rail Manila Consortium for the construction, operation and maintenance of the LRT Line 1 South Extension Project.
The extension of the LRT Line 1 involves the construction of an approximate length of 11.7 km from its terminal at the Baclaran Terminal, to the Niyog Station at Bacoor, Cavite. Approximately 10.5 km will be elevated and 1.2 km will be at-grade. When completed the LRT Line will have a total length of approximately 32.4 km and will be operated and maintained by the private proponent. The concession period is set at 35 years including the projectâs construction. The extended LRT Line 1 will improve access to central Manila through providing off-street public transport connections to the rapidly growing southern portion of Metro Manila and the province of Cavite.
Of the four projects, the Laguna-Lakeshore Expressway Dike Project of the Department of Public Works and Highways is the most expensive at 122.8 Billion pesos. The project is a combination of a high-standard high-way-cum dike that will ease both traffic and flooding problems along the western coastal communities of the Laguna Lake.
The Lagunindingan airport project will involve the operation and maintenance along with the development of associated infrastructure and facilities, and the installation of all required equipment to meet international standards.Â The Laguindingan airport will serve as the premier gateway to northern Mindanao and spur tourism within the Cagayan de Oro-Iligan Corridor. Â The project costs PhP 14.62 billion.
Meanwhile, the Bohol airport project will entail the operation and maintenance of the airport as well as provide additional facilities and other necessary improvements to enhance passenger safety, security, access, passenger and cargo movement efficiency, and operational efficiency. The project cost is 2.34 Billion pesos with a concession period of 30 years.
PHOTO: President Benigno S. Aquino III presides over the National Economic and Development Authority Board meeting at the Aguinaldo State Dining Room of MalacaĂ±an Palace on June 19, 2014. (Photo courtesy of MalacaĂ±ang Photo Bureau)
20 June 2014
The Public-Private Partnership (PPP) Center announces the initial list of 19 prequalified national and international consulting firms that will join the Project Development and Monitoring Facilityâs (PDMF) new Panel of Consulting Firms.
The initial members of the new PDMF Panel have the following firms as lead:
1. BDO LLP, United Kingdom;
2. Castalia, New Zealand;
3. CPCS Transcom Limited, Canada;
4. Delhi Integrated Multi Modal Transit System, India;
5. Deloitte Touche Tohmatsu India Private Limited, India;
6. Ernst & Young Solutions LLP, Singapore;
7. Feedback Infra Private Limited, India;
8. ICRA Management Consulting Services Limited, India;
9. ICF Consulting Services Limited, United Kingdom;
10. IMC Worldwide Ltd, United Kingdom;
11. International Technical Assistance Consultant, Spain;
12. Jones Day, USA;
13. Jones Lang LaSalle Property Consultant (India) Pvt. Ltd, India;
14. Nathan Associates Inc., USA;
15. Navigant Consulting (Europe) Limited, United Kingdom;
16. Pinsent Masons, Hong Kong;
17. PricewaterhouseCoopers Pvt. Ltd., India;
18. RebelGroup International BV, Netherlands; and
19. Roland Berger Strategy Consultants Pte. Ltd., Germany.
The restructuring of the panel was aimed at further strengthening the PDMFâs pool from where implementing agencies get access to the best in the international PPP consulting community, bringing in innovation, creativity and techniques that spelled success for PPPs worldwide.
The panel, now considered PDMF prequalified, shall be retained on non-committal basis for two years or until 2016, to support project preparation and structuring as well as transaction advisory in various projects in the PPP Program pipeline.
âWe are excited about this new panel, as we proceed to develop and roll out more projects from our PPP pipeline of critical infrastructure and development projects from various sectors. Along with our development partners providing support to the PDMF, we are pleased at how the PDMF has significantly enabled implementing agencies in developing and rolling out projects that continually draw interest from major local and international biddersâ, says Usec. Cosette V. Canilao, PPP Center Executive Director.
To date, the PDMF which was established in 2011,has already supported thirty-nine (39) out of the fifty-seven (57) projects under the PPP pipeline. Five (5) out of the seven (7) successfully tendered PPP projects were supported by PDMF.
The PDMF is a revolving pool of funds from the Philippine Government and the Government of Australia under the Capacity Development Technical Assistance (CDTA) through the Asian Development Bank (ADB). Its objective is to fund the pre-investment activities of potential PPP projects and ensure effective monitoring of its implementation.
Through the PDMF, implementing agencies are able to engage from the same panel, credible and experienced firms to provide them direct guidance and assistance on project preparation and structuring as well as transaction advice during procurement. This assures both the government and the private sector, a robust pipeline of viable and well-prepared PPP projects.
The PDMF Committee, an inter-agency body comprised of NEDA, DOF, DBM, and the PPP Center, manages the PDMF funds, which is governed by a set of policies and implementation guidelines approved by the PPP Governing Board. The PDMF Committee was initially established as the PDMF Board.
19 June 2014
The Japanese International Cooperation Agency (JICA) represented byÂ Megumi Muto, Deputy Director General for Southeast Asia and Pacific Department, extended its support to the Philippine Public-Private Partnership (PPP) Program through a grant on Technical Cooperation Project for Capacity Development in Public-Private Partnership Project Formulation. This initiative is set to enhance the Philippine Government, especially the Implementing Agency(ies)âs capacity to undertake strategic selection and formulation of PPP projects that will address the infrastructure gap and help achieve sustainable economic development in the country.
The PPP Center will act as the counterpart agency to JICA for this project and will have oversight and coordination functions over its implementation.
âWe are very happy with the increasing support the countryâs PPP Program is getting from our international development partners. This technical cooperation with JICA is a good opportunity for our various PPP implementing agencies to further strengthen their capacity to deliver solid and bankable infrastructure projects,â said Executive Director Cosette V. Canilao during the ceremonial signing of the Memorandum of Agreement between the PPP Center and JICA on 18 June 2014.
The grant targets to strengthen the capacity of key implementing agencies in PPP project formulation, structuring, and implementation. Among the implementing agencies being targeted include the Department of Transportation and Communications (DOTC), Department of Public Works and Highways (DPWH), Department of Energy (DOE), Department of Justice (DOJ), and the Department of Health (DOH).
The Technical Cooperation is set to be implemented as soon as the procurement of experts is complete, as stipulated in the signed agreement between PPP Center and JICA. The project is targeted to commence in August 2014 and will be completed by the end of 2016.
10 June 2014
Two water projects of the Metropolitan Waterworks and Sewerage System (MWSS) collectively worth some 43.1 Billion pesos attracted a lot of interest from would be investors during todayâs Water Infrastructure Forum. Hailed as Invest Water PH, the Forum brought together more than 200 participants from the private sector, representing leading firms who expressed keen interest in the PPP water projects lined up for bidding by June of 2014.
PPP Center Cosette V. Canilao explained that water security remains one of the governmentâs priorities. However, practitioners recognize that water infrastructure projects including piped water networks are capital extensive and require sector expertise to provide excellent services to the clients.
âIt is in this light that PPP is considered as a viable option in undertaking water projects. Through PPPs, private sector efficiency and technology are maximized to realize high-impact projects directly benefitting the public,â Canilao said.
She called upon would be investors to, âshare your thoughts and suggestions to make these projects successful.â
âWe hope to bid these out in the coming weeks,â the PPP Center Chief said.
The PPP water projects are part of the MWSSâ Water Security Legacy Program which Gerardo Esquivel, Administrator of the MWSS presented during the Forum. âInfrastructure is key to water security. I ask you to look at the opportunities here and view it as a chance to serve, to give life for generations to come, for water is life,â Esquivel said.
The Php 24.4 Billion peso Bulacan Bulk Water System project will provide universal access to potable water specifically for the Bulacan Province, increasing the volume of potable water supplied, the service coverage and the number of households served. The project will be undertaken using the BOT law under a 30-year contract. It will cover the financing, construction, operation and maintenance of the needed facilities for treated bulk water supply.
Bidding for the Bulacan Bulk Water project will be conducted using a performance or output-based specification approach and bulk water charge as its bidding parameter.
The MWSS hopes to publish its Invitation to Pre-Qualify and Bid with in June 2014.
The other PPP water project up for bidding this month is the Php 18.7 Billionâpeso New Centennial Water Source- Kaliwa Dam Project. The new dam will help gain water security for Metro Manila and its adjoining areas by increasing the supply of raw water and reducing Metro Manilaâs dependence on the Angat Reservoir.
The private proponents will construct the 600 million litters a day (MLD) dam as well as the 2,400 MLD water conveyance tunnel, access roads, bridges and drainage to be used in building the dam. However, the project does not include the construction of the water treatment plant and its operation and maintenance.
The New Centennial Water project will be undertaken through the BOT lawâs Build-Transfer variant. The private sector partner will recover its investments from the amortization payments during the 25 years contractual agreement. MWSS plans to publish the Invitation to Pre-qualify and bid within June 2014, while bid submissions is expected on December 2014. The indicative timelines for the issuance of the notice to proceed and the signing of the contract is set for Q1 of 2015.
Both water projects are a recipient of the Project Development and Monitoring Facility (PDMF) of the PPP Center. Under the PDMF, UK-based IMC Worldwide Ltd., an international development consultancy with roots in the planning, design and management of global infrastructure projects and its consortium partner Romulo Mabanta Buenaventura Sayoc & de los Angeles, are providing the technical support for the Bulacan Bulk Water Supply project. On the other hand, the consortium of the Rebel Group International BV made up of Puyat Jacinto & Santos (PJS Law) Allen and Overy, Crisil Risk and Infrastructure Solutions Ltd. (India) and Royal Haskoning, are providing technical assistance for the New Centennial Water Supply project.
The Project Development and Monitoring Facility is a revolving pool of funds from the Philippine Government and the Government of Australia under a Capacity Building Technical Assistance project from the Asian Development Bank (ADB) and the Canadian Government to enhance the investment environment for Public-Private Partnership (PPP) and to develop a robust pipeline of viable and well-prepared PPP infrastructure projects.
09 June 2014
UK-based Partnerships Bulletin, recognized the Public-Private Partnership Center, the lead coordinating and monitoring agency of the Philippine PPP Program, as the Gold Award winner for the Best Central Government PPP Promoter during its annual Partnerships Awards, held last June 5, 2014 in London.Â This is the first for the country and the first in Southeast Asia.
The Partnerships Awards Night, which gathered 700 participants from the worldâs most respected PPP industry players, lauded the Philippinesâ PPP Centerâs work in building up the Philippine PPP Programâs pipeline, rolling out diligently structured projects, improving policies, processes, and capacitating PPP institutions.
The other finalists include the Croatiaâs Agency for Public-Private-Partnership, Californiaâs Department of Transportation, Marylandâs Department of Transportation Office of the Lieutenant Governor, Puerto Ricoâs Public-Private Partnerships Authority,Â the Scottish Futures Trust, Texasâ Department of Transportation, and the Unidade Central de PPP of the Government of Minas Gerais of Brasil.
âWe are most grateful for the recognition and we share this with all who continuously support the PPP Center to deliver its mandateâ,Â says PPP Center Deputy Executive Director Sherry Ann Austria who accepted the Gold Award Trophy on behalf the Centerâs Executive Director, Undersecretary Cosette V. Canilao.
Canilao echoed this response. âThe PPP Center is both honored and humbled by this recognition from one of the PPP industryâs prestigious organization looking at the global PPP industry. This is an affirmation that we are doing the right thing in aggressively promoting and facilitating PPPs as a viable option in pursuing the countryâs critical infrastructure and development requirements. This is also a challenge to our ongoing efforts in further improving the way we do PPPs in the countryâ. Â Â
The PPP Center was created by Executive No. 8 in 2010 out of the former Build-Operate-Transfer Center (BOTC) which evolved from the former Coordinating Council of the Philippine Assistance Program (CCPAP) in the 1990s.Â In 2013, Executive Order No. 136 created a PPP Governing Board which provides the Center policy and strategic direction. Both issuances further institutionalized the PPP Centerâs Project Development and Monitoring Facility (PDMF), now also recognized as an innovative approach in affording implementing agencies access to international expertise and experience in developing good PPP transactions, from project preparation stages up to actual procurement and award.
With this expanded authority over all PPP mechanisms in both national and local infrastructure and development sectors, the Center embarked on a focused effort to capacitate implementing agencies to diligently structure PPP projects and institutionalize a robust PPP Program pipeline while at the same time pursuing policy and process improvements.
Four years after, the PPP Program pipeline now include more than fifty (50) critical infrastructure and development projects with an estimated total amount of US$ 22.05 Billion, not including twenty-eight (28) projects with no estimated cost yet. Out of this pipeline, seven (7) have reached successful award, three (3) under advanced stages of procurement, four (4) for roll-out, five (5) are currently being reviewed for the appropriate government approvals.Â All others are in various stages of project structuring and development, mostly with support from the PDMF.
The performance of the PPP Program and the recognition it is getting are certainly not just to the credit of the PPP Center, Canilao pointed out. âWe are encouraged by the commitment of the implementing agencies to work hand in hand with the PPP Center and the experts we employed to diligently structure these projects and move them through procurement and award stages, with utmost regard for the legal and procedural requirements as well as the principles of transparency and accountabilityâ.
Aside from implementing agencies, oversight agencies such as NEDA, DOF, and other inter-agency committees are to be credited as well for the success of the PPP Program.Â They provide the implementing agencies and the PPP Center critical planning, policy, and institutional guidance on the PPP projects as well as policies and procedures.
The other major help to the PPP Program and the PPP Center is coming from the development partners through technical assistance in the areas of project development, policy reforms and capacity building. In 2011, a Capacity Development Technical Assistance (CDTA) for the Strengthening of the Philippine PPP Program until 2016 was undertaken by the Philippine government with the Asian Development Bank (ADB) along with the governments of Australia and Canada.
Of course, the private sectorâs confidence in the PPP Program is most important.Â âWe are inspired by the very positive response from the private sector. Their eagerness to participate in these projects and to contribute towards institutionalizing more efficient ways of delivering critical development requirements is the key element in this thriving PPP programâ,Â Canilao further noted.
Canilao also acknowledged the PPP Governing Board for their leadership and guidance and the PPP Center officers and staff for their hard work and commitment.Â Â In the end, there has to be PPP champions who will push for the Program through all of its hurdlesâ, she said.