Republic of the Philippines

Public-Private Partnership
Center

Revisiting the Public-Private

_____________________________________________________
Partnership Program
Sea Change
A Conference Tackling Changes in the Maritime Environmen
February 24, 201

Public-Private Partnership
Center

Atty. Phebean Belle A. Ramos-Lacun

Policy Formulation Divis
Public-Private Partnership Cen
Philippin
Agenda

1.Overview of the PPP Program

2.List of PPP Projects

3.Policy Reforms

2
Overview of the
PPP Program
The Philippine PPP Program

4
What is PPP?
Contractual arrangement between
government and the private
partner for the provision of a
public asset or service
GOVERNM PRIVATE
It is a long term contract ENT SECTOR

Role of private partner: finance,

design, construct, operate, and/or
maintain government facilities
The facility is turned over to
government at the end of
concession period
Risk is borne by the party who can
best manage it

5
Institutional Set Up
Implementing Agencies
Line Agencies (national government
agencies)
Government Corporations (GOCCs)
State Universities and Colleges (SUCs)
Local Government Units

Reviewing and Approving Bodies

Local Development Councils
Investment Coordination Committee (ICC)
National Economic and Development
Authority (NEDA) Board

Coordinating and Monitoring Agency

PPP Center

6
PPP Center Functions
Project Development
Extends technical assistance to IAs and
LGUs in the preparation, packaging,
structuring, approval, and bidding of their
projects

Evaluation and Approval

Facilitates appraisal and approval of PPP
projects by the ICC and NEDA Board

Procurement
Serves as non-voting member in the PPP
Bids and awards committee (BAC) to ensure
integrity of procurement process

Implementation Stage
coordinates with the IAs and the project
proponents in monitoring the progress of
projects
7
Legal and Regulatory Framework
1987 Philippine Constitution

The State recognizes the indispensable role

of the private sector, encourages private
enterprise, and provides incentives to needed
investments.

RA 6957, as amended by RA 7718: The

Amended Build-Operate-and-Transfer (BOT) Law
and its IRR

Other Major Laws

RA 10752 (Right of Way Acquisition Act)
RA 8975 (Expeditious Implementation and
Completion of Government Infrastructure
Projects by Prohibiting Lower Courts from
Issuing Temporary Restraining Orders)
RA 7160 (Local Government Code)

8
Eligible Types of PPP Projects

9
The PPP Project Life Cycle
DEVELOPMENT STAGE
1. IA identifies PPP project
2. Project Preparation (Feasibility Study, Market Sounding Activity
3. Project Structure is finalized
APPROVAL STAGE
1. Project is submitted to relevant approving bodies
2. Project Assessment and Appraisal
3. Investment Coordinating Committee (ICC)-Cabinet Committee approves
project; recommends to NEDA Board
4. NEDA Board approves project
PROCUREMENT STAGE
1. Prequalification (e.g. Advertisement of ITBP)
2. Prequalification Conference, submission of prequalification documents
3. Bid proper (e.g. Pre-bid conference, bid submission, bid opening and
evaluation)
4. Issuance of Notice of Award to winning bidder
5. Contract Signing
IMPLEMENTATION STAGE
1. Financial Close
2. Implementation (Preparation of Detailed Engineering and Design, Commissioning)
3. Turn over of facility back to government

10
Project Development and Monitoring Facility (PDMF)

1. USD 101.928 million (PHP 4,470.457 million)* revolving facility to ensure

fund sustainability
2. Used for the procurement of consultants / transaction advisors for the
following services:
Project Preparation and Feasibility study and project structuring
Transaction Support Management of bid process
Support until financial close

Probity Advisory Examination of bid documents

Preparation of probity plan
Assessment of and advisory on probity issues
Process documentation and reporting

Implementation and Certification of compliance to designs, plans

Monitoring and/or key performance requirements
Monitoring of construction and/or operations and
maintenance
*As of January 31, 2017 11
 START

REVIEW,
APPRAISAL
Acknowledgement
Acknowledgement of of
AND
Submission
Submission of
of complete
complete
PPP
PPP project
project proposal
proposal to
to
receipt of proposal
receipt of proposal APPROVAL
and
and transmittal
transmittal to
to
PPP
PPP Center
Center
(IAs)
(IAs)
ICC-TWG
ICC-TWG PROCESS
(PPP
(PPP Secretariat)
Secretariat)

Submission
Submission of
of Project
Project
Terms and Appraisal
Terms and Appraisal Project
Project Evaluation
Evaluation
Report
Report (ICC-TWG)
(ICC-TWG)
(PPP
(PPP Secretariat)
Secretariat)

Project
Project Approval/
Approval/ Project
Project Approval/
Approval/ END
Recommendation
Recommendation Confirmation
Confirmation
(ICC-CC)
(ICC-CC) (NEDA
(NEDA Board)
Board)
PPP process
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 Modes of Procurement
SOLICITED
refers to projects identified
by an implementing agency
or a local government unit
from among the list of their
priority projects
government undertakings
allowed
UNSOLICITED
projects submitted by the private
sector, not in response to a formal
solicitation/request issued by an
implementing agency or local
government unit
involves new concept or
technology and/or is not part of the
list of priority projects
no direct government guarantee,
subsidy or equity
Should undergo
COMPETITIVE CHALLENGE
PPP process
13 13
PPP Governing Board Policy Circulars

Guidelines and Procedures for Termination Payments for PPP Proj

the Appraisal of PPP Projects

Pipeline Development PPP Monitoring Framework

and Monitoring Protocols

Managing Government
Best Practices
Employees Affected by PPP
Projects

Viability Gap Funding Assessing Value for Money of PPP

Public Consultation and

Appointment of Probity Advisors Engagement for PPP Projects

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List of PPP Projects
Projects in the PPP pipeline

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 PPP Projects Per Sector

Water Supply ; 6%
Energy ; 3%
Road; 19%
Penitentiary; 3%
School; 6%

Computerization; 3%
Maritime Transport; 3%

Aviation; 23%
Road Transport; 13%

Rail; 19%

Road Aviation Rail Road Transport

Maritime Transport Computerization School Penitentiary
Energy Water Supply
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Port Projects in the Pipeline
San Ramon Newport Project

IMPLEMENTING AGENCY
Zamboanga Economic Zone Authority

PROJECT DESCRIPTION
The project aims to improve the competitiveness of the ZamboEcozone
and fulfill its vision of becoming a world-class economic zone that will
link resources, markets, and other logistical activities that can contribute
to the economic development of Zamboanga City and Mindanao. It will
entail construction, operation and maintenance of a world-class seaport
to be located within the First Industrial Park of ZamboEcozone.

STATUS
Requested for PDMF support for the procurement of consultants who
will assist in the conduct of the projects pre-investment studies.

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Port Projects in the Pipeline
Central Spine Roll-on/Roll-off (RoRo)

IMPLEMENTING AGENCY
Department of Transportation (DOTr)

PROJECT DESCRIPTION
The project aims to provide the country with an efficient spine to
facilitate the safe, effective and economical movement of passengers,
vehicles, and goods, linking Luzon, Visayas and Mindanao through a
combination of roads/highway systems and RoRo ferry services passing
through selected islands and matching port/terminal facilities.

STATUS
Requested for PDMF support for the procurement of consultants who will
assist in the conduct of the projects pre-investment studies.

19
Port Projects in the Pipeline
Davao Sasa Port Modernization Project

IMPLEMENTING AGENCY
DOTr and Philippine Ports Authority (PPA)

PROJECT DESCRIPTION
The Project will involve the development of the existing Davao Sasa Port
in Davao City into a modern, international-standard container terminal
that will improve trade access to Mindanao and the Philippines by
providing a dedicated containerized port in the region. This will in turn
support the regions growing agro-industrial sector, spurring economic
growth in Mindanao.

STATUS
Project for re-structuring

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POLICY REFORMS
 Status of Proposed PPP Act
16th Congress (ended June 6, 2016)

Senate: Senate Bill reached period of interpellation during 2nd reading

House of Representatives (HOR): House Bill reached 3rd reading, but
did not attain required vote of absolute majority

17th Congress (starting June 25, 2016)

Senate: Bill was filed by Sen. Recto (SB No. 66), Sen. Drilon (SB No.
228), and Sen. Angara (SB No. 951); all are pending with Committee on
Public Works; we are expecting Sen. Pacquiao and Sen. Gatchalian to
file their own bills soon
HOR: Bills were filed by Cong. Belmonte (HB No. 163), Cong. Quimbo
(HB No. 348, Cong. Salceda (HB No. 778), Cong. Acop (HB No. 1346),
Cong. Santos-Recto (HB No. 1944), and Cong. Alejano of MAGDALO
Partylist (HB No. 2727); we are expecting Cong. Villafuerte of
Camarines Sur to file his own bill soon
22
 Proposed Improvements to the Existing BOT Law
Salient Points

Institutionalize existing PPP best practices

PDMF: To ensure sustainability of the PPP program by providing

implementing agencies with the needed assistance throughout the project
cycle (E.O. 136 series of 2013)

PPP Governing Board: To institutionalize an international good practice of

having a central policy-making body for all PPP-related matters (E.O. 136
series of 2010)

PPP Center: Based on international good practice of having a central and

dedicated PPP unit facilitating the governments PPP program (E.O. 8 series
of 2010)

ADR: To establish a standard mechanism to settle disputes that may occur

during the lifespan of PPP contracts (E.O. 78 series of 2012)

23
Proposed Improvements to the Existing BOT Law
Salient Points

Enhance the Philippine PPP Program

Unsolicited proposals: To rationalize the governments policy framework
on effectively managing Unsolicited Proposals (USPs)

Projects of national significance: To develop a guideline to accelerate the

implementation of high impact PPP projects by addressing identified issues
and bottlenecks

JVs and O&Ms: Expanded PPP coverage to include these and to

harmonize existing legal and regulatory frameworks governing various PPP
variants and modalities

Conflict of Interest: To minimize potential conflicts of interest by prohibiting

national government regulatory agencies from entering into and
implementing any PPP contract that they regulate

24
Proposed Improvements to the Existing BOT Law
Salient Points

Enhance the Philippine PPP Program

Approvals: To enable the Investment Coordination Committee and the
NEDA Board to focus on evaluating higher-value PPP projects by updating
the existing approval thresholds and delegating to other approving bodies
the evaluation of smaller PPP projects

Appeals during procurement: To provide a more transparent and

predictable protest protocol or appeal mechanism in all stages of project
procurement

No TRO: To effectively manage the risks in project implementation by

prohibiting courts, except the Supreme Court, from issuing TROs or
injunctions in relation to PPP projects

Risk Management Program: To manage the governments fiscal risk and to

enhance the countrys credibility among potential PPP proponents
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 END
END

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Trunkline: 709 4146 loc 8102-8105
Email: capacitybuilding@ppp.gov.ph
www.ppp.gov.ph
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