A Look At BOT-INFRASTRUCTURE PROJECTS Build-Operate-and-Transfer (BOT) Center Outline of Presentation The PPP-BOT Program Projects for Investments The BOT Center THE PPP-BOT PROGRAM Republic Act No. 7718 Title • An Act Amending Certain Sections of RA 6957, Entitled “An Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector, and for Other Purposes.” Declaration of Policy • • • • Recognition of private sector’s role in development Provision of incentives to mobilize private resources Climate of minimum government intervention Specific GOP undertakings to support private sector What is PPP (Public-Private Partnership)Build-Operate-Transfer (BOT)? Contractual arrangement between the government and the private sector whereby the latter finances, constructs and in some cases operates and maintains a facility or project The private sector is allowed to charge user fees to recover its investments Both government and private sector share project risks Procurement Modes Public Bidding / Solicited Mode Unsolicited Proposals • • • Project involves new concept or technology and/or not in the list of priority projects No direct government guarantee, subsidy, or equity IA/LGU concerned must solicit comparative or competitive proposals Private Sector Participation in BOT/PSP Projects Bidder/member of consortium for priority infrastructure projects of government Financier of awarded BOT/PSP project Supplier of machinery, equipment, materials Sub-contractor to the winning contractor Proponent of unsolicited project THE PHILIPPINE BOT PROGRAM From the early 1990’s until December 2008, the Philippine BOT Program has generated capital investment of more than US$19 billion broken down as follows: US$17,692.92 20 Projects US$17,692.92 6 Projects US$17,692.92 37 Projects Awarded Concluded Operational Status Power Transport Environment IT (National & LGU) Social Infrastructure Property Development TOTAL No. of Projects 38 8 5 8 Project Cost (US$M) 8,701.36 2,25.00 7,839.40 290.72 1 1.00 9 453.86 63 19,511.34 PROJECTS FOR INVESTMENTS Projects for Investments Panguil Bay Bridge Project Balog-Balog Multi-Purpose Project Batangas to Manila Natural Gas Pipeline (BatMan1) Integrated LNG Terminal, Pipeline and Power Plant Project Isabela Coal Mining and Power Plant Project NAIA Expressway Metro Manila Skyway Project Panguil Bay Bridge Project Implementing Agency: Department of Public Works and Highways (DPWH) Project Description: • The Project entails the construction of a bridge with approximate length of 2,360 meters and approach roads pf 1,240 meters across Panguil Bay between Tangub City, Misamis Occidental and Tubod, Lanao del Norte. Estimated Project Cost: P4.425B Project Implementation Scheme: BTO (Build-Transfer-Operate) - Solicited Panguil Bay Bridge Project Status • • Preparation of the tender documents for procurement of BOT proponents is on-going. Prequalification of BOT proponents to commence upon completion of the specimen design based on the geophysical survey and geotechnical investigation. Contact Person/Details: Director Bienvenida Firmalino BOT Office – DPWH Bonifacio Drive, Port Area, Manila Tel. No.: (632) 3043762, Fax No.: (632) 3043824 Balog-Balog Multipurpose Project: Phase II Implementing Agency: National Irrigation Authority (NIA) / Tarlac Provincial Government Project Description: • BBMP Phase II (located in Tarlac) involves the following components: • (1) construction of the Balog-Balog High Dam and reservoir with storage capacity of 625 MCM for irrigation, power generation, flood control, and inland fish production purposes, • (2) construction of a hydro-power plant with installed capacity of 33 MW. Balog-Balog Multipurpose Project: Phase II Estimated Project Cost : P8.8B Project Status: • The Project is currently being evaluated if viable for implementation under the BOT Law. Contact Person / Details: • Mr. Vicente R. Vicmudo, Ph. D. Project Manager National Irrigation Authority Tel. No.: (045) 982-0443 (045) 982-2948 Batangas to Manila Natural Gas Pipeline (BatMan1) Implementing Agency • Philippine National Oil Company (PNOC) Project Description • The BatMan1 Project is a high-pressure gas transmission pipeline with a total line length of approximately 135 km consisting of three distinct legs. The input pressure at the Onshore Gas Plant in Batangas will range from 60-70 bars. • It will start from On-Shore Gas Plant in Tabangao, Batangas City to Biñan, Laguna via STAR Highway. Then, from Biñan station, two spur pipelines will be connected which are called Biñan to Rosario (RoBin), Cavite Pipeline and Biñan to Fort Bonifacio, Taguig Pipeline. Batangas to Manila Natural Gas Pipeline (BatMan1) Estimated Project Cost • US$131 Million Project Implementation Scheme: • Joint Venture • BOT scheme Project Status • PNOC Exploration Corporation (EC) had already acquired the following: • PNOC EC Board Approval • NEDA Board Approval • Environmental Compliance Certificate (ECC) • 100 Letters of Intent from the industrial estates potential gas users • 9 Endorsements from LGUs • NEDA’s support declaring the project as a project of national significance Batangas to Manila Natural Gas Pipeline (BatMan1) Contact Persons: • Mr. Rafael E. Del Pilar President and CEO PNOC Exploration Corporation Tel. No.: 840-2015, Fax No.: 840-2348 • Mr. Candido M. Magsombol Manager Business Development Department PNOC Exploration Corporation Tel. No.: 479-9255, Fax No.: 840-2044 Integrated LNG Terminal, Pipeline and Power Plant (Integrated Project) Implementing Agency: • Philippine National Oil Company Project Description • The Integrated Project (located within the municipalities of Limay and Mariveles, Bataan) will be composed of the following: • • • setting up of an LNG Receiving Terminal in Limay, Bataan the gas-fired conversion of the 600 MW Limay Power Plant Blocks A&B the development of a 600MW Greenfield gas-fired power plant inside the PAFC Industrial Park and related gas transport pipeline. Integrated LNG Terminal, Pipeline and Power Plant (Integrated Project) Project Implementation Scheme: • • Joint Venture BOT scheme Estimated Project Cost • • • • • • LNG Terminal Limay A/B PP Limay PAFC PP Limay A/B Pipeline Limay PAFC Pipeline Total Cost US$ 375.24 million US$ 345.50 million US$ 345.50 million US$ 3.03 million US$ 0.13 million US$1069.40 million Integrated LNG Terminal, Pipeline and Power Plant (Integrated Project) Project Status: • • PNOC EC had already acquired the following: • • PNOC EC Board Approval NEDA Board Approval Ongoing coordination with parties interested in the integrated LNG terminal and power plant projects Contact Persons: • Mr. Rafael E. Del Pilar President and CEO PNOC Exploration Corporation Tel. No.: 840-2015 Mr. Candido M. Magsombol Manager Business Development Dept. Tel. No.: 479-9255 Isabela Coal Mining and Power Plant Project Implementing Agency: • Philippine National Oil Company Project Description: • The Isabela Integrated Coal Mine-Mouth Power Plant Project is an open pit coal mine project with a Mine-Mouth 50MW coal fired power plant with fluidized bed combustion. • The project site is located 290 kms North of Manila via Cagayan Valley region. The three different coal deposit concentrations are located in the municipalities of Naguillian, Benito Soliven and portion of the City of Cauayan, province of Isabela, Cagayan Valley Isabela Coal Mining and Power Plant Project Project Implementation Scheme: Estimated Total Project Cost: Project Status • • Joint Venture BOT scheme • • • Mine Power Plant Total Cost • • • • US$ 16 million US$ 139 million US$ 155 million PNOC EC had already acquired the following: • PNOC EC Board approval • NEDA Board approval Ongoing review of the project and its economic profitability. Business plan being finalized Estimated IRR of 20 – 25% Isabela Coal Mining and Power Plant Project Contact Persons: • Mr. Rafael E. Del Pilar • President and CEO PNOC Exploration Corporation Tel. No.: 840-2015, Fax No.: 840-2348 Mr. Candido M. Magsombol Manager Business Development Department PNOC Exploration Corporation Tel. No.: 479-9255, Fax No.: 840-2044 NAIA Expressway Implementing Agency: • DPWH Description • The project involves the construction of an elevated expressway from Skyway up to Roxas Boulevard, running mostly along existing roads (Sales Street, Andrews Avenue, Domestic Road and MIA Road). The project is proposed to be done in phases: Phase I - Skyway to NAIA Terminal III, 4 lanes, 3.67 Km Phase II - NAIA Terminal III to Roxas Boulevard, 4 lanes, 4.9 km NAIA Expressway Project Status • • Phase I Phase II - Construction on-going. Bid Documents preparation completed. Contact Person/Details: Director Bienvenida Firmalino BOT Office – DPWH Bonifacio Drive, Port Area, Manila Tel. No.: (632) 3043762, Fax No.: (632) 3043824 Metro Manila Skyway Project PROPONENT • Citra Metro Manila Tollways Corporation (CMMTC) – a joint venture firm of P.T. Citra Lamtoro Gung Persada (CITRA) and PNCC. DESCRIPTION • An elevated expressway that will link the South Luzon Expressway (SLE) and the North Luzon Expressway (NLE) from Alabang, Muntinlupa to Balintawak, Caloocan City with a total length of 33.68 Kms. Stage 1 - A six (6) lane elevated expressway from Bicutan to Buendia, with the Ayala Central Business District Access Ramps (9.3 kms.) and the rehabilitation of the South Luzon Expressway from Magallanes to Alabang (13.43 kms.) Stage 2 – Elevated expressway from Bicutan to Alabang (6.88 Kms.) Stage 3 – Elevated expressway from Buendia to NLE Balintawak (17.50 Kms.) Metro Manila Skyway Project ESTIMATED PROJECT COST (in Million Pesos) • • • • Stage 1 11,170 Stage 2 8,000 Stage 3 29,859 Total 49,029 PROJECT STATUS • • Stage 1: Completed in December 1999. Presently operational and maintained by PNCC Skyway Corporation. Stage 2: • Stage 3: Updating of feasibility study PERTCONSULT is the Independent Consultant. Renardet S.A. is the Supervising Consultant. Construction of 13 pier heads of the existing columns are completed. Parcellary plan/ROW acquisition plan approved. Metro Manila Skyway Project Contact Person/Details: Director Bienvenida Firmalino BOT Office – DPWH Bonifacio Drive, Port Area, Manila Tel. No.: (632) 3043762, Fax No.: (632) 3043824 THE BOT CENTER THE BOT Center under DTI Presidential Executive Order 144 (2002) Presently lodged the BOT Center under DTI’s Industry and Investments Group (IIG) along with the Board of Investments and other infrastructure agencies (National Development Company, Philippine Economic Zone Authority) Mandate A. Promotion of the BOT and PPP Program and Projects under the National Infrastructure Development Plan • • • • Provision of capacity building and hands on training to IAs) and LGUs in developing and promoting their BOT/PPP projects Provision of technical advisory assistance through the Project Development Facility Provision of promotional and marketing support to variuos BOT/PPP investment opportunities of other government corporations and intrumentalities Institutionalization and implementation of an inter-agency BOT/PPP Strategic Promotion and Development Plan through the BOT Center-led Inter-Agency Committee and Advisory Board (IACAB) Mandate B. Policy Advocacy • • • Formulation of BOT/PPP policy guidelines to ensure transparent, consistent and expeditious preparation, review, approval and implementation of BOT/PPP projects Initiation and/or participation in BOT/PPP policy reviews/reform agenda Institutionalization of an advocacy program in pursuit of an effective and sustainable BOT/PPP program implementation Services Provide capacity building and training programs to IAs and LGUs as well as other government bodies in various aspects of BOT/PPP project development Provide technical and financial support to IAs and LGUs on BOT/PPP projects eligible under the Project Development Facility (PDF) guidelines Provide promotion and marketing support to IAs and LGUs through marketing campaigns, investment matching and other investment facilitation work in coordination with the Board of Investments and other investment promotion offices Advocate policy reforms in BOT/PPP policy dialogues, formulation and reviews Provide general information on the Philippine BOT/PPP program, policies, processes and guidelines, as well as specific projects for promotion SUMMARY There is a consistent recognition of the value of private sector financing and efficiency. The BOT Law has paved the way for PPP Framework to evolve. The BOT Center (PPP Unit) plays a major role in promoting PPP for infrastructure. There are a lot of opportunities for the private sector in infrastructure development through the PPP-BOT. THANK YOU Build-Operate-and-Transfer Center Department of Trade & Industry 4/F GA Yupangco Bldg. 339 Sen.Gil J. Puyat Ave. 1200 Makati City, Philippines Tel. No: Fax No: (+63 2) 899-8821 (+63 2) 896-8452 www.botcenter.gov.ph