Philippines: Strengthening Public-Private Partnerships in the Philippines

Sovereign Project | 45515-001 Status: Active

Summary

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.

Latest Project Documents

Consulting Notices See also: CMS

Title Deadline
Senior Infrastructure Engineer 3 Oct 2016
Financial Modeling Specialist 5 Oct 2016

Procurement Notices See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents


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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
Canada (CIDA) US$ 1.20 million
Government of Australia US$ 7.00 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. Component on Strengthened PPP Enabling Environment. The PPP Act legislation that will institutionalize reforms to further improve the enabling environment for PPPs is now at its final stages in the legislative process (3rd reading in the House of Representatives and 2nd reading in the Senate) and will be taken up in the next session of Congress in May 2016. Executive Order (E.O.) 136 created the PPP Governing Board, institutionalized the Project Development and Monitoring Facility (PDMF) and further strengthened the PPP Center. E.O. 78 was issued by the Government mandating the use of Alternative Dispute Resolutions (ADRs) in PPP projects. Six policy circulars on various PPP topics have been approved by the PPP Governing Board; The Government has issued guidelines on the Strategic Support Fund for PPP Projects, and has established a Technical Working Group on Managing Contingent Liabilities.

b. Component 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 a Knowledge Management Portal (KMP) for the PPP Center, which will provide timely data-sharing services to bidders and various stakeholders. International and national consultant experts continue to provide on-call day-to-day capacity building assistance to PPPC staff. Extensive training has also taken hold under the TA and a Twinning Partnership was established with the Infrastructure New South Wales of Australia to foster knowledge-sharing between the two institutions. Two PPP policy dialogues were held in Sydney and Melbourne, between Australian PPP experts from both government and the private sector and Philippine Government officials to distill best international practice in PPPs. External training has taken hold. From the start of the TA in 2011 through January 2016, the TA has provided external training assistance to a total of 49 staff of the PPP Center, NEDA, DOF and COA.

c. Component on PPP Project Pipeline Development and Implementation. Twelve PPP solicited projects have been awarded with a total estimated project cost of over $4.8 billion (P217.4 billion). Of these, nine projects are PDMF-supported totalling $2.9 billion (P134.6 billion). This has been an impressive performance as there was only one PPP project awarded at the start of the current administration.

d. Joint ADB-Development Partners' Mid-year TA review. The joint review was undertaken in May-June 2014, which recognized the important reforms that have been institutionalized, a solid program in PPP project delivery and effective capacity building.

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 recruite two international firms, three international individual consultants, and eight national (94 person-months of international and 186 person-months of national consultancy). The first firmwill be for PPP Policy, Legal and Capacity Development for (i) PPP policy and enabling environment develop-

ment 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 firmsupport 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 Staff

Responsible ADB Officer Joven Balbosa
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 31 Mar 2016

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 Jul 2018 -
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 16,781,525.13
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.

Related Publications

None currently available.


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