Unsolicited PPP proposals undergo rigorous, holistic review – NEDA

National Economic and Development Authority | September 25, 2019

The National Economic and Development Authority’s review of submitted unsolicited proposals requires a whole-of-government and whole-of-society approach, considering all the laws that these projects must comply with and their potential impact on various facets of development.

“NEDA always ensures that these unsolicited proposals in our pipeline are carefully selected and thoroughly reviewed. Selected are those that fit into the goals and strategies of the government, as in the Philippine Development Plan 2017-2022. Importantly, they should follow the Build-Operate-Transfer or BOT law, among others,” said Socioeconomic Planning Secretary Ernesto M. Pernia.

NEDA looks into the technical, financial, economic, social, and environmental aspects of the projects submitted for appraisal. These include a review of the proponent’s financial model to check the rates of return and if they are consistent with proposed legal obligations under the draft concession agreement.

“This review entails a round of negotiations between the government and the private sector proponent. We need to ensure that once awarded, the project will be implemented without undue legal and political risks succeeding administrations have to face,” said Pernia.

As of September 20, 2019, 20 unsolicited proposals have been submitted to the NEDA’s Investment Coordination Committee (ICC) Secretariat, apart from projects under the Public Investment Program.

Of the 20 unsolicited proposals, one Public-Private Partnership (PPP) project, the Unsolicited Build-Operate-Transfer (BOT) Proposal on the Bulacan International Airport in Bulakan, Bulacan, was approved by the NEDA Board last December 2018, and with a recently-signed concession agreement. Two other projects, the Unsolicited Proposal for the New Panglao Bohol International Airport and the Unsolicited Build-Operate-Transfer Proposal: Ninoy Aquino International Airport, have been reviewed by the ICC Technical Board (ICC-TB) and is due for ICC-Cabinet Committee action within the last week of September.

Ten (10) of the 20 proposals have been presented to the ICC-TB but have yet to complete ICC requirements or comply with ICC instructions.

The rest (7 project proposals) are still under ICC Secretariat evaluation and undergoing refinements based on technical discussions with ICC member agencies (including the PPP Center), sponsor agencies, and/or original private proponents of these proposals.

“We view these unsolicited proposals as an indication of private sector confidence in the Philippine economy. NEDA is doing its best to efficiently and speedily process these, allowing the private sector to innovate, while keeping in mind the public’s interest over the medium and long term,” Pernia added.

ANNEX

Table 1 Unsolicited proposals with pending compliance with ICC instructions, as of September 20, 2019

For further discussion in the ICC-Technical Working Group	1. Unsolicited Proposal for the Davao People Mover Project (DOTr) 2. Unsolicited Proposal for the C5 MRT 10 Project (DOTr)
With recently submitted ICC requisite documents for NEDA, DOF, and PPPC review	3. Unsolicited Build-Transfer-Operate Proposal for the Fort Bonifacio-Makati Sky Train Project (DOTr) 4. Unsolicited Build-Operate-Transfer (BOT) Proposal for the 50-Year Integrated Development Plan for the Mactan-Cebu International Airport (MCIAA) 5. Unsolicited Proposal for IT Project for LGU City of Naga-UNLAD BAYAN Local Government Information System (City of Naga, Cebu)
With pending submission/compliance with ICC-TB instructions	6. Unsolicited Operate-Add-Transfer (OAT) Proposal: Laguindingan Airport (CAAP) 7. Unsolicited OAT Proposal for the Davao International Airport (CAAP) 8. Unsolicited Operate-Maintain-Upgrade-Transfer (OMUT) Proposal for the Operation and Maintenance (O&M) and Facility Upgrade of Kalibo International Airport (CAAP) 9. Unsolicited Proposal for the Light Rail Transit (LRT) 6 Cavite Line A Project (DOTr) 10. Unsolicited Proposal for the MRT-11 Project (DOTr)

Table 2 Unsolicited proposals undergoing refinements, as of September 20, 2019

With recently submitted additional information for NEDA, DOF and PPP Center review	1. Unsolicited Proposal for the Cavite-Tagaytay-Batangas Expressway (CTBEx) (DPWH) 2. Unsolicited Proposal for the Tarlac-Pangasinan-La Union Expressway (TPLEX) Extension Project (DPWH) 3. Unsolicited Build-Transfer-Operate and Maintain (BTOM) Proposal: Cebu Monorail Transit System Project (DOTr)
With pending submission from the Implementing Agency to NEDA Secretariat	4. Unsolicited Proposal for the Philippine Charity Sweepstakes Office (PCSO) Corporate Center Project (PCSO) 5. Unsolicited Proposal for the North Luzon Express Terminal Project (DOTr) 6. Unsolicited Proposal to Finance, Design, Develop, Operate, and Maintain the Bureau of Immigration (BI) Tourist-Visa Section Online System Project (BI)
With pending submission from the Implementing Agency to PPP Center as ICC Secretariat	7. Unsolicited Proposal for Integrated Flood Control, Coastal Defense, Expressway Project of Manila Bay (DPWH)