PRESS RELEASE
17 January 2014
Developing a robust pipeline of viable PPP projects using the PPP Center’s Project Development and Monitoring Facility (PDMF) assures the sustainability and dynamism of the country’s Public-Private Partnership program. Through this facility, projects are given the due diligence necessary in project structuring and transaction work.
The PDMF, through its roster of expert transaction advisors and consultants, has successfully built up its portfolio of PPP projects generating 22 signed consulting contracts with seven different implementing agencies (IAs).
Add to this number are four (4) more contracts that are set to be tendered and another one currently undergoing consultant selection. This brings the number of PDMF funded projects to 27 whose feasibility studies are prepared with the appropriate transaction advisory support and guidance from internationally recognized experts on PPPs.
Working with Development Partners
The PDMF is a revolving pool of funds from the Philippine Government and the Government of Australia under a Capacity Building Technical Assistance project from the Asian Development Bank (ADB). The PDMF is meant to help enhance the investment environment for Public-Private Partnership (PPP) and develop a robust pipeline of viable and well-prepared PPP infrastructure projects.
Under the PDMF guidelines, the PPP Center will commission technical advisors for the IAs who will avail of the Facility. The Center keeps a panel of PPP experts from both international and local consulting firms. In procuring these consultants, the Center employs ADB’s rigorously competitive and transparent procurement guidelines
The PDMF Committee,which is made up of senior level representatives from the NEDA, DOF, DBM and the PPP Center, approves all PDMF applications. The Committee sets the policy guidance to manage prudently the PDMF. For each PDMF-approved project, a Special Bids and Awards Committee (SBAC) and a Project Study Committee (PSC) are created to oversee the procurement of specific project consulting teams and the review of their outputs, respectively
According to PPP Center’s Executive Director Cosette V. Canilao, the portfolio of PPP projects continue to grow because of the PDMF. “One of the reasons why the PPP program is successful is the substantial roster of feasible PPP projects developed through our PDMF. The wide range of projects attracts investors who have varied interests and expertise.”
Positive response
The implementing agencies (IAs) value the guaranteed access to a panel of internationally recognized consortia of consulting firms since it enhances the quality and credibility of PPP projects for tendering. There is recognition that sound project preparation is important for encouraging greater private sector participation in the country’s PPP Program.
According to the ADB, oversight agencies appreciate the PDMF because it makes available a transparent support mechanism through which development partners can direct their assistance in PPP project preparation and monitoring.
Given the considerable interest that the PDMF has generated among IAs, the PPP Center has already expanded its panel of advisors retained under indefinite delivery contracts. From an initial consortia of nine (9) of international and national consulting firms in 2011, the panel has expanded to 15 members in 2012.
To further improve its technical dimension and facilitate upgrading in terms of the capability, expertise, and experience of the panel members, panel restructuring is currently being undertaken by the PPP Center. It is expected that the new panel of project preparation and transaction support consultants will be available by May 2014.
