PPP Center
19 October 2011
The Department of Health (DOH) and the Department of Education (DepEd) are the initial recipients of pre-investment financing from the Project Development and Monitoring Facility (PDMF) administered by the Public-Private Partnership Center of the Philippines (PPP Center). This was announced by PPP Center Executive Director Cosette V. Canilao after the meeting of the PDMF Board on October 12, 2011.
The PDMF is a revolving fund set up under Executive Order No. 8, series of 2010, which outlined the mandate of the PPP Center. This facility enables proponent agencies to conduct pre-investment activities which include preparation of pre-feasibility studies, feasibility studies, tender documents including draft contracts, and provision of advisory support during the bidding process.
PDMF-eligible projects are selected by the PDMF Board composed of representatives of the National Economic Development Authority (NEDA), the Department of Budget and Management, the Department of Finance and the PPP Center, with NEDA as chair.
An initial budget of P300 million was allocated to the PDMF by the Philippine government. The Australian Agency for International Development (AusAID), through the Asian Development Bank (ADB), provided additional funding of US$ 6 million (six million US dollars) to the PDMF augmenting the P300 million initially allocated. Development partner agencies led by the AusAID and the Canadian International Development Agency (CIDA) have also provided support to the PPP Center to strengthen its capacity as the government’s focal unit on PPPs.
The DoH has proposed the “Philippine Orthopedic Center Modernization Project” as a priority project under the PPP scheme.
For its part, the DepEd proposed the “Public-Private Partnership for School Infrastructure Project (PSIP)” which oversees the building of schools in three pilot areas: Regions I, III and IV-A.
The DOH envisions the Philippine Orthopedic Center as the “Center for Bone and Joint Diseases, Trauma, and Rehabilitation Medicine”. The transformation of the hospital is consistent with President Benigno S. Aquino‘s Ten-Point Agenda for Universal Health Care and the 2011-2016 Philippine Development Plan (PDP) for the provision of health facilities in the Philippine health system, according to Education Secretary Enrique Ona.
The project seeks to modernize the orthopedic center to deliver the best orthopedic care possible, complemented by state-of-the art diagnostic and surgical facilities, patient comfort and high satisfaction, and full computerization, Secretary Ona added.
The proposed project involves the following components: construction and upgrade of hospital buildings and facilities; purchase and supply of modern hospital equipment, furniture and fixtures; and the installation of a comprehensive hospital IT system.
DepEd’s PSIP, on the other hand, aims to provide sufficient scale that will attract project investors and ensure project bankability. The pilot run will involve the construction of 9,623 classrooms in the 2,300 elementary and secondary schools in the three (3) pre-identified sites. The project also includes the provision of furniture and comfort rooms.
The proposed PPP modality for the PSIP calls for the private sector to be responsible for the financing, design, construction and periodic maintenance of classrooms. Daily operation and maintenance will reside with the Department of Education.
The PDMF Board approved pre-investment activities for the PSIP which consist of consulting services for the finalization of the tender documents, assistance to DepEd in the selection of private sector partner by adopting the PPP structure appropriate for the project, and assistance to DepEd until signing of the PPP Agreement.
The PSIP business case was prepared by REID Foundation in consultation with an inter-agency PPP Technical Working Group which includes the PPP Center.
The PDMF is open to proponent agencies including national implementing agencies, government-owned and controlled corporations, and local government units for their pre-investment activities. The PPP Center’s PDMF Service continues to accept proposals from proponent agencies. For more information on the PDMF Fund and the application process, please contact the PDMF hotline at: 929-8592.
