ELEAZAR RICOTE Director, Capacity Building and Knowledge

Management Service Public-Private Partnership Center

The Philippine PPP Agenda

A SOCIAL CONTRACT WITH THE FILIPINO PEOPLE

All transactions are transparent & above board

Consultative view on private sector areas of concern

Protection of public interest

THE ROLES OF THE PRIVATE SECTOR

Indispensable role—”private sector as partner in development”

Efficiency gains—that may be too costly for the State

Accelerated provision of public services

Government role may be rationalized

PUBLIC-PRIVATE PARTNERSHIP CENTER

Legal Framework

RA 7718: The Amended Build-Operate-Transfer (BOT) Law

BOT-IRR: BOT Law’s Implementing Rules and Regulations

RA 7160: The Local Government Code of the Philippines 1991

Other Related Laws

o Charters of Government Owned and Controlled Corporations (Republic Acts and Executive Issuances)

o Legal Mandates of Implementing Agencies (Republic Acts)

o Sectoral Regulatory Agencies (Republic Acts and Executive Issuances)

PUBLIC-PRIVATE PARTNERSHIP CENTER

Institutional Setup

Contracting Parties/Implementing Agencies Line Agencies (national agencies) Government Corporations Local Government Units

Other National Agencies Concerned

Line Agencies/ Departments (policymaking) National Regulatory Bodies Sectoral Regulators (e.g. toll regulatory board)

Review and Approving Bodies

Inter-Agency Investment Coordination Committee Local Government Councils

Coordinating and Monitoring Agency

Public-Private Partnership Center

PUBLIC-PRIVATE PARTNERSHIP CENTER

The PPP Center

Executive Order No. 8 signed on September 9, 2010:

BOT Center renamed as PPP Center

Expanded mandate: BOT Law Joint Venture arrangements Other PPP arrangements

PPP Center to: o Provide advisory services

o Facilitate development of PPP projects

o Advocate policy reforms

o Monitorimplementation of PPP projects

PUBLIC-PRIVATE PARTNERSHIP CENTER

Project Preparation

Project Review and

Approval

Preparation of Bid

Documents

PQ & Bid Evaluation

Contract Award and Implemen-

tation

PPP Center Services

• Participate as non-voting observer of BAC

• Provide advice during procurement process

• Monitor project implementation and contract compliance

Capacity Development

Pre-investment

financing (PDMF)

Advisory services

(legal, technical,

financial matters)

• Preparation of PPP transaction documents (bid documents, draft contract, etc)

Build-and-Transfer (BT)

Build-Lease-and-Transfer (BLT)

Build-Operate-and-Transfer (BOT)

Build-Own-and-Operate (BOO)

Build-Transfer-and-Operate (BTO)

Contract-Add-and-Operate (CAO)

Develop-Operate-and-Transfer (DOT)

Rehabilitate-Operate-and-Transfer (ROT)

Rehabilitate-Own-and-Operate (ROO)

PPP Contractual Arrangements

PUBLIC-PRIVATE PARTNERSHIP CENTER

Power Plants Highways/Roads Railroads & Railways Ports Airports Transport Systems Telecommunications ICT Systems/Facilities Canals, Dams, Irrigation Water Supply Land Reclamation

Solid Waste Management Tourism Facilities Education Health Facilities Industrial & Tourism Estates Markets, Warehouses, Slaughterhouses Housing, Government Buildings Other Infrastructure/ Development Projects/ Systems

Eligible Types of Projects

PUBLIC-PRIVATE PARTNERSHIP CENTER

Basic PPP Process Framework

DEVELOPMENT LGUs | IAs | Private Sector

APPROVAL Local Development Councils | ICC | NEDA Board

COMPETITION Solicited | Unsolicited

COOPERATION Award | Construction/Development of Facility

PUBLIC-PRIVATE PARTNERSHIP CENTER

PDMF-Approved Projects

Project Agency Estimated

Project Cost (in billion pesos)

Vaccine Self-Sufficiency Project Phase II DOH 0.90

PPP for School Infrastructure Project (1st batch) DepEd 10.04

Philippine Orthopedic Center Modernization Project DOH 5.00

Laguindingan Airport Development Project DOTC TBD

Common Automatic Fare Collection System DOTC 1.80

Mactan Cebu International Airport New Passenger Terminal Building

DOTC 10.15

New Bohol (Panglao) Airport Development Project DOTC 8.00

New Water Supply Source Project MWSS 25.00

Operation and Maintenance of the AHEPP Auxiliary Turbines 4 & 5

MWSS 1.60

Establishment of Cold Chain Systems Covering Strategic Areas in the Philippines

DA 5.30

PUBLIC-PRIVATE PARTNERSHIP CENTER

What to expect in the coming months?

Rollout of properly prepared projects

PDMF pre-investment financing support

IAs with technical and transaction advisors

PPP Center’s direct project development assistance

Conduct of Capacity Development assistance

National line agencies

Local government units (LGUs)

Improved Policy Guidelines

Revised BOT-IRR

Guidelines for PPPs for LGUs

Joint Venture Guidelines

PUBLIC-PRIVATE PARTNERSHIP CENTER