The Public-Private Partnership (PPP) Center proposes a shorter selection process for local government units (LGUs) undertaking PPP projects to help speed up its implementation. Instead of LGUs undertaking a feasibility study for their PPP projects that demand substantial resources to accomplish, local governments can produce a detailed business case for their PPP project.
Undersecretary and Executive Director Ferdinand A. Pecson explained the proposal during the Tunog ng Progreso Radio Program on Radio Pilipinas on April 12, 2019.
“The LGU, through their business case, can define their needs, the kind of performance that they expect from the private proponent, what they can contribute to the project, and the obligations of the private sector,” he said.
“This will give the private sector a reliable reference in building their feasibility studies and takes out the guesswork on what are the government’s preferred parameters for their project. They shall have a basis for submitting a more focused proposal. This alternative selection process can be adopted by LGUs through their PPP Code since they are clothed with legislative powers to enact such code provided it does not violate national law,” he added.
The PPP Center will provide local governments the technical assistance to strengthen their capacity in doing a detailed business case for their PPP project, which is a prerequisite of this alternative selection process. Having robust business cases from LGUs will help streamline the alternative selection process on PPPs for LGUs. As part of its mandate, the PPP Center will continue to assist in the tendering process, particularly in the preparation of bid documents and the conduct of the selection process.
Currently, the PPP Center is expanding its support to priority sectors from the usual transportation projects to local PPP projects such as water supply and sanitation, solid waste management, and green infrastructure and to social infrastructure projects (health and tourism). The agency is also doubling its efforts to streamline PPP process through the issuance of sectoral guidelines and contract templates, among others.
