Investment Opportunities Awarded Ppp Projects
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investmentawa r d ed opportunitiesppp projects Investment opportunities 1 Republic of the Philippines Public-Private Partnership Center 8th Floor, One Cyberpod Centris PPp concept EDSA cor. Quezon Avenue, Quezon City 1100 (+632) 8709-4146 Public-Private Partnership (PPP) can be broadly defined as a contractual agreement between For more information, please visit: the government and a private firm targeted www.ppp.gov.ph toward financing, designing, implementing, and For inquiries, e-mail us: operating infrastructure facilities and services [email protected] that are traditionally provided by the public sector. It embodies optimal risk allocation Or follow our social media accounts: between the parties—minimizing cost while realizing project developmental objectives. The PPPCenter.Philippines project is also structured in such a way that the @PPP_Ph private sector gets a reasonable rate of return on its investment. PPPPinas Public-Private Partnership Center of the Philippines ppp process DEVELOPMENT STAGE Table of Contents • Project preparation (feasibility study and market sounding activity) • Finalization of project structure 3 PPP Concept and PPP Process 4 Legal Framework 5 The PPP Program and PPP Program Participants APPROVAL STAGE • Project submission to relevant approving bodies 6 The PPP Center of the Philippines • Project assessment and appraisal 7 Solicited PPP Projects • Project approval by appropriate approving bodies (e.g., local development 28 Unsolicited PPP Projects councils, Investment Coordination Committee, NEDA Board, etc.) 40 Doing Business in the Philippines PROCUREMENT STAGE • Pre-qualification (advertisement of Invitation to Pre-qualify and Bid, pre-qualification conference, and submission and evaluation of pre- qualification documents) • Bid proper (pre-bid conference, bid submission, and bid opening and evaluation) PUBLISHED SEPTEMBER 2020 • Award and contract signing with the private sector partner IMPLEMENTATION STAGE • Financial close • Implementation (preparation of Detailed Engineering Design, construction, and commissioning) • Turnover of facility/infrastructure back to the government 2 3 The PPP PROGRAM LEGAL FRAMEWORK Republic Act (R.A.) No. 6957 The 1987 Constitution explicitly acknowledges the critical role that the private sector plays in the “An Act Authorizing the Financing, Construction, Operations and Maintenance of Infrastructure Projects by development agenda of the country. The Duterte Administration aims to address the infrastructure the Private Sector and for Other Purposes” requirements of the Philippines through accelerating the country’s annual infrastructure spending to As Amended by R.A. No. 7718 account for 7% of the Gross Domestic Product (GDP), with PPPs playing a key role. The Amended Build-Operate-Transfer (BOT) Law and its Revised Implementing Rules and Regulations The government envisions the implemention of infrastructure projects to generate significant (IRR) seek to identify specific incentives, support and undertakings, financial or otherwise, that may be employment opportunities, boost economic activities, and attain inclusive growth. granted to Project Proponents, provide a climate of minimum government regulations, allow reasonable returns on investments made by Project Proponents, provide procedures that will assure transparency Guided by the principles of transparency, accountability, and good governance, the PPP Program and competitiveness in the bidding and award of projects, ensure that Contractual Arrangements engages the private sector as vital partners who can bankroll critical infrastructure projects that will reflect appropriate sharing of risks between the government and the Project Proponent, assure close deliver much needed services for its growing populace. coordination between national government and local government units (LGUs), and ensure strict compliance by the government and the Project Proponent of their respective obligations and undertakings Under the hallmark of good governance, the Philippine government guarantees that the private and the monitoring thereof, in connection with or relative to Private Sector Infrastructure or Development sector will be able to do business in an environment that nurtures fair and transparent transactions. Projects to be undertaken under the Amended BOT Law and its Revised IRR. The government ensures that the interests of both the private sector and its citizens are balanced, and that policies and procedures are continually enhanced. 2013 NEDA Joint Venture Guidelines Executive Order No. 423 s. 2005 The robust pipeline of PPP projects is a product of the government’s continuing efforts to deliver viable and well-structured infrastructure projects that will attract investors to bring their business to • Section 8 provides that “the NEDA, in consultation with the Government Procurement Policy Board the Philippines. (GPPB), shall issue guidelines regarding joint venture agreements (JVA) with the private entities with the objective of promoting transparency, competitiveness and accountability in government transactions, and, where applicable, complying with the requirements of an open and competitive public bidding.” PPP program participants • These Guidelines are applicable to government-owned and/or controlled corporations (GOCCs), government corporate entities (GCEs), government instrumentalities with corporate powers (GICPs), Regardless of nationality, anyone is encouraged to government financial institutions (GFIs), and state universities and colleges (SUCs). invest and participate in the Philippine PPP Program subject to technical, financial, and legal requirements. Local Government PPP Code/JV Ordinance • The Local Government Code (R.A. 7160) allows LGUs to enter into Joint Ventures and other • Project proponent can obtain financing from cooperative arrangements. foreign and/or domestic sources and/or engage the services of a foreign and/or Filipino • The Department of the Interior and Local Government (DILG), together with the Public-Private contractor. Partnership Center of the Philippines, issued Joint Memorandum Circular (JMC) No. 2019-01 or the Supplemental Guidelines on Public-Private Partnership for the People Initiative for Local • 100% foreign equity may be allowed in all areas Governments (LGU P4). The JMC encourages LGUs to adopt an LGU P4 Code where one of the of investment EXCEPT in case of an infrastructure suggested modalities is JV. facility whose OPERATION requires a public utility franchise. In such case, the facility operator must be Filipino or if a corporation, must be duly registered with the Securities and Exchange Commission (SEC) and at least 60% owned by Filipinos. 4 5 SOLICITED THE PUBLIC-PRIVATE PARTNERSHIP CENTER OF THE PHILIPPINES PPP By virtue of Executive Order No. 8, series of 2010, as amended by Executive Order No. 136, series of 2013, the PPP Center is mandated to facilitate the implementation of the country’s PPP Program and Projects. PROJECTs The PPP Center is the main driver of the PPP Program. It serves as the central coordinating and monitoring agency for all PPP projects in the Philippines. It champions the country’s PPP Program by enabling implementing agencies in all aspects of project preparation, As of September 2020 managing of the Project Development and Monitoring Facility (PDMF), providing project advisory and facilitation services, monitoring implementation of awarded projects, and empowering agencies through various capacity building activities. The government sees infrastructure as one of the main The PPP Center provides technical assistance to national government agencies (NGAs), drivers in helping the Philippine economy bounce back from government-owned-and/or-controlled corporations (GOCCs), government financial the negative impact of Covid-19 pandemic. The roll out of institutions (GFIs), state universities and colleges (SUCs), special economic and tourism infrastructure projects around the country remains one of the zones, water districts, and local government units (LGUs) to help develop and implement priorities of the government to recover from this global crisis. critical infrastructure and development projects. Public-private partnership (PPP) projects are seen as critical components to the government’s recovery program under The PPP Center also advocates for policy reforms to improve the legal and regulatory infrastructure development. Today, there are several viable frameworks for PPPs in order to maximize the potential of these infrastructure and local and national projects in health, transport, water and development projects in the country. sanitation, solid waste management, and other sectors that are in the pipeline which the private sector can participate. These Through Executive Order No. 136, the PPP Center shall act as the Secretariat of the PPP projects will support the government’s goal to further boost Governing Board. The Board is the overall policy-making body for all PPP-related matters, the country’s economy amidst this crisis, open more jobs to including the PDMF. It is responsible for setting the strategic direction of the Philippine PPP the Filipino people, and sustain the momentum it has achieved Program and creating an enabling policy and institutional environment for PPP. since its implementation of the Build, Build, Build Program. 6 7 Project under PROCUREMENT Project Benefits Implementing Agency Department of Transportation and Land Transportation Franchising and Regulatory Board Project Cost Php 393.79 million Reduction