Philippines: Strengthening Evaluation and Fiscal Cost Management of Public-Private Partnerships

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

Strengthened NEDA's capacity in PPP project appraisal

Strengthened BTr's CL management capacity

Strengthened institutional framework for PPP fiscal cost management

The activities under the DOF and NEDA components have been largely completed.

Under the NEDA component, the TA provided NEDA with on-the-job advisory support on actual PPP projects submitted for their review. A total of 10 projects were successfully appraised and discussed, providing NEDA staff with valuable insights. This exercise strengthened NEDA's decision making capacity which, in turn, contributed to better infrastructure outcomes in the Philippines. The on-the-job advisory component of the TA also increased NEDA ability to identify key factors that determine whether it should approve or reject a project, leading to a more robust investment planning processes within Government. the TA also bolstered the capacity of NEDA through a series of discussion notes covering different aspects of project appraisal. The development of these notes, followed by stakeholder workshops, embedded international best practice within the Philippines's context. The discussion notes targeted different levels of staff, ensuring capacity building at all levels of the organization. This capacity building also improved long-term infrastructure outcomes in the Philippines going forward.

Under the DOF component, the TA designed a Contingent Liability Fund (CLF) with an appropriate governance and legal structure to ensure the prompt payment of CLs while ensuring strong oversight and control. The TA also developed a CLF Valuation Model to provide a transparent, logical, easy-to-use and appropriate estimate of the Government's likely exposure to CLs. Finally, the TA delivered a methodology to ensure accountability of IAs regarding the management of the CLs they create.

PPP Project Evaluation Advisors (firm, international, 20 international and 20 national person-months, intermittent for 1.5 years) -- Project Manager and Team Leader international, 3 person-months, intermittent); Advisory Team (17 international and 20 national person-months, intermittent)

Liability Management Advisors (firm, international, 19 international and 17 national person-months, intermittent for 1.5 years) -- Project Manager (international, 3 person-months, intermittent); Advisory Team (16 international and 17 national person-months)