Posts Tagged ‘PPP’

The Manila Water story

The Philippine Star, 26 August 2014

FROM THE STANDS By Domini M. Torrevillas


Until the 1990s, Metro Manila’s water supply was in crisis. Only a certain percentage of the population were served. Water distribution was intermittent. Problems of non-paying customers, pilferage and leakage, were the order of the day.

It took the intervention of then President Corazon Aquino and former President Fidel Ramos to reverse  the water situation from worse to better. This was on account of  the government improving water services through the implementation of public-private partnership (PPP).

The government saw that the concession model was ideal for the metropolitan area. The private sector was then invited to invest in the operations of the Metropolitan Waterworks and Sewerage System (MWSS), the government’s corporate arm mandated to provide water and sewerage services in Metro Manila. It served a total of 15 million people.

Two 15-year concessions were auctioned with the PPP arrangements administered by concession agreements signed by the government and the winning bidders for the two zones – the East Zone and the West Zone.

In 1997, two concession contracts  for the eastern and western parts of Metro Manila were awarded to the private sector. Through a very stringent and transparent bidding process, the Ayala-led Manila Water Company, Inc. won the concession for the East Zone, while the Maynilad Water Services, Inc. (Maynilad) won the concession for the West Zone. Manila Water was a joint venture among three business groups: Ayala Corp., Bechtel Enterprises Inc., and United Utilities, and later, joined by Mitsubishi.

As the concessionaire of the MWSS for Metro Manila’s East Zone, Manila Water services over 6 million customers in 23 cities. East Zone includes Pasig, San Juan, Mandaluyong, Makati, Marikina, Taguig, Pateros, parts of Manila and Quezon City and the province of Rizal.

Opinion ( Article MRec ), pagematch: 1, sectionmatch: 1

The government (the MWSS) remains the owner of the water utility, but the concessionaires are responsible for the operation and maintenance of the water assets, as  well as additional investments to improve and expand services, exercise the right to bill and collect for water and wastewater services within their  service area.

How Manila Water made an ailing public utility  (become) a commercially viable enterprise which received  such awards as the International  War Association’s Global Project Innovation and the prestigious Asian Human Capital Award by the Government of Singapore, is told by Virgilio  Rivera, group director of the Manila Water Corporate Strategy and Development, in a book entitled “TAP SECRETS, The Manila Water Story.”

The TAP  major secrets are  Enable, Empower, and Excel. The secrets are, in Rivera’s words, the “managerial approach that focuses on bringing out the best in its people to accomplish challenges that seem insurmountable when the company took over from the Metropolitan Waterworks and Sewerage System in 1997.”

Rivera brought along his executives to a session of Bulong Pulungan to show how they contributed to the success of Manila Water. They included Ferdinand de la Cruz, group director, Manila Water East Zone Business Operations and Jeric Sevilla, Manila Water Corporate Communications. Smart and  efficient female executives were also present at the session.

In his book, Rivera assures that Manila Water “will replicate its success in the East Zone in areas outside the concession… to provide clean and safe water to more communities.” Now we are provided with a 7/24 water supply that is safe to drink.



Public Private Partnership (PPP) Technical Workshop in Myanmar: Learning from ASEAN Best Practices

ERIA, 20 August 2014


Nay Pyi Taw, Myanmar – August 18, 2014 (updated 20 August): The Economic Research Institute for ASEAN and East Asia (ERIA) held a Public Private Partnership (PPP) Technical Workshop at Hotel Amara, Nay Pyi Taw on August 11, 2014 jointly with the Ministry of National Planning and Economic Development (MNPED) of Myanmar. The Workshop is the first in a series of ERIA PPP Technical Workshops to be held in Myanmar, Lao PDR, and Cambodia wherein international leading experts as well as government officials, representatives from the private sector and members of the academia in each of the abovementioned countries share knowledge and views on how to develop a PPP framework using an ongoing draft of the ASEAN PPP Set of Guidelines developed by ERIA. Presentations from the distinguished speakers will be the basis of the open discussions that will ensue afterwards.

This first Workshop in Myanmar was participated in by around 70 invitees from concerned ministries, private sector representatives, and members of academia from and outside Myanmar. H.E. Dr. San Lwin, Deputy Minister of Myanmar’s MNPED, opened the event where he expressed his and the government of Myanmar’s gratitude to ERIA for organizing this important and timely workshop which will support the development of a PPP framework and the successful implementation of the economic reform in Myanmar.

The one-day programme was structured in a way that the morning session provides the audience with a fundamental understanding of PPP together with sectorial issues in Myanmar, and the afternoon panel session discusses how to refine the draft of the PPP Guidelines taking the situation of Myanmar into account.

International speakers in the morning session include: Dr. Michael Regan, Professor of Bond University, Australia; Dr. Ibnu Syabri, Associate Professor of Bandung Institute of Technology, Indonesia; Mr. Eleazar Ricote, Director of the PPP Center of the Philippines; Mr. Nik Nasir Majid, Independent Consultant of Malaysia; and Mr. Adil Zaidi, Director, Infrastructure & PPP, Ernst & Young LLP. MNPED also invited presenters from: Ministry of Transport; Ministry of Electric Power; Ministry of Rail Transportation; and Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI).

The panel discussion in the afternoon was guided by Dr. Fauziah Zen, Economist of ERIA. While introducing the draft of the PPP Guidelines, she mentioned that “we are trying to make the PPP Guidelines as the product of ASEAN Member States, and we are here to communicate with both public and private sectors to obtain inputs to the Guidelines”. In addition to the speakers in the presentation session, discussants from the Ministry of Finance and Ministry of Construction participated in the active discussion and exchanged views on topics such as the necessity of having a champion institution for PPP, effective incentive mechanisms for private partners, and the definition of PPP in the Myanmar context itself.

In his closing remarks, Mr. Yasushi Iwata, General Manager of ERIA, expressed his hope that this workshop will become the kickoff for Myanmar to develop its own scheme of PPP in the near future. Recommendations and comments from the workshop discussions will be incorporated in the draft of the PPP Guidelines for the latter’s further improvement. The second and third workshops under the ERIA PPP Technical Workshop Series will be held in Lao PDR and Cambodia on August 19 and 21, 2014, respectively.


Executive Director Canilao’s interview on DZMM’s Sagot Ko Yan


18 August 2014

PPP Center Executive Director Cosette V. Canilao was the guest of former senator Joey Lina at his Sunday Talk show, Sagot Ko Yan! ED Canilao talked about the benefits of PPP projects and how it can help the country. PPP projects will boost the Philippine economy by building needed infrastructure like airports and roads in identified tourism areas that will in turn generate more jobs. PPP projects will help improve the delivery of basic services to the Filipino.


Watch the interview:

Part 1

Part 2

Part 3


Dream it, build it

Sun Star, 08 August 2014

By Isolde D. Amante and Mia A. Aznar


IT HAS been acknowledged that the lack of infrastructure is why growth in the Philippines has not been inclusive. But despite options that are now available to local governments, there is a lack of awareness among stakeholders.

To push more public-private partnerships, the National Economic Development Authority (Neda) 7 partnered with the Cebu Chamber of Commerce and Industry (CCCI) to hold a two-day orientation seminar on public-private partnerships.

Held last Thursday and yesterday, the seminar discussed the country’s PPP policies, the laws on build-operate-transfer, joint venture agreements and a PPP code for local government units. It also dealt with the services of the PPP Center and a manual for local government units (LGUs).

As this developed, the National Competitiveness Council revealed that only Cebu City and Argao from Central Visayas made it into the list of the country’s 10 most competitive communities, in terms of infrastructure.

Top 10 towns, cities in infra

Six of the top 10 cities come from Luzon, and two are from the Visayas. Only two are from Mindanao as well, but these are in the top spots.

Following Davao City and Cagayan de Oro in the top 10 cities list are: 3) Marikina, 4) Makati, 5) Cebu City, 6) Quezon City, 7) Iloilo, 8) Angeles, 9) Pasay and 10) Manila.

Of the top 10 towns, only Argao from Cebu Province made it among the Central Visayas municipalities. Luzon again dominated the list, with seven of the top 10 towns, including the top three. Two of the top towns are in Mindanao.

The top 10 towns in terms of infrastructure are: 1) Daet, Camarines Norte; 2) Rodriguez, Rizal; 3) Paniqui, Tarlac; 4) Argao, Cebu; 5) Nabunturan, Compostela Valley; 6) Taytay, Rizal;

7) General Trias, Cavite; 8) Donsol, Sorsogon; 9) Manolo Fortich, Bukidnon; and 10) Silang, Cavite.

The full list appears on

During the seminar in Cebu, Neda 7 Assistant Regional Director Ruth Cruz said that even with the PPP Center and the BOT law in place, there is still not enough infrastructure projects being developed. She said they felt the need to orient stakeholders on the options available to them so they can make plans for their own localities and spur growth in those areas.

“Very few have first-hand knowledge of the BOT law and how to go about PPP,” she explained. She added that many LGUs have not explored the option of getting into joint ventures with private companies even if they have the power to do so.

Cruz said local chief executives “with big dreams” for their towns or cities can implement infrastructure projects this way.

They believe there are many in the private sector who are qualified to bid for projects but do not fully understand how to go about the process.

Aside from orienting stakeholders on the policies of such options, Cruz said the seminar also served as a venue for the private sector to network with interested government officials. Among those who attended were representatives of local government units including a few mayors from as far as Siquijor, business owners, civil society leaders and foreign consultants.

Last Thursday, they had certified PPP specialist lawyer Alberto Agra to discuss the definition and modalities of PPP, the Philippine BOT law, joint venture agreements, and the PPP code for LGUs. Yesterday, PPP Center Director Eleazar Ricote discussed the PPP Center’s capacity building services and the PPP manual for LGUs.


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.


DFA lobbies Hyundai Engineering to expand Philippine presence

Business World, 01 August 2014

By Ailyn D. Galura


HYUNDAI Engineering & Construction Co. Ltd. (HDEC) is considering new projects outside its current commitments in the Philippines, the Department of Foreign Affairs (DFA) said.

On July 22, Philippine Ambassador to South Korea Raul S. Hernandez met with HDEC officials led by its President and CEO Soo-Hyun Jung, who cited the Philippines as “a competitive location for investors.”

Mr. Hernandez urged HDEC to increase the company’s presence in the Philippines “for the mutual benefit of both countries.”

He proposed that HDEC look into partcipating in the government’s Public-Private Partnership (PPP) projects, noting that almost US$20 billion worth of infrastructure projects are set to be rolled out in the next years.

HDEC, One of South Korea’s largest construction and civil engineering companies, builds harbors, terminals, bridges, highways, dams, nuclear and other power plants, petrochemical plants, commercial buildings, as well as high-rise apartments.

Among its best-known projects are the Incheon International Airport, the Kyeong-bu (Seoul-Busan) expressway and more recently, the Songdo Suspension Bridge which is one of the longest in Asia.

The DFA said the meeting was set up by the Philippine Trade and Investment Center (PTIC) as part of the Embassy’s economic diplomacy to advance government’s efforts in attracting more South Korean investment.