5 Groups Eye Pre-qualification for P24.4 B BBWS project

23 October 2014

Five consortia are vying to prequalify for the P24.4 Billion Bulacan Bulk Water Supply Project (BBWSP) of the Metropolitan Waterworks and Sewerage System (MWSS) under the Public-Private Partnership (PPP) Program of the Aquino Administration.

These groups include the Consortium of First Philippine Holdings and ABEIMA, Filinvest Agua Consortium, SMC-K-Water Consortium, Team Polaris-Manila Water and Prime-Alloy Water Consortium.

MWSS targets to release the final list of pre-qualified bidders in November after detailed evaluation of qualification requirements of the prospective bidders.

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

The BBWSP will provide treated bulk water to the various water districts (WDs) of Bulacan to help meet the increasing water demand of its consumers, expand its current service area coverage and increase the households served. The private partner will undertake the financing, detailed design and construction, and maintenance of conveyance facilities, treatment facilities and water source.

PH invites N. American companies to grab PPP investment opportunities

21 October 2014

After encouraging foreign companies in Europe, Singapore, and Japan to invest in the Public-Private Partnership (PPP) opportunities of the country, the government staged an investment roadshow in North America showcasing the various PPP projects in the pipeline.

The PPP Center in cooperation with Philippine Embassies and Consulates in Toronto and Montreal, Canada and New York and Washington DC, USA promoted the PPP Program to the North American market.

After being pitched of the pipeline of more than (fifty) 50 PPP projects with an estimated cost of 20.82 billion US dollars, the participating companies were impressed of the diverse investment opportunities in the country. The roadshow attendees have expressed their interest to engage in the PPP program either as bidders, funders, operators, sub-contractors, or as consultants, among others.

Meetings with potential investors in Canada
The roadshow started with a series of one-on-one meetings with potential investors in Toronto and Montreal last October 14 to 15. Executive Director Cosette V. Canilao discussed with various companies and organizations the Philippines’ PPP Program and projects.

In Toronto, Canilao also met with Canadian Council for PPP (CCPPP) to talk about the role of the private sector in supporting PPPs in Canada. The Council is a non-partisan, non-governmental organization that is a proponent of evidence-based public policy in support of P3s. It facilitates the adoption of international best practices, and educates stakeholders and the community on the economic and social benefits of PPP.

She also had a teleconference with P3 Canada, which may be considered as the PPP Center’s Canadian counterpart. P3 Canada, a federal Crown corporation, provides expertise and advice in assessing and executing PPP opportunities at the federal level. P3 Canada officials and Executive Director Canilao exchanged best practices and country experiences in implementing PPPs and in other areas such as strengthening of the legal and regulatory frameworks and capacity building.

Canilao also had a meeting with Manulife Capital, C&I Constructive Edge, and Ontario Municipal Employees Retirement System (OMERS) to discuss the current investment opportunities in the Philippines.

The next stop of the PPP investments roadshow was Montreal, Canada. On October 15, the PPP Center head met the officials of Caisse de depot et placement du Quebec (CDPQ) and one of Canada’s largest pension investment managers, PSP investments.

Manulife, OMERS, CDPQ, and PSP Investments are keen on assessing possible areas of investment in infrastructure and PPPs most likely through partnerships with local players.

PPP Forum and the US-ASEAN Business Council Meeting
After Canada, the investments roadshow continued in New York and Washington DC. Two fora were set in both cities, both focused on PPP infrastructure investment opportunities in the Philippines.

Over forty (40) participants joined the Forum on PPP Infrastructure Projects in the Philippines: Opportunities for US Investors at the Kalayaan Hall of Philippine Center in New York. Following her presentation on PPP investment opportunities, Executive Director Canilao answered some questions from the audience with Consul General Mario Lopez de Leon, Jr. of the Philippine Consulate office in New York. She also entertained one-on-one meetings with possible investors.

Companies she met with in New York City include UTC-RAS and Globe Connect, Eisner Amper, and Blackrock, a leading global asset manager with offices in North and South America, Europe, Asia Pacific and others. Most of these companies have expressed their interest in vying for the country’s big-ticket PPP projects.

In Washington, CGLA organized a forum on PPP Infrastructure Opportunities held at the Philippine Embassy in Washington DC. Assistant Secretary Arun Kumar of the US Department of Commerce, in his opening remarks, emphasized the need to strengthen the network between American and Philippine companies to increase participation of US companies in our country’s infrastructure supply chain. Post-forum one-on-one meetings with Hill International, Parsons, Tetra Tech and San Jose Construction also took place. In the forum, participants also had the chance to inquire about the country’s PPP program through the question and answer sessions and one-on-one meetings.

Before the CGLA Forum, Canilao had a private meeting with the US Department of Commerce Assistant Secretary and other representatives from the US Department of Transportation, US Trade and Development Agency and Export-Import Bank of the United States.

One of the highlights in the North America PPP Investments Roadshow was the roundtable discussion between Executive Director Canilao, Philippine Ambassador to the United States, Hon. Jose L. Cuisia, and members of the US-ASEAN Business Council. These include companies such as IBM, GE, UL, PACCAR, 3M, Autodesk, Bechtel, Caterpillar, and Medtronic, in Washington DC.

The North America Investment Roadshow is part of the government’s efforts to encourage more foreign players to invest in the country’s PPPs especially that there is now a steady deal flow of investment opportunities and the country’s credit ratings are at an all-time high, as evidenced by major international rating agencies’ successive upgrades.

6 PPP projects for roll out – NEDA Board

20 October 2014
NEDA Board approves six (6) PPP projects for roll out.
The National Economic and Development Authority Board has given implementing agencies (IAs) a go signal to roll out six (6) public-private partnership (PPP) projects in a meeting held last 17 October 2014.

Development, operations and maintenance of four (4) airports were approved by NEDA Board for roll out. These are Puerto Princesa, Davao, Bacolod, and Iloilo airports. The airport projects have an indicative cost of Php 96.46 billion pesos or 2.143 billion US dollars and will be implemented by the Department of Transportation and Communications (DOTC).

The private partners shall undertake the expansion, operations and maintenance of these airports as well as provision of additional facilities and other necessary improvements to enhance passenger safety, security, access, passenger and cargo movement efficiency, and operational efficiency.

The other project that was approved by the NEDA Board is the Regional Prison Facilities through Public-Private Partnership. The Regional Prison Facilities through PPP project is the first of its kind in the country. The project will entail the construction and maintenance of a modern prison facility in Fort Magsaysay, Nueva Ecija. It has an indicative cost of 50.18 billion pesos or 1.115 billion US dollars.

Through this PPP project, a suitable prison facility will be created that can accommodate 26,880 inmates, including those currently incarcerated in the existing penal facilities such as the New Bilibid Prison (NBP) and the Correctional Institution for Women (CIW). It shall include staff housing and administrative buildings, areas for rehabilitation (sports, work and religious activity), and a high security equipment shall be installed. The Department of Justice (DOJ) will implement this PPP project.

The DOTC and Philippine Ports Authority (PPA) will also implement the development of the existing Davao Sasa Port in Davao City into a modern, international-standard container terminal after being approved by the Board. This PPP project with an indicative cost of 17.46 billion pesos or 0.388 billion US dollars will improve trade access to Mindanao and the Philippines. The private proponent will finance the construction and modernization of the existing port facility.

The six (6) solicited PPP projects that were approved by the NEDA Board have a total indicative cost of 164.10 billion pesos or 3.646 billion US dollars.


North America Investments Roadshow Promotes PH PPP Projects

Press Release, 18 October 2014

The country’s public-private partnership (PPP) projects are currently being pitched to investors in the North America PPP investments road show. The event, initiated by the PPP Center with the Philippine Consulates and Embassies in Canada and USA, showcases more than fifty (50) PPP projects in the pipeline with an indicative cost of $20.82 billion.

PPP Center Executive Director Cosette V. Canilao leads the North America investment roadshow in Montreal and Toronto, Canada and New York and Washington D.C., United States of America.

The road show kicked off in Toronto, Canada last October 14. Executive Director Canilao meets with fund managers, pension funds and potential investors.

After Canada, the investments road show continues in New York and Washington DC. In New York, Canilao has encouraged international companies to invest in the Philippines’ Public-Private Partnership projects in a forum attended by over 40 potential investors. The forum was organized by the PPP Center in cooperation with Philippine General Consulate.

The investments road show will end in Washington DC today where Executive Director Canilao is set to present in the Forum on PH Infrastructure organized by CGLA at the Philippine Embassy. The presentation will feature transportation projects, including airports, massive transport terminals, and rail lines, and highlighted the Regional Prisons Facilities Project as well as the Batangas-Manila Natural Gas Pipeline.

The Philippines has been encouraging foreign companies to invest in the country’s PPP projects especially now that there is a steady deal flow of investment opportunities in the infrastructure sector and the country’s credit ratings are at an all-time high as evidenced by major international rating agencies’ successive upgrades.

In the past months, the country’s PPP projects were pitched to investors in Europe during President Aquino’s official tour, in Singapore at Infrastructure and PPP, Opportunities Seminar-Roadshow and at the Philippine Economic Briefing in Japan. This forms part of the Center’s thrust to encourage more international players in the Philippine PPP Program.


PH PPP program draws interest from foreign gov’ts


15 October 2014

Officials of the Royal Governments of Tonga and Bhutan recently visited the Public-Private Partnership (PPP) Center of the Philippines to gain insights about the country’s PPP Program. They are looking into the Philippines implementation of PPP program to help them develop their own PPP national policy and institutional framework.

“We welcome the opportunity to share our experiences to those who want to start their own PPP Programs. Other countries and our development partners now recognize the successes gained by the program which is an affirmation that we are on the right track,” PPP Center Deputy Executive Director Atty. Sherry Ann N. Austria said.

Royal Government of Tonga is the latest country that sent representatives in the Philippines to seek guidance in starting their own PPP program. PPP Center officials welcomed Tonga’s Minister Feao Vakata and Deputy Chief Executive Officer Sione Akuola from the Ministry of Public Enterprises.

During the said meeting, the Center explained its functions and various initiatives to ensure the sustainability of the PPP program. It likewise emphasized the critical role that a central PPP unit would play in orchestrating various activities towards the success of a country’s PPP endeavor. Like the Philippines, the Asian Development Bank is also helping Tonga to develop and strengthen its own PPP program and establish its dedicated PPP unit.

The Royal Government of Bhutan also sent a high level delegation in the country for a study tour last month. The officials were here to learn more about the country’s PPP experiences. Members of the delegation from the Royal Government of Bhutan were Dasho Sonam Tshering, Ministry of Economic Affairs secretary; Dasho Kinley Dorji, Ministry of Information and Communications secretary; Dasho Sonam Tenzin, Ministry of Works and Human Settlement secretary; Lam Dorji, Ministry of Finance secretary; Sonam Phuntsho Wangdi, Ministry of Economic Affairs joint secretary; Pema Chewang, National Land Commission secretary; Phuntsho Wangyel, Gross National Happiness Commission Deputy Chief Research Officer; Sonam Tashi, Ministry of Economic Affairs chief planning officer; and Sonam Lhendup, Ministry of Economic Affairs planning officer.

The Bhutan delegation was particularly interested in the Philippines’ PPP legal and institutional framework and how they could apply it to the PPP national policy they are currently finalizing with the support from World Bank.

Part of their study tour was to visit to the different agencies that play a big part in the Philippine PPP program. They spent time with officials from the Department of Finance (DOF), National Economic and Development Authority (NEDA), Department of Transportation and Communications (DOTC), Department of Public Works and Highways (DPWH), Department of Education (DepEd), and the Bases Conversion and Development Authority (BCDA) to learn about their experiences in implementing PPP projects.

Bhutan officials also toured some of the awarded PPP projects including the ongoing construction of DPWH’s Daang Hari-SLEX Link Road and a completed classroom under DepEd’s PPP for School Infrastructure project in Cabilang Baybay Elementary School in Carmona, Cavite. Winning private proponents for these projects, Ayala Corporations and Megawide-Citicore Corporation, shared their experiences in dealing with the government and their continued appetite to participate in projects under the PPP pipeline.

Meanwhile, during the Philippine Economic Briefing in Tokyo, Japan, the PPP policy in the country was hailed as one of the best in the world.

“Philippines is known globally as having one of the best PPP policy”, Japan International Cooperation Agency (JICA) Director General Hidetoshi Irigaki for Southeast Asia and Pacific Department said.

Past countries that sent delegations to be oriented on the Philippine PPP program were Guam Legislature of USA, Australia, Singapore, Indonesia, Nigeria, Turkey and Spain.

Gov’t invites Japanese companies to invest in PPP projects


10 October 2014

The Philippine government has encouraged Japanese businessmen to invest in the country’s Public-Private Partnership (PPP) projects during the Philippine Economic Briefing held in Tokyo this week.

PPP Center Executive Director Cosette V. Canilao disclosed during the economic briefing that there are 16 PPP projects that can be rolled out by 2015.

“There are 16 projects that we are planning to roll out by next year”, she said.

One of these sixteen (16) projects is the Metropolitan Waterworks and Sewerage System’s New Centennial Water Supply Project that is worth PhP 18.72 Billion or USD 416 million which is now under procurement.

“The New Centennial Water Supply Project will ensure water security for the residents of Metro Manila”, Canilao said.

Metropolitan Waterworks and Sewerage System (MWSS) is currently inviting interested companies to apply for pre-qualification and bid for the project. The deadline for submission is not later than 12:00 noon, Philippine Standard Time, on November 17, 2014.

Executive Director Canilao also promoted a number of airport PPP projects specifically the operation and maintenance of the Bohol, Laguindingan, Puerto Princesa, Davao, Bacolod and Iloilo airports.
“These airport projects have an estimated cost of around USD 2,549.33 million in total and they are also included in our list of possible investment opportunities”, she said.
She also mentioned the San Fernando airport project which involves construction of an airport terminal with a mall complex in Barangay Poro, San Fernando City in La Union. The project has an indicative cost of USD 180 million.

The construction and modernization of the Davao Sasa port is also one of the PPP projects that was showcased in the forum with an estimated cost of US$388 million.

“This project will ultimately benefit the import and export industry of the country, specifically the island of Mindanao through transforming its facilities into a modern, international-standard container port”, Canilao said.

Other PPP projects that were presented in Tokyo are the Regional Prison Facilities project with an estimated cost of USD 1,115.11 million; USD 428.89-million Motor Vehicle Inspection System; USD 3,702.89 million North-South Railway Project- South Line; Mass Transit System Loop worth USD 3,000.0 million; Manila Bay-Pasig River – Laguna Lake Ferry System and the LRT line 1 Dasmarinas extension which will extend the LRT Line 1 by approximately 15 kilometers.

Canilao also noted that the government is pursuing the Batangas-Manila (BatMan) Natural Gas Pipeline project. The BatMan project involves a construction of an approximately 110-km natural gas transmission and distribution pipeline facilities from the province of Batangas to transport and supply natural gas to Batangas, Laguna, Cavite and Metro Manila.

The government assured the Japanese companies that significant reforms in the implementation of the country’s PPP program have already been put in place. And the Philippines has been consistent in rolling out PPP projects through transparent, credible and accountable processes.


Senator Drilon supports passage of PPP Act


08 October 2014


The proposed amendment to the Build-Operate-and-Transfer (BOT) Law or Republic Act 7718 is among the priority economic legislations slated in the Senate that will help accelerate the country’s infrastructure development.

“One of the key measures that the Senate would soon start to work on to accelerate infrastructure development is the proposed amendment of the Build Operate Transfer Law,” said Senate President Franklin Drilon during the General Membership Meeting of the Management Association of the Philippines (MAP) held last September 29 at the Manila Peninsula Hotel in Makati.

The passage of key amendments of the BOT law according to Senator Drilon will create a better enabling policy environment for Public-Private Partnerships (PPP) and provide the most appropriate incentives to mobilize the private sector participation infrastructure projects and services.

“We would ensure that there is a fair and reasonable pricing mechanism and timely delivery of quality infrastructure, goods and services, as this will enable better access to market which will ultimately translate to lower cost of goods,” he emphasized.

To attract more investments from both local and foreign players, Senator Drilon added that they are setting sights on cultivating a business environment that allows investors to engage in a wider array of financial activities, to comply with reasonable and expedient regulatory requirements, and subsequently earn fair and equitable return of their investments.

Senator Drilon said that the proposed BOT law amendments would include other PPP modalities such as joint ventures, concession agreements and management contracts. It also aims to close some policy gaps such as inter-connectivity issues between two or more infrastructure projects.

He also proposed to hold a special session for Congress next year to pass at least nine laws which include the amendments to the Build Operate Transfer Law.

The PPP Center has been advocating the amendment of the BOT Law into the PPP Act in Congress, both House of Representatives and Senate, to sustain the strides gained by the Philippine PPP Program. Likewise, this will ensure that current process improvements are sustained and that PPP contracts are procured through credible, transparent and accountable processes, and will be honored in succeeding administrations.


Forum on PPP Expressway Dike Tests Investors’ Interest

03 October 2014

Quezon City – More than 60 companies expressed keen interest to participate in the country’s biggest PPP project during the Investors Forum for the Laguna Lakeshore Expressway Dike (LLED) project. The PhP 122.8 Billion high standard highway cum dike drew 22 companies who bought the Pre-qualification documents and are now in the process of completing its submissions.

Speaking before the interested investors, Secretary Rogelio Singson of the Department of Public Works and Highways emphasized what it would take to make a successful bid for the LLED.

“The consortium should have experience and expertise in building dams, reclamation, property development, and running toll roads and expressways,” he said.

He also added that bidders should be able to use new technologies that will make the job easier, particularly in the aspect of dredging.

Laguna Lake Development Authority (LLDA) Secretary Nereus Acosta welcomed the construction of the LLED stating that the project will help mitigate the effects of climate change which severely affects the coastal towns along the Laguna Lake.

“The Philippines is very vulnerable to climate change. There should be flood mitigation measures in place, especially in the flood prone areas along the lake”, he said.

“There are 65 LGUs under the jurisdiction of the LLDA and all of these will benefit from the project,” Acosta added.

The LLED will help mitigate flooding along the western coast of the Laguna Lake running from Taguig to the town of Bay, in Laguna. It will also serve as an alternative transport route to the congested South Luzon Expressway and enhance the hydrology for the ecosystem of Laguna Lake.

PPP Center Executive Director Cosette V. Canilao aired her appreciation for the significant interest that local and foreign companies have shown to participate in the bidding process for the LLED and vowed that it will be a smooth one.

“Following the issuance of the Invitation to Prequalify to Bid and the Information Memo, we hope to successfully tender the project and get the best deal for both the public and private sector alike”, Canilao said.

“This is the true essence of robust PPPs after all – reasonable returns for the private sector, while ensuring the delivery of effective and high-quality infrastructure projects for the public,” she added.

“As we have done in the past, we assure all of you here today that we are working to make the bidding process as smooth as possible and look forward to seeing the day when this project comes into fruition, “the PPP Center chief said.
During the question and answer portion of the forum, Secretary Singson asked prospective bidders if there was a need to extend the period to submit their pre-qualification documents. There was a unanimous clamor from the private sector to extend its date to 90 days to allow them to produce a responsive submission. The DPWH Chief said that they are seriously considering the suggestion.

“We will seriously consider it, as long as it does not affect the submission date for the bids set for July 2015”, he said.

The 22 companies who bought the prequalification documents include the following companies:

1. Muhibbah Engineering (Phil) Corporation (Malaysia/Philippines),
2. GT Capital Holdings, Incorporated (Philippines)
3. Ayala Land (Philippines)
4. Egis Projects S.A. (France)
5. Megaworld (Philippines)
6. Metro Pacific Tollways Corporation (Philippines)
7. Minerales Industrias Corporation (Philippines)
8. Leighton Contractors (Philippines) Inc.
9. JV Power and Wealth Corporation
10. LT Group (Philippines)
11. Laguna Lakeshore Consortium (Philippines)
12. Filinvest Land (Philippines)
13. Macquarie Securities (Phil.) Inc. (Australia)
14. San Miguel Corporation (Philippines)
15. Megawide Construction Corporation (Philippines)
16. Aboitiz Equity Ventures, Inc. (Philippines)
17. JG Summit Holdings, Inc. (Philippines)
18. PT Star Line (Indonesia/Philippines)
19. State Properties Corporation (Philippines)
20. MTD-Hanshin-VistaLand Consortium (Malaysia/Philippines)
21. IL/FS Transportation Networks Ltd. (India)
22. Vinci Concessions (Malaysia)



PH Showcases PPP Projects in SG Seminar-Roadshow

03 October 2014

The Philippines promoted its Public-Private Partnership (PPP) projects at the recently concluded Philippine Infrastructure and PPP An Opportunities Seminar-Roadshow in Singapore. The event was co-organized by the UK Trade and Investment (Manila and Singapore) and the Philippine British Business Council (PBBC) last September 29.

PPP Center Executive Director Cosette V. Canilao presented to foreign investors at the British High Commission, Singapore the pipeline of more than fifty (50) PPP projects with an estimated cost of US $20.82 Billion.

Philippine government officials including the Department of Trade and Industry Undersecretary Ponciano Manalo Jr., Department of Public Works and Highways Secretary Rogelio Singson, Department of Transportation and Communications (DOTC) Undersecretary Rene Limcaoco, and officials from Philippine embassy in Singapore with representatives from the private sectors were also present in the roadshow.

The business seminar concentrated on high value opportunities under the PPP program and other infrastructure projects that include roads, railways, airports, water and healthcare.

Currently, the PPP projects that under procurement are Bulacan Bulk Water Supply Project, Integrated Transport System Project – South and Southwest Terminals, Laguna Lakeshore Expressway Dike Project and Operation and Maintenance of LRT Line 2. These projects have an estimated total cost of Php 154.2 billion or US $3.43 billion.

The government has already awarded eight (8) PPP projects in various infrastructure and development sectors. The LRT Line 1 Cavite Extension and Operation and Maintenance is the latest project that was awarded by the government to the winning bidder, Light Rail Manila Consortium, last September 12. Contract signing was held yesterday at EDSA Shangrila.

DOTC, Ayala-MPIC Signs 64.9B PPP Proj Contract

03 October 2014

The Department of Transport and Communications (DOTC) and Light Rail Manila Consortium (LMRC) have signed the concession agreement for the Php 64.9 B LRT Line 1 Cavite Extension public-private partnership project.

Under the agreement LRMC will construct, operate and maintain the additional 11.7 kilometers from Baclaran to the Niyog Station in Bacoor, Cavite. Also included in the contract is the operation and maintenance of the existing LRT line 1 from Roosevelt to Baclaran. The integrated LRT Line 1 will span a total of 32.4 kilometers and will have a concession period of 35 years including its construction.

PPP Center Executuve Director Cosette V. Canilao highlighted the importance of strong partnership in the successful awarding of the LRT Line Cavite Extension.

“Through the collective efforts of the government and the private sector, we now bear witness to the successful tender of the eight project to have been awarded since PPP was launched in 2010”, Canilao said.

“Working together, we have achieved leaps and bounds in sustaining the momentum of the PPP Program. The public is assured of effective and improved infrastructure services through public-private partnerships, “she added.

In his remarks, Ayala Corp. President and COO Fernando Zobel de Ayala acknowledged the government’s transparent conduct of the ppp project’s bidding process.

“We are grateful to the DOTC, the LRTA and the PPP Center for handling the process so professionally, and transparently at each stage of the process. “, he said.

He also expressed his appreciation to their partners in the project.

“We are delighted to work with the Metro Pacific Group on this project. I cannot imagine a better group to partner with for a project of this scale and complexity. This signing today marks the end of the bidding process and signals the long and difficult work ahead”, he said.

He also assured the riding public an efficient and safe rail experience.

“We are absolutely confident that we will be able to deliver safe, efficient and comfortable riding experience that our customers deserve. We are excited to be given the chance to redefine the rail experience for the Filipino riding public”, he said.

For his part, DOTC Secretary Jose Emilio A. Abaya extolled the confidence that the LMRC had on the project and Aquino government.

“The LRT Line 1 project has been in the planning stage for almost two decades now. It is only during the Aquino Administration that we are making the LRT Line 1 Cavite extension a reality and at no cost to the taxpayers who have waited too long for this project to happen”, he said.

“The fact that LRMC is willing to shoulder the expense and willing to pay the government Php 9.35 billion shows not just the viability of the project but the confidence that they have in this administration”, he added.

LRMC remitted P935 Million yesterday to the government which is 10% of the P9.35 Billion bid amount.

Under a PPP arrangement, the Department of Transportation and Communications, as the implementing agency, will continue to retain full ownership of the integrated LRT Line 1, ensuring government’s full involvement in its management.