PPP Center
Press Release
20 December 2012

Following the successful contract award of 9,301 classrooms in October 2012, the Department of Education officially rolls out the second phase of its Public-Private Partnership (PPP) School Infrastructure Project (PSIP), with the issuance of the project’s Invitation to Prequalify to Bid (ITPB).

The PSIP II involves the design and construction of 10, 679 classrooms, including furniture and toilets, in 5,033 public schools in 14 regions nationwide. This project will further supplement government efforts to address classroom backlogs in the country.

Regional contract packages for PSIP II shall be bid out separately covering all 14 regions. The bidding process is a two-stage system where prospective bidders will be prequalified based on legal, technical and financial capability requirements. Only those that have prequalified shall be invited to submit their bids.

According to Secretary Armin Luistro, DepEd is keen on pursuing the PPP approach to harness private sector resources and technical expertise.

“This is in order to improve the quality and introduce new technology in the construction of public school classrooms; derive cost savings for government; and achieve faster implementation timetables than what our traditional construction program would allow,” the Education Secretary added.

PSIP II will be implemented through a turnkey arrangement with the private sector using the “Build-Transfer” (BT) modality in accordance with Republic Act No. 7718 or the Revised Build-Operate-Transfer (BOT) Law. This means that DepEd will issue a one-time payment to the winning bidder after the classrooms have been built.

With the faster public service delivery, PSIP II will immediately benefit some 480,555 students through better school facilities conducive for learning. Prospective bidders for PSIP II must submit their applications for prequalification to DepEd’s Prequalification, Bids, and Awards Committee (PBAC) not later than 10:00 AM on 12 February 2013.

PPP Center Executive Director Cosette V. Canilao stated, “Our experience with the PSIP Phase I project assures us that social infrastructure projects can indeed thrive under a PPP arrangement. The private sector is now more confident in partnering with the government to achieve our developmental goals.”

The PSIP project is a recipient of the Project Development and Monitoring Facility (PDMF) managed by the PPP Center. Under the PDMF, the DepEd was given funding support in terms of procuring transaction advisors to provide technical assistance in the bid process management including the preparation of bid documents and contracts and assistance until financial close.

Aside from managing PDMF, the PPP Center also provides technical advisory, project facilitation services, and capacity building support to implementing agencies and local government units in ensuring that all PPP projects are developed and implemented effectively.