CE227:
Plate 2
On PPP, Concession
Agreements, and
Foreign-aided Projects
BACON, Daphne A.
2019127962
3CE-G
Table of Contents
01
What is a PPP?
03
What is the difference
between a PPP and a
foreign aided project?
02
What is a
concession agreement?
04
Tarlac - Pangasinan - La
Union Expressway
(TPLEX)
1. What is a PPP?
Public-Private Partnership (PPP) is a long-term agreement between two parties, a
government entity and a private enterprise, in which the latter is tasked to make possible,
provide resources, operate, and maintain a project that delivers service for the general
public. This arrangement is commonly used for public infrastructure projects, such as
roads, airports, ports, hospitals, and other services and facilities. Public and private sectors
see the advantages of collaborating resources for one goal, enabling faster project
completions, reduced delay, better infrastructure solutions, higher return on investment,
and feasibility of the project is determined at an early stage.
2. What is a concession agreement?
A private entity acquires rights from a government authority to operate a certain
business for a specific duration under set conditions in a contract known as concession
agreement. This arrangement allows the public owner to retain possession and ownership
of assets while delegating responsibility for operations, transactions, and maintenance to
the private sector. This enhances process efficiency and makes technology procurement
and innovation easier.
Department of Public
Works and Highways
(DPWH)
San Miguel
Corporation (SMC)
NAIA Expressway Phase II
Concession agreement between the Department of Public
Works and Highways (DPWH) and San Miguel Corporation
(SMC) for the NAIA Expressway Phase II project
San Miguel Corporation won the bid in May 2013, paying an upfront
payment of P11 billion, after the project was posted for public bidding. San Miguel
had been granted until January 2014 to finish the detailed engineering for the toll
road, as well as a total of 30 years to operate and maintain the NAIA Expressway
Phase II.
Department of Public
Works and Highways
(DPWH)
Ayala
Corporation
Daang Hari-SLEx Link Road
Concession agreement between the Department of Public
Works and Highways (DPWH) and Ayala Corporation for the
Daang Hari-SLEx Link Road
The Philippine government agreed into a concession agreement with the
Ayala Corporation and the Department of Public Works and Highways for the
building, operation, and maintenance of the Daang Hari-SLEx Link Road. Civil
works began in May 2012, with the expressway expected to be completely
operational by November 2013 as part of a 30-year Build-Transfer-Operate (BTO)
agreement.
Department of Public
Works and Highways
(DPWH)
Metro Pacific Tollways
Development Corp.
(MPTDC)
North and South Luzon Expressway
(NLEx-SLEx) connector toll road
Concession agreement between the Department of Public Works and
Highways (DPWH) and Metro Pacific Tollways Development Corp.
(MPTDC) for the North and South Luzon Expressway (NLEx-SLEx)
connector toll road
Metro Pacific Tollways Development Corp. (MPTDC) will be responsible for
the design, financing, construction, operation, and maintenance of a four-lane,
eight-kilometer elevated toll expressway over the right of way of the Philippine
National Railways, with a concession period of 37 years, in accordance with the
agreement.
3. What is the difference between a
PPP and a foreign aided project?
PRIVATE-PUBLIC
PARTNERSHIP
FOREIGN-AIDED
PROJECT
SOURCE
By a private company
From foreign sources
FUNDING
Debt & equity finance
Grant/Loan
RESOURCES
Outsourced by private firm
Engineering firms, contractors,
equipment and parts suppliers
nominated by the donor country
PRINCIPLE
Users pay
All taxpayers pay
Tarlac - Pangasinan - La Union
Expressway (TPLEX)
The Tarlac - Pangasinan - La Union Expressway (TPLEX)
Project is an 89.21-kilometer four-lane toll expressway
that spans from north point Rosario, La Union to south
point Tarlac City.
PROJECT COST
P24.10 Billion
IMPLEMENTING AGENCY
Department of Public Works and Highways (DPWH)
PRIVATE PROPONENT
San
Miguel
Corporation
(SMC)
Formerly Private Infrastructure Development Corporation (PIDC)
CONCESSION PERIOD
35 years
PROJECT IMPACT
3rd
Provide fast & effective
access of agri products
from the north to the
major populations
centers in Luzon
1st
Reduced travel time
from Tarlac to Rosales
from 2 hours to 30
minutes (will benefit
13,000 travelers/day)
2nd
Reduced travel time
from Tarlac to Rosario
from 3.5 hours to 1
hour (will benefit
20,000 travelers/day)
4th
Drive tourism for
Northern Luzon
References
Camus, M. R. (2013). DPWH, SMC sign Naia Expressway agreement. Public-Private Partnership Center. Retrieved from
https://ppp.gov.ph/in_the_news/dpwh-smc-sign-naia-expressway-agreement/
DAANG HARI-SLEx LINK ROAD CONCESSION AGREEMENT SIGNING. (2012, April 3). Public-Private Partnership Center. Retrieved
from https://ppp.gov.ph/in_the_news/dpwh-smc-sign-naia-expressway-agreement/
DPWH Receives Post Award Requirements for NLEX-SLEX Connector Road Project. (2016, September 27) Department of Public
Works and Highways. Retrieved from https://www.dpwh.gov.ph/dpwh/news/941
Kumar, A. (2019). Concession Agreement: All you Need to Know. iPleaders. Retrieved from
https://blog.ipleaders.in/concession-agreement/
PPP vs ODA (User pays vs all taxpayers pay). (2017, June 2). Public-Private Partnership Center. Retrieved from
https://ppp.gov.ph/in_the_news/ppp-vs-oda-user-pays-vs-all-taxpayers-pay/
Public-Private Partnership. (n.d.). Department of Public Works and Highways. Retrieved from
https://www.dpwh.gov.ph/dpwh/PPP/PPP_index
Tarlac–Pangasinan–La Union Expressway (TPLEx) Fact Sheet" (PDF). PUBLIC-PRIVATE PARTNERSHIP (PPP) CENTER FOR PUBLIC
INFORMATION. Retrieved from https://ppp.gov.ph/wp-content/uploads/2013/10/TPLEX_Fact-Sheet.pdf
TARLAC-PANGASINAN-LA UNION EXPRESSWAY PROJECT (TPLEX). (n.d.) Department of Public Works and Highways. Retrieved
from https://www.dpwh.gov.ph/dpwh/PPP/projs/TPLEX
Thank you!
BACON, Daphne A.
2019127962
3CE-G