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San Ramon Newport Project in Philippines

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San Ramon Newport Project in Philippines San Ramon NewPort Project Early Stage Project Third Meeting of the Infrastructure Financing and Public-Private Partnership Network of Asia and the Pacific September 1, 2019 | Ningbo, China Public-Private Partnership Center of the Philippines Philippines: Metrics and Outlook Indicators Q1 2019 One of top destinations for FDIs GDP Growth 5.6% GNI Growth 4.9% Inflation 3.2% Strategic access to key markets Credit Rating BBB+ Employment 94.9% Exports $5.51 B Rich skills and talent pool Imports $9.01 B Population 107.4 mil Median Age 23.1 Infrastructure Development Source: http://boi.gov.ph/why-philippines/ Source: https://psa.gov.ph/nap-press-release Zamboanga Peninsula: Metrics and Outlook Luzon Indicators 2018 GDP USD 6.53 bil GDP Growth 6.3% Population 3.6 mil Visayas Strategically located to compete with regional hubs It serves as the hub for economic development, promotion of trade, investment and tourism in order to Mindanao generate economic activities Case Study: The San Ramon NewPort Project GOVERNMENT CHALLENGES: • High level of congestion and inefficiency along with capacitated infrastructure and ageing equipment at the existing Zamboanga City Port (BasePort), which has no room for future expansion • Poor connectivity and high logistics costs There is no room for further improvement or expansion for the Zamboanga City BasePort on either side of the existing port area. All ongoing and future proposed expansion is seawards. However, this is also constrained by the presence of two islands in front of the BasePort – the Great Santa Cruz Island and the Little Santa Cruz Island. 4 Case Study: The San Ramon NewPort Project PPP SOLUTION: Tap the private sector to design, construct, operate and maintain a new, world- class seaport to act as a trade gateway hub for the Zamboanga City Special Economic Zone and Freeport (ZamboEcoZone), as well as a transhipment hub for the Brunei Darussalam- Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA). 5 Case Study: The San Ramon NewPort Project KEY PROJECT DETAILS: Project Description The project involves the construction, operation and maintenance (O&M) of a world-class seaport to be located within the First Industrial Park ZamboEcoZone. Project Objective 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. Sector Transportation (Seaport) Status Feasibility Study Completed Total Investment PhP 8,288 million / USD 165 million (indicative) Tenor 33 years (3 years construction, 30 years O&M) (indicative) Delivery Method Build-Operate-Transfer / Build-Own-Operate-Transfer (indicative) TenDering Process Solicited Mode following the Philippine BOT Law 6 Case Study: The San Ramon NewPort Project ECONOMIC AND SOCIAL BENEFITS: • Improved transport infrastructure, shipping and trade logistics connectivity of the ZamboEcoZone to national and international markets. • Improved competitiveness of the ZamboEcoZone, which will support socioeconomic, business, trade and logistics development in Zamboanga and Mindanao. • Direct benefits: reduction in delay in the delivery of products, vessel operating cost savings, vehicle operating cost savings for trucks 7 Case Study: The San Ramon NewPort Project RISK FACTORS: RISK MITIGATION: • Overlap in functions of other • Close collaBoration with PPA agencies (e.g. Philippine Ports starting from project Authority (PPA)) development phase • Changes in government’s • Continuous improvement on policies, priorities and strategic policy environment and focus incentives for investment • Presence of other major ports • Determine the right project in the area (ZamBoanga City size/scope (roBust demand Port) projections) 8 For further information, please visit: www.ppp.gov.ph PPPCenter.Philippines @PPP_Ph Public-private-partnership- Center-of-the-Philippines PPPPinas.
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