Guidelines on the Identification, Selection, and Prioritization of Public-Private Partnership Projects
This guidelines aims to institutionalize the criteria and process in the identification, selection, and prioritization of PPP projects using Multi-Criteria Analysis (MCA) approach. The MCA is a useful tool in determining potential PPP projects and in generating a credible list of potential projects.
The MCA screen serves as a tool to determine which projects can be undertaken through PPP with some degree of certainty before the implementing agency spends significant resources on their development.
MCA Procedure
Step 1: The implementing agency shall identify PPP projects from the priority list using the MCA screen. It shall be the first filter to determine whether a project is viable to be pursued as PPP.
The PPP Center shall assist the Implementing Agencies in developing their evaluation criteria and in prescribing the weights for each criterion. The Implementing Agency shall likewise develop the necessary documentation for each project that went through the process.
Decision Point: The suggested passing score is at least 2 points in the overall total project score and will then be considered for project development.
As stated, projects that do not pass the MCA screen may still be considered using other options such as ODA or budget allocations of the government, or may be reconsidered as PPP if the circumstances that made it fail, improved.
Step 2: The projects that passed the MCA screen shall be prioritized for PPP project preparation whose funding could either be through the Project Development and Monitoring Facility (PDMF) or other sources. The higher the score of the project in the MCA screen, the higher the chances of being the first to be prioritized for the development of the project.
Step 3: The projects shall undergo the Feasibility Stage (FS) 1 or the determination of economic viability. The projects that passed the prescribed economic hurdle rate shall proceed to the next step.
Step 4: The projects that passed FS Stage 1 shall be subjected to FS Stage 2 or PPP structuring. At the option of the Implementing Agency, it may apply funding for transaction advisory support under PDMF or through other means.