Local governments are keenly looking to public-private partnerships (PPPs) to provide needed infrastructure projects, boost their competitiveness, and to deliver better public services. As of April 2018, there are six (6) PPP projects at the local level ranging from water, solid waste management, energy, and public markets. The PPP Center is currently providing its technical assistance for these PPP LGUs projects.
“This is a new pipeline that we are building. PPPs at the local level remain a considerable part of the PPP program where we hope to gain more traction and have PPPs address the vast infrastructure needs of the regions,” PPP Center Executive Director Ferdinand A. Pecson said.
Part of the PPP LGU pipeline includes the Baggao Water Supply Project worth PHP84.22 million, the Cagayan De Oro Septage Management Project at PHP 128 million, the Quezon City Waste-to-Energy-Project worth PHP 16.56 billion, Pampanga Bulk Water Supply Project costing PHP 16.7 billion and 2 other projects, the Cebu City Solid Waste Management Project and the General Santos Public Market Project whose project costs are yet to be determined.
Currently, the Baggao Water Supply Project has one prequalified bidder. As implementing agency (IA), the Municipality of Baggao in Cagayan Province has issued the Notice of Qualification to Bid to Tubig Pilipinas Consortium. The bid submission is slated for May 2018. The project involves the financing, design, construction, operations and maintenance of Level III potable piped water supply service which will initially serve 24 barangays in the municipality. The project includes the development of a bulk water source, transmission, and distribution to individual household level connections. It is a Build Operate and Transfer (BOT) scheme following a solicited mode, with a 25 year concession period.
Another project approved for procurement is the Cagayan de Oro Septage Management Project being implemented by the Cagayan de Oro Water District under a solicited contractual joint venture scheme. This PPP project involves the finance, design, construction and operation of a septage management facility for Cagayan De Oro City. The project has an existing pre-feasibility study prepared by United States Agency for International Development (USAID) under the Be Secure Project. The project concession period will be for 25 years.
Two other PPP projects are both under negotiation — the Quezon City Waste-to-energy Project, an unsolicited joint venture of the local government of Quezon City and the Pampanga Bulk Water Supply project of the province of Pampanga using a concession agreement under the Provincial PPP Code which will run for 25 years.
At this stage, negotiations for the Quezon City Waste-to-energy project, including legal, financial and technical aspects of the proposal, between the IA/LGU and the Original Proponent is already ongoing. Meanwhile, detailed negotiations for the Pampanga Bulk Water Supply Project is also ongoing.
Finally, three (3) of the six (6) PPP projects are under development meaning these projects have completed studies and are undergoing review by IAs or are undergoing studies. The three (3) PPP projects include the Cebu City Solid Waste Management Project and the General Santos Public Market Project.