October 12, 2011, 3:30 pm
An inter-agency government board approved today (October 12) the provisional guidelines on the use of an estimated P550-million revolving fund to help generate a pipeline of viable and well-prepared projects for bidding under the public-private partnership (PPP) mode.
PPP Center Executive Director Cosette V. Canilao announced that with the guidelines approval by the Project Development and Monitoring Facility (PDMF) Board, the PPP Center is now ready to receive applications from government agencies for funding project preparation in sectors identified as priority under the Philippine Medium-Term Development Plan 2011- 2016.
The PDMF Board is composed of duly designated 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, the Board sets the policy and implementing guidelines for PDMF use and approves projects for PDMF funding.
PDMF will finance pre-investment studies, including pre-feasibility studies, feasibility studies, preparation of tender documents, draft contracts, bidding processes and contract negotiations to bid award stage. It affords project proponents with transaction advisory services to ensure that competitive and transparent processes are observed.
The PDMF Board said that with the PDMF onstream, it anticipates an invigorated national PPP program to fast-track the building of needed infrastructure and the offering of awaited quality services to uplift the lives of Filipinos across all sectors through inclusive growth.
The first PDMF board meeting was held at the PPP Center at the NEDA Complex in EDSA.
PPP Center Executive Director Canilao said, “The PDMF financing pool will allow for the implementation of the right projects that will serve the needs of the people and at the same time, be undertaken at the least cost to government. While we advocate this, we recognize that our projects should also be attractive to our investors.”
The facility was set up under Executive Order No. 8 which set the mandate of the PPP Center and was initially provided P300 million by the government. Development partner agencies led by the Asian Development Bank, Australian Agency for International Development (AusAID) and the Canadian International Development Agency (CIDA) have provided support to the PPP Center to strengthen its capacity as the government’s focal unit on PPPs. AusAID, through ADB, provided additional funding of US$6 million (six million US dollars) to PDMF that augmented P300 million allocated by the government.
“We are glad to support the Government of the Philippines in setting up a sustainable and transparent mechanism for preparing bankable PPP projects for bidding. Establishment of the PDMF Board, approval of PDMF guidelines, and establishment of a panel of world-class transaction advisors for fast mobilization for PPP project development show the continuous commitment of the government in strengthening the solicited mode of doing PPPs. We congratulate the Government and the PPP Center with accomplishing this major milestone in strengthening PPP governance framework,” said Neeraj Jain, ADB’s Country Director for the Philippines.
Priority projects in identified sectors cover toll roads and transport facilities, airports and ports, water supply, and facilities for health, agriculture and education.
“Australia’s contribution to the PDMF underscores our commitment to help the Philippine Government build a robust PPP market that delivers high quality infrastructure projects for all Filipinos,” said Titon Mitra, Head of AusAID in the Philippines. “Now that the PDMF is ‘live’ we look forward to Australian funds being used to progress the Philippine Government’s highest priority PPP projects.”
Winning bidders will be required to reimburse the costs extended the project via the PDMF to replenish the fund for succeeding applications.
