PPP ADVISORY Public-Private Partnership in the

ISSUE 02: July - September 2012 Public-Private Partnership Center EXECUTIVE DIRECTOR’S CORNER Executive Director’s Corner 1

In this issue 1 Recently the ADB commissioned the Economist Intelligence Unit Gov. Salceda cited role of PPP in 2 to conduct a study entitled promoting Bicol’s competitiveness Infrascope 2011. The report Built with the late Secretary Robredo’s 3 ranked the Philippines as the impetus, LGU-PPP workshops to cover most PPP-ready compared to more areas other countries in the ASEAN Region like Indonesia, Thailand First PPP social infra project on the way 4 and Vietnam. This positive DepEd PPP bid, a success 6 perception is a result of the various good governance Prospective Japanese Investors Flock 7 reforms instituted by the to the Philippine PPP Seminar in government to strengthen the Tokyo; High Japanese Interest in LRT-1 PPP policy environment. Extension Project Noted 13 companies interested on NAIA 8 Policy reforms that have been established now include Expressway Project the issuance of Executive Order No. 78 mandating the use Photo Release: 9 of Alternative Dispute Resolution mechanisms in all PPP TAA Signing between PPP Center and contracts and the amendments to the Implementing Rules and Municipality of El Nido, Palawan Regulations of Republic Act No. 6957 or the Philippine BOT Law. DPWH invotes companies to pre-qualify 10 The Aquino Administration strongly recognizes the private to bid for the NAIA Expressway (Phase II) Project sector as genuine partners in accelerating infrastructure development and ensuring efficient service delivery towards PPP Roadshow in Madrid 11 achieving inclusive growth in the Philippines. With this private Roadshow on LRT-1 Expansion Project 12 sector confidence in the government has been restored. This is and Philippine PPP program Draws supported by improved ratings by international credit ratings Interest from British Businesses firms like Standard and Poor’s, Moody’s and Fitch Ratings Dispute resolution mechanisms 13 and the 10 notches up ranking of the country in the global mandatory for all projects competitiveness report, from 75 to 65. First PPP project on heritage restoration 14 attracts major retail giants Under the current PPP program, government can now alternatively provide the public with adequate, safe, efficient and Pension investments eyed for PPP 15 reliable and reasonably-priced infrastructure and development Why PPP? 16 facilities while providing the private sector with a level playing field, reasonable returns and appropriate sharing of risks. EO 78: Alternative Dispute Resolution 19 Mechanisms in PPP Contracts

We at the PPP Center commit to continue to champion PPP Awarded project: PPP for School 21 in the country through capacitating and facilitating national Infrastructure Project (PSIP) and local agencies in developing and implementing properly Project Development and Monitoring 23 prepared projects that will help address the bottlenecks of our Facility (PDMF) sustained growth. PPP Related News 25

Cosette V. Canilao Calendar of Activities and Events 39

Directory & About the PPP Center 41

1 PPP Advisory July - September 2012 Gov. Salceda cited role of PPP in promoting Bicol’s competitiveness 12 September 2012

Albay Governor and Chairperson of the Region This was attended by representatives from V Development Council Joey Salceda cited 4 provinces, 16 cities and municipalities, 3 the role of public-private partnerships in regional line agencies, 6 state universities promoting Bicol region’s competitiveness. and colleges, and 4 government-owned and controlled corporations. In promoting the region’s competitiveness, Gov. Salceda stressed that local government The PPP Center conducted nine regional units (LGUs) can consider PPP as an option in orientation workshops on PPP for some 316 pursuing various infrastructure projects to LGUs. The Center is set to conduct four more attract more investors in the region and spur workshops before the end of 2012 in Northern economic activities. Mindananao, Zamboanga, Ilocos and Eastern Visayas Regions. These will be conducted in Gov. Salceda gave this message before partnership with the NEDA Regional Offices participants to the region-wide Public-Private and in collaboration with the Department of Partnership (PPP) Orientation Workshop in the Interior and Local Government (DILG) Regional Bicol Region. The workshop was organized by Offices. the PPP Center and was held at the National Economic and Development Authority (NEDA) Participating LGUs will be provided free copies Region V Conference Room in Legazpi City, of the three-volume LGU PPP Manual which Albay last September 4, 2012. includes discussion on the PPP concepts and framework, project preparation and Gov. Salceda identified viable PPP projects for development processes, and a compilation of LGUs in Bicol to accelerate economic growth template documents and sample PPP project like road networks, solid waste management templates for shopping center and public facilities, public markets, slaughter houses and market, government administrative center, and water facility projects. water supply system. PPP Press Releases PPP Press

Albay Governor and Chairperson of the Region V Development Council Joey Salceda (center) addressed participants to the Region-wide Public- Private Partnership (PPP) Orientation Workshop for Local Government Units (LGUs) in the Bicol Region. The workshop was held at the National Economic and Development Authority (NEDA) Region V Conference Room in Legazpi City, Albay last September 4, 2012. This capacity building activity is conducted by the PPP Center in partnership with the NEDA Regional Office in collaboration with the Department of Interior and Local Government (DILG) Regional Office. Also with Gov. Salceda were NEDA Regional Director, Atty. Romeo Escandor (left) and DILG Regional Director, Blandino Maceda (right).

PPP Advisory July - September 2012 2 Built with the late Secretary Robredo’s impetus, LGU-PPP workshops to cover more areas 12 September 2012

The Public-Private Partnership (PPP) In these LGU PPP workshops, participating Center’s Capacity Building Program for local LGUs are provided by the PPP Center free governments, undertaken together with the copies of the three-volume LGU PPP Manual full backing of the late Local Governments which includes discussion on the PPP concepts Secretary , proceeds at full steam and framework, project preparation and for the remaining half of 2012. development processes, and a compilation of template documents and sample PPP project The PPP Center and the National Economic templates for shopping center and public and Development Authority (NEDA), together market, government administrative center, and with the Department of Interior and Local water supply system. Government (DILG), held eight regional training workshops on PPPs, with a total of 316 trained The Memorandum of Agreement (MOA) LGUs since February 2011. between the DILG and the PPP Center was signed last October 11, 2011 to formalize Moving forward with this momentum, the PPP and sustain the provision of capacity- Center is set to conduct four more regional strengthening, training, and technical support trainings before end of 2012 with expected 600 by the PPP Center to LGUs. This support covers participants from at least 175 local government the development and implementation of units (LGUs). local infrastructure and development projects through PPP mechanisms. Last August 23, the Center conducted a region- wide LGU-PPP orientation workshop for the Even before the MOA with DILG, Secretray Western Visayas Region (Region VI) in Iloilo City Robredo also issued Memorandum Circular in partnership with NEDA and in collaboration (MC) No. 16 on January 31, 2011 enjoining with the DILG Regional Office. A total of 37 all local chief executives to create a PPP

PPP Press Releases PPP Press city, municipal and provincial governments Sub-Committee in their respective Local participated in the activity. Representatives Development Councils (LDCs). The PPP Sub- from other regional line agencies were also Committee shall assist LGUs in formulating present. action plans and strategies related to the implementation of their local PPP projects.

Director Eleazar E. Ricote of the PPP Center’s Capacity Building and Knowledge Management Service responds to questions regarding the PPP Program of the government during the PPP Orientation Workshop for LGUs of Region VI held last August 23, 2012 at the NEDA Region VI Main Conference Room in Iloilo City.

3 PPP Advisory July - September 2012 First PPP social infra project underway 16 August 2012

The country’s first social infrastructure project Luistro added that, “This is something that under the Public-Private Partnership (PPP) we cannot do alone. We also congratulate program of government gets a head start our bidders for being part of something as with the opening of the financial proposals groundbreaking as this. We hope that what submitted to the Department of Education was once something unimaginable and what (DepED) today for 9,301 public school everyone and all our detractors say that we rooms. Dubbed as PPP for School building cannot close the gap in classrooms— finally we Infrastructure Project (PSIP), the DepEd bidded will be able to say, because we worked together, out three (3) packages for the construction of we will do this, not for ourselves, but for the school buildings in Regions I, III and IV-A. young people, 20 million of them, so that we can provide access to quality education. When DepEd Project Bids and Awards Committee we are able to deliver that quality education, (PBAC) headed by its Chair Undersecretary then you can count that you are part of that Francisco Valera together with DepED Secretary history in changing the landscape and future Bro. opened and evaluated the of our country.” financial proposals for the three (3) contract packages. The submitted bid prices are lower than the total Approved Budget for the Contract (ABC) “We will notify the bidders as soon as of PhP16.4 billion. possible,” Luistro said. The DepEd Secretary acknowledged that bridging the classroom BF Corporation – Riverbanks Development gap was a difficult task. Corporation was the lowest complying bidder PPP Press Releases PPP Press

DepEd Secretary Armin Luistro and Undersecretary Francisco Valera examine the submitted financial proposals for the PPP for School Infrastructure Project.

PPP Advisory July - September 2012 4 A two-storey classroom mock-up built by the private proponent in Bulacan.

for the 2,157 classrooms in Region I. Meanwhile its Multi-Year Obligational Authority (MYOA). Citicore Investment Holdings, Inc. – Megawide During the lease period, the winning bidder is Construction Corporation, Inc. bidded for the required to undertake periodic repairs on the construction of 2,885 classrooms in Region III, classroom structures every 4.5-5 years. DepED and for another 4,259 classrooms in Region IV-A. will be responsible for the school buildings’ daily maintenance. The ABC for PSIP was derived using the DepEd’s cost for single and two-storey classroom PPP Center Cosette V. Canilao expressed great construction, considering efficiencies brought hopes over the successful bid for the PSIP about by the use of new technologies in classrooms. “This recent achievement sends a construction and by economies of scale. This positive message to other investors who are PPP Press Releases PPP Press translates to a cost of PhP620,812 per single still hesitating to undertake partnerships with storey classroom, inclusive of toilets and government. There are companies willing to furniture; and a cost of PhP1,062,890 for a bet on government and have great confidence two-storey classroom, inclusive of toilets and to conduct business with us. Hopefully, this furniture. experience will encourage them have a stake in future PPP projects.” Earlier, DepEd inspected the construction of a 2-storey, 4-classroom mock up structure at The PPP Center chief added, “This time around the Sta. Isabel Elementary School and Malolos under the PPP program, we are given a unique Marine National High School in Bulacan as part opportunity to really make a difference in the of the bidders’ technical proposal. lives of our children. Now these young will have a stronger chance to secure their Upon acceptance of the classrooms, a ten-year future because we took great efforts to give lease period will commence with DepED making them what they needed now.” annual payments to the winning bidder under

5 PPP Advisory July - September 2012 DepEd PPP bid, a success By Department of Education 16 August 2012

The results of today’s opening of financial Of the six prequalified bidders, BF Corporation- proposals by the Department of Education Riverbanks Development Corporation and (DepEd) for its Public Private Partnership for Citicore Investment Holdings-Megawide School Infrastructure Project (PSIP) reveal a Construction Corporation submitted technical successful bid. and financial proposals for the Project. The technical submissions of these two bidders The PSIP is a build-lease transfer contract for were opened last July 18, 2012. the design, construction, and maintenance of 9,301 classrooms (with toilets and furniture) in After close review and evaluation, the Regions I, III, and IV-A for a period of ten years. Prequalification, Bids and Award Committee and its Technical Working Group found that the The submitted bid prices are lower than the two technical proposals, including the mock up total Approved Budget for the Contract (ABC) structures constructed in Malolos City, Bulacan, of P16.4 billion. (Click to view table in page 22) are compliant with the PSIP’s Minimum Performance Standards and Specifications. The ABC for PSIP was derived using the DepEd’s cost for single and two-storey classroom “Many are called but few are chosen,” said construction, considering efficiencies brought Secretary of Education Br. Armin A. Luistro FSC about by the use of new technologies in as he congratulated the bidders and thanked construction and by economies of scale. This all the agencies that helped the Department translates to a cost of P620,812 per single storey reach this milestone. “What was once classroom, inclusive of toilets and furniture; and unimaginable—closing classroom shortage— a cost of P1,062,890 for a two-storey classroom, is finally within our reach. Now we can say that inclusive of toilets, and furniture. it is possible because we worked together and Of the required 9,301 classrooms, 69 percent we did this for over 20 million young people, to provide them access to quality education.”

PPP Press Releases PPP Press are two-storey buildings, while 31 percent are single-storey buildings. “We have always been at the fore of Since the Project is a lease, other costs are groundbreaking this (PPP) process, now we can factored in such as maintenance costs, truly push for real public-private partnership— financing costs, and taxes. The inclusion an engagement that goes beyond a purely of periodic maintenance every 4.5 years business venture but one that engages the rest ensures the durability of the structures and of the nation in planting seeds of hope,” Luistro helps extend their design life. The financing added. costs, on the other hand, represent the cost of using private sector money to construct The DepEd expects to issue the Notice of Award the classrooms today and pay it back over to the two bidders within the next four weeks. a period of ten years. Meanwhile, although tax payments are factored in the cost, these ultimately revert back to government as part of internal revenues.

PPP Advisory July - September 2012 6 Prospective Japanese Investors Flock to the Philippine PPP Seminar in Tokyo; High Japanese Interest in LRT-1 Extension Project Noted By The Philippine Embassy in Tokyo Japan 16 August 2012

DOTC Assistant Secretary Jaime Raphael Feliciano gave a well-received presentation on the LRT1 Extension, Maintenance and Operations Project, one of the latest PPP projects to be rolled-out by the Aquino Administration and to be opened to pre- qualification and bidding by prospective investors. PPP Center Executive Director Cosette V. Canilao followed with an overview of the Philippine Government’s PPP Program and a summary of the status of pipeline PPP PPP Center Executive Director Cosette Canilao presents the Philippine PPP Program to Japanese companies during the LRT 1 projects that drew enthusiastic reactions from International Roadshow in Tokyo, Japan held last 02 Agust 2012. the participants.

Japanese investors’ keen interest in the The presentations were followed by an open Philippines’ Public-Private Partnership (PPP) forum and one-on-one consultations that Program was once again affirmed with the enabled participating Japanese firms and successful staging of the PPP Seminar at the organizations to engage the visiting Philippine ASEAN-Japan Center in Tokyo last 02 August. PPP team in discussions on specific aspects of the LRT1 project and the PPP Program as a Organized by the Public-Private Partnership whole. (PPP) Center and the Department of Transportation and Communication (DOTC) The top source of foreign direct investments in cooperation with the Philippine Embassy in and ODA in the Philippines, Japan has expressed strong support for the Aquino PPP Press Releases PPP Press Tokyo, the Seminar was attended by around fifty participants representing major Japanese Administration’s infrastructure development companies, as well as partner institutions such initiatives under the PPP scheme, both at the as the Japan International Cooperation Agency level of its government and business sector. (JICA). It regards the PPP program as providing an attractive window for Japanese investments Philippine Embassy Chargé d’Affaires Gina A. in the country, and for furthering Japanese Jamoralin formally opened the proceedings collaboration with the Philippine government with welcome remarks that highlighted the in boosting infrastructure growth using Philippine Government’s vigorous pursuit of Japanese innovations and systems. infrastructure development, as well as the excellent investment opportunities offered Infrastructure development and the PPP are by the Philippines, which has outperformed both key pillars of the Aquino Administration’s other regional economies and whose strong strategy towards promoting and attaining and sustained growth has placed it high on the inclusive growth. radar of investors around the globe.

7 PPP Advisory July - September 2012 13 companies interested on NAIA Expressway Project 14 August 2012

13 different local and foreign companies The proposed 9.97 kilometers expressway participated in the pre-qualification conference project involves the improvement of the for the Ninoy Aquino International Airport existing NAIA Expressway Phase I road, the (NAIA) Expressway Project conducted by the construction of Phase 2 of the NAIA Expressway, Special Bids and Awards Committee (SBAC) of the construction of at-grade feeder roads the Department of Public Works and Highways leading to and from the PAGCOR Entertainment (DPWH). City, and the operation and maintenance of the completed Phase 1 and Phase 2 as a toll road. The 15.5 billion peso NAIA Expressway project is the third project lined up for bidding this The project aims to provide fast and reliable year under the government’s flagship Public- access to the NAIA Terminals and PAGCOR Private Partnership (PPP) Program. Entertainment City by easing traffic situation in the vicinity while boosting economic activities, During the conference at the DPWH Main particularly on tourism. It will also link the SLEX/ Office on 10 August 2012, potential bidders Skyway to the Manila-Cavite Toll Expressway who purchased pre-qualification documents and both Roxas and Macapagal Boulevard. were briefed on the project components and financial terms, including the PPP structure According to the DPWH-SBAC, the deadline and bidding framework. The event also served for submission of pre-qualification documents as an opportunity to clarify requirements set to is set on 18 September 2012. This will be qualify to bid. followed by the issuance of bid documents to pre-qualified bidders before end of September 2012. PPP Press Releases PPP Press

Potential bidders participate in the pre-qualification conference for the Ninoy Aquino International Airport (NAIA) Expressway Project conducted by the Special Bids and Awards Committee (SBAC) of the Department of Public Works and Highways (DPWH) on 10 August 2012 at the DPWH Main Office.

PPP Advisory July - September 2012 8 Photo Release: TAA Signing between PPP Center and Municipality of El Nido, Palawan 10 August 2012 PPP Press Releases PPP Press

Deputy Executive Director Ferdinand Tolentino (seated left) and Mayor Edna Gacot- Lim (seated right) ink the Technical Assistance Agreement (TAA) between the Public- Private Partnership Center and the Municipality of El Nido in Palawan to develop a viable and bankable PPP option for the Municipality’s Water System and Waste Water Treatment System Project and the Solid Waste Management Project on 27 July 2012 at the Legislative Building, El Nido, Palawan. The TAA shall cover the development of a feasibility study for the water supply and waste water facility and provision of technical assistance and advisory until the successful tender of the project.

9 PPP Advisory July - September 2012 DPWH invites companies to pre-qualify to bid for the NAIA Expressway (Phase II) Project By Department of Public Works and Highways

30 July 2012

Local and international construction companies The project will start at the existing Skyway then are invited to prequalify to bid to finance, generally follows the existing road alignments design, construct, operate, and maintain the over Sales Avenue, Andrews Avenue, Domestic Ninoy Aquino International Airport (NAIA) Road, and NAIA Road, and has entry/exit ramps Expressway Phase II Project under the Public- at Roxas Boulevard, Macapagal Boulevard, and Private Partnership program of the government. PAGCOR City.

The invitation by the Special Bids and The project provides access to NAIA Terminals Awards Committee (SBAC) for Public-Private I, II, and III and links to existing expressways, Partnership (PPP) Projects of the DPWH, sets namely, the Skyway and the Manila-Cavite Toll September 18, 2012 as deadline for submission Expressway. It will also link to the proposed of qualification documents for interested elevated NLEx-SLEx Connector Road and to the parties including bidding guidelines and Skyway (Stage 3) extension to project details for phase I adjustment works, Araneta Avenue (C-3). phase II works, at-grade Entertainment City works, and operations and maintenance. When completed, it is expected that the average 24 minutes travel from Skyway to NAIA Secretary Rogelio L. Singson said that they Terminal 1 will be reduced to 8 minutes for the expect good turnout of potential investors benefit of some 80,000 daily travelers. competing for the NAIA Expressway Phase II Project as a follow-up to the Daang Hari- The project was approved by the National

PPP Press Releases PPP Press SLEX Link Road Project awarded to the Ayala Economic Development Authority (NEDA) Corporation last April 3, 2012 under the Build- Board on May 30, 2012 and is estimated to cost Operate-Transfer contractual arrangement P15.52 billion. scheme. With the government financing the road right- NAIA Expressway Phase II Project is a 4-lane of-way acquisition in the amount of P 1.021 elevated expressway with a total length of 7.15 billion, PAGCOR license holders are willing kilometers, including ramps. to provide P 6.5 billion contribution for the construction of the project. A memorandum of agreement between DPWH and PAGCOR has been signed.

PPP Advisory July - September 2012 10 PPP Roadshow in Madrid By The Philippine Embassy in Madrid, Spain 27 July 2012

23 July 2012, Madrid – Madrid PE reported to The Ambassador, at the beginning of his the Department that the Manila Metro Line welcome remarks, stressed that progress 1 Extension, Maintenance and Operations requires a strong collaboration and the Project Investors´ briefing was successfully concerted effort of all sectors of society – the held in Madrid on 23 July 2012 at the CEOE government, people, and the private sector. headquarters (Spanish Confederation of Business Organizations) with about 50 Ambassador Salinas also underscored that participants from about 27 Spanish companies infrastructure development is vital in the in attendance. The briefing was organized by economic growth of a country. The Philippine Madrid PE and PTIC-Madrid. Development Plan (PDP) 2011-2016 recognizes the critical role that infrastructure plays in the Among the major Spanish companies in economic development of the Philippines. the transport industry (consultant, operator, contractor and supplier) in attendance were, In the speech of Director General Martos, he Metro de Madrid, Renfe, CAF, Indra, Centunion, highlighted the recent visit of Queen Sofia to Ineco, Getinsa, IDOM, Cemex, OHL, Abengoa, the Philippines as an indication of the strong AEDIP, Seopan, Talgo, etc. Attached as Annex A bilateral relations between Spain and the is a list of all the Spanish companies present in Philippines. He said that he was delighted of the briefing. the visit of the Philippine delegation and the opportunity given to the Spanish companies The guests were welcomed by a remarks from to hear about and participate in the pipeline the CEOE President of the Council for Trade transportation and infrastructure projects in Promotion, Mr. José Luis Gonzalez Vallvé, the the Philippines. Director General for Commerce and Investment of the Spanish Ministry of Economy and Competitivity, Mr. Antonio Fernández-Martos, PPP Press Releases PPP Press and from Ambassador Carlos C. Salinas.

11 PPP Advisory July - September 2012 He further shared that six of ten global players Nicolas Chua and IFC Counsel Adviser Lulu in the transport industry are based in Spain Baclagon, divided themselves into 3 groups and that Spanish companies are leaders in the to accommodate requests for one-on-one sectors that are being promoted under the PPP consultations. 2 groups to discuss the Metro Program of the Philippine government. He was line 1 extension, maintenance and operation also glad to announce to the Spanish audience project, and 1 group to discuss the other PPP that a PPP project was awarded last year to projects. A total of 19 consultations were Spanish company GETINSA, who is part of a arranged with the participation of 11 Spanish consortium who bid for said project. companies.

After the briefing, the Philippine delegation In closing, Ambassador Salinas invited the composed of DOF Undersecretary John Philip audience to visit the Philippines to see for Sevilla, DOTC Assistant Secretary Jaime Raphael themselves the opportunities that are available Feliciano, PPP Executive Director Cosette to them, or to talk to Spanish companies Canilao, DBP Manager for Banking Investment present in the Philippines and inquire on how the business goes in the Philippines.

Roadshow on LRT-1 Expansion Project and Philippine PPP program Draws Interest from British Businesses By The Philippine Embassy in London, United Kingdom 20 July 2012

(LONDON, 19 JULY) – Ambassador Enrique project that will see the expansion of LRT- A. Manalo delivers remarks at the Investors’ 1 to Cavite province, and is one the priority Briefing on the Manila Light Rail Transit Line 1 activities under the Philippine government’s (LRT-1) Extension, Operations and Maintenance Public-Private Partnership (PPP) program. Project. The investors’ briefing was led by Department

PPP Press Releases PPP Press More than 30 British companies and potential of Transportation and Communications investors participated in the briefing and Undersecretary Rene Limcaoco and held at expressed interest in the US$1.25 billion the global headquarters of law firm Pinsent Masons.

PPP Advisory July - September 2012 12 Dispute resolution mechanisms mandatory for all projects 11 July 2012

Implementing agencies both from the national The EO specifically states the need to provide and local governments are mandated now to a more inviting climate for private investors include the provision on the use of alternative by ensuring that the resolution of disputes dispute resolution (ADR) mechanisms in all arising out of a contract is less expensive, less contracts involving projects with the private tedious, complex and time-consuming exercise sector. especially for large-scale, capital-intensive infrastructure development contracts. President Benigno S. Aquino III signed Executive Order No. 78 last July 4 which “We see this Executive Order as a major requires all contracts involving public-private development in our continuing efforts to partnerships, build-operate and transfer improve the PPP policy framework and projects, joint venture agreements entered ultimately send a positive signal to our investors by the government, including those by local that we are initiating moves to make business government with private entities must include in the Philippines easier, ” explained PPP Center provisions to use ADR mechanisms upon Director for Policy Formulation, Evaluation and agreement of the parties to these contracts. Monitoring Atty. Sherry Ann Austria.

The parties are given the choice to use all The use of ADRs has been previously available ADR mechanisms, whether domestic promulgated under Republic Act No. 876 or international, to allow them complete known as the Arbitration Law and Republic Act freedom to choose the venue and forum to No. 9285 or the ADR Act of 2004. The Supreme govern disagreements that might crop up, as Court also circulated the Special Rules of Court well as the rules and procedures to be followed on ADR in 2009, which encourages the use of to resolve dispute cases. ADR, particularly arbitration and mediation as an effective resolution to disputes. PPP Press Releases PPP Press

13 PPP Advisory July - September 2012 First PPP project on heritage restoration attracts major retail giants 03 July 2012

Major retail operators have expressed PPP Center Executive Director Cosette V. strong interest to take part in Talisay City’s Canilao said that heritage restoration projects Plaza Complex Heritage Restoration and like the one in Talisay are deemed highly viable Redevelopment project. specifically in the light of a growing tourism industry. Mall giants Ayala Land Sales Inc and SM Prime Holdings of the SM Super Malls, alongside “We consider the Talisay heritage project as a Negros Occidental-based retail players 888 clear example of the scope and breadth that China Square, Lopues Department Store, and public-private partnerships can be tapped. Carmella Valley Corp recently attended the Traditionally, PPP focused mostly on hard market sounding session conducted by the local infrastructure like roads. This time around, government of Talisay in Negros Occidental government is using PPP for social infra like our led by Talisay City Mayor Eric Saratan and the school buildings and hospitals. With Talisay, we Public Private partnership Center. are exploring heritage and tourism. The recent market sounding made it clear to us that there The heritage and restoration project is Talisay is much interest from the private sector for this City’s first PPP project that will restore, develop type of PPP project. We are hopeful that will and transform the 13,757 square meter be the start of more partnerships and projects Talisay City Complex, which includes the old on heritage and restoration with the private Central Public Market and City Hall, into a mix- sector,” the PPP Center chief explained. use commercial complex at the same time conserving and restoring the City’s century-old The market sounding session brought structures. The PPP heritage and restoration together the local government of Talisay and project is set to generate interest as a major interested investors and stakeholders to level tourist attraction in Talisay City. It is also the off expectations and discuss issues that can PPP Press Releases PPP Press country’s first heritage restoration project to positively benefit the structuring of the project. be undertaken as a PPP project.

Representatives from various retail operators attend the market sounding session for the Talisay City Plaza Complex Heritage Restoration and Redevelopment Project conducted by the local government of Talisay City in Negros Occidental and the PPP Center.

PPP Advisory July - September 2012 14 Pension investments eyed for PPP 02 July 2012

Huge, untapped resources from the Canadian Retirement System (OMERS), and the Ontario retirement industry are currently being eyed Teachers Pension Plan (OTPP). for investments in the country’s Public-Private Partnership (PPP) Program. “These organizations are committed to forge ‘robust alliances to grow asset base in emerging As part of the bilateral trip to Canada of the markets, working within an environment of Philippine delegation headed by Foreign accountability, transparency, and refined risk Affairs Secretary Albert F. del Rosario, a series of management’. Their expressions of interest to dialogues were also conducted with pension participate in our program is a testament to the organizations who expressed great interest in effectiveness of our reforms, and is indicative investing their funds to the country’s lineup of of the international community’s appreciation PPP projects. to our PPP Program that is geared towards sustainability,”ED Canilao was quoted as saying In the meeting dubbed as the “Conversation when asked about the implication of these with Canadian Chamber of Commerce and possible Canadian investors. Business Enablers”, the PPP Program was highlighted as one of the opportunities Infrastructure funds in the country have available for foreign investment ventures in the been increasingly available to support and Philippines. finance PPP projects. In less than two years since the Program was launched, a number Aside from presenting to the Canadian of private sector-led infrastructure funds— Chambers of Commerce and Business Enablers, such as the Philippine Investment Alliance PPP Center Executive Director Cosette V. Canilao for Infrastructure Fund being managed by also met with Ontario’s various pension funds, Macquarie Infrastructure Management (Asia) such as the Canadian Pension Plan Investment Pty Limited Singapore—are now setup and PPP Press Releases PPP Press Board (CPPIB), the Ontario Municipal Employees readied for investments.

15 PPP Advisory July - September 2012 PPP Feature Article NEDA Cayetano Director-General W. Paderanga Jr. and by Planning Secretary FormerArticle Socio-economic was first passed, we were quite attracted by attracted quite we were passed, first was law the initialbuild-operate-transfer (BOT) Development Authority (NEDA) in 1991, when and Economic National the at was I time first forprospect government managers. The atimewhen thiswas atantalizing was certainly potential for solvingbudgetlimitations. There Quite afew attribute thisattention to its quite substantial. government implementationonitsown isalso much larger, atleastfor themoment. 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PPP Advisory July-September 2012 PPP Advisory benefit to aneconomy. potential of how this mode can be of significant thatshowthe provision the ofpublicservices form ofsimpleprivatization, have improved too) ofhow PPPefforts, sometimesjustinthe There are goodexamples(there are badones and inbetter form. used by Walt ago)earlier Rostow halfacentury social overhead capital (using the old term this getting of benefit the us affordmay it And networks andclusters. are interconnected withnationalinfrastructure and strategic thatsupport andcriticalprojects to pinpointandimplementthe opportunity and nimbleness of private initiative. offers the It timely decision making, the single-mindedness and efficiencies, speedy the the exploits also It PPP ismore thanjustthefinancing. general andfor inparticular. infrastructure advantages oftheapproach for governance in At thesametime, we have become aware ofthe successful PPPprogram andfacilitationcenter. aware oftheground work thatisneededfor a approvaland theproject process, Ibecame NEDA’sprogramminginvestment given in role ready for more effective development project we moved thePPPCenter to NEDA, it making however, asIhave itmore recently. observed As changed,has approach the of appreciation My FINANCING MORE THAN then. budget picture dire intheface ofthevery needed projects its potential for advancing large butcritically 16 PPP Feature Article 17 nowadays and thecomplicated, interrelated andsizeWith thecomplexity ofpublicprojects implementation. amenableto thismode of public projects programming process to identify and prepare government to have aneffective planningand At thesametime, for the itisimportant hassles later. playerssector andheadingoffunwanted legal are criticalto bringingintherightprivate guidance. everyone’s field playing level Transparency,a forand fairness transparent and others, well-structuredrulesthat are clear includes,institutional infrastructure among governmentand direct implementation. The requirements from as ODA the public sector PPP demandsjustasoreven more stringent anditwillnotsuffer shortcuts. is notashortcut of public and private resources and abilities, it that whileitoffers thepromise ofthemerger The paradox is ofpublic-private partnership isproperlycontract structured. unless the resulting good projects with very easily lead to government’s disadvantage even in thefuture. This unbalanced condition can can set precedent that it will have to deal with consider how itsrules, decisionsandactions sometimes lumberinggovernment thathasto and nimblenesswhilenegotiatingwitha And itcanleverage itsadvantage inresources objective. profit intense very a of advantage theunalloyed has It negotiator. efficient efficient very very a be operator andimplementor. canalsobea It can sector private The dangers ofPPPsowe canmove to avoid these. At the same time, we need to be aware of the NO SHORTCUT PPP Advisory July-September 2012 PPP Advisory projects asitdealswith theprivatesector. etc. reachhigherlevelsofneedforpublic methods ofmonitoringandmarginserror, guarantees, ofservice, in levels of specification issues mundane private sectorcontractssuchasthecareful typical example, For and ODA. crop upindirectgovernmentimplementation investment programmingissuesthatdonot — weencounterprojectdevelopmentand motions ofbringingPPPprojectsforward As itturnsout—aswegothroughthe UNEXPECTED ISSUES itsphysical in lie contributions, nomatterhowcriticalthoseare. not may benefit ultimate program’s the activities, development many projects arecriticalandatthenexusof This iswherePPPprojectscomein.Whilethese actual projects. just hastogothroughthewholeexerciseof inconsistencies and gaps are going to be. One rules thatonecannotpossiblypredictwhere There aretoomanyinterlacingproceduresand often,More we needmore thanonepilotcase. are.whole process and seewhere thekinks Actual cases are neededto go through the isdifficult to dothisin concept.It Z.” we care needto ofthedetails take “from Ato implementation, effective and complete For and contracting. potential design, issues in project development regulations, onecannotanticipate allofthe (a “noodle dish”) government laws and PPP Feature Article Government Overseas AidProgramand the Asian Development Bank, the Australian like partners development Fortunately, will stillnotbespeedyenough. applications undertheexistingenvironment And evenastheprocessesaredeveloped, matriculated and the going is quite sluggish. But theinitialcostsofdiscoveryhavetobe structure, monitoringandseveralmoreareas). are beingdevelopedauctionrules,contract are successfullyimplemented.(Otherareasthat The speedwillpickupasprojectsofeachgenre and tedious. judgment. Thus,projectdevelopmentisslow As aresult,bureaucratsareloathtoexercise the benefitofdoubt. code ofethics,errorsjudgment are notgiven interpretation oftheanti-graftlawand society andthestringencyofconsensus Except that,giventhelitigiousnessofour they arebeingdevelopedashavetobe. These processes need to be developed; and government interactswiththeprivatesector. verylarge is a lacuna ofprocessesthatshouldgoverntheway there that out finding are we mode ofpublicsectorprojectimplementation, In otherwords,asweapplyPPPanimportant advanced itis. just copyfromanothercountry,nomatterhow one countrytoanother,itisnotpossible customs andbusinesspracticesdifferfrom need tobebuiltupwithpractice.Sincelaws, explicit andimplicitrules,practicescustom cases. Likejurisprudence,thewholebodyof procedures tocoverevenjustthemajorityof impossible tospecifyataxonomyofrulesand Given themyriadofpossibilities,itisalmost PPP Advisory July-September 2012 PPP Advisory UP SchoolofEconomics. director generalofNEDA;andaprofessoratthe and EconometricAnalysis(IDEA),Inc.;former chairman oftheInstituteforDevelopment Cayetano W.Paderanga,Jr.istheformer lessons toalllevelsofgovernment. PPP andtofacilitatethepropagationofthese to accommodatetheneedsandadvantagesof development ofthispackagegoodpractices Our task now is how to speed up the of thisprogram. ultimately bethelastingandsustainablelegacy results ingoodpracticeonaroutinebasismay in processesoverabroadfrontthatultimately If wearesuccessful,theoverallimprovement other institutions. good practiceispropagatedandabsorbedby example of“institutionalexternalities”where local governmentunits.Thisisanimportant the initialmanualandtemplateofPPPfor That is one reason the PPP Center has developed to lowerlevelsofgovernment. knowledge expandsandmaybepropagated And asexperienceisbuiltup,thebodyof government’s the of governance reformprocess. plank important an of implementationcouldturnouttobe improve policiesandprocesses.Thismode and implemented,emergingissueshelp As PPPprojects are being developed BUILDING UPEXPERIENCE efforts. have beenwillingsupportersofourlearning Canadian InternationalDevelopmentAgency 18 Refining PPP Policy 19 EO 78:Alternative Resolution Dispute MechanismsinPPPContracts well asJoint Venture Agreements (JVAs) between government andprivate entities issuedby theNational Economic andDevelopment Private Sector, Purposes,” andfor Other asamendedby No. RA known asthe 7718,otherwise “Build-Operate and Transfer (BOT) Law,” as No.RA 6957entitled, Authorizing“The Act theFinancing, Construction, Operation andMaintenance ofInfrastructure Projects by the 1.Use ofADRmechanisms. AllSECTION contracts involving Public-Private Partnership (PPP) and/orthoseentered projects into under and existing laws dohereby order: NOW, THEREFORE, I,BENIGNOS.AQUINO III,President ofthepowers ofthePhilippines, by vested virtue inme by theConstitution development contracts. of acontract lessexpensive, tedious, complex especiallyfor large-scale, capital-intensive andtime-consuming, infrastructure and WHEREAS, there isaneedto provide amore inviting climate for private investments by making theresolution ofdisputes arisingout dockets; and court justice andde-clogging and impartial negotiation, mediation andarbitration, intheorder ofapplication, asanefficient toolandanalternative procedure inachievingspeedy WHEREAS, towards thisend, theState shallencourage promote andactively theuseofADRmechanisms through conciliation and disputes withthegreatest cooperation andat thesametimeleastintervention from ofthecourts thesame; arbitration meanstopromoting achieve andmediation, asanimportant speedyandefficient theuseofADR,particularly resolutionof WHEREAS, theSCpromulgated onADRin2009(A.M. RulesofCourt theSpecial No. ofencouraging withtheobjective 07-11-08-SC), and autonomy inresolving disputes to andto make thefreedom respect theirown oftheparties arrangements to resolve theirdisputes; No.WHEREAS, RA known as 9285,otherwise of2004,”“The ADRAct declares oftheState that itisthe, policy to promote actively party small claimscases; discoverymodesofprocedure;the useofpre-trial; thebarangay prerequisite and, certification the actions in court; procedureto filing in Resolution (ADR)cases. inspecific Furthermore, other forms ofADRhave beenincorporated into thePhilippinejudicialsystem, suchas: in2001,hasauthorizedWHEREAS, theSupreme (SC) Court theuseofcourt-annexed mediation asaform ofAlternative Dispute to any contract mayor theparties insuchcontract agree to settle by arbitration acontroversy thereafter arisingbetween them;” submit to arbitration, “any controversy existing between themat of anaction, thetimeofsubmissionandwhichmay bethesubject (RA) No.WHEREAS, asearly1953,RepublicAct known as 876otherwise “The Arbitration Law,” already to allowed personsorparties CONTRACTS INVOLVING PUBLIC-PRIVATE PARTNERSHIP BUILD-OPERATE JOINT PROJECTS, AND VENTURE TRANSFER PROJECTS, AGREEMENTS THE GOVERNMENTANDPRIVATE BETWEEN ENTITIESAND THOSE ENTEREDINTO BY LOCAL GOVERNMENTUNITS MANDATING THE INCLUSION OFPROVISIONSON THE USEOFALTERNATIVE DISPUTERESOLUTION MECHANISMSINALL PPP Advisory July-September 2012 PPP Advisory BY THE PRESIDENTOF THE PHILIPPINES EXECUTIVE ORDERNO. 78 MALACAÑAN PALACEMALACAÑAN MANILA Refining PPP Policy Executive Secretary (Sgd.) PAQUITO N.OCHOA, JR. By thePresident: DONE, ofManila,this4thday intheCity ofJuly, intheyear ofourLord, Two Thousand and Twelve. Clause. 6.Effectivity SECTION This EOshalltake immediately effect uponitspublication inanewspaperofgeneral circulation. remain valid andsubsisting. Clause. Ifany 5.Separability provision ofthisEOisdeclaredSECTION invalid orunconstitutional, theotherprovisions shall unaffected this EOare hereby revoked and/or modifiedaccordingly. 4.Repealing Clause. All issuances,SECTION orders, rules, thereof andregulations whichare orparts inconsistent withtheprovisions of appropriations thereafter. PPP Center, NEDA, OADR, andotherconcerned agencies. Funding for thesucceeding years shallbeincorporated intheirrespective regular The initialfundingrequirements for theinformation shallbeshared campaign by andcharged againstthecurrent appropriations ofthe public. directive andthedifferent ADRmechanisms to allnational government andlocal agencies/entities, theprivate andthegeneral sector NEDA through thePPPCenter, andthegovernment mediainstrumentalitiesamassive shallconduct information onthispolicy campaign 3.Information ofJustice (DOJ) through The Campaign. oftheSECTION theOffice Alternative Department Dispute Resolution (OADR), LGUs that shallenter into PPPorBOT contracts andJVAs. the Implementing RulesandRegulations (IRR)to implement thisEO, whichshallbebindingonallgovernment agenciesandshallguide 2.ImplementingAgency. NEDA,SECTION inconsultation withtheappropriate agenciesofthegovernment, ishereby directed to issue dispute, aswell astherules orprocedures to befollowed inresolving thesame. mechanisms shallbehighlyencouraged, complete freedom givingthe parties to choosewhichvenue andforum shallgovern their to theabovementionedWhen parties contracts agree to for submitthecase ADR,useofeitherdomesticorinternational ADR mechanisms, inaccordance withtheirown JVrules, guidelinesorprocedures. whoenter intoAll parties similarcontracts withLocal Government Units(LGUs) are encouraged to stipulate ontheuseofADR toand uponagreement saidcontracts.. oftheparties (NEDA)Authority pursuant to Executive Order (EO) No. 423(s. 2005),shallincludeprovisions ontheuseofADRmechanisms, at theoption PPP Advisory July-September 2012 PPP Advisory (Sgd.) BENIGNOS.AQUINO III 20 In the Pursuit of Properly Prepared Projects A mock-upclassroom completed by theprivate proponent inBulacan. AWARDED PROJECT 21 Project Description and classfurniture. is dividedinto individualsub-projects. hasthree components, Asub-project namelyschoolbuildings, toilets, Contract Package Bcovering RegionIII; andc)Contract Package Ccovering RegionIV-A. package Eachcontract isdivided intoThe three project packages, contract whichare: a)Contract Package Acovering RegionI; b) schoolsites. andsecondary elementary 9,301 newclassrooms within2,528newschoolbuildings. These classrooms willbebuiltat2,262existing The PSIP is a Build-Lease-Transfer (BLT) that involves project the design, offinancing about and construction butalsothefuture classroomcurrent requirement. classroom backlog ofEducation nationwide. onclassroom construction of theDepartment intends to address notonly the It The PPPfor Project SchoolInfrastructure (PSIP)seeksto supplementthecurrent initiatives andprograms Private Proponent Concession Period Contractual Arrangement Procurement Mode Estimated Project Cost Implementing Agency Project PROFILE PPP Advisory July-September 2012 PPP Advisory PPP for School Infrastructure Project (PSIP) Project Infrastructure PPP for School 10 years inclusive ofconstruction PHP 16.42Billion|USD389Million Construction Corp.,Inc. (ContractPackagesBandC) Citicore InvestmentHoldings, Inc.-Megawide (Contract PackageA)and BF Corporation-RiverbanksDevelopment Build-Lease-and-Transfer (BLT) Solicited ofEducation (DepEd) Department In the Pursuit of Properly Prepared Projects Source: ofEducation Department A two-storey mock-upbuildingcompleted by theprivate proponent inBulacan. from right), (rightmost) poseswiththevarious JohnPhilipSevilla representatives andDOFUndersecretary biddingfor thePSIPproject. Sec. Luistro together withPPPCenter Executive Director Cosette V. Canilao Francisco (second from DepEd Undersecretary left) Varela (third Region IV-A III I Packages Number ofClassroom 4,259 2,885 2,157 Bidder Lowest Complying Construction Corporation,Inc. Investment Holdings,Inc.– Megawide Citicore Construction Corporation,Inc. Investment Holdings,Inc.–Megawide Citicore Corporation BF Corporation–RiverbanksDevelopment PPP Advisory July-September 2012 PPP Advisory Payments Annual Lease P760,490,438.40 P522,989,913.60 P344,590,312.00 22 PPP Center Service 23 PDMF funding. Center isresponsible for approving for projects of Budget and Management (DBM) and the PPP Financeof (DOF), Department Department the Development Authority (NEDA)asChair, the composed oftheNationalEconomic and PDMF.Board the PDMF of A management and The PPPCenter oversees theadministration PDMF InstitutionalArrangement 9184)andjointventureAct (RA projects. under theGovernment Procurement Reform for unsolicited projects, procured projects pre-feasibility orfeasibility studypreparation the for used be not shall PDMF However, the environmental facilities, service among others. power andrenewable energy, water supplyand agriculture, healthfacilities, education, ports, as such airports, highways and expressways, railways, plans development and government’s infrastructure for used development projects, ofthe whichare part funds. be PDMF can the of PDMF avail can (LGUs) Units Corporations (GOCCs) and Local Government andControlledGovernment-Owned Government Agencies andDepartments, Implementing Agencies (IA)includingNational prepared PPPprojects. developing a robust pipelineofproperly investment the environment for PPPs inthePhilippines by enhance to aims PDMF The projects, andassistance inthebiddingprocess. documents for Public-Private Partnership (PPP) pre-feasibility, feasibility studiesandtender which shallbeusedfor thepreparation of created fund revolving under Executive Order No. 8, seriesof2010, a Monitoring is (PDMF) and Facility Development Project The DevelopmentProject andMonitoring Facility (PDMF) PPP Advisory July-September 2012 PPP Advisory oenets onepr cnrbto is contribution US$11.5 million. counterpart by Government’s extended was the Australian Government. The Philippine million financing US$9.0 additional counterpart 2012, March on Technical Assistance approved by theADB Development UndertheExpandedCapacity Bank (ADB). is to be administered by the Asian Development financing by the AustralianGovernment, which of 2010 and US$6.0 million as counterpart Executiveto pursuant No.OrderPDMF 8, series (equivalent to aboutUS$7.0million)to the Government withanallocationofP300million This was supplemented by thePhilippine million (equivalent to aboutUS$0.16million). Facility with an outstanding balance of Php7.25 of theUSAID-establishedProject Development The PDMF was sourced initially from the reflows How muchisthetotal PDMFFund? following requirements: The concerned agency/LGU mustsubmitthe 3. 2. 1. advisory support) advisory and provision of PPP transaction FS of conduct for is application PDMF (if study FS);pre-feasibility PDMF (if application isfor ofpre- conduct Profile Project PPP Agencies) Committee (for Implementing (for LGUs) or Board/Executive Resolution by theSanggunian Chief Executive the HeadofAgency/Local Letter of Intent duly signed by PPP Center Service At present, have (14)projects fourteen beenprovided withPDMFsupport. Status ofPDMF Transaction Assignment Advisory Projects for PDMFSupported 9 8 7 6 5 4 2 1 No. IDCA* A. Project 9. 8. 7. 6. 5. 4. 3. 2. 1. Projects w/ Signed Consulting Assignments w/Signed Projects Angat Hydro-Electric Power Project (AHEPP) Cold ChainProject Automatic Fare Collection System MCIA-New Passenger Terminal Building (Panglao)New Bohol Airport Development Project Laguindingan Airport PPP for SchoolInfrastructure Project POC Modernization Project Vaccine Project Self-Sufficiency Auxiliary Auxiliary Turbines #4 and #5 PowerElectric Plant (AHEPP) Maintenance oftheAngat Hydro- Rehabilitation, Operation and in thePhilippines Systems Covering Strategic Areas Establishment ofCold Chain (AFCS) Project Automatic Fare Collection System Terminal Project (MCIA)NewPassengerAirport Mactan-Cebu International Development Project (Panglao) New Bohol Airport Project the LaguindinganAirport Operation andMaintenance of Project (PSIP) PPP for SchoolInfrastructure CenterOrthopedic (POC)Project Modernization ofthePhilippine Project Title Transaction Advisor Lead Firm: RebelGroup International BV(Netherlands) andInfrastructure SolutionsLtd.Crisil Risk (India)andRoyal Haskoning ofRebel GroupConsortium International BV(Netherlands), AllenandOvery, Lead Firm: PricewaterhouseCoopers LLPSingapore Services Firm:PricewaterhouseCoopers LLPSingapore Services and PWCPhilippinesinassociation withHoganLovellsLead ofPricewaterhouseCoopersConsortium LLPSingapore Services Lead Firm: RebelGroup International BV(Netherlands) Solutions Ltd. (India), andRoyal Haskoning Santos (PJSLaw) (Philippines), AllenandOvery, andInfrastructure CrisilRisk ofRebelGroupConsortium International BV(Netherlands), Puyat Jacinto & Lead Firm: Deloitte Touche Tohmatsu IndiaPvt. Ltd. (India) with Puyat Jacinto &Santos (PJSLaw) (Philippines) ofDeloitte Consortium Touche Tohmatsu IndiaPvt. Ltd. (India) inassociation Lead Firm: RebelGroup International BV(Netherlands) Solutions Ltd. (India), andRoyal Haskoning Santos (PJSLaw) (Philippines), AllenandOvery, andInfrastructure CrisilRisk ofRebelGroupConsortium International BV(Netherlands), Puyat Jacinto & Lead Firm: Deloitte Touche Tohmatsu IndiaPvt. Ltd. (India) with Puyat Jacinto &Santos (PJSLaw) (Philippines) ofDeloitte Consortium Touche Tohmatsu IndiaPvt. Ltd. (India) inassociation Lead Firm: Ernst& Young Australia (Australia) Infrastructure Advisory & Cruz(ACCRALAW) (Philippines) association withAshurstLLP(Singapore) andAngara Abello Conception Regala ofErnst& Consortium Young Australia (Australia) Infrastructure Advisory in Lead Firm: Deloitte Touche Tohmatsu IndiaPvt. Ltd. (India) with Puyat Jacinto &Santos (PJSLaw) (Philippines) ofDeloitte Consortium Touche Tohmatsu IndiaPvt. Ltd. (India) inassociation PPP Advisory July-September 2012 PPP Advisory B.

5. 4. 3. 2. 1. Process to Start) PDMF Board Approved (Consultant Projects Selection Bulacan Bulk Water SupplyProject for Agri-FisheryLogistics Prods. Support Quirino Highway Project IntegratedSystems Transport New WaterSupply 24 PPP in the News Click article titlestoreadfulltext. Click article PPP RELATED NEWS 25 administration’s Public-PrivatePartnershipsinitiative. Support Fund”topreparefortheimplementationnextyearofflagshipinfrastructureprojectsunderAquino The DepartmentofBudgetandManagement(DBM)hasearmarkedanotherP3billionforthe“PPPStrategic August 5, ManilaBulletin, ChinoLeyco P3B Earmarked for PPPPreparations projects bytheendofyear. The nationalgovernmentremainsconfidentthatitwillstillbeabletorollout8PublicPrivatePartnership(PPP) August 30, Rappler.com, CaiOrdinario Gov’t stillconfident in2012 of rolling out8PPPprojects (PPP) Programwithintheyear. The governmentwilloffertoinvestorsfivemoreprojectsundertheadministration’sPublic-PrivatePartnership August 30, BusinessMirror, MaxdeLeon withinthe year5 more PPPprojects this yearwillbemet. The Aquino administration is optimistic that the plan to roll out eight public private partnership (PPP) projects for August 31, Malaya BusinessInsight Gov’t sure itwillmeetgoalto roll out8PPPs T bidding orrolloutbytheend of2012,accordingtodataobtainedfromthePPPCenter. Around eightmorepublic-private partnership(PPP)projectsworthatleast$1.12 billionmaybereadyforeither July 22, BusinessMirror, Cai Ordinario over worth 8 PPPprojects $1Bupfor bidding, rollout in2012 the numberannouncedearlier. The Aquinoadministrationmayrollout21PublicPrivate Partnership(PPP)projectsthisyearalmostthreetimes July 23, Malaya BusinessInsight, AngelaCelis Gov’t may rollout more PPPprojects this year,accordingtoastatusupdatebythegovernment’s PPPCenter. The Aquinoadministrationmaysurpassitstargetofbidding outeightpublic-privatepartnership(PPP)projects July 23, PhilippineDailyInquirer, AnaRoa Gov’t may exceed PPProllout thisyear unsolicited proposals. agency, anexpandedlistofeligibleprojects,revisedreviewandapprovalschedules,moredetailedrules on (PPP) program. The amended IRR for Republic Act (RA) 6957 details changes that include a newcoordinating issued by theAquino administration in a bid toprovidemoreimpetusits signature public-private partnership Revised implementingrulesandregulations(IRR)governingtheBuild-Operate-Transfer (BOT) Lawhavebeen July 24, Business World Build-Operate-Transfer law’s implementing rulesrevised by gov’t op Stor PPP Advisory July-September 2012 PPP Advisory y PPP in the News PPP projects’ success iskey to faster economic growth into byLocalGovernmentUnits(LGU). (BOT) ProjectsandJointVenture(JV)AgreementsbetweenGovernmentPrivateEntitiesthoseentered Resolution (ADR)MechanismsinallContractsInvolvingPublic-PrivatePartnerships(PPP),Build-Operate-Transfer out allofitsplannedPublic-PrivatePartnership(PPP)projects,FinanceUndersecretaryGilBeltran. The Philippineeconomycouldgrowanadditionaltwopercentagepointseachyearifthegovernmentbid their investorbaseandshowcase opportunitiesintheSoutheastAsiannation. The governmentofthePhilippinesisplanningmeetings inAustraliaforthefirsttimeaspartofapushtowiden August 31, The Wall Street Journal, Edna Curran andCrisLarano Philippines to MeetwithAustralian Investors PPP Investments Ne advisers underthegovernment’sProjectDevelopment andMonitoringFacility(PDMF). The PublicPrivatePartnership(PPP)Centersaidsixmore groupswillbejoiningtheexistingpaneloftransaction July 03, Malaya BusinessInsight Six joinpanelofPPPadvisers workshops, inamovetoencourageparticipationtheAquinoadministration’sflagshipinfrastructureprogram. The Public-PrivatePartnership(PPP)Centerhaspromisedassistancetocontractors,throughtrainings and July 7, PhilippineDailyInquirer, AnaRoa PPP Center urges alliances amonginfra proponents PPP biddingsuccess key to faster growth July 19, ABS-CBNNews canhelpPHexceedPPP projects growth target thisyear July 19, The PhilippineStar, irisGonzales billedaskey8 PPPprojects to faster growth July 19, Malaya BusinessInsight, AngelaCelis July 12, interAksyon.com, ChichiConde PNoy inksorder onuseofalternative dispute mechanismsingov’t-private projects sector July 12, ManilaStandard Today, Joyce Pangco Pañares Alternative settlement ofdisputes July 16, PinsentMasons Philippines President rules All publiccontracts withtheprivate for projects mustincludeADRmechanism, sector July 18, BusinessMirror, VG Cabuag PPP could grow economy by 2%yearly w s PPP Advisory July-September 2012 PPP Advisory 26 PPP in the News 27 under thePhilippines’public-private-partnership (PPP)scheme. investing ina$625million(almostP27billion)private equityfundtofinancebig-ticketinfrastructureprojects Four localandforeigngroups,includingstatepension fundGovernmentServiceInsuranceSystem(GSIS),are July 31, Rappler.com ADB, GSIS, Macquarie setup$625-Minfra fund timed tocapitalizeonvariouspublic-privatepartnership opportunitiesinthePhilippines. focused exclusively on Philippine infrastructure projects – the largest and first of its kind in the country and well- The AsianDevelopmentBank(ADB)hasapprovedan equityinvestmentina$625millionprivatefund July 31, AsianDevelopment Bank First-Ever Private Fund Equity for Philippine Infrastructure Investments government’s public-privatepartnership(PPP)program. facility to boost funds for long-term relending, including funding for big-ticket infrastructure projects under the The country’sleadingfinancialinstitutionBancodeOroUnibankisraisingupto$2billionfromanoverseas debt August 7, PhilippineDailyInquirer, Dumlao Doris Sy bankraising $2Bfrom IOUsaleabroad Public-Private Partnership(PPP)Programinbuildingvitalinfrastructureandsocioeconomicprojects. Bahrain’s stateholdingfirm,Mumtalakat,hasexpressedkeeninteresttoinvestintheAquinoadministration’s August 9, BusinessMirror Bahrain eyes investments inPPPprojects investor inthegovernment’sPublic-PrivatePartnership(PPP)program. The kingdomofBahraincouldhelpfinanceconstructionanddevelopmentinthePhilippines,ifitbecomes an August 9, GMANews PHL ambassadorto Bahrain to urges joinPPPprogram kingdom Chairman andGEGlobalGrowthOperationsPresident-CEO. ship (PPP) program, particularly in the areas of energy, transport and healthcare, according to John G. Rice,GEVice GE isinterested to participateinthegovernment’s huge infrastructure projects under the Public-Private Partner- August 17, ManilaBulletin, Cahiles-Magkilat Bernie RobustPhilippineBusiness GE Sees Center inTokyoonAugust2. affirmed withthesuccessfulstagingofaPPPSeminaratAssociationSoutheastAsianNations(Asean)-Japan Japanese investors’keeninterestinthePhilippines’Public-PrivatePartnership(PPP)Programwasonceagain August 18, PhilippineInformationAgency, ChristineJoy Sarmiento Japanese Investors flock to PhlPPPseminarin Tokyo Banks areexpectedtoscramblefinancethecountry’sPublicPrivatePartnershipProgram. August 20, Malaya BusinessInsight, Castro Albert Funds flow to PPP showcase forthefirsttimeopportunitiesinSoutheastAsiannation. Philippine economicmanagerswillbeinAustralia in mid-Septembertomeetbondand other investorsto Manila Bulletin, August 31 EconomicNext Roadshow inAustralia PPP Advisory July-September 2012 PPP Advisory PPP in the News the nextfiveyears. war chest as it looks to invest up to US$1 billion in the transport infrastructure and power generation sectors over Ayala Corporation has completed the sale of P6.45 billion worth of treasury shares as part of plans to beef up its July 18, ManilaBulletin To Fund Infra, Power Projects Ayala Corp. P6.45Billion Raises Partnership (PPP),iskeenonparticipatinginotherprojects tobebidoutunderthisprogram. Ayala, thefirstcompanythatwonabig-ticketinfrastructure projectunderthegovernment’sPublic-Private July 18, Rappler.com Ayala buildswar chestfor power, infra bids by thegovernmentunderpublicprivatepartnership program. Ayala isfillingupitscoffersinpreparationforplanned foraytoinfrastructureandpowerbusinessbeopened July 19, Malaya BusinessInsight, Castro Albert P64.5B Treasury Shares; Ayala fills coffers for PPPbids airports inCebuandClark,Pampanga. Public-Private Partnership(PPP)program,includingtheNinoyAquinoInternationalAirport(Naia)aswell as The LucioTangroup of companies is keenoninvesting in airport projects to bebidout under the government’s July 22, BusinessMirror, Camus Miguel projects MacroAsia looksat PPPairport airports, underthegovernment’sPublic-PrivatePartnership(PPP)programme. The LucioTangroupofcompanieshasannounceditiseyeinginvestmentopportunitiesinthePhilippines’ major July 24, Cities, GlobalAirport Dominic Welling Lucio Tan PPPs setssights inthePhilippines onairport Public-Private PartnershipProgram. infrastructure projects,thefirstofitskindincountryandmeanttojumpstartAquinoadministration’s The AsianDevelopmentBankonTuesdaysaidithasinvestedina$625millionprivateequityfundforPhilippine July 29, Interaksyon.com ADB approves investment in$625-MPhilippineinfra fund projects butisverycarefulaboutputtingintheirinvestiblefundstheseprojects. Sun LifeFinancialPhilippinesInc.isinterestedininvestingthegovernment’spublic-privatepartnership(PPP) July 30, ManilaBulletin, Lee Chongpian Sun Life Assessing PPPProjects government’s infrastructureprojectsunderthepublic-privatepartnership(PPP)program. The AsianDevelopmentBank(ADB)hasapproved$625-millionprivateequityfundtoassistthePhilippine July 31, SunStarManila ADB to extend $625Mfor PhilippinePPPprojects (Mira), theworld’slargestinfrastructurefundmanager. fund assetmanager,andtheMacquarieGroup.PinaiwillbemanagedbyInfrastructureRealAssets Named PhilippineInvestmentAlliancefor1(Pinai),thefundwillalsoinvolveAPG,Netherlands-basedpension- of thegovernment. financial institutionshavecreateda$625-million(P26.209-billion)fundtofinancevariousinfrastructureprojects The GovernmentServiceInsuranceSystem(GSIS),theAsianDevelopmentBank(ADB)andtwootherinternational July 31, BusinessMirror, Cai Ordinario P26-B fundfor infra created projects PPP Advisory July-September 2012 PPP Advisory 28 PPP in the News 29 service. Thirty-two companiesareinterestedinbiddingforthe extensionofthePhilippines’sfirstoverheadlight-railway August 30, BusinessMirror DOTC opensbidfor Project, LRT 1Extension 31ports PPP Projects partnership (PPP)projects. Spain toManilabeginning today inluringmoreSpanish investors tothecountry,particularly in public-private The Philippine-SpanishBusinessCouncil(PHSPNBC)willtakeadvantageofthefive-dayvisitQueenSofia of July 1, BusinessMirror, MaxdeLeon Queen SofiavisitboostsPPP Philippines, accordingtothePhilippine-SpanishBusinessCouncil(PHSPNBC). The visit of Queen Sofia of Spain in Manila this week is expected to boost Spanish investors’ interest in the July 2, ManilaBulletin, Cahilas Bernie Magkilat PH Readyfor SpanishInvestments the PPPCentersaid. Canadian pensionorganizationshaveexpressedinterestinthecountry’sPublic-PrivatePartnership(PPP)projects, July 03, PhilippineDailyInquirer, AnaRoa Canadian pensionfundskeen onPPPprojets country’s Public-PrivatePartnership(PPP)program. Huge, untapped resources from the Canadian retirement industry are currently being eyed for investments in the 04,Daily TribuneJuly The Gov’t eyes Canadian retirement for PPPinvestments industry Center saidinaJuly2statementpostedonitsWebsite. partnership (PPP) initiative in a continuing bid to build up investor interest in this flagship program, the PPP The government last month briefed Canadian business and financial sector representatives on its public-private July 4, Business World Canadian fundssought for PPP have hugedemandforcreditandotherfinancialservices. The intention of the move is to allow banks to engage in more business activities with big corporate clients, which underwritten bybanksfromthecomputationoftheirexposuretoaclient. The BangkoSentralngPilipinaswillfurtherrelaxthesingleborrower’slimit(SBL)byexemptingsecuritiesbeing July 11, PhilippineDailyInquirer, Remo Michelle BSP setto easebanks’ exposure limits waterworks andsewerage,airports,powerplants,hospitals,grainsbulkhandling,coldchainsystems. Association (TCA)onprojectsunderthePhilippinePublicPrivatePartnership(PPP)Programincludingexpressways, Philippine AmbassadortoTurkeyMarilynJ.AlarillaadvisedMr.EminSazak,PresidentoftheTurkishContractors July 14, ofForeign Department Affairs Philippine Ambassador Calls onPresident ofthe Turkish Contractors Association PPP Advisory July-September 2012 PPP Advisory PPP in the News Bayani Fernandoandpublicly-listed constructionfirmMegawideCorp. build 9,301classroomsworthP16.3billiontoagroup ledbyformerMetroManilaDevelopmentAuthoritychief The governmenthassealeditssecondpublic-private partnership (PPP)projectwiththeawardingofcontractsto August 17, PhilippineDailyInquirer, Dumlao Doris Gov’t to build9,300classrooms sealsP16.3-B PPPproject Project (PSIP)oftheDepartmentEducation(DepEd). Two constructionfirmswoncontractsfortheP16.5-billion public-privatepartnership(PPP)SchoolInfrastructure August 17, The PhilippineStar, RainierAllanRonda to PPPCenterExecutiveDirectorCosetteCanilao. The SwisschallengeforMetroPacific’sNLEX-SLEXconnectorroadprojectwilllikelyhappeninOctober,according August 31, The PhilippineStar, irisGonzales Swiss Challengeseenfor Metro Pac road project 2 firmswinP16.5-billionPPPclassroom project M. Lotilla. 1) hasbeenmovedtoaccommodatebidderrequest, according toTransportation Undersecretary Jose Perpetuo Submission of pre-qualification documents for the project to expand and operate the Light Rail Transit Line 1 (LRT- August 17, Business World, CliffHarvey Venzon forDeadline LRT-1 documents extension moved project from Aug.22. their bidsforthepublic-privatepartnershipproject,promptinggovernmenttoextenddeadlineSept. 28 Investors interestedintheP60-billionLightRailTransitextensiontoCavitewantedmoretimebeforesubmitting August 17, GMANews DOTC extends biddeadlinefor P60-BLRT project Cavite moretimetopreparetheirbidsasthedeadlineforbiddinghasbeenextendedbyamonth. The AquinoadministrationisgivinginterestedbiddersintheproposedP60billionLightRailTransitextension to August 18, PhilippineStar, Lawrence Agcaoili DOTC extends biddeadlinefor P60-BLRT project auction ofitsPPPclassroomproject. The governmentsaysitwillbidoutasecondbatchofcontractstobuildclassroomsfollowingthesuccessful August 18, ABS-CBNNews, Lois Calderon More classroom PPPcontracts to bebidout PPP CenterExecutiveDirectorCosetteCanilao. The SwisschallengefortheNLEX-SLEXConnectorRoadProjectislikelytobescheduledonOctober,according August 21, InterAksyon.com, Amojelar Darwin DPWH to invite counter-proposals for NLEX-SLEXConnector Roadby October Line 1(LRT-1),CosetteV.Canilao,ExecutiveDirectorofthePublic-PrivatePartnership(PPP). More than30firmshavesignifiedtheirinterestfortheP60-billionexpansionandoperationofLightRailTransit August 30, Business World Online Interest SignifiedontheLRT-1 SouthExtension Project PPP Advisory July-September 2012 PPP Advisory 30 PPP in the News 31 Arenal metrostationinthe outskirtsofMadridlastJuly24. Briefing visitedtheMetrode Madrid´soperational,safetyandsecuritycontrolheadquarters locatedintheAltode The Philippinedelegation to theManilaMetroLine1Extension,Maintenance,and OperationProjectInvestors’ July 31, ofForeign Department Affairs Philippine Delegation to the PPPRoadshow-Madrid Leg Visits Metro MadridControl De Center with about50participantsfrom27Spanishcompanies inattendance. in MadridonJuly23attheheadquartersofSpanish ConfederationofBusinessOrganizations(CEOEinSpanish) The ManilaMetroLine1Extension,Maintenanceand Operations ProjectInvestors’ briefing wassuccessfullyheld August 1, Manila Times PPP roadshow for rail heldinMadrid Department ofPublicWorksandHighways(DPWH). government’s flagship public-private partnership program has been rescheduled to tomorrow, an official of the The pre-bidconferencefortheNinoyAquinoInternationalAirport(NAIA)ExpresswayProjectunder the August 9, Business World Online Gov’t setsbriefingonNAIA expressway Expressway project. Thirteen firmshaveformallyexpressedinterestinbiddingfortheNinoyAquinoInternationalAirport(NAIA) August 10, Business World Online, Firms interested inNAIAExpressway project a governmentofficialsaidovertheweekend. be pushedbacktoDecemberorearlyJanuarynextyeargiveinterestedpartiesmoretimefinalizetheir bids, The biddingfortheproposedP13.575-billion Ninoy AquinoInternational Airport (NAIA) expressway projectmay August 13, The PhilippineStar, IrisGonzales 13 firmsvie for NAIA road project building constructioninvolvingabout9,300classroomscostingatotalofP16.3billion. firm MegawideCorp.onThursdaywonthebiddingforpublic-private-partnershipprojects(PPP)school- A group led by former Metro Manila Development Authority chief Bayani Fernando and publicly listed construction August 16, PhilippineDailyInquirer, Dumlao Doris Group ledby Bayani Fernando, Megawide winbidfor school-0buildingPPPprojects Bayani Fernandowonthebiddingtoconstruct9,301publicclassroomsforDepartmentofEducation(DepEd). Listed firmMegawideCorp.andacompanyownedbyformerMetroManilaDevelopmentAuthoritychairman August 16, ABS-CBNNews Megawide, BFCorp. bagPPPclassroom projects which yesterdaynamedtwogroupsasthewinnersofcontractstobuildclassroomsinthreeLuzonregions. An Auctionforasecondpublic-privatepartnership(PPP)projecthasbeendeemedsuccessbythegovernment, August 16, Business World Online, NoemiGonzales successful PPP auction Education onThursdaysuccessfullyconcludedthebiddingforitsSchoolInfrastructureProject. The Aquinoadministration’sPublic-PrivatePartnershipProgramtookastepforwardaftertheDepartmentof August 16, InterAksyon.com, Arnold Tenorio takes DepEd bidsout10-year2nd PPPproject offafter BLT classrooms contract PPP Advisory July-September 2012 PPP Advisory PPP in the News Briefing visitedtheRenfeOperationCenterinMadridlastJuly24. The PhilippinedelegationtotheManilaMetroLine1Extension,Maintenance,andOperationProjectInvestors’ July 31, ofForeign Department Affairs Station Philippine Delegation to thePPPRoadshow-Madrid Leg Visits theRenfe Operation Center –Atocha still dependonbaggingclearance tousetheairspaceaboveanoldrailway. Luzon expresswaysarenearly drawnup,aCabinetofficialsaid,notinghowever that kickstartingtheprocesswill Terms forsolicitingcounter offerstoMetroPacificInvestmentsCorp.’s(MPIC)proposed roadlinkbetweentwo July 29, Business World, CliffHarvey Venzon Bid terms readied for road link The deadlineforsubmissionofqualificationdocuments forinterestedpartiesisonSeptember18. (NAIA) ExpresswayPhaseIIproject. Local andforeignconstructionfirmsareinvitedtopre-qualify tobidfortheNinoyAquinoInternationalAirport July 30, ABS-CBNNews Firms invited to pre-qualify for NAIAExpressway project in apublic-privatepartnershipprogramfortheNinoyAquinoInternationalAirport(NAIA)ExpresswayPhase II. The DepartmentofPublicWorksandHighways(DPWH)isinvitinglocalforeignconstructionfirmstoinvest July 30, GMANews DPWH callsonforeign andlocalinvestors to bidfor NAIAExpressway private partnership(PPP)program. bidding forthesecondphaseofNinoyAquinoInternationalAirport(NAIA)Expresswayunderpublic- The governmenttodayurgedlocalandinternational construction companies tojoinintheprequalification July 30, The PhilippineStar Gov’t invites expressway biddersfor airport project announced. public-private partnership program of the government, The Department of Public Works and Highways (DPWH) operate and maintain the Ninoy Aquino International Airport (NAIA) Expressway Phase II Project under the Local andinternationalconstructioncompaniesareinvitedtopre-qualifybidfinance,design,construct, July 31, Diaz Mina DPWH bidsoutNAIAexpressway project committee hearingonhisagency’sexpendituresfor2011and2012. the public-private partnership scheme, Public Works Secretary Rogelio Singson yesterday told the Senate finance President Aquinohasgiventhego-signalforconstructionofP80-billionthree-partskywaynetworkunder July 31, Malaya BusinessInsight, JPLopez All systems skyway network gofor three-part for M. Manila construction of9,300classroomscouldstartwithintheyear. Education SecretaryArminLuistrosaidthatwiththeawardofPPPSchoolInfrastructureProject(PSIP), construction worthP16.5billionnextmonth. The DepartmentofEducation(DepEd)expectstoawardthepublic-privatepartnership(PPP)contractforclassroom July 31, The PhilippineStar, RanierAllanRonda DepEd to award PPPcontract for classroom construction PPP Advisory July-September 2012 PPP Advisory 32 PPP in the News 33 technical proposalshavingbeensubmittedfortheconstructionofschoolbuildingsnationwide. obtaining InvestmentCoordinationCommittee-CabinetCommittee(ICC-CabCom)approvalandfinancial Two public-privatepartnershipprojectshavemovedforward,withtheCavite-LagunaExpressway(CALA) July 24, Business World movePPP projects forward private partnership(PPP)project waspublishedyesterday. The invitation to pre-qualify to bid to finance, design, construct, operate and maintain the P15.86 billion public of theNinoyAquinoInternational Airport(Naia)Expresswayproject. The DepartmentofPublicWorks andHighways(DPWH)hasformallyinvitedinvestors toprequalifyforthebidding July 21, PhilippineDailyInquirer, AnaRoa Bidders for P15-BNaiaexpressway sought at improvingtransportationefficiencyinLuzon. Approved were the Cavite-Laguna Expressway (CALAX) project and the Bicol International Airport Project, aimed government projects. The NEDA-ICCalsoapprovedfourrequestsforcost adjustments andloanvalidityextensionforfourongoing Committee (ICC-CabCom)hasapprovedtwonewtransportationprojectsworthP48billion. The NationalEconomicandDevelopmentAuthority(NEDA)InvestmentCoordinationCommittee-Cabinet July 23, ManilaBulletin, Edu Lopez NEDA-ICC Approves Cavite-Laguna Tollway, Albay Projects Int’l Airport Project toimprovetransportationefficiencyinLuzon,NEDAsaid. The ICC-CabComapprovedtheCavite-LagunaExpressway(CALAX)projectandBicolInternationalAirport July 23, The PhilippineStar Two getgov’t projects nod transport Project andtheP4.799billionBicolInternationalAirportinitsJuly12meeting. The NEDA ICC’s Cabinet Committee (CabCom) approved the P43.319 billion Cavite-Laguna Expressway (CALAX) approved two transportation-related projects worth P48.118 billion to improve transportation efficiency in Luzon. The NationalEconomicandDevelopmentAuthority’s(NEDA)InvestmentCoordinationCommittee(ICC) has July 24, Malaya BusinessInsight, AngelaCelis NEDA okays P48Bexpressway projects Expressway. 47km expressway that stretches 47.018 kilometers from the end of Cavite Expressway to join the South Luzon The Cavite-LagunaExpressway(Calax)projectinvolvesthefinancing,designandconstructionofanewfour-lane (£659m) expresswayandPhP4.799bn(£73m)airport. The PhilippinesNationalEconomic&DevelopmentAuthority(NEDA)hasapprovedplansforaPhP43.319bn July 23, The Construction Index, UK Philippines approves expressway plans andairport technical andfinancialbidstobuildmorethan9,300classroomsunderabuild-lease-transferarrangement. P16.5-billion classroomconstructionprogramunderthePublic-PrivatePartnership(PPP)schemehavesubmitted Two ofthesixmajorgroupsprequalifiedbyDepartmentEducation(DepEd)toparticipateingovernment’s July 23, The PhilippineStar, RainierAllanRonda Two submitbidsfor DepEd project PPP Advisory July-September 2012 PPP Advisory PPP in the News said duringaSenatehearingonupdatesofhisdepartment’suseitsbudgetforthisyear. “We wantPPPforinfrastructureandtechnicalupgradesof25DoH-runhospitals,”HealthSecretaryEnriqueT.Ona to modernize25state-runhospitals. The Department of Health (DoH) is eyeing to employ the government’s public-private partnership (PPP) initiative July 17, Business World Online, Antonio Alegado Siegfrid Health dep’t liningupmore facilities for PPP Oriental. the improvementofair navigationsystemworthaboutP557millionattheLaguindingan AirportinMisamis The DepartmentofTransportation andCommunications(DOTC)iseyeinglarge Koreanfirmstoparticipatein July 13, , Lawrence Agcaoili DOTC invites Korean project firms for P557-Mairport system attheLaguindinganAirportinMisamisOriental. Communications iseyeingmoreKoreanfirmstoparticipate intheP557millionimprovementofairnavigation To “helpeconomicactivityintheregionsoarto new heights”,theDepartmentofTransportationand July 12, GMANews DOTC invites more Korean project firms for P557MLaguindinganairport awarded bythegovernment—tomakewayforpossible expansionoftheSouthLuzonExpressway(SLEx). Ayala Corp.willhavetorevisethedesignofitspublic-privatepartnership(PPP)project—sofaronly one July 16, Business World Gov’t wants Ayala Corp. to tweak design project Executive DirectorCosetteCanilaosaid. approved the P19.69-billion Cavite-Laguna (Cala) Expressway project, Public-Private Partnership (PPP) Center The InvestmentCoordinationCommittee(ICC)oftheNationalEconomicandDevelopmentAuthority(NEDA) has July 16, PhilippineDailyInquirer, AnaRoa Cavite-Laguna Expressway planapproved Corp. for solutions in the smooth implementation of road projects that will link-up the north and south expressways. The governmenthasaskedforhelpfromtheCitraMetroManilaTollwaysCorp.andPacificInvestments July 16, ABS-CBNNews Link between NLEX,SLEXunderway and SouthLuzonExpressway(SLEX). Tollways Corp. (CMMTC) are proposing to construct two roads that connect the North Luzon Expressway (NLEX) The Pangilinan-ledMetroPacificInvestmentsCorp.(MPIC)andSanMiguelCorp-backedCitraManila portion commontoboth. expressways southandnorthofMetroManilatoexploreoptionsforsmoothimplementation,especiallyona The TollRegulatoryBoard(TRB)hasmetwiththetwogroupsplanningtobuildseparateroadprojectsthatlink July 16, Rappler.com Gov’t coordinates NLEx-SLExroad linkplansofMPIC, Miguel San government canactonthem. proponents ofroadprojectsconnectingtheNorthandSouthExpresswaystoharmonizetheirproposalsso The DepartmentofTransportationandCommunication(DOTC)throughTollRegulatoryboardhasaskedthe July 17, Malaya BusinessInsight Gov’t wants harmonized connector road projects PPP Advisory July-September 2012 PPP Advisory 34 PPP in the News 35 yesterday. of public-privatepartnership(PPP)ventures,toproceedthefeasibilitystudystage,PPPCenterofficialssaid The governmenthasgiventhegreenlightforthreemorepriorityprojects,twoofwhichareonofficiallist July 11, Business World proceedMore projects priority to feasibility studystage proposed P60billionLightRailTransit(LRT)Line1extension projecttoCaviteonJuly10. The DepartmentofTransportation and Communications (DOTC) isexpectedtoholdapre-bidconferenceforthe July 03, The PhilippineStar, Lawrence Agcaoili DOTC setspre-bid confab for LRT extension projects undertheAquinogovernment’smuch-touted Public-PrivatePartnership(PPP)program. The DepartmentofBudgetandManagementhasapproved thereleaseofP2.39billionfundsforvariousroad July 08, Rappler.com P2.4-B budgetapproved for DaangHari, NAIA, otherroad projects road projectsinthecountry. for purposesofboostingthegovernment’sflagshipPublic-PrivatePartnership(PPP)programandimprove more The DepartmentofPublicWorksandHighways(DPWH)willbereceivinganadditionalP2.4-billioninfreshfunding July 09, The PhilippineStar, Porcalla Delon DPWH to getP2.4-billionfundfor government flagshipprojects Transit (LRT)1extensionproject. Construction, DMCI,SumitomoCorp.andFFCruz&Co.,areinterestedinparticipatingtheP55-billionLight Rail Twenty-five local and foreign companies, including San Miguel Infra, Mitsubishi Corp., Hanjin Heavy Industries & July 11, The PhilippineStar, Lawrence Agcaoili 25 int’l, local firms eye LRT extension project oftheAquinoadministration. A totalof25companieshavesofarindicatedtheirinteresttoparticipateinthemultibillion-pesopriority rail July 10, BusinessMirror, Lenie Lectura 25 firmsbid for P55-BLRT Line1 Manila. maintenance (O&M)projectoftheLightRailTransit(LRT)line1extension,whichwillconnectCaviteandcapital The country’slargestbusinessgroupshaveexpressedinteresttoparticipateinthebiddingforoperationsand July 10, Rappler.com Miguel,San Ayala-MPIC, 23otherseye LRT-1 extension project system, andtheLine1CaviteExtension,aswellconstructionoflatter. The project will bid out the operations and maintenance (O&M) of the existing Light Rail Transit (LRT) Line 1 proceedings ontheP60-billionManilaLine1Extensionproject. More than a hundred representatives of foreign and local investors attended the briefing and pre-qualification July 11, The Manila Times, RosaliePeriabras LRT-1 extension bidding getshugeinterest PPP Advisory July-September 2012 PPP Advisory PPP in the News and operateunderthepublic-privatepartnership(PPP)scheme. The citygovernmenthasproposedfivepriorityinvestmentareastoprivatesectorshere,whichtheycoulddevelop August 3, PhilippineInformationAgency, Catherine Apelacio govt city identifies fiveGenSan priority investment areas forPPP pine government’spublic-private-partnership(PPP)program. Japanese investors willpour in moreinvestments in thecountry, especially inMindanao, in support of thePhilip- August 4, Gaitano PhilippineInformationAgencyJennifer Japan to invest more inagri, PPPinMindanao vate partnershipprojectsthatwouldgenerateanenergycapacityof28megawatts,ViceMayorLawrenceFortun. Foreign andlocalinvestorsareeyeingtobuildrenewablepowerfacilitieshere,partofButuan’snewpublic-pri- August 5, News Minda Investors eyeing to buildrenewable power plants inButuan Regional Ne partnership (PPP)program. International Airport(NAIA)Expressway,aprojectupforauctionunderthegovernment’spublic-private Indonesian firmPTCitraLamtoroGungPersadahasairedrenewedinterestinbuildingtheNinoyAquino July 1, Business World, CliffHarvey Venzon taken asaPPPprojectinTalisayCity,NegrosOccidental. PPP CenterExecutiveDirectorCosetteCanilaocitedthe country’s first heritagerestoration project tobeunder- the lightofagrowingtourismindustry,PPPCentersaid. Heritage restorationprojectsthroughpublic-private partnerships (PPP)aredeemedhighlyviablespecificallyin July 5, The Manila Times, Caraballo Mayvelin Heritage site restoration isgoodbusiness plementing thisasoneoftheflagshipprograms Aquinoadministration. A cityofficialhereunderscoredtheimportanceofpublic-privatepartnership(PPP)asgovernment is im- August 2, PhilippineInformationAgency Butuan Cityofficialunderscores ofPPP importance through thepublic-privatepartnership(PPP). The vicemayorofButuanCityhasurgeddelegatesthe21stMindanaoBusinessConferencetoinvestin August 3, PhilippineInformationAgency Butuan vice mayor urges businessmento invest inButuan out beforetheyearends,PPPCenterExecutiveDirectorCosetteCanilaosaid. be submittedtotheNationalEconomicandDevelopmentAuthority(NEDA)thismonthinhopesofhavingitrolled one of 22 priority projects under the government’s centerpiece private-public partnership (PPP) program — will The operationandmaintenance(O&M)projectofLaguindinganInternationalAirportinCagayandeOroCity— July 2, Business World, CliffHarvey Venzon to berolled project outby yearendLaguindingan airport Citra airsrenewed interest inNAIAroad w s PPP Advisory July-September 2012 PPP Advisory 36 PPP in the News 37 Mayor EricSaratanandthePublicPrivatepartnershipCenter. market soundingsessionconductedbythelocalgovernmentofTalisayinNegrosOccidentalledCity based retailplayers888ChinaSquare,LopuesDepartmentStore,andCarmellaValleyCorp.recentlyattendedthe Mall giantsAyalaLandSalesInc.andSMPrimeHoldingsoftheSuperMalls,alongsideNegrosOccidental- and Redevelopmentproject. Major retailoperators expressed stronginterest to takepartinTalisay City’s PlazaComplexHeritageRestoration July 4, thjeDaily Tribune PPP heritage, restoration draws project interest of Talisay businesscommunity celerated governmentspendingandsteadyrolloutof constructionprojectsbytheprivatesector. Cement makerHolcim Philippines sees a double-digit growth in cement business this year on the back of an ac- August5, PhilippineDailyInquirer, Dumlao Doris seenboostingcementPPP projects sales ings fromtheextensionofloansforbig-ticket,public infrastructure projects. The profitabilityoflocalbanksisseenfurtherimprovinginthenextquartersastheygeneratemoreinterest earn- August 6, PhilippineDailyInquirer, Remo Michelle asPPPprogramBank profit gainstraction seenrisingfurther ed thePhilippinesisoneexamplesinceeconomyhasbeenexceedingexpectations,albeitlowexpectations. “Breakout nations” are defined by Sharma as countries that have been beating growth expectations. Sharma not- out Nations”andheadofMorganStanleyEmergingMarketsAssetManagement. The Philippinescanbecomeoneoftheso-called“breakoutnations,”accordingtoRuchirSharma,author“Break - August 17, ABS-CBNNews, Cathy RoseGarcia W lion foreigntouristarrivalsby2013. through thePublic-PrivatePartnership(PPP)ProgramofAquinoadministration,arecrucialtoreaching 5 mil- Tourism Undersecretary Daniel Corpuz said infrastructure projects in the pipeline, mostly airports being pushed August 12, BusinessMirror, Estrella Torres seenvitalto reachingPPP projects 5-Mtourist arrivals O the PublicPrivatePartnership(PPP)Center. Carmella ValleyCorp.recentlyattendedamarketsoundingsessionconductedbyTalisaylocalgovernmentand Ayala andSM,aswellNegrosOccidental-basedretailers888ChinaSquare,LopuesDepartmentStore redevelopment projectinTalisayCity,NegrosOccidental. Mall developersSMPrimeHoldingsandAyalaLandInc.appeartobeinterestedintheheritagerestoration July 03, ABS-CBNNews SM, Ayala eye heritage restoration project hy thePhilippinescanbea ‘breakout nation’ ther Ne PPP Advisory July-September 2012 PPP Advisory w s PPP in the News goods acrossborderseffectively”publishedbyGeneva-basedInternationalTradeCentre(ITC). This recommendationwascontainedinachapterofthebookontradepolicyforexportsuccesstitled“Move ensure successoftradefacilitationandenhanceexportcompetitiveness. Developing countriesincludingthePhilippinescanexplorepublic-privatepartnership(PPP)modelinabidto July 20, Confederation, PhilippineExporters Inc. (PHILEXPORT), Danielle Venz Public-Private Partnership, Key to Success of Trade Facilitation otherwise usuallyundertake alone. in funding, constructing, operating, and maintaining major infrastructure projects that the government would tration. ThePPPprogramtapsintothefinancialresources oftheprivatesector,whichispresumablymoreefficient economic growth,public-privatepartnerships(PPP)have beenmadeaflagshipprogrambytheAquinoadminis- To givetheneededboosttocountry’sinvestment levelandtobuildupinfrastructurenecessaryaccelerate July 21, Business World Online, JuseMariaMarella ofIDEA How willthe flagshipPPPprogram contribute to growth? Opinion and monopolyissues. the pharmaceuticalmanufacturingandhealthcaresectors inthecountryparticularlylaw-mandatedpricecontrol President BenignoS.AquinoIIImadeanassuranceWednesdaythathisgovernmentwilllookintotheconcerns of July 04, ofthe Office President ofthePhilippines Aquino vows to address drugmanufacturing, healthcare issues damentals continuetoworkonitsfavor,Barclayssaidinareport. The Philippinesisseentobagitsfirstinvestmentgraderatinginhistorythenext1218monthsassolid fun- July 7, The PhilippineStar, Prinz Magtulis Phl expected to bagfirstinvestment grade rating in12-18mos tries in2012asinvestorsfavorthecountry’sgrowthtrajectory,supportedmainlybydomesticconsumption. Bank ofAmerica-MerrillLynchseesthePhilippinestockmarketandpesooutperformingallotherASEAN coun- July 6, InterAksyon.com, LikhaCuevas-Miel Philippine stock market, SEAneighborsthisyear pesoto -MerrillLynch outperform media groupBCIAsiaPhilippines,Inc. partly totheincreasedrolloutofpublic-privatepartnership(PPP)projectsinperiod,accordingconstruction The valueoflocalpublicinfrastructurelaunchesgrewbydouble-digitslastmonthversustheprior,thanks July 11, Business World, Franz JonathandelaFuente Public expands construction 56%inJune 2012, wholaudedthecountry’srobusteconomicperformanceanditsprospectsforfuture. The PhilippinesreceivedaboostfromspeakersatrecentforumheldtheHouseofLordsinLondonon17July July 20, PhilippineEmbassyinLondon, UK House ofLords forum discussespositive Philippineeconomic developments for infrastructure,shouldhelpachieve“sustainablegrowth.” Roberto F.DeOcampo,vice-chairmanattheMakatiBusinessClub,notedpursuingPPPprojects,especiallythose July 25, Business World Power, factory, infrastructure ventures sought for growth PPP Advisory July-September 2012 PPP Advisory 38 Activities & Events July 27 Venue: Santos General City. the Local Government Santos UnitofGeneral City. inthisforumRicote asGuestSpeaker organized by July 23-24: Madrid, Spain July 19-20: London, UnitedKingdom Valley. Council (RDC)XI. Venue: Nabunturan, Compostela this dialogue organized by RegionalDevelopment in Speaker as Tolentino Ferdinand Director July 20 Canilao to jointhePhilippine Delegation Partnership Forum.Partnership InvestmentPublic-Private Through by DOTC andIFC. LRT 1International RoadShow, organized Plan to the Provinces. RDP Roadshow: BringingtheDevelopment LRT Project.I SouthExtension Venue: the for Conference Pre-Qualification PDMF BoardMeeting. July 10 Legislative Building, ElNido, Palawan. Venue:Project. Management Waste Solid the and System and Waste Water Treatment System Project Water Municipality’s the for option PPP bankable Municipality TAA the of ElNidointhedevelopment ofaviableand and the Center signed PPP the Gacot-Lim between Edna Mayor and Tolentino Ferdinand Director Deputy-Executive Nido in Palawan. ofEl and theMunicipality Agreement (TAA) between thePPPCenter Signing ofthe Technical Assistance Room July 12 Bulwagan ngKarunungan CALENDAR OF ACTIVITIES ANDEVENTS CALENDAR OFACTIVITIES 39 PPP Advisory July-September 2012 PPP Advisory JULY Executive CosetteDirector

BM Drco Eleazar Director CBKMS PPP Center Conference Deputy-Executive 2 DBP 12F August 23 of CivilEngineersInc.; Venue: Hall. Quezon City in thisconference organized byPhilippine Institute Speaker FerdinandTolentinoas Director Executive August 24 Pedro, City. Iloilo San Fort Bldg., 6 Region NEDA Room, Conference Karunungan, DepEdBldg., Pasig City. Department ofEducation.Department for SchoolInfrastructure Project ofthe Opening ofFinancial Bids for the PPP Expressway Project. NAIA the for Conference Pre-Qualification DOTC andIFC. LRT 1International RoadShow, organized by esn o ti atvt. eu: S Tann Rm. Training A-520, 5FSouth Wing AnnexDFA FSI Bldg, Roxas Blvd. Venue: activity. this for person Executive Cosette Director Canilao asresource (DFA) onPromoting Investments Plan. ofForeignMeeting withDepartment Affairs VI ( PPP Orientation-W Institute ofCivil EngineersInc. 9th Technical Conference ofthePhilippine August 16 Room, DPWHBldg., Port Area, Manila. August10 to jointhePhilippine Delegation. August 02-03: Tokyo, Japan W estern Visayas) LGUs. Executive CosetteCanilao Director AUGUST orkshop for Region eu: F Operations 2F Venue: Venue: Bulwagan ng Venue: Main Main Venue: Deputy- Activities & Events September 11-15 September in Italy. Venue: Rome, Italy. Audience: Confederation ofBusinessAssociations inthePhilippines. activities export-oriented Target the pipelineofPPPprojects, renewable energy and pre- of businessmento discussthePPPProgram and this in Speaker orientation briefing forItaly’s largest confederation as Tolentino Ferdinand September 4 September Korea. to represent the PPP Center. presenter Venue: Seoul, South as Ricote Eleazar Director CBKMS September 12 September the PPPCenter. Venue: Phnom Penh, Cambodia EleazarRicote aspresenterDirector to represent in Rome, Italy. Pre-orientation Briefing for CONFINDUSTRIA 3rd ASEAN Connectivity Symposium. (Bicol Region)LGUs. PPP Orientation-W Forum. Policy Agriculture Pacific Asia 11th 3-4 September and MelbourneAustralia. Philippine Economic ManagersinSydney Cosette Canilao to jointhePhilippine Delegation. September 7-8 September Room, Arimbay, Legazpi Albay. City SEPTEMBER Deputy-Executive Director orkshop for Region V

Venue: NEDA V Conference

Executive Director CBKMS

PPP Advisory July-September 2012 PPP Advisory October 22 October Zamboanga City October 26 October PPP Program. Canilao inSwitzerland to promote Philippine PPP Center’s Executive Diractor Cosette (Northern Mindanao) LGUs. Mindanao) (Northern PPP Orientation-W Financiers andLawyers. and International Developers, Contractors, Business Meeting. Target Audience: Local 2012 PhilippineEnergy &Infrastructure (Eastern Visayas) LGUs.(Eastern Visayas) PPP Orientation-W (Ilocos) LGUs. PPP Orientation-W IX (ZamboangaPeninsula) LGUs. PPP Orientation-W October 2-3 October City,La Hotel Philippines. October 9 October Oro City September 25 September September 18 September Venue: San Fernando City, La Union Venue:Gallen, Switzerland. OCTOBER orkshop for Region VIII orkshop for RegionX orkshop for RegionI orkshop for Region Venue: Palo, Leyte Venue: Makati Shangi- Venue: Makati Venue: Cagayan de Venue: 40 DIRECTORY OF PPP CENTER OFFICIALS

COSETTE V. CANILAO Executive Director ABOUT THE PPP CENTER Public-Private Partnership Center Phone: +632 929-5187 Email: [email protected] By virtue of the Executive Order No. 8 series of ATTY. FERDINAND D. TOLENTINO 2010, the Public-Private Partnership (PPP) Center is Deputy Executive Director mandated to facilitate the implementation of the Public-Private Partnership Center country’s PPP Program and Projects. Phone: +632 929-4968 Email: [email protected] Under the Aquino Presidency, the PPP Program is RINA P. ALZATE a cornerstone strategy for national development Director IV aimed at accelerating infrastructure and other Project Development & Monitoring Facility Service development services, in order to sustain national Phone: +632 929-592 economic growth. Email: [email protected]

ATTY. SHERRY ANN N. AUSTRIA The PPP Center provides technical assistance Director IV to national government agencies (NGAs), Policy Formulation & Evaluation Service government-owned-and controlled corporations Phone: +632 929-0647 Email: [email protected] (GOCCs), state universities and colleges (SUCs), and local government agencies (LGUs) as well as to FEROISA FRANCISCA T. CONCORDIA the private sector to help develop and implement Director III critical infrastructure and other development Project Development Service projects. Phone: +632 929-9251 Email: [email protected]

ATTY. ROMELL ANTONIO O. CUENCA Director IV In Memoriam Legal Service Phone: +632 929-8630 Email: [email protected]

ELEAZAR E. RICOTE Director IV Capacity Building & Knowledge Management Service Phone: +632 929-8630 Email: [email protected]

LELINA A. QUILATES Director IV Administrative Service Phone: +632 929-3971 Email: [email protected] Sec. Jesse M. Robredo May 27, 1958 - August 18, 2012

A genuine servant-leader.

41 PPP Advisory July - September 2012 Contact Us

Public-Private Partnership Center NEDA sa Quezon City EDSA, Diliman, Quezon City 1101 Phone: +632 990-0721 Fax: +632 990-0721 loc. 8003 Email: [email protected] www.ppp.gov.ph

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