NEDA Sa Makati Property Redevelopment Project
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NEDA sa Makati Property Redevelopment Project 12 July 2021 The SGV Purpose Nurture leaders and enable businesses for a better Philippines. #SGVforABetterPhilippines Market sounding webinar program 1. Opening ceremonies 2. Opening remarks from NEDA 3. Opening message from PPP Center 4. Overview of PPP 5. Development concept 6. Market profile 7. Project structure 8. Financial highlights 9. Recap of key investment highlights of the NsM Property Redevelopment Project 10. Q&A 11. Closing remarks from NEDA Page 2 14 July 2021 NEDA sa Makati Property Redevelopment Project #SGVforABetterPhilippines Opening ceremonies The SGV Purpose Nurture leaders and enable businesses for a better Philippines. #SGVforABetterPhilippines National Anthem #SGVforABetterPhilippines Key reminders Participants are enjoined to speak out their thoughts and opinions at the designated Question and Answer (Q&A) segment of the program. There will be video recording of the whole session. The recording will be solely used for documentation purposes. This is an information/feedback-gathering activity only. Participation in this activity does not translate to a company’s formal expression of interest to participate in the project. Attendees of this activity are not given due advantage on the projects. Information disclosed are also open to all interested parties to ensure a level playing field come the bidding process. Insights gathered will be solely used for the development of the studies for the NEDA sa Makati Property Redevelopment Project. Page 5 #SGVforABetterPhilippines Speakers for today’s session Mr. Jose Miguel R. De La Rosa Ms. Ma. Monica P. Pagunsan Undersecretary, Corporate Affairs Group OIC, Asst. Secretary, Corporate Affairs Group National Economic and Development Authority National Economic and Development Authority Mr. Ferdinand A. Pecson Atty. Mia Mary G. Sebastian Undersecretary and Executive Director Deputy Executive Director Public-Private Partnership Center Public-Private Partnership Center Page 6 14 July 2021 NEDA sa Makati Property Redevelopment Project #SGVforABetterPhilippines Speakers for today’s session Ms. Veronica A. Santos Atty. Jaime Renato B. Gatmaytan Project Finance Specialist / Team Leader Legal Specialist Partner, SGV & Co. Partner, C&G Law Ms. Marie Stephanie C. Tan-Hamed Mr. Danilo A. Silvestre Ms. Theresa Ianna Teodoro Business Development Team Architect Property Development Specialist Partner, SGV & Co. Consultant, PRIMEX Director, Colliers International Philippines Page 7 14 July 2021 NEDA sa Makati Property Redevelopment Project #SGVforABetterPhilippines Opening remarks from NEDA The SGV Purpose Nurture leaders and enable businesses for a better Philippines. #SGVforABetterPhilippines Opening message from PPP Center The SGV Purpose Nurture leaders and enable businesses for a better Philippines. #SGVforABetterPhilippines Overview of PPP The SGV Purpose Nurture leaders and enable businesses for a better Philippines. #SGVforABetterPhilippines Overview of Public-Private Partnerships NEDA sa Makati Property Redevelopment Project Market Sounding Webinar 12 July 2021 Mia Mary Sebastian Deputy Executive Director PPP Center of the Philippines Infrastructure development for economic recovery and resiliency Infrastructure development, implemented via sound fiscal policies and governance frameworks, shall propel economic recovery and resiliency Government financing General appropriations, corporate funds Financing and implementation Government borrowings Domestic & foreign debt, Investments in Stimulus to investment, official development Incorporation of transportation, food job creation, resiliency measures assistance (ODA) security, and social technological (climate change, disaster infrastructure (e.g. innovations, and delivery risk and reduction, and health, water and economic development emergency situations) in mechanisms sanitation, digital (particularly in the infrastructure projects connectivity, etc.) regions) Private sector financing Public-private Resilient and sustainable infrastructure partnership (PPP) PPP Center of the Philippines The PPP Center facilitates the implementation of the country’s PPP Program. It serves as a central coordinating and monitoring agency for all PPP projects. Advocate for POLICY reforms to enhance Provide technical enabling environment assistance in PROJECTS (development to implementation) Conduct CAPACITY BUILDING activities to improve skills of agencies PPP projects as of 31 May 2021 184 64 AWARDED PROJECTS PROJECTS IN THE PIPELINE PHP 1,315 Billion PHP 7,255 Billion (USD 27.2 Billion) (USD 149.3 Billion)* No. PhP (bn) No. PhP (bn) National 89 1,195 National 44 7,203 Local 95 120 Local 20 52 *Total cost does not include projects undergoing studies and with costs that are yet to be finalized Pipeline of PPP projects National PPPs (44) Local PPPs (20) 5 Water supply and 3 Solid waste Transportation sanitation management 31 (airport, road, rail, port, and terminal) Vertical infrastructure / 5 government property development Health (e.g. university properties, public 6 (hospital facilities market, and slaughterhouse) and services) Emerging sectors in local PPPs Vertical infrastructure / Transportation 5 government property 2 (e.g. port, road, bus rapid 3 Tourism development transport [BRT], and terminal) IT system Health 2 IT system 2 (hospital facilities and services) Renewable energy PPP options for vertical infrastructure projects A. Integrated approach B. Unbundled approach Integrated Private sector partner (PSP) to develop and Specific stand- PSP to develop selected project component or approach maintain the project alone projects deliver specific service of a project Design, build, operate & maintain (DBOM) Design & build (DB) Operate & Design, build & Engineering, maintain (O&M) maintain (DBM) procurement and construction (EPC) Source: San Miguel Corporation Source: PPP Center website Source: Integrated Design Source: Ramiltibayan Associates Ltd (Wikimedia Commons) PPP concept Integrated approach (design + build + operate + GOVERNMENT PRIVATE SECTOR maintain) can reduce whole-of-life project cost More efficient delivery of public services by tapping private sector’s capacity • A long-term contractual agreement and technology between government and a private firm • Targeted towards financing, designing, implementing and operating Optimal risk allocation (where risk is allocated infrastructure facilities and services that to party who can best manage it) can also were traditionally provided by the public reduce project cost sector PPP legal framework Modes of RA 7718 NEDA Joint Implementing Local PPP Code or (Amended BOT Venture (JV) procurement: agency JV Ordinances Law) Guidelines ▪ Solicited ▪ Unsolicited National government agencies ✓ Further reference GOCC, GCE, GICP, GFI, Visit the PPP Center website SUC (including WDs) ✓ ✓ for other pertinent laws and issuances. Access link: Local government https://ppp.gov.ph/other- units ✓ ✓ pertinent-laws/ Mactan-Cebu International Airport (operational) PARTNERSHIPS Bislig Bulk Water Supply and Septage UP Philippine General Hospital (PGH): (under development) PGH Cancer Care in Manila PGH Diliman (under evaluation and approval) For further information, please visit: www.ppp.gov.ph For inquiries, kindly e-mail: Ruby Jean S. Niduaza Office of Deputy Executive Director [email protected] PPPCenter.Philippines @PPP_Ph Public-private-partnership- Center-of-the-Philippines PPPPinas Public sector parties involved National Economic Development Authority (“NEDA”) and Public-Private Partnership Center (PPPC), with the technical assistance of SyCip Gorres Velayo & Co. (SGV) through the Project Development and Monitoring Facility, is redeveloping the NEDA sa Makati Property. Page 21 #SGVforABetterPhilippines Market sounding activity objectives What would we like to know? The government intends to sound off the initial project scope and potential private sector role for the proposed NEDA sa Makati Property Redevelopment Project. Project viability The government intends to foster a broadly competitive procurement. The activity may reduce time spent for securing partnerships by engaging with the private sector at an early stage. Capacity Gather private sector insights on the proposed scope and potential participation/role in the project such as: • Interest as a developer/contractor, supplier, operator, tenant, financing Private sector institution, capability • Experience on similar projects • Possible points for improvement in the structuring of these projects (i.e., technical and financial aspects) Maturity of the • Other points/components that should be considered in the study concept • Identify potential challenges and risks Page 22 14 July 2021 NEDA sa Makati Property Redevelopment Project #SGVforABetterPhilippines Project Overview The SGV Purpose Nurture leaders and enable businesses for a better Philippines. #SGVforABetterPhilippines Development concept #SGVforABetterPhilippines Existing situation Building background Current status • The existing building is located in the Makati Central Business District, fronting Amorsolo Street and its rear accessible on Adelantado Street • 7-storey building with basement parking, roof deck and gross floor area (“GFA”) of 7,220 sq.m. with an approximate footprint of 1,000+ sq.m. or over 50% of the 1,800 sq.m. site. • Previously used as storage areas of NEDA and PIDS Source: Google images NEDA sa Makati Building, Amorsolo Street Page 25 14 July 2021 NEDA sa Makati Property Redevelopment Project #SGVforABetterPhilippines