Posts Tagged ‘public-private partnership’

Value of PPP deals breaches P1.23-trillion mark, data show

DEALS under the government’s flagship Public-Private Partnership (PPP) program amount to roughly P1.23 trillion, or $27.52 billion, as of March 10, data from the PPP Center showed.

The figures, however, do not take into account bigger-ticket projects, such as the $10-billion Sangley International Airport, which is seen to replace the old Ninoy Aquino International Airport; the C-6 Expressway; the Light Rail Transit (LRT) Line 1 Dasmariñas Extension; the Santa Mesa-Ortigas-Angono Rail Line; and the North Luzon Expressway East Extension, among others.

There are still 31 deals whose project costs have yet to be finalized. But the government is quickly making progress, with about P130 billion worth of key infrastructure contracts awarded in five years’ time, quicker than its peers in the Asean region.

Some of the big-ticket projects that have been awarded are the P64.9-billion LRT Line 1 Cavite Extension; the P17.52-billion Mactan-Cebu International Airport Modernization; the P16.28-billion PPP for School Infrastructure Project (PSIP) Phase 1; and the P15.52-billion Naia Expressway Phase 2.

The name of the PPP Program is making rounds here and abroad, with foreign players calling the Aquino administration’s flagship infrastructure thrust “one of the best” in the region. This is reflected by the various nations that sought the assistance of the Philippine government in crafting their own PPP plans and projects.

Currently, the concerned departments, such as transportation, public works and energy, are bidding out deals that aim to spur economic growth through sustainable infrastructure. There are 13 deals that are currently under tender.

In particular, the Department of Transportation and Communications is currently bidding out bundled contracts for five airports in key cities around the Philippines. The development of the Bacolod-Silay, Davao, Iloilo, Laguindingan and New Bohol (Panglao) airports has a ticket price of roughly P100 billion.

The same government agency is also close to the final stages of the auction for the P4-billion Integrated Transport System South Terminal.

The Metropolitan Waterworks and Sewerage System, meanwhile, is busy with the bidding for the P24.4-billion Bulacan Bulk Water Supply Project and the P19-billion New Centennial Water Source-Kaliwa Dam Project.

The Department of Public Works and Highways, on the other hand, is in the process of finalizing the results of the prequalification stage of the auction for the P122.8-billion Laguna Lakeshore Expressway Dike deal. The same department is currently tightening the loose ends of the P35.42-billion Cavite-Laguna Expressway (Calax) rebidding.

Documents from the public work agency showed that the deadline for the submission of bids for Calax is on May 19. The opening of the technical proposals is set for June 2. The technical requirements will then be evaluated. The financial proposals of those whose documents passed the review will then be opened on June 15. The awarding is set for July 7.

So far, three parties have signified their interest in the controversial deal. These are San Miguel Corp. (SMC), Metro Pacific Investments Corp. and another private company that is represented by a law firm.

The tender process, as earlier reported, will require bidders to place offers higher than P20.1 billion in premium, the alleged financial proposal of SMC.

To recall, the results of the initial auction for the deal were declared void by President Aquino, after his uncle’s firm sought for a reconsideration of its multibillion-peso bid.

It took the Aquino administration four months to decide on the petition of Optimal Infrastructure Development Inc., which sought to overthrow the offer of Team Orion of Ayala Corp. and Aboitiz Equity Ventures Inc.

Team Orion emerged as the first auction’s top bidder, with a premium bid of P11.33 billion.

Business Mirror, 21 March 2015
By Lorenz S. Marasigan
 

Awarded

We’re familiar with how the country’s public-private partnership (PPP) program gets flak at home from time to time—either by its own doing or due to factors outside its control. Nonetheless, it remains highly regarded abroad and some of its projects may even go on to win awards this year.

That seems a possible scenario based on the short list for the Partnership Awards 2015, which recognizes and rewards the best PPP projects and organizations from around the world for 17 years now.

Three Philippine PPPs awarded in the last two years have made it to the current short list for the Partnership Awards, which include as many as 40 deals in various categories such as healthcare, education, energy and transportation.

The Department of Education’s PPP for School Infrastructure Project was named in the short list as well as two transportation department projects: the Automatic Fare Collection System (AFCS) and Mactan Cebu International Airport.

These projects were won by Filipino companies Ayala Corp. and Metro Pacific Investments Corp. for the AFCS and Megawide Construction Corp. and its partners for the Cebu airport and certain packages under the school infrastructure project.

The Philippines’ PPP Center, led by executive director Cosette Canilao, is itself a contender for the “best” government PPP promoter after bagging the “gold award” for the same category in 2014. For financial institutions, Henry Sy’s BDO Unibank is in the running for the financial adviser of the year award.

The final winners should be known in a few months, with the awarding to take place on May 14 in London.

Philippine Daily Inquirer, 11 March 2015
By Miguel R. Camus
 

Apec aims for inclusive growth

GREATER ACCESS TO FINANCE PUSHED

MANILA, Philippines–The 21 member-economies of the Asia-Pacific Economic Cooperation (Apec) aim to put in place within the next two years measures to make economic growth more inclusive through greater access to finance and improved infrastructure under the proposed Cebu Action Plan.

The Philippines, which hosts this year’s Apec meetings, has its own share of initiatives that target to make public-private partnership (PPP) in infrastructure more appealing to investors, such as expanding insurance coverage to projects being rolled out by local government units (LGUs), Philippine officials said on the sidelines of last week’s Apec Finance and Central Bank Deputies’ Meeting.

Finance Undersecretary Gil S. Beltran noted that while the Apec jurisdiction is expected to post growth of 3.5 percent this year and a slightly higher 3.7 percent next year, there has been a “slowdown” in investments across the region.

“There’s a need for member-economies to do some more structural reforms, and improve on their policies so that their economies will strengthen and investor confidence will be restored,” Beltran said.

“The main issue that concerns [Apec members] is how to make their economies grow as fast as before the global financial crisis” amid global economic volatility, he added.

Hence, reforms that will integrate the region by granting easier access to financing among low-income households as well as micro, small and medium enterprises (MSMEs) should be high on members’ agenda, according to Beltran.

“The best antidote to [financial] volatility is structural reforms—adopting measures that will make your economy grow faster, enhancing efficiency in the markets and production processes, reaching some sectors which are not able to get financing so that they will be able to finance their businesses. These are the things that will make investors think twice before leaving a country. If your economy is growing, your private sector is showing some resiliency and good growth, then the funds will stay,” he pointed out.

For the part of the Philippines, it is spearheading initiatives to promote fiscal transparency via an open data initiative, the finance official said.

“This transparency measure is intended to make sure that taxes are collected, put into the right projects, and that the agencies that implement these projects attain the objectives for which they are mandated,” he said.

Another initiative is institutionalizing credit information bureaus across Apec members in order to better connect borrowers to potential lenders, Beltran said. “Under the Cebu Action Plan, we want all the [Apec] economies to have credit information bureaus,” he said.

Microinsurance for farmers, households and MSMEs, especially in light of the natural disasters that almost on a regular basis hit the region, will also be promoted, the finance official said.

Beltran said, “The losses from disasters in the Apec region is about $200 billion each year, and only less than half of those are insured, so there’s a big market out there that needs protection.”

In terms of infrastructure development, PPP should be pushed by tapping the “huge savings” of Apec member-economies, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo said.

“There are tremendous PPP opportunities in Apec, but the issue is financing, which is a very important component. We have excess savings and yet financing continues to be problematic,” Guinigundo noted.

But the BSP official noted that the real problem was the fact that Apec members “don’t have sufficient, bankable and credible infrastructure projects.”

“If we are able to provide the member-economies sufficient and bankable projects immediately, I think we could have good use of excess savings which end up in the banks and government securities. What we need to do is to translate those financial assets into tangible infrastructure projects,” he said.

“Many of our countries have a high savings rate; there’s a lot of savings that can be used to revive growth, [which] could be done if we can use these investable funds for infrastructure,” Beltran added.

The Asian Development Bank has estimated the infrastructure requirement across Apec until 2030 to cost $8 trillion.

To facilitate better financing for infrastructure projects via PPP, Apec would introduce initiatives for leveraging of private funds while continuing the disposition of public funds, Guinigundo said.

Apec will also put up a regional PPP knowledge portal that will connect potential investors to proponents of projects in member-economies’ respective pipelines, the BSP official said.

Another proposal being looked at is standardizing PPP contracts across the region, Guinigundo said.

In the case of the Philippines, Beltran said National Treasurer Roberto B. Tan and the Insurance Commission were in talks with insurance industry players to urge the latter to introduce products that will also cover LGUs’ infrastructure projects.

At present, only projects being rolled out by the national government get insurance coverage.

Thus far, there has been “broad” support for the Cebu Action Plan, Beltran said, adding that multilateral lenders have also expressed interest to finance Apec’s growth initiatives.

The Cebu Action Plan, which will be up for approval by the group’s finance ministers during their September meeting in Cebu, targets to make the region more financially integrated, transparent and resilient alongside infrastructure development.

Philippine Daily Inquirer, 09 March 2015
By Ben O. de Vera
 

PPP Executive highlights achievements during APEC advisory council meeting

TAGAYTAY CITY, March 4 (PIA)—Public Private Partnership Executive Director Cosette Canilao highlighted during her welcoming speech at the APEC PPP Advisory Meeting at the Taal Vista Hotel, Tagaytay that several projects have been awarded under the current administration amounting up to USD 2.9 billion.

Nine projects have been awarded including some which benefit the Calabarzon region such as the Daang-Hari-SLEX Link Road and the LRT1 Cavite Extension Operation and Maintenance. Exec. Dir. Canilao emphasized that the number of PPP projects not only represent the public benefit but also increasing confidence of investors.

Aside from PPP projects, the center capacitated and trained more than 90 local government units, 63, government owned and controlled corporations, 81 national government agencies and 8 academic institutions in developing projects which are both bankable and well-developed structurally this 2014.

“Despite these major achievements, the PP Center remains committed in establishing a stronger PPP program that will continue to sustain the gains made and improve on those that still need work.” Said Canilao

Executive Director Canilao also added later in a press conference on the same day at the Summit Ridge Hotel, that infrastructure is one of the factors for growth and leveraging in the efficiency of the private sector. (PIA4A)

Philippine Information Agency, 04 March 2015
 

Remarks of Ambassador Neil Reeder at the APEC PPP Experts Advisory Panel Meeting

APEC PPP Experts Advisory Panel Meeting

March 4, 2015

Taal Vista Hotel, Tagaytay City

His Excellency Ambassador Neil Reeder

Co-chair of the PPP Experts Advisory Council Meeting

 
Good morning, bonjour, magandang umaga sa inyong lahat.

Very pleased to be with you today and as the co-chair, on behalf of the Government of Canada, first of all let me thank the Government of the Philippines for your very warm hospitality in hosting our fourth APEC Experts Advisory Panel Meeting and for the very warm Filipino hospitality that we’ve all seen.

Of course, [I would] also [like] to welcome Ms. Cosette Canilao, Executive Director of the Philippines PPP Center, as our new co-chair as the Philippines takes on the hosting of this Panel during the APEC here in the Philippines.

And a warm welcome to everyone.

I would also like express our appreciation to the Government of the Philippines for organizing today’s meeting, and of course for our colleagues from the APEC Secretariat who have provided tremendous assistance throughout this process.

Since the first APEC PPP panel meeting in February of last year in Hainan, China, there has been considerable interest among APEC economies to advance their PPP agenda to support infrastructure development.

I’d like to recognize the contributions of the Government of People’s Republic of China for their cooperation over the past year in advancing the work of the panel and with a particular focus on existing Indonesia in its development of a national PPP Center and specific PPP projects.

I would mention for colleagues that we circulated the terms of reference of the PPP panel in the APEC contacts for those who may be new to this table, so you have a better understanding of where this came from and what the focus of this particular panel is.

Canada like countries in the Asia Pacific is working to address infrastructure gaps which are key constraints to economic growth and poverty reduction.

We recognize the important role of infrastructure investments in building a resilient and competitive economy and providing requisite public services to citizens efficiently and effectively.

Canada has offered financial support to several PPP Centers and is offering expert advice where we can.

Today, Indonesia will provide us with an update on the development of their PPP Center within the Ministry of Finance, the challenges and issues that they are facing as we move forward.

Canada is committed to helping Indonesia operationalize its Centre and working with the World Bank and the Indonesian Ministry of Finance in preparations for the launch of the Centre, as well as the arrangements for our support.

Canada has also provided as mentioned by Cosette, [CAD] $4.2 million to support capacity building and institutional strengthening for the Philippines PPP Centre, in collaboration with the ADB and the Government of Australia.

The Philippines experience in the rollout of its program can provide lessons for the plans of other Centers as well as provide more impetus to the work of this panel.

I am also pleased that a consortium led by a Canadian company, CPCS Transcom [Limited, Canada], is providing consulting services to the Philippines PPP Centre as they advance projects under their aggressive PPP agenda.

Finally, Canada is providing [CAD] $4.5 million contribution to the ASEAN Infrastructure Centre of Excellence (AICOE) based in Singapore. This Centre will support regional connectivity in ASEAN and promote connectivity through infrastructure development and institutional connectivity. The project provides technical assistance to help ASEAN countries identify and prepare viable, bankable and high impact regional PPP infrastructure projects.

Ladies and Gentlemen, I’d like just to take couple of minutes to talk about Canada’s PPP experience that may be adventurous to you especially for countries that are embarking on this journey with us.

We now have a 22 year history in Canada of successful PPP projects, 221 completed projects valued at more than $70.4 billion. As a result, our industry has developed exportable world class expertise in PPPs, with respect to Design-Build-Finance-Maintain (DBFM) projects.

We believe Canada’s success has hinged on several key elements:

1. committed governments;
2. strong legal framework;
3. value for money;
4. strong financing markets;
5. public sector expertise through dedicated agencies; and
6. a competitive, efficient, transparent and fair procurement system.

In that regard, I echo the comments of Cosette in how critical that is in this process.

To develop a national approach on these issues, our government created PPP Canada in 2009 which will improve the delivery of public infrastructure using the P3 model.

We’ve also benefit from the work of the Canadian Council for PPS which is a national not-for-profit organization that brings the public and private sector together to discuss the challenges and merits of PPPs and share international best practices.

With the permission of the Panel Members, I’ve circulated this document for your review which was prepared by the President of our CCPPP (Canadian Council for Public-Private Partnerships) Mark Romoff, who presented at the first meeting of this Panel in 2014.

I would remind that the Canadian PPP Center also host the largest PPP conference in the world. This takes place every November in Toronto. I can’t promise you the weather in Toronto in November will be like Tagaytay in March but we’ll do our best and I would encourage those interested to attend because this would probably the best networking environment for the PPP community internationally, and that’s takes place every November.

And also, we are very pleased to facilitate contacts. Should anyone find particular company expertise in Canada, we’d be delighted to assist you hooking up with Canadian companies that have expertise in the sector.

So thank you again for coming up and we look forward to our discussion today and also discussing the agenda for the panel for the coming year.

Thank you.
 

APEC 2015 PH, 05 March 2015

PPPs can help close Asia’s infrastructure gap

High-quality infrastructure—from reliable power and water supplies to well-built roads and airports—is central to a country’s development. It is also essential for everyday life, along with access to education, health services and jobs. In my travels around Asia, I am regularly reminded that there is a serious lack of infrastructure. Research by the Asian Development Bank in 2010 put the region’s infrastructure investment needs at $8 trillion through to 2020.

Governments must increase public infrastructure investment by mobilizing more tax revenues backed by strong enforcement.

Borrowing from international financial institutions such as ADB and bilateral partners would help. In addition, tapping private-sector resources locally and abroad is crucial. In particular, public-private partnerships (PPPs) can be an effective tool to narrow the region’s infrastructure gap.

PPPs are contractual arrangements where a government partners with the private sector to deliver infrastructure services. They can take several forms, from simple contracts for private-sector-run garbage services to more complex build-operate-transfer (BOT) agreements. Under BOT, private parties finance and build infrastructure, then operate it over a fixed period to generate returns before transferring ownership to the government.

PPPs are not just about financing projects. Drawing on private-sector expertise and skills, they can deliver a high quality of construction, operational performance and risk-sharing. But PPPs are not a panacea. If designed and implemented improperly, they can require even more tax resources to cover losses. In the worst cases, the projects themselves could be abandoned.

When designed and executed well, PPPs can provide good infrastructure services where they are most needed. This is certainly so in the Philippines, where insufficient infrastructure has been a major constraint on investment, productivity and growth. The government has made some headway by increasing its infrastructure budget from less than 1 percent of GDP in 2010, when President Aquino took office, to 2.5 percent in 2013; it is targeting 5 percent by 2016.

The Philippines has had a long experience with PPPs since the BOT Law was introduced in 1991. If you have driven the North Luzon Expressway—one of the best roads in the country—you have used a BOT road completed on time and within the projected cost.

Another successful initiative under PPP is a water services project in Metro Manila, which provided round-the-clock water supplies to millions of households. Some projects had problems. The original contract to deliver Ninoy Aquino International Airport Terminal 3 was hobbled by more than a decade of legal disputes.

Today, PPPs are well-established in the Philippines. The PPP Center, supported by ADB, is now the government’s lead agency for facilitating PPP projects. It has a project development and monitoring facility to prepare and monitor transactions. From just 11 projects in 2010, the Philippines now has 61 potential PPPs—nine of which have been awarded, valued at about $3 billion or just over 1 percent of GDP. The 61 projects include highways, national railways, urban light rail transits, classrooms and hospitals.

Recently I visited one of the newly-awarded projects, an upgrading and expansion of terminals at Mactan Cebu Airport. I was impressed by the strong partnership between the Department of Transportation and Communications, the PPP Center, a local construction company, a foreign airport services provider, and many local banks. ADB also helped finance the project. When completed, the facility will boost tourism, investment and industrial development in the Visayas.

PPPs are gaining a solid foothold, not just in the Philippines but throughout developing Asia. Further action in three key areas will make them even more effective.

First, better regulatory environments can help ensure smooth project implementation. Good coordination among government agencies is key to attract private investors.

Effective mechanisms for land acquisition, resettlement and compensation will help minimize delays to approvals and implementation.

Second, more PPPs can be implemented if governments deepen their knowledge and capacity, particularly in project preparation. It is important to select the right projects to pursue, and to manage fair and transparent bidding.

Third, local and regional capital markets need to be deeper and broader to channel Asia’s large savings to infrastructure investment. It is also essential to strengthen expertise of local banks in project finance.

ADB has supported progress on all three fronts, in addition to financing PPPs. It is helping to draft PPP laws, build the skills of government officials, and promote financial sector development. ADB now provides transaction advisory services through its newly established Office of PPP, and will soon set up an Asia-Pacific project preparation facility assisted by several donor countries.

Governments across developing Asia should continue to show strong political commitment to PPPs. This will build trust with private-sector partners, who will feel assured that their investments are safe regardless of changes of administration or personnel. Governments, private firms, banks and international institutions like ADB should continue to make the most and best use of PPPs to close Asia’s infrastructure gap—sooner rather than later.

Takehiko Nakao is president of the Asian Development Bank.

Philippine Daily Inquirer, 06 March 2015
By Takehiko Nakao
 

Philippines needs credible regulatory structure to lure investment in public-private partnership projects, says foreign expert

The Philippines must develop a credible and independent regulatory regime to attract the private sector to invest in major public- private partnership (PPP) projects, a foreign PPP expert said on Wednesday.

Chairman of the 2015 Asia-Pacific Infrastructure Partnership (APIP) Dialogue, Mark Johnson, was responding to a question on the nature of the regulatory framework in the Philippines during a press conference held at the Summit Ridge Hotel here.

Johnson said he does not have detailed knowledge of the regulatory set-up in the Philippines but having one is a universal requirement to entice private investments in PPP projects.

“Any economy, anybody who wants to foster the development of PPP must have in place regulatory structures to deal with issues of pricing and taxes, and everybody got to believe it,” he said.

“Not only (does) this regulatory authority deal with things competently but it should continue to do that over the life of the project.”

Such regularity regime, he added, must also be independent to avoid conflict of interest because this discourages private sector participation.

For instance, in the Philippines, a concern was raised during the APIP discussion regarding a local regulator that also functions as an operator, Johnson said, noting this situation is not acceptable to private companies.

“That is seen to represent conflict of interest that would probably be not acceptable to private investors,” he said.

The government is about to roll out five more PPP projects in addition to 11 projects that are currently up for grabs, PPP Center Executive Director Cosette Canilao said on Wednesday.

She reported that the Philippines has 61 PPP projects in the pipeline, nine of which have already been awarded.
These nine PPP projects were awarded during the Aquino administration, exceeding the past three administrations’ solicited PPP projects.

US News Agency, 05 March 2015
By PNA and U.S. News Agency / Asian
 

Aquino government eyes legacy of institutionalized PPP program

TAGAYTAY CITY, Cavite, March 5 — The Aquino administration wants to leave a legacy of an enduring public private partnership (PPP) program through the creation of a solid legal policy framework, PPP Center Executive Director Cosette Canilao has said.

This policy framework will ensure transparency, predictability, tested procedures and standard contract agreements that uphold reasonable returns and fair risk allocation, Canilao said in her welcome remarks during the opening the Asia-Pacific Economic Cooperation (APEC) PPP Experts Advisory Council Meeting held at the Taal Vista Hotel here Wednesday.

The PPP Center is also active in building the capacity of its stakeholders, Canilao said, noting that last year, more than 90 local government units (LGUs), 63 government-owned and controlled corporations, 81 national government agencies, and eight academic institutions were capacitated by the center.

This initiative will ensure that these stakeholders have the skills and knowledge to develop well-structured PPP projects, she said.

The PPP center has also partnered with international institutions to further improve the capacity of the center, the LGUs and other partners, she added.

“We have signed a twinning agreement with Infrastructure New South Wales last year, which aims to enhance the center’s competencies in the areas of contract management, knowledge management, public communications, and probity advisory,” Canilao said.

The Japan International Cooperation Agency (JICA) has also partnered with the PPP Center for the training of its partners for the development of PPP projects, she added.

Canilao noted that several countries, among them Indonesia, Nigeria, Bhutan, and Tonga, have sought the Philippines’ assistance in developing their respective PPP programs.

These requests show the country’s success in implementing its PPP program, she said.

The meeting of PPP experts and other APEC stakeholders in Tagaytay City aims to discuss PPP programs and their successful implementation. (PCOO/PND)

- See more at: http://news.pia.gov.ph/article/view/1751425461221/aquino-government-eyes-legacy-of-institutionalized-ppp-program#sthash.5ErI3HgI.dpuf

Philippine Information Agency, 05 March 2015
 

APEC eyes PPP knowledge center to facilitate infra investments

Tagaytay City – Representatives of APEC member-economies are proposing a public-private partnership (PPP) Knowledge Portal to facilitate and accelerate investments in infrastructure in the region.

“We are recommending to the panel for the various jurisdictions to share knowledge through a knowledge management portal,” PPP executive director Cosette Canilao told reporters in a briefing after the 4th APEC PPP Experts Advisory Panel Meeting here.

“There has to be sharing of information,” Canilao noted, saying investors doing business in the Philippines would be encouraged to examine the business prospects through the she portal.

The PPP initiative taps the private sector to put their money and expertise in government projects or programs in order to fill in the investment gap, according to APEC.

Under the proposal, the PPP Knowledge Portal will make all project-related data and documents from the region accessible to investors, Canilao said.

“It will have several modules… One, it being a repository of all PPP-related information and documents,” she said.

“We are proposing to the panel other PPP jurisdictions will also go that path and share and link with the rest of the PPP centers so that there will be timely information sharing with respect to the program, and in structuring our various projects,” she said.

The initiative will also lead to the standardization of contracts or major provisions of the contracts for PPP, the Canilao noted.

“We found out here in the Philippines that if government states clearly and far in advance its policies… with respect to PPPs, policies in determination of the payment regime and government action and key provisions of the contract once there are clear policy guidelines, it’s easier for the investors – the private sector – to understand the framework by which a country is operating with respect to PPPs,” she said.

Canilao said the proposal will spur more PPP investments in the region.

“The lack of properly prepared or bankable projects – that’s one of the areas that the members of the APEC economies are working on to make sure we prepare bankable projects that financial institutions will be able finance,” she said.

“Private sector participation and financing is one of the key solutions to filling up – narrowing the gap – between what we need and the current infrastructure,” she added.

The 4th APEC PPP Experts Advisory Panel Meeting is one of the year-round APEC meetings for 2015, which cover issues related to development for the Asia-Pacific region.

APEC is the Asia Pacific Economic Cooperation with 21 member-economies across the region. – VS, GMA News

GMA News, 04 March 2015
By Danessa O. Rivera
 

PH showcases PPP at Apec meeting

THE Philippines showcased Wednesday its public-private partnership (PPP) program, which is acknowledged to be one of the successful models in the region, in a gathering of experts from member-economies of the Asia Pacific Economic Cooperation (Apec) in Tagaytay City.

“We are delighted to see Apec economies come together to exchange knowledge in PPP,” Cosette Canilao, Executive Director of the Philippines’ PPP Center, said in her welcome remarks at the Apec PPP Experts Advisory Council Meeting.

“The Philippines has come a long way since the PPP program was relaunched in 2010. Five years hence, we are proud to say that we now have a program with a sound policy framework, established institutional reforms, a robust pipeline of PPP proects and well capacitated agencies,” she added.

PPP is an initiative where the private sector is tapped to invest in public projects or programs in order to help fill in the investment gap. This is especially important in addressing the limitations of government resources for achieving development goals of economies.

In the Philippines, contracts for nine solicited infrastructure projects, worth a total of about $2.9 billion, under the PPP program have been awarded since the start of the Aquino administration in 2010, Canilao said, adding that the number is more than the total of six awarded contracts in the previous three administrations.

The awarded PPP projects and those in the pipeline are expected to help the Philippines remain on a high-growth trajectory over the medium term to long term.

Given the milestones related to public-private partnership in the Philippines, Partnerships UK recognized the PPP Center as the Best Central/Regional Goverment PPP Promoter during the 2014 Partnerships Awards.

The meeting, which was meant to promote the PPP model, highlighted its benefits in helping accelerate investments and growth.

In the meeting, delegates agreed for Apec member-economies to constantly share their respective knowledge in PPP. One proposal is for Apec member-economies to have a PPP Knowledge Portal that is accessible to all of them. (SDR/Sunnex)

Sun Star Manila, 04 March 2015
 

PH showcases PPP program to Apec experts

The Philippines showcased its own public-private partnership (PPP) program, which is acknowledged to be one of the successful models in the region, at a gathering of Asia Pacific Economic Cooperation (Apec) experts on Wednesday in Tagaytay City.

“PPPs are complex. It requires the strong support of the leaders and movers in the government, especially the buy in of both the oversight and implementing agencies,” Cosette Canilao, executive director of the Philippines’ PPP Center, said during the APEC PPP Experts Advisory Council Meeting.

“It is also imperative to have a strong PPP unit that will facilitate, monitor, and act as catalyst to fast-track the implementation of PPP projects. This is the role mandated to the PPP Center,” Canilao added.

PPP is an initiative whereby the private sector is tapped to invest in public projects or programs in order to help fill in the investment gap. This is especially important in addressing the limitations of government resources for achieving development goals of economies.

“Cognizant of the importance of maintaining the private sector’s keen interest and support for the program, the Center worked on formulating and adopting key policies that addressed the weaknesses under the current legal framework,” Canilao said.

“We have established the inclusion of the Contingent Liability Fund in the annual General Appropriations Act. Most importantly, we are pushing for the enactment of the PPP Act (amendments to the BOT Law) which will institutionalize the reforms we have put in place and further strengthen the legal framework of our proven and tested processes,” she said.

The proposed amendments to the BOT (Build Operate Transfer) Law also include, among others, institutionalization of the Project Development and Monitoring Facility (PDMF), PPP Governing Board and the PPP Center, prohibition of issuance of Temporary Restraining Orders and preliminary injunction of the lower courts, and extending the challenge period for unsolicited projects.

In the Philippines, contracts for nine solicited infrastructure projects worth a total of about $2.9 billion (P127.9 billion) under the PPP program have been awarded since the start of the Aquino administration in 2010.

“Infrastructure is one of critical ingredients in sustaining the growth not only for the Philippines but also for any other Apec economies. Hence, pushing for more infrastructure development via PPP and leveraging on the efficiency and expertise of the private sector is something that can give us value for money, benefit the public as well as the economy,” Canilao said.

The awarded PPP projects and those in the pipeline are expected to help the Philippines remain on a high-growth trajectory over the medium term to long-term.
Given the milestones related to public-private partnership in the Philippines, Partnerships UK recognized the PPP Center as the Best Central/Regional Government PPP Promoter during the 2014 Partnerships Awards.

Meanwhile, at the next National Economic Development Agency (NEDA) Board meeting, the PPP Center will push two projects.

“In the NEDA Board meeting on the 24th or 25th, we have 2 PPP projects in our agenda – the Mass Transit System Loop, the first subway that will connect Bonifacio Global City, Makati, and Pasay area, and the other one is the Motor Vehicle Inspection System. For both projects the implementing agency will be the Department of Transportation and Communication (DOTC).”

The estimated cost of the Mass Transit System Loop is $8.4 Billion (P370.4 billion) and for the Motor Vehicle Inspection System the estimated cost is $429 million (P19.3 billion).

Meantime, Indonesia likewise shared its recent experience in setting up its own PPP unit, the regulation for the creation of which was issued by the Ministry of Finance of Indonesia just last year.

Freddy Saragih, director of Indonesia’s PPP Unit, said that initially they have 10 projects in the pipeline of which three are in power, three are in water supply, and four in transportation.

“We would like to increase our capacity,” Saragih said. He said the PPP Unit will have its staff trained to secure PPP certification. Moreover, he said, the PPP Unit is in the process developing standardized PPP documents.

The meeting was meant to promote the PPP model and highlight its benefits in helping accelerate investments and growth.

At the meeting, delegates agreed that Apec member-economies should constantly share their respective knowledge on PPP. One proposal was for Apec members to have a PPP knowledge portal that is accessible to all of them.

The Manila Times, 04 March 2015
By Voltaire Palaña
 

PPP Center touts info-sharing, standard contracts at APEC

TAGAYTAY CITY — The Philippine government, through the Public-Private Partnership (PPP) Center, is recommending a system of information exchange and standardized contracts to help boost infrastructure development among member economies of the Asia-Pacific Economic Cooperation (APEC).

PPP Center Executive Director Cosette V. Canilao said the country presented the pillar on infrastructure and financing under the Cebu Action Plan that will be submitted to the September meeting of Finance Ministers in Cebu before the 4th APEC PPP Experts Advisory Panel Meeting.

“We are actually recommending to the panel for the various jurisdictions to share knowledge through a knowledge management portal. In PPP center, we are far advanced already in the development of our knowledge management portals,” Ms. Canilao said.

Under the proposal, Ms. Canilao said the portal would include PPP-related information and documents.

“We are proposing to the panel that the other PPP center jurisdictions also go down that path and share and link with the rest so there will be information sharing with respect to the program and in structuring their various projects,” Ms. Canilao said.

“Another one is the standardization of contracts,” she added.

Ms. Canilao said they could focus on guidelines and “standardization of certain provisions in a concession agreement”.

Ms. Canilao noted the importance of PPPs in addressing the infrastructure gap worldwide.

“Private sector participation or private sector financing is one of the key solutions in filling up and narrowing the gap in what we need and what the current infrastructure we have,” Ms. Canilao said.

Ms. Canilao said the Philippines is relatively more advanced compared to other APEC economies in implementing PPPs and is sharing its best practices for other countries to study.

“I mentioned four critical success factors for implementing a PPP program,” Ms. Canilao said, referring to government support, a central unit that facilitates and coordinates PPP projects, a clearer definition of roles of agencies and the level of support of multilateral agencies in sharing information and resources.


Business World
, 04 March 2015
By Mikhail Franz E. Flores
 

APEC member economies seen to attract more Public-Private Partnership investments

TAGAYTAY CITY, Cavite, March 5 — The Philippines and other 20 members of the Asia-Pacific Economic Cooperation (APEC) have a huge potential to attract more private sector investments in “viable and well-structured” public-private partnership (PPP) projects, particularly urban infrastructure.

Guillermo Luz, APEC Business Advisory Council alternate member, expressed this as the amount of funding for development of the infrastructure across the APEC region is getting bigger mainly due to urbanization.

“To the extent that there is some form of predictability behind the projects, predictability will give investors a sense of the viability of the projects,” he said in a press briefing on the sidelines of APEC meetings here.

Luz stressed that PPP projects should also be “purposely planned” in a bid to attract more private sector investments.

“(For instance,) if people begin to see that housing and commercial developments and others are built, the role of mass transit infrastructure will be justified. If there is nothing there, no one will invest,” he said.

For his part, Asia-Pacific Infrastructure Partnership (APIP) chair Mark Johnson said it is also imperative that APEC economies will create regulatory structures to deal with the issues of pricing and taxes, among others.

Johnson also underscored the role of infrastructure in facilitating the movement of people through ports, airports and roads; and in achieving inclusive economies.

If you want a more inclusive economy, people have to make use of that (projects) to move around; businesses (also should be) able to have much greater mobility,” he noted.

Meanwhile, the theme of the country’s hosting of APEC Summit this year is “Building Inclusive Economies, Building a Better World.”

The APEC is composed of 21 member economies: Australia; Brunei Darussalam; Canada; Chile; People’s Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States of America; and Viet Nam. PNA (ldv)

Philippine Information Agency, 05 March 2015
 

APEC economies agree to share knowledge on public-private partnership program

MANILA, March 4 (Xinhua) — Economies of the Asia-Pacific Economic Cooperation (APEC) pledged on Wednesday to constantly share their respective knowledge in the public-private partnership (PPP) program, which is seen helpful in boosting job-generating investments.

“We are delighted to see APEC economies come together to exchange knowledge in PPP,” said Cosette Canilao, executive director of the Philippines’ PPP Center, at the 4th APEC PPP Experts Advisory Council Meeting held at Tagaytay City in northern Philippine province of Cavite.

Canilao said that one proposal is for APEC member economies to have a PPP Knowledge Portal that is accessible to all of them.

PPP is an initiative whereby the private sector is tapped to invest in public projects or programs in order to help fill in the investment gap. This is especially important in addressing the limitations of government resources for achieving development goals of economies.

The 4th APEC PPP Experts Advisory Panel Meeting is just one of the year-round APEC meetings for 2015. The meetings cover a wide range of issues related to development for the Asia-Pacific region.

Shanghai Daily, 04 March 2015
 

Independent regulator needed to steer PPP projects, says expert

TAGAYTAY CITY, Philippines – The Philippines must develop a credible and independent regulatory regime to attract the private sector to invest in major public-private partnership (PPP) projects, a foreign PPP expert said on Wednesday.

Chairman of the 2015 Asia-Pacific Infrastructure Partnership (APIP) Dialogue, Mark Johnson was responding to a question on the nature of the regulatory framework in the Philippines during a press conference held at the Summit Ridge Hotel here.

Johnson said he does not have detailed knowledge of the regulatory set-up in the Philippines but having one is a universal requirement to entice private investments in PPP projects.

“Any economy, anybody who wants to foster the development of PPP must have in place regulatory structures to deal with issues of pricing and taxes, and everybody’s got to believe it,” he said. “Not only (does) this regulatory authority deal with things competently but it should continue to do that over the life of the project.”

Such regularity regime, he added, must also be independent to avoid conflict of interest because this discourages private sector participation.

For instance, a concern was raised during the APIP discussion regarding a Philippine regulator that also functions as an operator, Johnson said, noting this situation is unacceptable to private companies.

“That is seen to represent conflict of interest that would probably be not acceptable to private investors,” he said.

The government is about to roll out five more PPP projects in addition to 11 projects that are up for grabs, PPP Center executive director Cosette Canilao said on Wednesday.

She reported that the Philippines has 61 PPP projects in the pipeline, nine of which have already been awarded.

InterAksyon, 05 March 2015
By Philippine News Agency