International Infrastructure Investment & Cooperation Forum
China International Contractors Association (CHINCA)
25-29 May 20110 , Beijing, China
THE PHILIPPINE PUBLIC-PRIVATEPARTNERSHIP (PPP) PROGRAM
COSETTE V. CANILAO
Deputy Executive Director, Philippine PPP Center
Outline of Presentation
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The Aquino Administration’s PPP Program
Private Sector Role in Phil Socio-Economic Development
The Expanding Scope of Private Sector Role
Legal Framework
Institutional and Regulatory Set-Up
The PPP Center and its Services
PPP Process
PPP Developments
Priority Projects for 2011
Prospects for Chinese Partners
Summary
The Aquino Administration’s PPP Agenda
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A Social Contract with the Filipino People
• Commitment that all transactions are transparent & above board
• Consultative view on private sector areas of concern, i.e. policy
issues, market sounding, etc.
• Protection of interest of the public as facility users and payers
“We are working to develop profitable partnerships with private
companies both domestic and international. We have the resources.
We have the human capital. Filipino citizens, invigorated by a shared
sense of professionalism, integrity, and quality, are working with their
leaders to build policy formulations for growth…”
Pres. Benigno S. Aquino, III
Private Sector Role in Economic Development
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Indispensable role of the private sector recognized by the
Philippine constitution – “private sector as partner in
development”
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Private sector participation most prominent in infrastructure and
development projects traditionally provided by government
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Policy environment supports private sector’s critical role
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structural adjustments policies - privatization, deregulation and
liberalization
market-based tariff setting; broad range of government support;
various mechanisms for public-private partnerships
economic agenda to harness private sector financing and efficiency
Expanding Private Sector Role
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“Three Waves” of Private Sector Participation
1986 - Disposition/Sale of Assets through the Asset Privatization Trust (APT) and
the Committee on Privatization
Late 80s to Early 90s – Energy Act (Power Purchase Agreements);
1990
Philippine BOT Law (RA 6957); 1994 Amended BOT Law (RA 7718)
Present and Onwards – The Public-Private-Partnership (PPP) Phase
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The PPP Phase
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Expanded range of private sector engagements – Management
Contracts, Lease, BOTs, JVs, Concessions, other variants
PPPs in traditional (transportation, water, etc) and non-traditional
infrastructure (ICT, health, education, etc) sectors
Mixed financing structure; project bundling/unbundling, etc.
LEGAL FRAMEWORK
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The Amended Build-Operate-Transfer (BOT) Law (RA 7718)
BOT Law’s Implementing Rules and Regulations (IRR)
Charters of Government Owned and Controlled
Corporations (Republic Acts and Executive Issuances)
Legal Mandates of Implementing Agencies (Republic Acts)
Sectoral Regulatory Agencies (Republic Acts and Executive
Issuances)
The Local Government Code (RA 7160)
Procurement Reform Act (RA 9184)
INSTITUTIONAL SET-UP
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Contracting Parties (enters into PPP/BOT Agreement)
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Other National Agencies Concerned
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Line Agencies/Departments (policymaking)
National Regulatory Bodies (Finance, Economic Planning,
Environment, Securities and Exchange, Central Bank, etc.)
Sectoral Regulators (e.g. toll regulatory board)
Review and Approving Bodies
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Implementing Agencies (national agencies)
Government Corporations
Local Government Units (Province, City, Municipality)
Inter-Agency Investment Coordination Committee
Local Government Councils
Coordinating and Monitoring Agency
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The PPP Center
The PPP Center
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Pres. Aquino signed Executive Order No. 8 (09
September 2010)
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BOT Center renamed PPP Center and transferred
attachment from DTI to NEDA
Expanded mandate
 covers all arrangements under the BOT Law, Joint Venture
arrangements, and other PPP arrangements
Promote the PPP Program
Facilitate development of PPP Projects
Advocate policy reforms
Monitor PPP implementation
PPP Process
Process
Responsible
Party
PPP Center
Intervention
Start
Project Preparation
IAs/LGUs
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Project Submission to
NEDA-ICC
(Complete and qualified
documentation)
Project Review & Evaluation
Fund pre-investment
activities through the
PDMF
Provide Training &
Capacity Development
Provide technical
assistance in the review
of the Project’s financial
and economic viabilities
Provide legal advice
during formulation of the
contract
IAs/LGUs
NEDA
Secretariat/LGUs
Assist IAs/LGUs in
complying with
requirements during the
Project & Contract
evaluation
PPP Process
Process
Responsible
Party
LGU/ICC Approval
• ICC Technical Board
• ICC Cabinet Committee
• NEDA Board
Investment
Coordination
Committee (ICC)
NEDA Board
Assist in the preparation of
bid Documents
Preparation of Request for
Proposals (RFP)
Invitation & Pre-qualification
PPP Center
Intervention
IAs / LGUs
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Per BOT Law IRR, nonvoting observer of PBAC
for national projects
Provide advice during
procurement process
Preparation and
Submission of Bids
Private Sector
Evaluation of Bids
IAs / LGUs
Assist in the evaluation of
bids
Award & commencement of
Implementation
IAs / LGUs
Monitor implementation
PPP Program Updates
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2011 PPP Projects in the Roll-Out launched in
November 2010 and February 2011
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First five (5) projects to be bid in the first half of the
year
Next five (5) projects to be bid in the second half of the
year
Projects in the roll-out are mostly transportation
projects
Amendment of the BOT Law and its IRR under way
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Public hearing ongoing
Collaborative efforts with government PPP
stakeholders initiated
PPP Program Updates
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Capacity development for government PPP
stakeholders
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To ensure reliable Pre-FS/FS output
To equip efficient evaluation and approval of projects
Project Development and Monitoring Facility beefed
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To help finance Pre-FS/FS
To ensure high success rate
2011 PPP Projects
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DaangHari – SLEX Link Project
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Implementing Agency: DPWH
Estimated Project Cost: US$ 35.5M
Proposed Scheme: Solicited BTO
Expected Bidding Bid Date: First half of the year
NAIA Expressway Phase 2 Project
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Implementing Agency: DPWH
Estimated Project Cost: US$ 235.33
Proposed Scheme: Solicited BTO
Expected Bid Date: First half of the year
2011 PPP Projects
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NLEX-SLEX Connector Project
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Implementing Agency: DPWH
Estimated Project Cost: US$ 477.77M
Proposed Scheme: Unsolicited PPP
Expected Bidding Bid Date: First half of the year
CALA-Manila Side Expressway Project
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Implementing Agency: DPWH
Estimated Project Cost: US$ 233.33M
Proposed Scheme: Solicited PPP
Expected Bid Date: Second half of the year
2011 PPP Projects
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Puerto Princesa Airport Development Project
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Implementing Agency: DOTC
Estimated Project Cost: US$ 97.78M
Proposed Scheme: Solicited PPP
Expected Bidding Bid Date: Second half of the year
New Legaspi Airport Development Project
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Implementing Agency: DOTC
Estimated Project Cost: US$ 71.11M
Proposed Scheme: Solicited PPP
Expected Bid Date: Second half of the year
2011 PPP Projects
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New Bohol Airport Development Project
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Implementing Agency: DOTC
Estimated Project Cost: US$ 168.89M
Proposed Scheme: Solicited PPP
Expected Bidding Bid Date: Second half of the year
O&M Privatization of Laguindingan Airport Project
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Implementing Agency: DOTC
Estimated Project Cost: US$ 33.33M
Proposed Scheme: Solicited PPP
Expected Bid Date: Second half of the year
2011 PPP Projects
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LRT Line 2 East Extension Project
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Implementing Agency: DOTC
Estimated Project Cost: US$ 251.11M
Proposed Scheme: Solicited PPP
Expected Bidding Bid Date: Second half of the year
LRT Line 1 South Extension Project
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Implementing Agency: DOTC
Estimated Project Cost: US$ 1,555.55M
Proposed Scheme: Solicited PPP
Expected Bid Date: Second half of the year
Prospects for Chinese Investors
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Participation as project partners of Philippine PPP Projects in
the following areas
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Engineering, Design and Construction
Financing (equity shareholder, lender, insurer, etc)
Operation and Maintenance
Features of the Philippine PPP Program
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There is an established national policy on PPPs (BOT Law)
PPPs are allowed in practically all development sectors
PPP legal framework allows creativity in PPP financing and contractual
arrangements (several PPP variants)
PPP legal framework allows procurement options (solicited and
unsolicited modes)
Institutions (Implementing Agencies and Local Government Units)
have distinct legal mandates to enter into PPPs
Government support is allowed in critical projects not viable through
full private sector financing
There is a dedicated PPP Program coordinating agency (PPP Center)
formally integrated into the government machinery
Information on Philippine PPPs
www.ppp.gov.ph
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Overview of the PPP Program
Legal Framework
PPP Projects for 2011 Rollout
Other PPP Projects
PPP Process Flow
PPP Brochure
PPP Sample Contracts
PPP Presentations and Speeches
Frequently Asked Questions
THANK YOU!
PUBLIC-PRIVATE PARTNERSHIP (PPP) CENTER
National Economic and Development Authority
4/F GA Yupangco Bldg.
339 Sen.Gil J. Puyat Ave.
1200 Makati City, Philippines
Tel. No:
(+63 2) 897-6826
Fax No:
(+63 2) 899-8821
www.ppp.gov.ph