Infrastructure NewsPart 3 News: Seven Winning SectorsPublic-Private Partnerships

PPP Center targets projects rollout not later than H1 2012

THE Public-Private Partnership (PPP) Center expects the bidding process for PPP projects to be rolled out not later than the first half of 2012 as most are still on the drawing boards or are being evaluated by the Investment Coordination Committee (ICC).

PPP Center Executive Director Cosette Canilao said projects approved to draw from the Project Development and Monitoring Facility (PDMF) will be taking in transaction advisers until the end of the year. The transactional advisers are tasked to undertake feasibility studies for PPP projects.

Transactional advisers help ensure that risks involved for both the private and public sectors are fair for both parties. The National Economic and Development Authority (Neda) earlier said that with the presence of transactional advisors, there will be more take up for the various PPP projects presented by the national government.

“Some projects like the Department of Education’s [Deped] 10,000 new classrooms are expected to be rolled out by the first half of 2012,” Canilao said.

Canilao earlier said even with a rough start and no project has been bidded out, the PPP Center is already in a better position to make PPPs happen for the Philippines as the Center has not only launched the PDMF formally but also created templates for local government units to use for their own PPPs.

The PPP Center has also identified the nine national and international consulting firms that will assist in the conduct of pre-investment studies that will be done prior to bidding and will be funded through the PDMF.

“We are in a better place right now because we already have the building blocks. The PDMF launching is just the start. It is now a question of inter-agency coordination,” Canilao said.

Earlier, the Neda said around six PPP projects were recently approved to draw from the PDMF around P170 million to P185 million to finance pre-investment studies.

The Neda said these projects include the modernization project of the Philippine Orthopedic Center which was approved to draw P42 million from the facility and the construction of 10,000 classrooms project of DepEd was granted to draw P13 million.

The four other projects are the construction and operation and maintenance of the Mactan Cebu International Airport (MCIA) New Passenger Terminal Building which was granted P30 million to P40 million; the operation and maintenance of a new Bohol Airport, P40 million; the operation and maintenance of the Laguindingan Airport in Misamis, Oriental, P20 million; and the establishment of an Automatic Fare Collection System (AFCS) for LRT 1, LRT 2, and MRT 3, P25 million to 30 million.

The PPP Center also disclosed last month the nine local and international groups and firms it has accredited to become transactional advisers for the PPP Center.

These include the Filipino consortium of KPMG whose lead firm is the Manabat Sanagustin & Co. CPAs; Dutch consortium led by Rebel Group International BV; Indian groups led by Deloitte Touche Tohmatsu India Pvt. Ltd. and another one led by ICRA Management Consulting Services Ltd.; and Canadian consortium led by CPCS Transcom Ltd.

Other accredited groups are the Singporean consortium led by PricewaterhouseCoopers Services Llp.; European consortium led by Hill International SA; and Australian groups seperately led by Ernst & Young Australia Infrastructure Advisory and SMEC International Pty. Ltd.
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By: Cai U. Ordinario
Source: Business Mirror, Nov. 21, 2011
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