09 June 2014
PPP Center Deputy Executive Director Sherry Ann N. Austria made a courtesy call to Philippine Ambassador to the UK Enrique Manalo to share with him the news about the PPP Center’s Award as Best Central Government PPP Promoter from the Partnerships Bulletin of the UK.
In the photo (L-R) is Anne Marie Kristine C. UmaliÂ of the Philippine Trade and Industry Investment Center- Philippine Embassy, PPP Center Deputy Executive Director Sherry Ann Austria, and Ambassador Enrique Manalo.
09 June 2014
PPP Center’s Deputy Executive Director Atty. Sherry Ann Austria receives the Best Central Government PPP Promoter Award for the PPP Center.
She is flanked by host Josh Widdecombe and trophy presenter Richard Ashcroft.
PPP Center bested other agencies like the Agency for Public-Private Partnership, Republic of Croatia, California Department of Transportation, Maryland Department of Transportation Office of the Lieutenant Governor, Puerto Rico Public-Private Partnerships Authority, Scottish Futures Trust, Texas Department of Transportation and the Unidade Central de PPP of the Government of Minas Gerais of Brasil.
20 March 2014
The Public-Private Partnership Center of the Philippines is the lone Asian PPP unit to be shortlisted to the internationally acclaimed Partnerships Awards 2014. The Philippine PPP Center has been shortlisted for the âBest Central/Regional Government PPP Promoterâ category.
PPP Center Executive Director Cosette V. Canilao said that, âWe are very happy with the shortlisting of the Philippine PPP Center to the Partnerships Awards 2014. We are now reaping the fruits of our efforts to create a healthy deal flow and conducive PPP environment in the country. And this is being recognized by the global PPP community.â
The âBest Central/Regional Government PPP Promoterâ category is a recognition given to central or regional government departments, or PPP units who have helped to promote partnerships and establish healthy deal flow or successfully managed operational projects in 2013.
Industry professionals representing both the public and private sector will judge the entries. The awarding ceremony will take place at Park Plaza Westminster Bridge in London on5 June 2014.
In 2013, the Department of Educationâs PPP for School Infrastructure Project (PSIP) Phase I was shortlisted for the âBest Pathfinder Projectâ category. The âBest Pathfinderâ category is given to public infrastructure projects that demonstrate the best âfirst of its kindâ in a sector or region.
Partnerships Bulletin and PPP Bulletin International are UK-based organizations involved in magazine publication and websites that provide in-depth updates on partnership working between the public and private sector. Both are sources of information on international PPPs particularly on legislation, regulation, working procedure and market potential. With more than 15 years of exposure in the industry, they have been recognized as credible institutions in terms of private finance initiative (PFI) and PPPs.
The full shortlist in the various categories of the Partnerships Awards 2013 is posted at the Partnerships Bulletin website:Â www.partnershipsbulletin.com/
The Wall Street Journal, 03 June 2014
By Cris Larano
The Philippine government is betting on increased infrastructure spending to sustain economic growth, which slipped below expectations in the first quarter after a string of natural disasters late last year hobbled domestic output.
The Department of Budget and Management has laid out a plan to bolster government spending on public infrastructureâroads, airports, water supply, transportationâto 5% of gross domestic product by the time PresidentÂ Benigno Aquino IIIÂ leaves office in 2016, up from 1.8% when he took power in June 2010.
The government plans to spend 399.43 billion pesos ($9.1 billion) on public works this year, or around 3% of GDP. Thatâs projected to rise to 826 billion pesos by 2016.
Last week, President Aquino and his cabinet approved nine projects worth $1.4 billion, the biggest of which is a $425 million dam-and-water-tunnel project that would supply 600 million liters of water a day to the capital by 2020.
Another project is a $325 million, 10-year contract for the operation and maintenance of Manilaâs electric train systems.
But policy makers, including Budget Secretary Florencio Abad, acknowledge the increased spending wonât be enough for the Philippines to make up for years of underinvestment relative to its Southeast Asian neighbors.
According to the World Bankâs 2014 Logistics Performance Index, a benchmarking tool that compares trade logistics in 160 countries, Philippine infrastructure is the worst among the six Southeast Asian nations ranked, including Singapore, Malaysia, Thailand, Vietnam and Indonesia. The Philippines ranked 75th on the list, with a score of 2.6 out of a maximum of 5.
The amount needed for infrastructure investment in the region is staggering. The Asian Development Bank estimates that between 2010 and 2020, the Asia-Pacific region will require $8 trillion in funding for various infrastructure projects such as power plants, roads, transportation and telecommunications. Southeast Asia itself will require $60 billion a year, the ADB says.
Philippine policy makers hope the private sector can help close the gap through public-private partnerships, as well as investments in sectors where the government is prohibited by law from investing except under certain conditions, such as the power sector.
Among major projects under way is the NLEX-SLEX connector road, a six-lane, 14.8-kilometer elevated highway connecting toll roads to provinces north and south of Manila. The project, being financed by the private sector, should be completed by 2017 at a cost of 25.7 billion pesos.
Another project is the new $10-billion Manila international airport proposed by San Miguel Corp. The current international airport is congested and badly dated, hobbling the goal of attracting 10 million tourists by 2016.
Bernard Aw, an analyst at Singaporeâs Forecast Ltd., said the approval of nine projects under the governmentâs public-private partnership program will help get things moving.
âFaster approval and rollout of infrastructure projects will certainly inspire more confidence in both domestic and international investors,â he said. But he noted that other factors are equally important in attracting foreign investment, such as a stable inflationary environment, low interest rates and political stability.
In a recent report, DBS Group said infrastructure spending will help the Philippines recover from a disappointing first quarter, when the economy grew at a slower-than-expected 5.7% on-year. DBS expects the Philippine economy to grow 6.3% for the full year.
Last year the Philippine economy grew 7.2%, the fastest pace in Asia after China.
HSBC economist Trinh Nguyen said the increased spending for public infrastructure will drive growth moving forward, but is no magic bullet.
âThe issue with the Philippines has always been not enough investment to capitalize on its demographic dividend, and the increase will certainly help,â she said. âOverall, the country is making gradual progress and will add up to higher investment, but this will take time.â
Philippine Daily Inquirer, 02 June 2014
By Miguel R. Camus
2 southern transport terminals to be bid out
MANILA, PhilippinesâTwo public-private partnership (PPP) deals aimed at creating gateways for mass transportation services in Metro Manila were given the green light by the National Economic Development Authority (Neda) following a board meeting last week.
This means the P4-billion Integrated Transport System (ITS) South Terminal project, as well as the P 2.5-billion ITS Southwest Terminal project can now proceed, after certain contract terms were revised to make these more attractive to bidders.
The development, in particular, was positive for interested groups in the ITS Southwest Terminal deal, which was already in the process of bidding. The bid parameters were a key issue raised by interested groups, a transportation department spokesperson said previously.
The Department of Transportation and Communications (DOTC) said the ITS Southwest Terminal will be built along the Coastal Road that connects Manila to Cavite, while the ITS-South Terminal will be built at the FTI complex along the South Luzon Expressway. The government was originally due to accept bids by June 16.
The ITS system was designed to create intermodal hubs where provincial buses would disembark passengers to transfer to other in-city modes of transport such as rail lines, city buses and UV Express vans, the department said.
âThese will make travel more efficient and convenient for passengers, as well as decongest traffic on the main thoroughfares of Metro Manila, since provincial bus terminals within the metropolis will no longer be allowed to operate,â it added.
TheÂ NedaÂ board approval also gave the go-signal to several other projects of the transportation department.
These include the contract to operate the Light Rail Transit Line 2, structured as a public-private partnership deal for a 10- to 15-year concession period. The DOTC said the project will be bid out within the second quarter of the year and will include the current 13.8-kilometer line from Recto toÂ Santolan, as well as the 4.19-kilometer extension toÂ MasinagÂ in Rizal.
Another project approved byÂ NedaÂ was the P10.6-billion Cebu Bus Rapid Transit system, which involves a segregated lane for buses, controlled dispatching, priority in stoplight signaling and fixed stops aimed at increasing passenger mobility.
The Cebu project will run on a 23-kilometer corridor having 33 stations. It will have 176 high-quality buses. A detailed engineering design is currently being prepared, and bidding for its construction is scheduled for the second quarter of 2015, the DOTC said.
Manila Bulletin, 29 May 2014
By Charissa Luci
A House leader is calling on the Aquino government to ease the air traffic congestion by building new airports under the Public Private Partnerships (PPP) scheme.
Iloilo Representative Jerry Trenas, who himself experienced flight delays cited the need to improve the countryâs airport system, even as he lamented the lack of runways to accommodate the volume of air traffic especially during holidays.
He said the planned construction of additional runways should be pushed by the Department of Transportation and Communications (DOTC) to address the growing congestion problem at the Ninoy Aquino International Airport ( NAIA).
âWe should really support the plan of the DOTC to construct another runway parallel to the existing ones to ease traffic congestion at the airport as I often experience going back and forth to my district every week,â he said.
âThe perennial delays in almost all flights going to and from Manila is really disappointing so I think the plan should be immediately funded and implemented to ease inconvenience to passengers and alleviate the financial burdens to the airlines,â he added.
He said it is about time for the government to redeem the NAIAâs bad reputation as the worldâs worst airport in the world.
Manila Bulletin, 25 May 2014
By Chino Leyco
Port and casino operator Enrique K. Razon has joined the government in appealing for publicâs patience amid the slow rolling out of several public-private partnership (PPP) projects that President Aquino described as the centerpiece of his administration.
During the recent World Economic Forum on East Asia, Razon, chairman and chief executive of International Container Terminal Services Inc. (ICTSI), said he understands if the government requires a slow and tedious process to take this PPP initiative off the ground.
âIt takes a long time to get these projects off the ground, but once momentum starts, they start moving along in a good pace and to get to that point, we have to be patient,â Razon said during a session hosted by ABS-CBN at the WEF on East Asia summit.
A slow implementation of PPP projects could be observed not only in the Philippines, but also in other parts of the world, Razon, whose business interests expand across Asia, the Americas, Europe and Africa, explained.
The Aquino administration has lined up about 54 projects under the PPP initiative, but only seven of them have been successfully awarded to date.
While the government still asks assistance from the private sector for its several projects, Razon said that the governmentâs ability to increase spending on infrastructure has improved over the past years.
âI believe they are allocating more and more on budget [for infrastructure] and the government can certainly afford it now. Our government is investment grade, cost of funding is very cheap at the moment and we can do it, we just have to be patient,â the Filipino billionaire said.
Meanwhile, Razon said his group is willing to teaming up with diversified conglomerate San Miguel Corporation for the proposed $10-billion mega airport project near the capital, Manila.
Razon, who is also the chairman of gaming company Bloomberry Resorts Corporation, however, clarified that the Ramon S. Ang-led conglomerate has not approached any of his companies for a possible partnership.
A Razon-San Miguel partnership, if ever, will create synergies with Bloomberryâs tourism business Solaire Resort and Casino at the Entertainment City of state-owned Philippine Amusement and Gaming Corporation (Pagcor).
Aside from the proposed airport, San Miguel is also helping to boost foot traffic at the Entertainment City, which is envisioned to be a key gaming hub of Asia, by building the NAIA Expressway.
âI wish SMC all the power in the world and the luck to do that because we need the airport,â Razon told reporters on the sidelines of the WEF on East Asia late Friday last week.