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Investing in the Future of the Filipino

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Investing in the Future of the Filipino PUBLIC - PRIVATE PARTNERSHIP CENTER Annual Report INVESTING IN THE FUTURE OF THE FILIPINO INVESTING IN THE FUTURE OF THE FILIPINO | 1 Contents A FEW WORDS 04 Message from 40 CONTINUING the President THE WORK 05 Message from the Socioeconomic Planning Secretary THE PPP CENTER 06 Message from the Executive Director 42 Management Committee 08 Message from the Deputy Executive Directors 46 FINANCIAL REPORTS 2019 HIGHLIGHTS 10 Executive Summary 12 Driving Local PPPs 20 Contributing to the Country’s Infrastructure Agenda 28 Championing Climate Resiliency and Expanding Philippine PPPs 31 Building the Center’s Proficiencies 37 Collaborations with Development Partners 2 ANNUAL REPORT | 2019 PUBLIC - PRIVATE PARTNERSHIP CENTER OF THE PHILIPPINES VISION MISSION The PPP Center shall serve The PPP Center shall facilitate as the champion of public- and optimize public-private private partnerships for the partnerships in the country country’s inclusive growth and for the delivery of public sustainable development. infrastructure and other development services. CORE VALUES PROFESSIONALISM PRO-ACTIVENESS We commit to provide fast, As prime movers in public-private reliable, efficient, competent partnerships in the country, we and effective services that strive to achieve positive results adhere to the principles of good through dynamic processes that governance and genuine are anchored on the principles of public service. transparency and accountability. PASSION CLIENT FOR EXCELLENCE ORIENTATION We are dedicated to We intend to foster long-term consistently deliver timely partnerships that will enable and the best quality of public clients to meet their public- service and to ensure efficient private partnership targets. We and effective implementation of will continuously innovate on public-private partnerships in our processes to maintain an the country. investment climate where our partners could operate on a level playing field. My warmest greetings to the Public-Private Partnership Center as it publishes its 2019 Annual Report. The unwavering efforts of your agency in addressing our infrastructure and development needs through public-private partnerships (PPPs) is a testament to this administration’s commitment to bring lasting and significant progress to the entire nation. The Center’s initiative for local PPPs is vital in fostering communities where every Filipino can enjoy a stable, comfortable, and meaningful life. May you continue to persevere and push for development policies and programs that will result in lasting benefits for our people. Together, let us harness the full potential of the public and private sectors to achieve a more progressive future for the Philippines. Message from Congratulations and I wish you success in all your endeavors. THE PRESIDENT OF THE PHILIPPINES RODRIGO R. DUTERTE President Republic of the Philippines 4 ANNUAL REPORT | 2019 This feat, which was sustained implementing agencies, the academe, in 2019, is testimony to the and the private sector – can get government’s relentless effort accurate and updated information to institute reforms to address and knowledge on the PPP process both short-term and long-term in the country. This has also been a development requirements in strategic partnership between the the country’s infrastructure NEDA and the PPP Center to facilitate sector has been paying off. More the alignment of local PPP programs infrastructure projects, including and projects with the regional plans those implemented under the and projects being formulated by the public-private partnership (PPP) Regional Development Councils. scheme, have benefited from the streamlined and quicker approval Significant strides have been process of the NEDA Investment accomplished in the PPP arena as Coordination Committee (ICC) evidenced by the robust pipeline of Technical Board. In 2019, one of the projects, both at the national and major developments in the PPP local levels. We are also starting to scheme was the establishment reap the gains as more PPP projects of the Project Development get completed. Against the backdrop and Monitoring Facility (PDMF) of these accomplishments is the panel of consultants for resilient need to further sustain infrastructure PPP projects at the level of local development and strengthen related government units (LGUs). In recent policy frameworks. Thus, in the years, the PPP Center has been next three years, the government aggressively implementing its will pursue the amendments to the Local PPP Strategy in support Build-Operate-Transfer Law that will of the government’s thrust positively impact the country’s PPP to decentralize Metro Manila Program. Message from through increasing employment opportunities and building It was in 2010 when the government infrastructure facilities nationwide leveraged the PPP scheme to mobilize to promote connectivity across the resources and tap private capital and regional hubs and growth areas. expertise in implementing big-ticket Thus, the PPP Center has been infrastructure projects. It was also THE active in building the capacity the year when the PPP Center was of local implementing agencies established to shepherd PPP process SOCIOECONOMIC and their counterpart LGUs. This in the country. In its 10th year, and strategy is becoming increasingly with the different achievements and PLANNING crucial, especially with the upcoming initiatives in PPPs, I am upcoming implementation of the certain that the PPP Center will look SECRETARY Mandanas case ruling, which will forward to another year of success with appreciably increase the stake of more national and local PPP projects LGUs in local development. added to the pipeline, thus improving The government’s pursuit to our delivery of public services in achieve inclusive and self-sustaining To support the Local PPP Strategy, the final stretch of the Duterte development reflects its commitment NEDA through its Regional administration — para sa matatag, to ensure that no Filipino is left Offices has been hosting the maginhawa, at panatag na buhay ng behind. In recent years, its concerted Local PPP Knowledge Corners. mga Pilipino! effort with the private sector and These Knowledge Corners serve civil society to accelerate economic as information hubs where growth has gained traction with local stakeholders – LGUs, good results. Full-year 2019 figures on the country’s economy reveal that it remains buoyant and at par with regional counterparts in the face of the many challenges. As the current administration embarked on its journey towards the “Golden Age of Infrastructure” through the Build ERNESTO M. PERNIA, PhD Build Build program, the government Socioeconomic Planning Secretary made history in 2018 when public spending for infrastructure projects National Economic and Development Authority exceeded 5.0 percent of the country’s gross domestic product (GDP). INVESTING IN THE FUTURE OF THE FILIPINO | 5 The PPP Center strengthened its focus on PPP projects of local government units, state universities, water districts and other local implementing agencies (LIAs). The PPP Center signed Memoranda of Agreement with Ormoc City, Iloilo City, Quezon City, Marikina City, Iloilo Province, and the Municipality of Roxas in Isabela Province. Through these agreements, the PPP Center commits to support capacity building and development of PPP projects. As further support to LIAs, the PPP Center augmented the panel of transaction advisors of the Project Development and Monitoring Facility (PDMF), to include those appropriate for the projects of LIAs. PDMF is now supporting the water supply projects of the cities of Ormoc and Bislig, and the solid waste management project of Iloilo City. To build the capacities of agencies in implementing joint ventures, the PPP Center conducted three Regional Workshops on PPPs: Joint Venture Arrangements and published, with the assistance of Cities Development Initiative for Asia (CDIA), a Guidebook on Joint Venture for Local Government Units (LGUs). The New Manila International Airport Project was awarded to San Miguel Holdings Corporation on August 19, 2019. Subsequently, the Concession Agreement Message from was signed on September 18, 2019 between DOTr and San Miguel Aerocity, Incorporated. The operation and maintenance of the existing passenger terminal building of the Clark International Airport was handed over to the new operator, Luzon International Premiere Airport Development (LIPAD) THE Corporation, on August 16, 2019. EXECUTIVE DIRECTOR 6 ANNUAL REPORT | 2019 Twenty-six unsolicited proposals (USPs) and eighteen solicited projects were added to the pipeline of PPP projects. These include three airport projects (Ninoy Aquino International Airport (NAIA) Project, Upgrade, Expansion, Operations and Maintenance of Laguindingan Airport, and Bacolod-Silay Airport Project), three rail projects (Cebu Monorail Transit System Project, MRT 7 Airport Access - North Line Project, and MRT 7 Katipunan Spur Line Project), and four road projects (Cavite-Tagaytay-Batangas Expressway (CTBEX) Project, Improvement, Operation, and Maintenance of Kennon Road Project, Quezon-Bicol Expressway Project, and Tarlac - Pangasinan - La Union Expressway Extension Project). In 2020, and with the covid-19 pandemic, the government’s Build, Build, Build Program will be even more strategic to the country’s economic recovery. The PPP Center shall assist agencies in pursuing new priority projects, such as those in the health and IT sectors. Furthermore, the PPP Center shall continue to assist LGUs
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