Port Technology International, 14 July 2014
PPA‚Äôs general manager Juan C Sta Ana said his agency is looking at developing the ports in Iloilo, Cagayan de Oro, Zamboanga and General Santos under a public-private partnership (PPP) scheme.
Sta Ana said: ‚ÄúWe are studying the four ports and whether or not to include them in the PPP initiative. If it is not viable to include them in the PPP list, we will finance the port-development projects.‚ÄĚ
He added: ‚ÄúWe are busy harmonising the results to come up with a win-win solution on how to carry out the privatisation to pave the way for the modernisation of Sasa Wharf, the country‚Äôs major port for banana exports.‚ÄĚ
The development of Davao Sasa Port on the island of Mindanao involves the construction and modernisation of its port infrastructure, including a new apron, back-up area expansion, linear quay, container yards, warehouses, and the installation of new equipment, such as ship-to-shore cranes and RTGs.
The Freeman, 14 July 2014
By Carlos S. Lorenciana
CEBU, Philippines – The public-private partnership scheme will continue to support the provincial government’s planned infrastructure projects believed to drive Cebu’s economy further.
For one, a third bridge that will link mainland Cebu and Mactan Island, specifically Barangay Pilipog in Cordova town is now being studied.
The P15-billion Mactan-Cebu link project is expected to start next year and is seen to be operational in 2018.
In an interview, Capitol Information Officer Ethel Natera told The FREEMAN that a feasibility project study is now being conducted by a private company.
The firm is Metro Pacific Tollways Corp. which is the one operating some expressways in the capital such as Manila-Cavite Toll Expressway, North Luzon Expressway and Subic-Clark-Tarlac Expressway.
After the completion of the study, Natera said it will be presented to the provincial government for approval. If approved, the province and other stakeholders will then pursue the measures of the PPP program which involves a thorough bidding process.
The said project will also have a tripartite agreement among the winning bidder, the provincial government and the municipal government of Cordova.
The information officer expressed confidence the proposed bridge will largely help the economy of Cordova as the transport of goods and mobility of its residents will become more easy and convenient.
With the current heavy traffic problems experienced in Mactan, she said there really is a need to build another one — now to connect Cordova.
The project is expected to make transportation more efficient and to have an impact on production outputs, economical travel time and the economy in general.
Trans Axial highway revisited
Moreover, the dream of the late Vice Governor Greg Sanchez for the Trans Axial Highway in the province will soon be realized as Governor Hilario Davide III has said the proposal for the expressway development is now being revisited.
The 300-kilometer highway project will traverse from Barangay Poblacion of Santander in the south to Barangay Maya of Daanbantayan in the north. The project will come with the creation of reclamation areas, economic zones and seaports as well.
‚ÄúIt will make travel time faster kay everything is faster sa pag-transfer sa goods and the people,‚ÄĚ Natera noted, adding that this will cut travel time from Daanbantayan to Santader.
She also added the implementation of the project may probably take five years as it will have to go through a feasibility study, bidding process and the construction time. The government again wants a PPP to fund the project.
The Capitol official also revealed the provincial government received a P5 million grant from the Canadian government for the rehabilitation of roads in Northern Cebu which was badly affected by super typhoon Yolanda last year to boost again the tourism industry in the place.
The Capitol has also asked the Department of Transportation and Communications through the Mactan-Cebu International Airport officials to have feasibility studies on the plan to build Sta. Fe (in Bantayan Island) and San Francisco (in Camotes Island) airports.
It also assured to support the private sector in their initiatives to develop tourism, one of the key industries and drivers of Cebu‚Äôs economic development.
In addition, the Provincial Board has also established the province‚Äôs 2014 Investments and Incentives Code that aims to create a good investment climate and bring development and jobs to the countryside.
It also seeks to encourage local and foreign investors to build businesses in the province and develop the agricultural, industrial and service industries in the countryside.
Manila Bulletin, 09 July 2014
By Chino Leyco
The Philippines has secured another credit-rating upgrade, this time from Japan-based R&I, which sees consistent rise in per-capita income in the country as a result of immense growth in infrastructure investments and continuity of reforms.
R&I raised the country‚Äôs long-term foreign-currency issuer rating by a notch from the minimum investment grade of BBB- to BBB. The rating was assigned a ‚Äústable‚ÄĚ outlook, which means it is unlikely to change within a year.
At the same time, the credit watchdog maintained the country‚Äôs short-term debt rating at a-2, which indicates high certainty that short-term financial obligations would be paid.
‚ÄúThe Philippines‚Äô economy continues to show strong growth, thanks to brisk investment coupled with private consumption driven by remittances from overseas Filipinos,‚ÄĚ R&I said in a report released yesterday.
‚ÄúThis should allow for relatively high growth and raise per-capita income levels steadily,‚ÄĚ it stressed.
Per-capita income in the Philippines has been modest compared with those of more advanced neighbors, but the country is catching up in this area. From $3,684 in 2009, per capita income in the country (using current prices and purchasing power parity) increased to $4,649 last year.
R&I recognized the country‚Äôs healthy fiscal situation, saying this helps fulfill the plan of boosting public spending.
‚ÄúSavings in interest payments, thanks to fiscal consolidation, help the government to finance infrastructure projects. Budget execution is also expected to accelerate,‚ÄĚ it said.
This year‚Äôs state budget for infrastructure at P404.3 billion, R&I cited, is 40 percent more than last year‚Äôs.
R&I also said the rollout of more projects under the Public-Private Partnership (PPP) program would help drive more job-generating investments and sustain the rise in incomes.
‚ÄúFurthermore, public-private partnerships, which utilize private capital [for funding public infrastructure], are underway, albeit gradually, and will likely boost investments,‚ÄĚ R&I said.
Earlier this year, the government awarded contracts for two PPP projects, namely the P1.72-billion automated fare collection and single ticketing system for the MRT and the LRT, and the P17.5-billion Mactan Cebu International Airport expansion project. This brings to seven the total number, and to P62.6 billion the aggregate cost, of the PPP projects awarded so far.
R&I also recognized the country‚Äôs sound macroeconomic fundamentals, including ample foreign-exchange reserves, improving manageability of government debt, and within-target inflation.
It also said reforms instituted by the Aquino administration, including legislative and administrative reforms in tax collection, helped improve the investment climate. R&I expressed belief reforms will be sustained even beyond 2016.
‚ÄúThere is risk that the next government will not be as reform-minded as the Aquino administration. However, pressures from growing international relationships, such as the establishment of the ASEAN Economic Community in 2015, along with public expectation for sustained reform initiatives, should deter the post-Aquino government from going backwards,‚ÄĚ it said.
Meantime, Governor Amando M. Tetangco Jr. of the Bangko Sentral ng Pilipinas welcomed the upgrade, saying this validates soundness of existing policies.
‚ÄúThe latest development on the country‚Äôs credit standing is a recognition of a host of favorable macroeconomic indicators, particularly an inflation outlook that is conducive for business and the stability of the financial system amidst a difficult operating environment,‚ÄĚ Tetangco said.
‚ÄúThe upgrade is an expression of confidence, in part, on the ability of the Monetary Authority to implement appropriate and timely measures that ward off threats to the economic stability we are enjoying. The BSP will continue to craft policies that will help maintain this stability,‚ÄĚ the BSP chief added.
Finance Secretary Cesar V. Purisima, likewise, affirmed the focus on sustainability of favorable trends for the economy.
‚ÄúReforms that this government has started to institutionalize help ensure that the positive momentum will not falter,‚ÄĚ Purisima said.
‚ÄúOn the fiscal front, administrative and policy reforms implemented by the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) will make it easier in the future to keep the growth trend in public revenues,‚ÄĚ he said.
Investor Relations Office¬†(IRO) Executive Director Editha Martin said the country‚Äôs upward movement in the credit-ratings scale bodes well for raising the country‚Äôs international profile as an investment destination.
‚ÄúIt is always good to have institutions outside the government point out the strengths of the Philippine economy. The string of credit-rating upgrades that the country has secured in recent years makes it difficult for investors not to notice the Philippines,‚ÄĚ Martin said.
ABS-CBN News, 09 July 2014
MANILA, Philippines – The Philippines on Wednesday received another credit-rating upgrade.
This time, Japan-based R&I raised the Philippines’ long-term foreign-currency issuer rating by a notch to BBB from the minimum investment grade of BBB-, with a stable outlook.
A stable outlook which means it is unlikely to change within a year.
R&I maintained the country‚Äôs short-term debt rating at a -2, which indicates high certainty that short-term financial obligations would be paid.
“The Philippines‚Äô economy continues to show strong growth, thanks to brisk investment coupled with private consumption driven by remittances from overseas Filipinos.. This should allow for relatively high growth and raise per-capita income levels steadily,” R&I said in a report.
The Philippines’ per-capita income has been modest compared to more advanced neighbors, but is now catching up. From $3,684 in 2009, per capita income in the country (using current prices and purchasing power parity) increased to $4,649 last year.
R&I also noted the Philippines’ healthy fiscal situation.
‚ÄúSavings in interest payments, thanks to fiscal consolidation, help the government to finance infrastructure projects. Budget execution is also expected to accelerate,‚ÄĚ it said.
For instance, R&I said the government’s budget for infrastructure is 40 percent more this year at P404.3 billion.
Also, the rollout of more public-private partnership (PPP) projects would help boost investments.
“Furthermore, public-private partnerships, which utilize private capital [for funding public infrastructure], are underway, albeit gradually, and will likely boost investments,‚ÄĚ R&I said.
The government has awarded contracts for the P1.72-billion automated fare collection and single ticketing system for the MRT and the LRT, and the P17.5-billion Mactan Cebu International Airport expansion project, this year. This brings to seven the total number of PPP projects so far.
R&I also noted the Philippines’ sound macroeconomic fundamentals, including ample foreign-exchange reserves, improving manageability of government debt, and within-target inflation.
It also cited the Aquino administrations’ reforms, which it hopes will be sustained beyond 2016.
“There is risk that the next government will not be as reform-minded as the Aquino administration. However, pressures from growing international relationships, such as the establishment of the ASEAN Economic Community in 2015, along with public expectation for sustained reform initiatives, should deter the post-Aquino government from going backwards,‚ÄĚ it said.
Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. welcomed the credit-rating upgrade from R&I.
“The upgrade is an expression of confidence, in part, on the ability of the Monetary Authority to implement appropriate and timely measures that ward off threats to the economic stability we are enjoying. The BSP will continue to craft policies that will help maintain this stability,” he said.
“Reforms that this government has started to institutionalize help ensure that the positive momentum will not falter… On the fiscal front, administrative and policy reforms implemented by the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) will make it easier in the future to keep the growth trend in public revenues,‚ÄĚ Finance Secretary Cesar Purisima said.
Investor Relations Office (IRO) Executive Director Editha Martin said the country‚Äôs upward movement in the credit-ratings scale bodes well for raising the country‚Äôs international profile as an investment destination.
Three major credit-rating agencies have upgraded the Philippines to investment grade in 2013.
Standard & Poor‚Äôs Ratings Services and Fitch Ratings assigned the Philippines with a ‚Äústable‚ÄĚ outlook. Moody‚Äôs Investors Service gave the Philippines a ‚Äúpositive‚ÄĚ outlook.
InterAksyon, 10 July 2014
By Leslie D. Venzon, Philippine News Agency
MANILA – The government hopes to complete at least seven more projects under the public-private partnerships (PPP) program by the end of the term of the Aquino administration in 2016.
“There will be projects that will be finished, hopefully, before the President‚Äôs term ends and some of the projects will go beyond 2016,” said Malacanang spokesman Edwin Lacierda in a press briefing.
Lacierda said that regardless of whether or not these PPP projects are completed within the term of the Aquino administration, the objective is “to provide the necessary infrastructure in the country.”
Apart from at least seven projects targeted for completion in two years, the PPP Center earlier said the projects are in different stages of development, some in advanced stages, others in early stages.
Last month, President Benigno S. Aquino III approved three new PPP projects worth P140 billion including the Laguna-Lakeshore Expressway Dike Project; Laguindingan Airport Development, Operation, and Maintenance; and the New Bohol Airport Development Operations and Maintenance Project.
Rappler, 24 June 2014
Lack of financing in the Philippines’ water sector remains a major concern, USAID official says
MANILA, Philippines ‚Äď The Philippines would need P93 billion ($2.12 billion) in investments until 2025 to give all Filipinos access to water, according to World Bank estimates.
“[World Bank‚Äôs estimate is an] opportunity for the private sector in addressing water security through the financing of projects for expanding water and sanitation infrastructure or improving efficiency of water systems,‚ÄĚ United States Agency for International Development (USAID) for the Philippines Mission Director Gloria Steele said, during the ‚ÄúInnovating and Building Partnerships for Water Security‚ÄĚ forum Monday, June 23.
According to the Philippine Progress Report on the Millennium Development Goals 2010, 92% of the Philippine population had access to improved source of drinking water.
However, the Annual Poverty Indicators Survey in 2011 showed only 44.4% of the total population had connection to water supply (Level III) with more than half relying on either communal water systems (Level II at 12.5%) or protected wells and springs (Level I at 31.8%).
“This shortfall seriously impacts economic growth, health, and overall development of the country,” Steele said on the sidelines of the forum, which aimed at encouraging private sector investments such as public-private partnerships (PPP) and joint ventures to improve water services to support broad-based, inclusive, and resilient growth in urban areas outside Metro Manila.
Lack of financing in the Philippine water sector remains one of the biggest constraints to achieving total service coverage in the country, Steele cited.
“While government investment in the sector has increased in recent years, with a particular focus on bringing coverage to waterless communities, there is still an enormous gap,” Steel said.
In close coordination with the Philippine government, the US government through USAID works on interrelated governance and capacity building issues to facilitate improved access to clean drinking water supply and sanitation services.
USAID though will not provide funding but would help government in establishing an enabling environment in terms of policy and in identifying projects that are “fundable,” Steele clarified.
Huge investment cost turns off investors
The P93 billion requirement is doable considering it accounts only 10% of the entire budget of the Department of Public Works and Highways (DPWH), USAID Be Secure Project chief of the party Ramon Alikpala, said, quoting Public Works Secretary Rogelio Singson.
USAID’s Be Secure Project addresses the key task of mobilizing financing for sustainable water and sanitation services in the country. This initiative supports USAID’s efforts under the Cities Development Initiative to promote economic growth of second-tier cities and stimulate investments and inclusive development in the Philippines.
But DPWH’s national sanitation master plan provides for a 40% grant to private sector or local government unit (LGU) to invest in water systems with the requirement to put up sewage/management system, Alikpala said.
Such huge cost of investing in sewage turns off investors. It will also result in higher cost of water services in those areas, Alikpala added.
While Metro Manila and other planned communities have septage management systems that address the issue of sewage, areas outside of the metropolis only attract investors in water distribution despite the requirement under the Clean Water Act, Alikpala pointed out.
The Philippines has about 1,600 LGUs and only 500 water districts and 100 small scale providers. This means more than a thousand LGUs run their own water systems and LGUs have little or no expertise in this area.
As such, “the government is continuously exploring possibilities and opportunities to encourage private sector to invest in water supply development programs, to include financial, technical innovations and other partnerships,” Singson said. ‚Äď¬†Rappler.com
20 June 2014
President Aquino approved yesterday three new PPP projects collectively worth approximately ¬†Php140 billion during a NEDA Board meeting boosting further the viability of the country‚Äôs PPP program. The projects include the Laguna-Lakeshore Expressway Dike Project of the Department of Public Works and Highways (DPWH) and¬†the Laguna Lake Development Authority (LLDA), Laguindingan Airport Development, Operations and Maintenance and the New Bohol Airport Development Operations and Maintenance Project of the Department of Transportation and Communications (DOTC).
In the same meeting, the Board also approved the PhP9.35 billion bid of the Light Rail Manila Consortium for the construction, operation and maintenance of the LRT Line 1 South Extension Project.
The extension of the LRT Line 1 involves the construction of an approximate length of 11.7 km from its terminal at the Baclaran Terminal, to the Niyog Station at Bacoor, Cavite. Approximately 10.5 km will be elevated and 1.2 km will be at-grade. When completed the LRT Line will have a total length of approximately 32.4 km and will be operated and maintained by the private proponent. The concession period is set at 35 years including the project‚Äôs construction. The extended LRT Line 1 will improve access to central Manila through providing off-street public transport connections to the rapidly growing southern portion of Metro Manila and the province of Cavite.
Of the four projects, the Laguna-Lakeshore Expressway Dike Project of the Department of Public Works and Highways is the most expensive at 122.8 Billion pesos. The project is a combination of a high-standard high-way-cum dike that will ease both traffic and flooding problems along the western coastal communities of the Laguna Lake.
The Lagunindingan airport project will involve the operation and maintenance along with the development of associated infrastructure and facilities, and the installation of all required equipment to meet international standards.¬† The Laguindingan airport will serve as the premier gateway to northern Mindanao and spur tourism within the Cagayan de Oro-Iligan Corridor. ¬†The project costs PhP 14.62 billion.
Meanwhile, the Bohol airport project will entail the operation and maintenance of the airport as well as provide additional facilities and other necessary improvements to enhance passenger safety, security, access, passenger and cargo movement efficiency, and operational efficiency. The project cost is 2.34 Billion pesos with a concession period of 30 years.
PHOTO: President Benigno S. Aquino III presides over the National Economic and Development Authority Board meeting at the Aguinaldo State Dining Room of Malaca√Īan Palace on June 19, 2014. (Photo courtesy of Malaca√Īang Photo Bureau)
Business Mirror, 16 June 2014
By Lorenz S. Marasigan
PRIVATE-sector sentiment on the proposed multibillion-dollar railway system that would connect Manila to Laguna is generally positive, with an infrastructure firm reminding the government to make the public-private partnership (PPP) deal commercially and economically viable for both the government and the investors.
Business groups polled by the BusinessMirror perceive the $7-billion commuter rail a much-needed project that the government must pursue, saying that this would effectively bring the country‚Äôs competitiveness rankings a notch up.
American Chamber of Commerce Senior Adviser John D. Forbes said adding train systems to the three current lines is the best solution to the growing congestion in the metropolis.
‚ÄúRail is the best solution to traffic congestion and is environmentally friendly. We badly need big, bold projects like this,‚ÄĚ he said, noting that the government should also invite foreign parties to join the bidding for the deal.
‚ÄúIt should be open to foreign firms and advertised internationally,‚ÄĚ Forbes stressed.
Makati Business Club President Peter Angelo V. Perfecto added that the lack of infrastructure has been a major driver why the country has been lagging behind its neighbors like Malaysia, China and Thailand in terms of global competitiveness rankings.
‚ÄúMass-transit systems and other transport infrastructure projects are key to addressing the infrastructure gaps that have weighed down our competitive rankings. This project is a most welcome development and we hope that more projects whether by the government alone or via a PPP arrangement will start rolling out at an accelerated pace,‚ÄĚ he said.
Melito S. Salazar, former president of the Management Association of the Philippines, noted that the railway system should be at par with global standards, noting that mass-transportation systems in general should be upgraded to match those of other countries.
The sanctity of the contract, however, should also be ensured, MTD Philippines Inc. President Isaac S. David said. The businessman called on the government to package the key infrastructure deal attractively to generate private-sector support. This includes making the deal more commercially viable for the concessionaire.
‚ÄúThe approved fare and implementation of such fare‚ÄĒthat needs to be ensured to attract investors. Also the clearing of right of way is paramount,‚ÄĚ David said.
Philippine Chamber of Commerce and Industry President Alfredo M. Yao stressed that the government must assure that investors would see returns come during the concession period.
‚ÄúWe are committed to help the government in this project,‚ÄĚ he said.
The commuter rail is a 90-kilometer elevated railway system that will link the northern and southern Luzon, and is seen to serve the mass base of Mega Manila. It will be the first mass transportation that will serve as far north in Malolos, Bulacan, and as far south in Calamba, Laguna.
Japan International Cooperation Agency is currently conducting a feasibility study for the said line that will interconnect three regions:¬†¬†the National Capital Region, Region 3 and Region 4.
Once the study is completed, the contract will be presented to the National Economic and Development Authority (Neda) Board, which is chaired by President Aquino.
The government aims to auction off the multibillion-dollar key infrastructure deal as early as the fourth quarter this year.
The government has awarded seven PPP contracts since the flagship infrastructure program was launched in late-2010, involving:
P1.96-billion Daang Hari-South Luzon Expressway project bagged by Ayala Corp. in 2011;
P16.42-billion first phase of the PPP School Infrastructure Program (PSIP), which went in 2012 to the consortium formed by Megawide Construction Corp. and Citicore Holdings Investment Inc., as well as the BF Corp.-Riverbanks Development Corp. consortium;
P15.68-billion Ninoy Aquino International Airport expressway, given to San Miguel Corp. unit Vertex Tollways Development Inc. in 2013; and
P3.86-billion PSIP Phase II contract, partially awarded last year to Megawide and the BSP & Co. Inc.-Vicente T. Lao Construction consortium;
P5.69-billion Modernization of the Philippine Orthopedic Center project that went to the Megawide-World Citi Inc. consortium also last year.
P1.72-billion Automatic Fare Collection System contract awarded to the AF Consortium of Ayala and Metro Pacific Investments Corp. in January;
P17.5-billion Mactan Cebu International Airport New Passenger Terminal project bagged in April by Megawide Construction Corp. and GMR Infrastructures Ltd.
It is poised to award the P64.9-billion Light Rail Transit Line 1 Cavite Extension contract to lone bidder Light Rail Manila Consortium of the Metro Pacific Investments Corp. and Ayala Corp.
The public works agency also aims to award the P35.2-billion Cavite-Laguna Expressway contract to Team Orion of the Aboitiz Land Inc. and Ayala Corp.
The Philippine Star, 09 June 2014
MANILA, Philippines – The Philippines is making good progress to promote Public-Private Partnerships (PPP) as a way to meet the country‚Äôs insatiable demand for public infrastructure, but more work needs to be done, according to experts at a recent Marsh event in Manila.
Marsh, the leading global insurance broker and risk advisor, hosted a major conference on May 29 at the Mandarin Oriental, Manila, to debate and discuss the risks, opportunities, and trends for PPPs in the Philippines.
In his keynote address, Finance Undersecretary Jose Emmanuel Reverente highlighted the need for infrastructure development as a matter of nation building, and that the government‚Äôs early focus on PPPs as a way to way to encourage private participation has contributed to the healthy pipeline of bankable projects, which now stands at around 50 projects worth $22 billion.
‚ÄúThe government will continue to work on ways to streamline and standardize the PPP process, as well as provide incentives and safeguards to facilitate private investment, from both local and international parties,‚ÄĚ said Undersecretary Reverente.
A panel discussion, which included experts from the Asian Development Bank, PJS Law, Macquarie Infrastructure and Real Assets, Marsh, and the Undersecretary himself, highlighted the need for more work on institutionalizing the use of PPPs, a better understanding of risk allocation, the availability of new credit risk solutions to de-risk projects, and issues around contract certainty.
Edwin Charnaud, chairman, Marsh‚Äôs Global Infrastructure Practice and moderator of the panel, commented: ‚ÄúThe Philippines is a great example of a country recognizing the need for infrastructure funding early, and actively taking steps to put in place policies and regulations to promote private investment. More work clearly needs to be done to embed PPPs as a preferred infrastructure funding mechanism and to address quickly many of the risk-related issues that determine the attractiveness of the Philippines PPP program for domestic and foreign private sector investors. As the competition across Asia for infrastructure investment continues to intensify, all stakeholders need to draw from local and international experience for Philippines PPP projects to be an attractive proposition for investors.‚ÄĚ
09 June 2014
UK-based Partnerships Bulletin, recognized the Public-Private Partnership Center, the lead coordinating and monitoring agency of the Philippine PPP Program, as the Gold Award winner for the Best Central Government PPP Promoter during its annual Partnerships Awards, held last June 5, 2014 in London.¬† This is the first for the country and the first in Southeast Asia.
The Partnerships Awards Night, which gathered 700 participants from the world‚Äôs most respected PPP industry players, lauded the Philippines‚Äô PPP Center‚Äôs work in building up the Philippine PPP Program‚Äôs pipeline, rolling out diligently structured projects, improving policies, processes, and capacitating PPP institutions.
The other finalists include the Croatia‚Äôs Agency for Public-Private-Partnership, California‚Äôs Department of Transportation, Maryland‚Äôs Department of Transportation Office of the Lieutenant Governor, Puerto Rico‚Äôs Public-Private Partnerships Authority,¬† the Scottish Futures Trust, Texas‚Äô Department of Transportation, and the Unidade Central de PPP of the Government of Minas Gerais of Brasil.
‚ÄúWe are most grateful for the recognition and we share this with all who continuously support the PPP Center to deliver its mandate‚ÄĚ,¬†says PPP Center Deputy Executive Director Sherry Ann Austria who accepted the Gold Award Trophy on behalf the Center‚Äôs Executive Director, Undersecretary Cosette V. Canilao.
Canilao echoed this response. ‚ÄúThe PPP Center is both honored and humbled by this recognition from one of the PPP industry‚Äôs prestigious organization looking at the global PPP industry. This is an affirmation that we are doing the right thing in aggressively promoting and facilitating PPPs as a viable option in pursuing the country‚Äôs critical infrastructure and development requirements. This is also a challenge to our ongoing efforts in further improving the way we do PPPs in the country‚ÄĚ. ¬† ¬†
The PPP Center was created by Executive No. 8 in 2010 out of the former Build-Operate-Transfer Center (BOTC) which evolved from the former Coordinating Council of the Philippine Assistance Program (CCPAP) in the 1990s.¬† In 2013, Executive Order No. 136 created a PPP Governing Board which provides the Center policy and strategic direction. Both issuances further institutionalized the PPP Center‚Äôs Project Development and Monitoring Facility (PDMF), now also recognized as an innovative approach in affording implementing agencies access to international expertise and experience in developing good PPP transactions, from project preparation stages up to actual procurement and award.
With this expanded authority over all PPP mechanisms in both national and local infrastructure and development sectors, the Center embarked on a focused effort to capacitate implementing agencies to diligently structure PPP projects and institutionalize a robust PPP Program pipeline while at the same time pursuing policy and process improvements.
Four years after, the PPP Program pipeline now include more than fifty (50) critical infrastructure and development projects with an estimated total amount of US$ 22.05 Billion, not including twenty-eight (28) projects with no estimated cost yet. Out of this pipeline, seven (7) have reached successful award, three (3) under advanced stages of procurement, four (4) for roll-out, five (5) are currently being reviewed for the appropriate government approvals.¬† All others are in various stages of project structuring and development, mostly with support from the PDMF.
The performance of the PPP Program and the recognition it is getting are certainly not just to the credit of the PPP Center, Canilao pointed out. ‚ÄúWe are encouraged by the commitment of the implementing agencies to work hand in hand with the PPP Center and the experts we employed to diligently structure these projects and move them through procurement and award stages, with utmost regard for the legal and procedural requirements as well as the principles of transparency and accountability‚ÄĚ.
Aside from implementing agencies, oversight agencies such as NEDA, DOF, and other inter-agency committees are to be credited as well for the success of the PPP Program.¬† They provide the implementing agencies and the PPP Center critical planning, policy, and institutional guidance on the PPP projects as well as policies and procedures.
The other major help to the PPP Program and the PPP Center is coming from the development partners through technical assistance in the areas of project development, policy reforms and capacity building. In 2011, a Capacity Development Technical Assistance (CDTA) for the Strengthening of the Philippine PPP Program until 2016 was undertaken by the Philippine government with the Asian Development Bank (ADB) along with the governments of Australia and Canada.
Of course, the private sector‚Äôs confidence in the PPP Program is most important.¬†‚ÄúWe are inspired by the very positive response from the private sector. Their eagerness to participate in these projects and to contribute towards institutionalizing more efficient ways of delivering critical development requirements is the key element in this thriving PPP program‚ÄĚ,¬†Canilao further noted.
Canilao also acknowledged the PPP Governing Board for their leadership and guidance and the PPP Center officers and staff for their hard work and commitment.¬†¬†In the end, there has to be PPP champions who will push for the Program through all of its hurdles‚ÄĚ, she said.
The Philippine Star, 08 June 2014
By Lawrence Agcaoili
MANILA, Philippines – The Public-Private Partnership Center of the Philippines bagged the Best Central/Regional Government PPP Promoter award during the Partnerships Award 2014 held at Parks Plaza Westminster Bridge in London last Friday.
The PPP Center of the Philippines edged seven other nominees including the Agency for Public-Private Partnership, Republic of Croatia; the California Department of Transportation; the Maryland Department of Transportation Office of the Lieutenant Governor; the Puerto Rico Public-Private Partnerships Authority; the Scottish Futures Trust; the Texas Department of Transportation; and the Unidade Central de PPP of the Government of Minas Gerais, Brasil
The ‚ÄėBest Central/Regional Government PPP Promoter category is a recognition given to central or regional government departments, or PPP units that have helped promote partnerships and establish healthy deal flow or successfully managed operational projects in 2013.
Industry professionals from both the public and private sectors judged the entries.
The PPP Center was the lone Asian PPP unit to be shortlisted to the internationally acclaimed awards.
‚ÄúWe 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,‚ÄĚ PPP Center executive director Cosette Canilao earlier said in a statement.
Partnerships Bulletin and PPP Bulletin International are UK-based organizations involved in magazine publication and websites that provide in-depth updates on partnership workings 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 Aquino administration has lined up over 50 PPP projects, more than half of which are transportation infrastructure projects under the Department of Transportation and Communications (DOTC).
The government has so far awarded seven PPP projects worth close to P68 billion including the Daang Hari ‚Äď South Luzon expressway link road (P2 billion), PPP for School Infrastructure Project Phase 1 (P8.86 billion), the PSIP-2 (P16.28 billion), the modernization project for the Philippine Orthopedic Center (P5.98 billion), the Ninoy Aquino International Airport expressway (P15.52 billion), the automated fare collection system project (P1.72 billion), and the Mactan ‚Äď Cebu international airport expansion project (P17.5 billion).
The government expects to award at least 15 major infrastructure projects worth over P222 billion including the P64.9-billion Light Rail Transit Line 1 Cavite extension project, the P35.4-billion Cavite ‚Äď Laguna expressway project, the P29.83-billion Bulacan bulk water supply project, and the P15.92-billion operation and maintenance (O&M) of the Laguindingan Airport.