45515-001: Strengthening Public-Private Partnerships in the Philippines | Asian Development Bank

Philippines: Strengthening Public-Private Partnerships in the Philippines

Sovereign (Public) Project | 45515-001 Status: Active

The capacity building technical assistance will help the Government of the Philippines (i) improve PPP enabling framework, (ii) strengthen institutional set-up and capacity in PPPs, (iii) help establish infrastructure investment financing and risk guarantee mechanisms to facilitate private sector interest, and (iv) help structure bankable PPP projects through sustainable project development financing.

Project Details

Project Officer
Balbosa, Joven Z. Southeast Asia Department Request for information
Country
  • Philippines
Modality
  • Technical Assistance
Sector
  • Public sector management
 
Project Name Strengthening Public-Private Partnerships in the Philippines
Project Number 45515-001
Country Philippines
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7796-PHI: Strengthening Public Private Partnerships in the Philippines
Technical Assistance Special Fund US$ 1.50 million
Government of Australia US$ 7.00 million
Canada (CIDA) US$ 1.20 million
TA 7796-PHI: Strengthening Public-Private Partnerships in the Philippines (Supplementary)
Technical Assistance Special Fund US$ 500,000.00
Government of Australia US$ 15.00 million
TA 7796-PHI: Strengthening Public-Private Partnerships in the Philippines
Canada (CIDA) US$ 3.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Public sector management / Economic affairs management - Public expenditure and fiscal management

Gender Equity and Mainstreaming No gender elements
Description The capacity building technical assistance will help the Government of the Philippines (i) improve PPP enabling framework, (ii) strengthen institutional set-up and capacity in PPPs, (iii) help establish infrastructure investment financing and risk guarantee mechanisms to facilitate private sector interest, and (iv) help structure bankable PPP projects through sustainable project development financing.
Project Rationale and Linkage to Country/Regional Strategy Inadequate infrastructure is a major development constraint in the Philippines. Infrastructure development has not kept pace with continued population growth and increasing urbanization. From a peak of 6% of GDP in 1998, private infrastructure investments have declined to below 1% over the past decade. The Philippines has had successful experience with PPPs in the power sector. The Government has shown strong commitment to moving PPP agenda forward. However, due to weak governance and despite abundant savings, successful private investment in other infrastructure sectors has been rather limited. The Government of the Philippines made promotion of private sector infrastracture investments through PPPs its priority. To increase private investment in infrastructure one needs to address such issues as inadequacy of the PPP policy, legal and regulatory frameworks, insufficiency of the institutional set-up and capacity to effectively promote and implement PPP projects, insufficiency of the system and capacity to prepare bankable PPP projects, and lack of long-term financing and credible risk guarantee mechanisms for PPP projects.
Impact The TA's impact will be increased private sector investment in infrastructure. This will contribute to an improved availability and quality of infrastructure services in Philippines and thus support economic growth, improve the country's competitiveness and contribute to poverty reduction.
Project Outcome
Description of Outcome The TA's outcome is an improved Government capacity to promote, develop and implement environmentally sound PPP projects. This will also contribute to improved public sector institutional capacity and governance.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Strengthened PPP enabling framework

2. Strengthened capacity of the PPP Center

3. Institutionalized PPP best practices

4. Established long-term financing and risk guarantee mechanisms

5. Well-structured bankable PPP projects developed

Status of Implementation Progress (Outputs, Activities, and Issues)

a. On Strengthened PPP enabling environment, the current congress has filed six bills on the PPP Act in the House of Representatives and three bills in the Senate. These bills, which will further improve the PPP enabling environment, are pending in the Committee of Public Works of each chamber. The PPP Governing Board, the overall PPP policy-making body, has issued ten policy circulars on various PPP topics, which will promote clarity and consistency in the approach to PPPs. An EO has mandated the use of Alternative Dispute Resolutions (ADRs) in PPP projects. The Government has issued guidelines on the Strategic Support Fund to cover right-of-way acquisitions.

b. On capacity building, the Government has issued a comprehensive National Government Agency (NGA) PPP Manual as well as a Local Government Units (LGU) PPP Manual. The TA is supporting the development of a Knowledge Management Portal (KMP) for the PPP Center, which will provide information and data-sharing to various stakeholders through a virtual data room. International and national consultant experts continue to provide _on-call_ day-to-day assistance to PPPC staff. Extensive training has also taken hold under the TA for both national and local government officials. A Twinning Partnership was established with the Infrastructure New South Wales of Australia to promote capacity building.

c. On established long-term financing and risk guarantee mechanisms, the Government has established a contingent liability fund with an annual allocation of P30 billion since 2015. Recently, the Securities and Exchange Commission approved the listing of PPP projects in the Stock Exchange and is preparing the rules for listing of project bonds in the capital markets. These initiatives would diversify and expand sources of financing for PPP projects.

d. On PPP project pipeline development and implementation, fifteen PPP projects have been awarded with a total estimated project cost of over $6.2 billion (P310.5 billion), a notable achievement. Of these, ten projects are PDMF-supported totaling $2.2 billion (P102.1 billion). Actual disbursements have reached only $10.5 million and based on existing contract commitments and projects recently approved by the PDMF Committee, $5.5 million are expected to be disbursed between now and the closing date of 31 July 2018, leaving some $2.0 million still undisbursed by the current closing date assuming there are no further delays in the Government's project processing. The reason for the slow disbursements of the PDMF funds is the delays in the bidding of projects during the last remaining months of the previous administration and the undergoing review of all PPP projects by the new Administration, including policy changes in the modality for procurement of infrastructure projects.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations with the relevant government agencies, private sector representatives, and development partners took place.
During Project Implementation
Business Opportunities
Consulting Services

It is proposed to recruit two international firms, three international individual consultants, and eight national (94 person-months of international and 186 person-months of national consultancy). The first firm will be for PPP Policy, Legal and Capacity Development for (i) PPP policy and enabling environment development and PPP project development processes, (ii) PPP legal and regulatory framework improvement, (iii) PPP information management systems improvement, including developing a modern internet and intranet sites, and (iv) capacity building of government staff in conceptualizing, developing,

bidding, contracting, implementing and evaluating PPP projects. The second firm will support incorporation and development of operational processes for infrastructure investment financing mechanisms.

Three individual international consultants are proposed for (i) Technical Advisory support to the whole TA, (ii) Transaction Advisor Selection support, and (iii) Risk Management and Guarantees development support.

Procurement N/A
Responsible ADB Officer Balbosa, Joven Z.
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Philippines Country Office
Executing Agencies
National Economic & Development Authority
7th Floor, NEDA Building
Amber Avenue, Pasig City
Metro Manila, Philippines
Timetable
Concept Clearance 26 Nov 2010
Fact Finding 06 Dec 2010 to 13 Dec 2010
MRM -
Approval 24 Mar 2011
Last Review Mission -
Last PDS Update 08 Mar 2017

TA 7796-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Mar 2011 01 Apr 2011 01 Apr 2011 31 Jul 2013 31 Mar 2021 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
2,000,000.00 26,200,000.00 8,000,000.00 0.00 0.00 0.00 36,200,000.00 24 Mar 2011 19,482,926.49

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Strengthening Public-Private Partnerships in the Philippines Procurement Plans Mar 2013
Strengthening Public-Private Partnerships in the Philippines TA Change in Scope, Amount, and Implementation Arrangements Dec 2012
Strengthening Public-Private Partnerships in the Philippines TA Change in Scope, Amount, and Implementation Arrangements Mar 2012
Strengthening Public-Private Partnerships in the Philippines Technical Assistance Reports Feb 2011

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
LGU PPP Infrastructure Specialist Individual - Consulting Active 23 Nov 2017 13 Dec 2017
Joint Venture Specialist Individual - Consulting Active 23 Nov 2017 13 Dec 2017
LGU PPP Legal Advisor Individual - Consulting Active 23 Nov 2017 13 Dec 2017
LGU Project Financial Specialist Individual - Consulting Active 23 Nov 2017 13 Dec 2017
Systems Development Expert (Civil registry) Individual - Consulting Active 09 Nov 2017 15 Nov 2017
Project Finance Specialist Individual - Consulting Active 08 Nov 2017 21 Nov 2017
Environmental Sustainability and Resettlement Expert Individual - Consulting Active 25 Aug 2017 07 Sep 2017
Financial Modelling Specialist (PPP) Individual - Consulting Active 19 Aug 2017 25 Aug 2017
PPP Policy Expert Individual - Consulting Closed 12 Jul 2017 18 Jul 2017
PPP Legal Advisor (Infrastructure) Individual - Consulting Closed 04 Jul 2017 17 Jul 2017

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan