07 November 2014
Following the success of the recent investment roadshows in North America, Europe, Japan and Singapore, the Philippine Government is now set to promote to Australian investors various opportunities under the countryâ€™s Public-Private Partnership (PPP) Program this November.
To drum up investor interest, the PPP Center will hold the Philippine PPP Investment Forum in Melbourne and Sydney Australia this November 25 and 27 respectively. This event is organized in collaboration with the Philippine Embassy in Canberra and the Philippine Trade and Investment Center in Sydney, and with support from the Australian Trade Commission and the Asian Development Bank TA 7796-PHI.
The PPP Investment Forum will feature the robust pipeline of over 50 projects with estimated value of over USD20 billion under the PPP Program highlighting those that will be rolled-out in the coming months which include roads, railways, airports, water and healthcare projects.
Australian-based investors, operators, contractors, developers, lenders and fund managers are expected to attend the said activity.
PPP Center Executive Director Cosette V. Canilao and Deputy Executive Director Sherry Ann N. Austria will lead the Australian roadshow, and will be joined by officials from the Philippine Embassy in Canberra and the Philippine Consulate General in Sydney.
The Australia Investment Roadshow is part of the governmentâ€™s efforts to encourage more foreign players to invest in the countryâ€™s PPPs especially that there is now a steady deal flow of investment opportunities and the countryâ€™s credit ratings are at an all-time high, as evidenced by major international rating agenciesâ€™ successive upgrades.
05 November 2014
Metropolitan Waterworks and Sewerage System (MWSS) draws eight interested bidders for its P18.72 Billion New Centennial Water Source (NCWS)- Kaliwa Dam project under the Public-Private Partnership (PPP) Program.
Prospective bidders that bought prequalification documents for the project include Prime Metroline Holdings Inc., San Lorenzo Ruiz Builders and Developers Group, Obrascon Huarte Lain S.A., Abengoa Abeinsa Business Development, DM Consunji Inc., San Miguel Holdings Corp., Filinvest Development Corporation, and Megawide Construction Corporation.
The NCWS project involves the financing, design, and construction of an additional raw water supply source with a design capacity of 600 MLD, through the commissioning of the Kaliwa Dam, including intake facilities and other pertinent facilities. Also part of the project is a water conveyance system with a design capacity of 2,400 MLD, in anticipation of additional inflows from Laiban Dam which is upstream of the Kaliwa Dam.
The private partner will be responsible for the financing, detailed design and construction of the Kaliwa Dam, the intake facilities, other pertinent facilities and a water conveyance tunnel.
Bidding will be conducted through a build-and-transfer scheme with lowest fixed annual amortization over 25 years as bidding parameter. 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.
Interested groups have until November 17 to submit their prequalification documents. Once prospective bidders are pre-qualified, MWSS will invite them to submit their technical and financial bids.
The NCWS Project aims to increase Metro Manilaâ€™s raw water supply to meet future potable water demand and serve as another water source aside from the Angat Dam Reservoir.
28 October 2014
(UPDATED) At least a dozen companies showed up at the pre-qualification (PQ) conference for the Manila LRT Line 2 Operations and Maintenance (O&M) project of the Department of Transportation and Communications (DOTC). The participants represented the various companies that might partner with prospective bidders, San Miguel Corporation, GT Capita Holdings, Inc., Marubeni Philippines, Corp. and the Ayala Corp. – Metro pacific Investments Corp., RATP Development, D.M. Consunji, Inc., APT Global Inc., and Globalvia.
Companies like MEISCORRAIL, Hyundai Rotem Company, TUV Rheinland, Aboitiz Equity Ventures, MTR Hong Kong, SMRT, DMCI, AC Infra also fielded representatives to the PQ Conference to clarify issues.
Under the PPP process, a PQ Conference offers prospective bidders the opportunity to raise questions, clarify matters before the Project Bids and Awards Committee of an Implementing Agency. The PBAC then provides its official answers or instructions in the form of Bid Bulletins.
Speaking before prospective bidders during the Conference, DOTC Undersecretary and PBAC Chair Perpetuo M. Lotilla for the Manila LRT Line 2 O&M 2 said, â€śIn line with the government’s objective to make everything more efficient, more nimble and address the needs of the people in Metro Manila — this project was conceived and being offered to the private sector to do the operation and maintenance.â€ť
The LRT Line 2 is the second rail project of the DOTC to be tendered this year. Previously, the DOTC awarded the LRT Line 1 Cavite Extension Operation and Maintenance, the Mactanâ€“Cebu International Airport Passenger Terminal Station and the Automatic Fare Collection System, a common contactless ticketing system, which will be installed in all MRT, LRT Line and Line 2 stations.
Under the LRT Line 2 project, the private sector will take on the responsibility of operating and maintaining the existing line, including the 4.14 kilometer east extension to Masinag, and all other future extension that the government may undertake. Under a PPP arrangement, the government will, however retain ownership of the LRT facility.
The DOTC recently moved the deadline for the submission of qualification documents from November 20 to December 15, 2014.
25 October 2014
A leading international financial information group invited the Philippine government through the Public-Private Partnership (PPP)Center to join the gathering of global infrastructure fund managers and asset owners, institutional investors, infrastructure developers and other foreign government and multi-lateral agencies at London, England last week.
The Private Equity International (PEI), a financial information group dedicated to the alternative asset class of private equity globally, requested the PPP Center Executive Director Cosette V. Canilao to be one of the speakers at the Infrastructure Investor: Emerging Markets Forum 2014 in London, England.
The two-day forum aims to provide insights from leading figures on the goals, challenges, risks and opportunities associated with emerging market infrastructure developments.
During the forum, Executive Director Canilao discussed the government’s role in accelerating infrastructure development and creating a framework attractive to private sector investment.
She also presented the various PPP investments opportunities in the country, PPP projects open to bidding, and the status of awarded projects. So far, the Philippines has already awarded eight (8) projects through the public-private partnership program.
The highlight of her talk was the sharing of the Philippines’ experience in building up the countryâ€™s PPP program through the PPP Center and major efforts in the areas of policy and process improvements, project development and structuring, capacity building, continuous dialogue with the market, and public communications.
This experience has in fact been considered a source of learning for countries in the Asia-Pacific Region developing their own PPP programs. Recently, the royal governments of Tonga and Bhutan visited the country to gain insights and study the Philippines PPP program.
Canilao reiterated in the forum the different key success factors of the governmentâ€™s PPP program.
â€śThe key success factors of the Philippines PPP program are the Project Development and Monitoring Facility and active Public-Private Partnership Center (PPPC) facilitation during project preparationâ€ť, she said.
She also stressed the importance of a streamlined evaluation process for PPP projects.
â€śAnother success factor is the streamlined PPP evaluation process with core Technical Working Group composed of PPPC, Department of Finance, National Economic and Development Authority and Department of Environment and National Resourcesâ€ť, she added.
The government is currently pushing for the amendment of the Build-Operate-Transfer (BOT) law into the PPP Act to facilitate more private sector investments in key infrastructure and development sectors and to ensure sustainability of the program.
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.
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 Philippinesâ€™ 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 Centerâ€™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 Canadaâ€™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 countryâ€™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 countryâ€™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 countryâ€™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 governmentâ€™s efforts to encourage more foreign players to invest in the countryâ€™s PPPs especially that there is now a steady deal flow of investment opportunities and the countryâ€™s credit ratings are at an all-time high, as evidenced by major international rating agenciesâ€™ successive upgrades.
20 October 2014
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.
Press Release, 18 October 2014
The countryâ€™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 Philippinesâ€™ 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 countryâ€™s PPP projects especially now that there is a steady deal flow of investment opportunities in the infrastructure sector and the countryâ€™s credit ratings are at an all-time high as evidenced by major international rating agenciesâ€™ successive upgrades.
In the past months, the countryâ€™s PPP projects were pitched to investors in Europe during President Aquinoâ€™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 Centerâ€™s thrust to encourage more international players in the Philippine PPP Program.
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 countryâ€™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.
â€śWe 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,â€ť 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 Tongaâ€™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 countryâ€™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 countryâ€™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 Philippinesâ€™ 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 DPWHâ€™s Daang Hari-SLEX Link Road and a completed classroom under DepEdâ€™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.
â€śPhilippines is known globally as having one of the best PPP policyâ€ť, 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.
10 October 2014
The Philippine government has encouraged Japanese businessmen to invest in the countryâ€™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.
â€śThere are 16 projects that we are planning to roll out by next yearâ€ť, she said.
One of these sixteen (16) projects is the Metropolitan Waterworks and Sewerage Systemâ€™s New Centennial Water Supply Project that is worth PhP 18.72 Billion or USD 416 million which is now under procurement.
â€śThe New Centennial Water Supply Project will ensure water security for the residents of Metro Manilaâ€ť, 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.
â€śThese 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 opportunitiesâ€ť, 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.
â€śThis 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 portâ€ť, 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 â€“ 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 countryâ€™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.