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PHASE II
PHASE III
PROCUREMENT PLANNING / IDENTIFICATION / AND AWARD Invitation and STRUCTURING / Prequalification APPROVAL
Project Identification & Plan (Pre-FS/FS) Project Preparation/ Structuring Review and Appraisal Processes/ Requirements Procurement Documents Preparation Procurement Plan
Monitoring Evaluation
Construction and Commissioning Contractual Compliance Monitoring and Evaluation Risk Monitoring and Mitigation Project Management Progress Reporting
Transparency and Competitive Requirements Evaluation, Review and Selection Negotiation and Award Processes
these (PPP) projects promise so much for our economy and for the Filipino, and they (private partners) will play a vital role in our administrations fulfillment of our Social Contract with our people.
PPP Definition
A range of possible contractual agreement between the Public
Advantages of PPPs
Financial (Monetary)
Transfers public sector burden of raising funds to private partner(s)
Facilitates public sector use of limited budget for other urgent (i.e. social) requirements Provides additional sources of revenues for public sector depending on the contractual arrangement Value for Money
Rate of Return
In general, the BOT Law entitles the private partner to reasonable return to his invested capital. The return should reflect the prevailing cost of capital in domestic and international markets. For negotiated contracts which are public utilities and monopolies, the return is determined by existing laws, which in no case to exceed 12%
on rate base.
PUBLIC-PRIVATE PARTNERSHIP CENTER
Provides limited role of private sector in local infrastructure and development Plan
Provides important services as designed by the public sector without considering the revenue stream Limited coverage to implement local infrastructure and development projects due to availability of funds
Recognizes the essential role of the private sector as main engine for national growth and development
Enhances the provision of services by utilizing the most appropriate technology and expertise which can be transferred to the public Can implement priority infrastructure and development projects without the burden of raising funds Allows public sector to utilize funds for other purposes Faster project implementation and ensured operating efficiency
Delegation of responsibility and risk between the public and private partners; Less risks on government due to risk-shared allocation Cost ceiling is more on the projects viable revenue stream Flexible financing including use of private capital Ready source of funds during lean periods
Defined cost ceiling for projects Financing option is defined and structured
PPP Modalities
Public Owns and Operates Assets Public-Private Partnership Private Sector Owns and Operates Assets
Civil Works Management & Operating Contracts Service Contracts Leases/ Affermage Concessions BOT Projects DBOs
Full Divestiture
High
Service Contract
Management or Operation and Mgt (O&M) Contract Lease/Affermage Concession Joint Ventures
Types of Contracts
Asset Ownership
Capital Investment
Commerci al Risk
O&M
Duration (Yrs)
Service Contract
Management Contract Lease
Public
Public
Public
1-2
Public
Public
Public
3-5
Public
Public
Shared
Private
8-15
Concession
Public
Private
Private
Private
25-30
Private
Private
Private
>30
100%
Government risk
Private risk
0%
PPP
Concessions
Privatization
Legal Framework
1987 Constitution of the Republic of the Philippines
RA 8974 (Acquisition of ROW) RA 7160 DILG (Local Government Code) MC 2011-16 (PPP Sub-Committee in the LDC)
PUBLIC-PRIVATE PARTNERSHIP CENTER
Modes of Procurement
SOLICITED
part of the list of priority projects (identified in the PIP for national projects and the RDIP/PDIP/LDIP for regional, provincial and local projects)
UNSOLICITED
refers to project proposals submitted by the private sector, not in response to a formal solicitation /request issued by an agency/LGU Involves new concept or technology and/or is not part of the list of priority projects No direct government guarantee, subsidy or equity is required
disturbances or disruptions
PUBLIC-PRIVATE PARTNERSHIP CENTER
Solid waste collection equipment; composting plans and facilities; sanitary landfills
Forestry Health
Transportation
Institutional Set-Up
Contracting Parties/Implementing Agencies
Line Agencies (national agencies) Government Corporations Local Government Units
Approving Authority
Local Projects
PROJECT COST (PhP) 20M > 20M to 50M APPROVING BODY MDC PDC
50M
> 50M to 200M > 200M Final approval
CDC
RDC / RDC for MM ICC Local Sanggunians
Oversight Committees
ICC
Chairman
DOF Secretary
Vice-Chairman
NEDA DG
Members
Oversight Committees
INFRACOM
Chairman
Advise the President/NEDA Board on infrastructure development Coordinate activities of agencies involved in infra development
NEDA DG
Vice-Chairman
DPWH Sec.
Members
Recommend to the President policies, programs & projects concerning infra development
Oversight Committees
RDC
Formulate/monitor policy implementation; promote rational resource allocation Clearing house for regional development policy/ program proposals Chairman
NEDA DG
Members
Coordinating Office
PPP Center
Conduct project facilitation and assistance to the IAs, GOCCs, LGUs Provide advisory services, technical assistance, trainings and capacity development Recommend plans, policies and implementation guidelines related to PPP in consultation Manage and administer a revolving fund to be known as the Project Development and Monitoring Facility for the preparation of business case, pre-feasibility and feasibility studies and tender documents of PPP programs and projects Monitor and facilitate the implementation of the priority PPP Programs and Projects of the agencies/LGUs Establish and manage a central database system of PPP Programs and Projects Recommend improvements to timelines in processing PPP programs and project proposals, and monitor compliance of all agencies/LGUs
Government Undertakings
Cost Sharing
provision of access infrastructure Right of Way (ROW) Transfer of Ownership/usufruct/possession of land, etc. Partial Financing (50%)
Manage and administer the Project Development and Monitoring Facility (PDMF)
Monitor PPP Project implementation Advocate policy reforms for efficient PPP implementation
Capacity Development Pre-investment financing (PDMF) Advisory services (legal, technical, financial matters)
www.ppp.gov.ph
The PDMF
A revolving pool of funds made available to enhance the
Scope of Services
preparation of project prefeasibility studies (FS) and FS project structuring preparation of bid documents and draft contracts transaction advisory assistance in the tendering process including bid evaluation and award of PPP projects through competitive selection
Pre-investment activities of potential PPP projects of IAs/LGUs/GOCCs, including, but not limited to:
PHASE II
PHASE III
PROCUREMENT PLANNING / IDENTIFICATION / AND AWARD Invitation and STRUCTURING / Prequalification APPROVAL
Project Identification & Plan (Pre-FS/FS) Project Preparation/ Structuring Review and Appraisal Processes/ Requirements Procurement Documents Preparation Procurement Plan
Monitoring Evaluation
Construction and Commissioning Contractual Compliance Monitoring and Evaluation Risk Monitoring and Mitigation Project Management Progress Reporting
Transparency and Competitive Requirements Evaluation, Review and Selection Negotiation and Award Processes
Right of way acquisition (ROWA) and related costs (including resettlement) Costs of designing, building and otherwise delivering any part of the project
Project Identification
Contractual Arrangement
Project Preparation
Contractual Considerations
Approval
Tariff Setting
Independent Regulator
Competition
Award/Construction/Development of Facility
Cooperation
Concession/Cooperation Facility Users/Public
Phase 1: Development
PROJECT IDENTIFICATION PPP projects could be identified from the following origins:
Public Planning
Local Development Planning
RDP/RPFP
PROJECT IDENTIFICATION
PDPFP
C/MDP
Land acquisition
Environmental impacts
Social Safeguards
Risks
Safety aspects
Project Feasibility
Does the project adhere to the vision, mission, goals and
Project Feasibility
Were all the development impacts of the projects clearly
operation?
PUBLIC-PRIVATE PARTNERSHIP CENTER
Phase 2: Approval
PPP Center
Phase 2: Approval
LOCAL DEVELOPMENT COUNCIL INVESTMENT COORDINATION COMMITTEE
National Projects costing below P300M
National Projects costing above P300M (for NEDA Board approval)
Negotiated Projects regardless of amount (for NEDA Board approval)
NEDA BOARD
NEDA SECRETARIAT
PPP PE Form No. 5: Risk Allocation Matrix (see Annex B for the discussion on Risk) PPP PE Form No. 6: Logical Framework PPP PE Form No. 7: Maximum Government Exposure PUBLIC-PRIVATE PARTNERSHIP CENTER
Phase 3: Competition
Pre-qualification Qualification Procedure
Solicited Proposals (6 months)
IAs/GOCCs evaluate project proposal Approving body to recommend Rate of Return (ROR) Negotiation and Contract Approval
Phase 3: Competition
Bidding procedures
Pre-qualification Qualification Procedure
Solicited Proposals (6 months)
IAs/GOCCs evaluate project proposal Approving body to recommend Rate of Return (ROR) Negotiation and Contract Approval
Issuance of RFP / Bid Preparation (30 / 60120) Prepare the Bid (90 / 120)
PQ of Bidders (30)
Project Description
Name of Project: Shopping Center and Public Market Land Area: Approximately 1.0- 1.5 hectares Implementor: LGU Private Investor: Name of the Company Proposed PPP Scheme: Build-OperateTransfer or Build-Transfer-Operate
PUBLIC-PRIVATE PARTNERSHIP CENTER
Project Description
a commercial shopping center building (which is mainly of interest to the investor), a public market (which is mainly of interest to the LGU), and a parking lot and open spaces (needed to support both).
Project Financing
The private sector proponent is responsible for raising capital for the construction of the entire complex, including all miscellaneous expenses
Government Center
Project Specifications and Design
Project Description
Name of Project: Government Administrative Center Land Area: 6,000 square meters Implementing Agency: National Food Authority Private Partner: Real Estate Developer Proposed PPP Scheme: Build, Lease, and Transfer (BLT)
Figure 3-8: Government Administrative Center Conceptual Site Plan, Vehicular Circulation
Figure 3-9: Government Administrative Center Conceptual Floor Plan, Pedestrian Circulation
Project Description
Nature of Project: Water Source Development, Treatment and Distribution Land and Bldg. Requirements: Land for 10 deep wells and a 5,000 sq. m. administration and maintenance center, storage tanks, distribution system and 20,000 service connections Implementor: LGU Private Partner: Contractor with experience in water supply backed by a reputable financing institution or individual Proposed PPP Scheme: Build-OperateTransfer
Project Description
A water supply and distribution system with 20,000 service connections for an LGU with a population of 100,000 Water will be sourced from 10 deep wells The distribution system consists of:
four 500 cubic meter capacity storage tanks, 50,000 meters of distribution system mains and laterals, and 20,000 metered service connections (plus fire hydrants for the city center).
Project Description
Project Financing The private sector is responsible for raising all financing required for the construction, operation, and maintenance of the facility. The LGU contributes the land required for wells, distribution lines and buildings. Sources of Revenue Project revenues will come from water sales, connection fees, and other water related charges.
PPP Achievements
INSTITUTIONAL STRENGTHENING
Reorganization of the PPP Center Capacity Building of PPP Units of Implementing Agencies Improved inter-agency coordination and involvement
PPP Achievements
PPP-ENABLED IMPLEMENTING AGENCIES AND LOCAL GOVERNMENT UNITS
Capacitated over 350 IAs and LGUs in PPP project preparation in less than a year Successful launch of the LGU PPP Manual Vols. 1-3; regional training roll-out ongoing DILG-PPP Center Memorandum of Agreement on PPP Capacity Building for local government units Partnerships with various institutions to conduct relevant capacity building interventions on PPP
TRANSPORTATION
8 projects | USD 1.88B
AGRICULTURE
3 projects | USD 186.9M
HEALTH SECTOR
2 projects | USD 126M
WATER SECTOR
3 projects | USD 1.08B
ROAD NETWORK
3 projects | USD 1.29B
The M&E System is implemented by the PPP Center and the national
Institutional Framework
IAs/ LGUs
PPP Center
Surveys
Interviews
its IRR
O&M Phase
Asset Transferring
compliance with all operations and maintenance parameters and performance indicators
preparation for asset transfer termination of contract Compliance with prescribed standards and specifications
project documents
Conduct of regular project field visits/inspections
Major Parts: Project Profile Project Status Documents Submitted PUBLIC-PRIVATE PARTNERSHIP CENTER
Presence of Champions
PPP Challenges
PPPs are long-term contracts
Presence of Champions
PPP WORKSHOP
Initial Project Preparation
Guide Questions
Is the project consistent or aligned with Regional/Provincial priorities? Is there any previous effort or initiative on the project? Studies already prepared? What is the status? How does the concerned LGU plan to proceed? Why the PPP option? Why not ODA or through GAA? Which LGU shall serve as contracting party? Will the project involve any other LGU or agency? Has there been any legal action (local resolution, MOA, etc) already initiated between and among them?
PUBLIC-PRIVATE PARTNERSHIP CENTER
Guide Questions
What are the projects (initial) viability indicators? - Project revenue streams? Other sources of repayment mechanisms? - Basic project design? Economic benefits? - Other considerations environmental, social considerations, etc. What is the proposed PPP Structure (Concession, MC, BOT, etc)? Briefly outline roles/responsibilities of public sector (LGU) and private partner What will the LGU be willing and able to bring into the project? What risks (responsibilities and costs) it is willing and can bear under the partnership? What form of assistance is needed from PPP Center? (Additional Training, PDMF Support, Technical Assistance, etc.). Will this entail drafting of a new FS or an update of an existing FS? What is the indicative amount of assistance needed?
THANK YOU
www.ppp.gov.ph