Source: ABS-CBNnews.com
Published: 12 October 2011
MANILA, Philippines – The government has approved the guidelines on the use of a P550-million revolving fund that will fast-track the rollout of projects under the Public-Private Partnership (PPP) scheme.
PPP Center Executive Director Cosette Canilao said that over 20 government agencies and firms have expressed interest to tap the Project Development and Monitoring Facility (PDMF), which will finance pre-investment activities for PPPs, mainly feasibility studies, preparation of tender documents and draft contracts, and bidding processes and contract negotiations.
“From the PDMF financing pool will spring forth projects that are in sync with the requirements of the public,” Canilao said.
National Economic and Development Authority (NEDA) Director-General Cayetano Paderanga said the PDMF will help the PPP program gain momentum.
“Through the PDMF, implementing agencies and local government units will be able to work closely with world-class technical advisors who will help craft their business cases and feasibility studies to meet the stringent requirements of target partners and investors,” he said.
Paderanga and Canilao disclosed that the PPP Center will employ the services of nine international consortiums of consultancy firms for the feasibility studies. The lead firms of the consortiums include, among others, Rebel Group International BV, Deloitte Touche Tohmatsu India Pvt. Ltd., Ernst & Young Australia Infrastructure Advisory, and PricewaterhouseCoopers Services LLP.
“The implementing agencies have a very good idea of what they want. But the actual structures of the projects, how they will be tendered and the revenue-sharing, if there is, will be determined in the feasibility studies,” Canilao noted.
The PDMF was set up under Executive Order No. 8 and was initially provided P300 million by the government. The Australian Agency for International Development, one of the development partner agencies, provided additional $6 million to the fund.
Canilao said the fund is “revolving” and will be replenished “directly through the budget.”
“We’ve clarified this with DBM (Department of Budget and Management). We have an arrangement with them.”
The Aquino administration listed 10 infrastructure projects, mainly airports and expressways, for bidding under the PPP program this year. However, it expects to bid out only around two because studies are taking longer than expected.
In July, the Department of Public Works and Highways announced the start of the bidding process for the Daang Hari-South Luzon Expressway project, making it the first scheduled PPP. The government was supposed to bid out the Metro Rail Transit and Light Rail Transit operations contract first, but shelved it for further review.
DepEd, DOH projects
Canilao said the departments of health and education will be the first to get financing from the PDMF for their PPP projects.
DOH Secretary Enrique Ona said they are about to undertake a feasibility study on the P4.5-billion modernization of the 800-bed Philippine Orthopedic Center (POC) under the PPP program.
“Money from the PDMF will be used for the feasibility study that will be made to understand and define the financial sustainability of the project. The POC is the oldest specialization hospital of the country. It is in need very badly of [modern] infrastructure and equipment,” Ona said, adding that the project will be the model for the “eventual modernization of 25 other regional hospitals of DOH.”
The DepEd, for its part, is securing funds from the facility for a planned bidding out of the contract to build 30,000 classrooms.
DepEd Assistant Secretary Jesus Lorenzo Mateo said that aside from PPP, they are eyeing funding from the Philippine Amusement and Gaming Corp. and the private sector, through the League of Corporate Foundations, to erase the backlog of 70,000 classrooms in the country.
