Republic of the Philippines

Public-Private Partnership Center

Philippine Standard Time

Local PPP Strategy

The implementation of local PPP projects has been identified as one of the priorities of the Duterte Administration, supplementing the priority to decentralize Metro Manila through increased eomployment and infrastructure facilities in the different regions. In line with this, the PPP Center is strengthening the support it provides to local implementing agecnies (IAs) through its Local PPP Strategy.

The PPP Center’s Local PPP Strategy is a specialized assistance program for local implementing agencies to develop policy reforms for an enhanced PPP enabling environment, to improve skills through capacity building, and to assist in the project development and management of projects under amended Build-Operate-Transfer (BOT) Law and Jpint Venture (JV) arrangement.

Funding Sources Local Implementing Agencies Can Tap for Consultancy Services

Local IAs undertaking PPP projects may tap the following existing facilities to provide support from project development to implementation

Project Development and Monitoring Facility (PDMF)

The PDMF is a revolving fund managed by the PPP Center used to engage consultants for Project Preparation and Transaction Support to conduct feasibility studies, project structuring, preparation of tender documents, management of the bid process, and assistance until financial close. The fund can also be tapped to engage a Probity Advisor for the bidding process, and consultants for the monitoring of project implementation

Cities Development Initiative for Asia (CDIA)

CDIA is an initiative that provides assistance to medium-sized cities to bridge the gap between their development plans and the implementation of their infrastructure investments. CDIA provides consultancy support for the preparation of pre-feasiility studies for high priority infrastructure projects, identification of potential private sector involvement in early stages of project definition and structuring project for such involvement, local institutional capacity strengthening related to infrastructure investment planning and programming and advisory support to market local investment proposals to potential financiers.

Asia Pacific Project Preparation Facility (AP3F)

AP3F’s primary objective is to assist developing member country (DMC) governments and their public sector agencies prepare and structure infrastructure projects with private sector participation, including PPP modalities, and bring them to the global market. AP3F can also provide: capacity-related assistance, including for the reform and improvement of policy, legislative, regulatory and institutional practices in DMCs; and ongoing project performance assistance, including project monitoring and project restructuring.

Municipal Development Fund Office (MDFO)

The Municipal Development Fund (MDF) is a special revolving fund for re-lending to Local Government Units (LGUs). The Project Technical Assistance and Contingency Fund (PTACF) provides optional financing with low interest rates (0% to 1.5% interest payable in three years) for LGUs (except highly urbanized cities in Metro Manila) in funding the contingency requirements and technical assistance (TA) needed for LGU projects that are financed by MDFO.

Asia Infrastructure Center for Excellence (AICOE)

AICOE assists ASEAN countries in (i) building capacity to identify, screen and prioritize projects for private sector participation, and develop a pipeline of financeable PPP projects; and (ii) fund project structuring support to prepare PPP transactions for financing.

LGU Guarantee Corporation (LGUGC)

LGUGC mobilizes the resources of private sector financial institutions toward funding local development projects. Its guarantee services include propmt payment guarantee in favor of LGUs, water districts and/or government entities for developmental projects implemented or to be implemented through PPP where private partner/s or joint ventures, investors, or financial institutions require such payment assurance.

↓ Download Local PPP Strategy (PDF, 3MB)