PPPC REP Annual Report 2018
PPPC REP Annual Report 2018
ISSN: 2350-7934
Published by:
CHAMPIONING
LOCAL PPPs
PUBLIC-PRIVATE PARTNERSHIP CENTER
OF THE PHILIPPINES
8th Floor, One Cyberpod Eton Centris,
EDSA, Quezon City, 1100, Philippines,
Tel: 632.709-4146
Email: info@ppp.gov.ph
2018 ANNUAL REPORT
www.ppp.gov.ph
Facebook: PPPCenter.Philippines
Twitter: @PPP_Ph
ISSN: 2350-7934
Published by:
PUBLIC-PRIVATE PARTNERSHIP CENTER
OF THE PHILIPPINES
8th Floor, One Cyberpod Eton Centris,
EDSA, Quezon City, 1100, Philippines
Tel: (632) 709-4146
Email: info@ppp.gov.ph
www.ppp.gov.ph
Facebook: PPPCenter.Philippines
Twitter: @PPP_Ph
CONTENTS
02 08 38
A FEW WORDS 2018 HIGHLIGHTS LOOKING FORWARD
04
PPP Projects
PPP Projects
in the Regions
10
14
40
THE PPP CENTER
PPPs: Accelerating the
Messages from the Build, Build, Build
Deputy Executive Program 18 Management
Directors 06 Committee 40
Expanding the
Scope of the PDMF 22 PPP Center Units 42
Promoting Efficiency,
Integrity, and
Sustainability in PPPs
Expanding the
Network of
26
46
BY THE NUMBERS
Institutional Partners 30
2
P U BL I C - P R I VAT E PART N ER S H I P C ENT ER 1
2018 AN N UAL R EP ORT
VISION MISSION
The PPP Center shall serve as The PPP Center shall facilitate and
the champion of public-private optimize public-private partnerships
partnerships for the country’s in the country for the delivery of
inclusive growth and sustainable public infrastructure and other
development. development services.
CORE VALUES
PROFESSIONALISM PRO-ACTIVENESS
We commit to provide fast, reliable, As prime movers in public-private
efficient, competent and effective partnerships in the country, we strive
services that adhere to the principles to achieve positive results through
of good governance and genuine dynamic processes that are anchored
public service. on the principles of transparency and
accountability.
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PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
MESSAGE FROM
THE PRESIDENT
OF THE PHILIPPINES
As the central coordinating and monitoring agency for all PPP projects in the Philippines,
the PPP Center continues to provide technical assistance to various government
agencies, state universities and colleges, local government units as well as the private
sector in the development and implementation of critical infrastructure projects
throughout the country.
I acknowledge the milestones you have achieved in the previous year, especially in the
delivery of much-needed public infrastructure such as airports, roads, ports, bridges, and
other vital installations. As a leading driver of our Build, Build, Build Program, I laud your
effort, hard work and commitment to further advocate, facilitate and push for more PPPs
in the regions.
May you continue to serve our people well as we work towards a stronger and more
progressive future for the Filipino nation.
RODRIGO R. DUTERTE
President
Republic of the Philippines
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2018 AN N UAL R EP ORT
3 3
PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
MESSAGE FROM
THE EXECUTIVE
DIRECTOR
The year 2018 marked yet another productive year for The private sector offered their support to the
the Philippine PPP Program. The Bases Conversion government’s “Build, Build, Build” program by way of
and Development Authority (BCDA) awarded the Clark proposing a number of unsolicited projects. Among these
International Airport Operations & Maintenance (O&M) are four airport projects: the New Manila International
PPP Project to the North Luzon Airport Consortium. Airport Project, the Upgrade, Expansion, Operations and
Maintenance of the New Bohol International Airport
The Parañaque Integrated Terminal Exchange (PITX) (Panglao) Project, the Davao International Airport
was opened to the commuting public. Formerly known Development, Operation and Management Project, and
as the Southwest Integrated Transport System Project, the Operation & Maintenance and Facility Upgrade of
the intermodal transport hub aims to facilitate the Kalibo International Airport Project. Also among the
decongestion of Metro Manila by connecting passengers unsolicited proposals are three rail projects: the Fort
coming from provinces southwest of Manila to other Bonifacio – Makati Skytrain Project, which will connect
transport systems that are serving inner Metro Manila. Guadalupe in Makati to the Uptown Mall in BGC, the C5
MRT-10 Project, which will traverse the C5 alignment
The construction of the building for the Civil Registry having Ninoy Aquino Terminal Airport (NAIA) Terminal 3
System – IT Project Phase II project of the Philippine at one end and Commonwealth Avenue, Quezon City at
Statistics Authority (PSA) was also completed. Through the other end, and the Davao People Mover Project which
this project, which includes an electronic system for will have 16 stations and shall serve the Metro Davao
managing civil registry documents as well as specimen area.
signatures of all city and municipal registrars, the PSA
shall be able to serve the public more efficiently when it
comes to the provision of civil registry documents.
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2018 AN N UAL R EP ORT
On the policy front, the PPP Center formulated the In pursuit of its objective to continuously enhance its
“Framework on PPP Center’s Assistance on Joint internal operations and processes in facilitating the
Venture Agreements”, which was approved by the PPP Philippine PPP Program, the PPP Center obtained ISO
Governing Board (PPPGB) on March 22, 2018. This 9001:2015 Certification on the Administration and
clarified the kinds of technical assistance that the PPP Management of its Project Development and Monitoring
Center may extend to IAs in relation to joint ventures. Facility, and established the necessary systems to
Accordingly, the PPP Center launched 38 capacity be compliant with Executive Order No.2, S. 2016
building activities involving a total of 1,247 participants “Operationalizing in the Executive Branch the People’s
representing 281 local institutions. Constitutional Right to Information and the State Policies
to Full Public Disclosure and Transparency in the Public
The PPP Center continued to work hand-in-hand with Service”.
other government agencies, with legislative bodies
and with key stakeholders to introduce reforms to The above accomplishments would not have been
the PPP legal frameworks. These reforms aim to possible without the strong support of our principals- the
address bottlenecks in the PPP process, facilitate NEDA, the DOF and DBM, our PPP Governing Board, our
operationalization of PPP policies embedded in the law, fellow members of inter-agency committees working on
enhance competition among private sector proponents, PPPs, our development partners – Asian Development
enhance governance and ensure the sustainability of Bank, Deutsche Gesellschaft für Internationale
the PPP program. Zusammenarbeit (GIZ), Carnegie Mellon University-
Australia thru the Department of Foreign Affairs and
To ensure that social, environmental and other Trade, University of Asia and the Pacific, Stratbase
safeguards are integrated in the development of ADRI Institute, Tourism Infrastructure and Enterprise
PPP projects, the PPP Center secured the approval Zone Authority, Philippine Competition Commission,
of a set of guidelines entitled “Safeguards in PPP: and last but not least, the hard work of the PPP Center’s
Mainstreaming Environmental, Displacement, Social and dedicated employees.
Gender Concerns” from the PPPGB in December 2018.
These guidelines consolidate relevant laws, decrees, Mabuhay ang PPP program ng Pilipinas!
orders, issuances, rules and regulations, and provide
guidance on how to take these into consideration when
conducting feasibility studies.
FERDINAND A. PECSON
Executive Director
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PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
It was a good year for the PPP Center to consolidate developments as a major item in relevant meetings and
previous and recent efforts into one strategic focus, one dialogues of the Regional Development Councils (RDCs)
that has consistently been a core consideration in this which are duly represented by all major public and private
massive infrastructure development agenda spanning stakeholders of local infrastructure and development
through leadership and institutional transitions. This programs and projects.
focus was on regional-, local-, or community-based
infrastructure and development projects to be developed It is through this clearly established set of institutional
and implemented through PPP options. Anchored on collaborations where the Center expects to move forward
the PPP policy and institutional framework’s recognition this Local PPP Strategy and its objectives of harnessing
of the country’s devolved structure and the contracting private sector financing and efficiencies into local and
authorities of local implementing agencies, this local PPP regional development and service delivery. With its
strategic focus was really set to fully take off in 2018. services and interventions clear and strong – capacity
building, project development and structuring, policy
The Center’s Local PPP Strategy is aligned with the and process enhancements, project implementation
Duterte administration’s infrastructure spending and monitoring and facilitation – the Center will draw
regional development priorities. As such, the Center’s strength and sustain the initiative through them, our local
Local PPP Strategy was complemented by critical policy PPP institutional partners and champions. Aside from
and institutional inputs of key agencies and sectors. the principles of transparency and accountability which
The Department of the Interior and Local Government the Center is heavily committed to, good governance
(DILG) mounted a series of capacity building sessions after all is also about collaborative institutional
on local PPPs around the country following its PPP for partnerships.
the People Initiative for Local Governments (also known
as LGU P4). The Department of Trade and Industry’s
Board of Investments (DTI-BOI) organized regional
investment briefings all over the country as well to
promote local PPPs following its inclusion of LGU PPPs
as a priority investment area in the 2017 Investment
Priorities Plan. Most importantly, the NEDA Regional ELEAZAR E. RICOTE
Offices jointly established with the PPP Center the Deputy Executive Director
Regional PPP Knowledge Corners and included local PPP
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2018 AN N UAL R EP ORT
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PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
EXECUTIVE SUMMARY
2018 BY THE NUMBERS
Total
Projects
17 awarded projects
13 projects for approval LOCAL PPP PIPELINE
8 projects under development
1 project under procurement
1 project approved for Total
Swiss Challenge Projects PROJECT DEVELOPMENT
1 project under review by the
4 projects under negotiation
AND MONITORING
Implementing Agency
1 project under negotiation 2 projects under procurement FACILITY
2 projects under development
1 project approved for PDMF contracts signed
procurement (US$60.26 million) as
1 project for approval of end-2018
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2018 AN N UAL R EP ORT
RECOGNITIONS
POLICY INSTRUMENTS
approved PPP
Governing Board
resolutions
KNOWLEDGE
MANAGEMENT
PPP Knowledge
Corners established
9
PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
A total of 75 high-impact projects continue to bolster government utilizes public-private partnership (PPP) as
the government’s momentum in addressing the critical one of its key strategies. With 9 PPP projects among the
infrastructure need of the Philippines. These projects 75 infrastructure targets, the public is assured of new
are part of the ambitious Build, Build, Build Program, public facilities that will enhance access to government
which is the government’s response to bridging the services, provide better travel experience, and hasten the
infrastructure gaps around the country. To further delivery of basic services.
pump-prime and maintain the Program’s momentum, the
First-rate international resort airport
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2018 AN N UAL R EP ORT
The Parañaque Integrated Terminal Exchange is dubbed as the Philippines’ first integrated
multimodal terminal, providing hassle-free transfers to the commuting public.
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PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
Aside from the computerization of civil registry operations, the CRS - IT Project Phase II aims to improve service accessibility through
the establishment of 40 additional CRS outlets nationwide.
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PROJECTS UNDER THE BUILD, BUILD, BUILD PROGRAM
2018 AN N UAL R EP ORT
94.61% Ongoing
complete as of
pre-construction
November 30,
Mactan-Cebu International Airport activities
2018
New Passenger Terminal Building Project
Taguig Integrated Terminal Exchange
Inauguration
and soft opening
held on November Ongoing
5, 2018 pre-construction
Parañaque Integrated Terminal Exchange activities
Ongoing
pre-construction NAIA Expressway (Phase II)
activities
13
PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
Taking off from the PPP Center’s initiatives started The PPP Center also continued to provide technical
under the Local PPP Strategy in 2017, there was an assistance to other local PPP projects, such as the
increase in the number of local implementing agencies Baggao Water Supply Project and the Quezon City
(IAs) that expressed their interest to develop their own Integrated Solid Waste Management Facility.
PPP projects. These IAs had three options: whether to
use the Amended Build, Operate, Transfer Law and its In March 2018, the local government of Baggao in
Implementing Rules and Regulations, the NEDA Joint Cagayan held the prequalification for the Baggao
Venture Guidelines, or their own local PPP codes. Water Supply Project. A lone bidder, the Tubig Pilipinas
Consortium, was declared qualified to bid for the P84-
These initiatives resulted in the addition of three new million water project. This was followed by a pre-bid
local PPP projects in the pipeline: conference with the prequalified bidder in August 2018,
where provisions or terms in the Draft Contract were
clarified. The project is targeted to be awarded by the
third quarter of 2019.
Under
Negotiation
approved for
procurement
under negotiation
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2018 AN N UAL R EP ORT
As part of its mandate to promote PPP knowledge at the The PPP Center partnered with its mother agency, the
local level, the PPP Center focused its capacity-building NEDA, in the formation of PPP Knowledge Corners
resources on supporting local government units (LGUs), (PPP KCs) in the 15 NEDA Regional Offices (NROs). The
water districts (WDs), and state universities and colleges PPP KCs were established to act as both information
(SUCs) so they could better understand PPP concepts hubs where local IAs, potential investors, and other
and processes. local stakeholders can obtain accurate information on
PPPs; and as access points to PPP Center services that
In 2018, the PPP Center conducted a total of 38 capacity- will help local IAs implement bankable and viable PPP
building activities for 1,247 participants from 281 IAs. projects.
These trainings varied—from orienting them on basic
PPP concepts and drafting local PPP codes, to preparing
Project Concept Notes.
38 capacity-building
activities for
1,247 participants
Aside from CDIA, the PPP Center also partnered with the
National Economic and Development Authority (NEDA),
the Development Academy of the Philippines (DAP),
and the Commission on Higher Education (CHED) in
delivering its various PPP modules to a wider audience.
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PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
PPP Center officials and staff undergo a project briefing before a site visit to the Paranaque Integrated Terminal Exchange.
As the country’s economic agenda gains traction, a Economic Zone Authority as its implementing agency.
steady stream of viable PPP projects helped jumpstart The project is now under review by the Investment
the infrastructure program of the government. Coordination Committee (ICC).
Throughout 2018, the PPP Center continued to produce a
robust pipeline of PPP projects that supported the policy Another project is the Operation and Maintenance (O&M)
direction of the current administration—to Build, Build, of the Philippine General Hospital (PGH) Diliman PPP
Build. At the close of 2018, the PPP pipeline reached 52 Project, which has been approved for PDMF support
national projects, where 30 are under the categories of in 2018. The National Development Council of the
“solicited” and 22 under “unsolicited.” Department of Trade and Industry (DTI) has started the
feasibility study for its National Development Council
Alongside the emergence of new priorities and the Admin and Commercial Complex Project (formerly
subsequent thrust on local PPPs, the PPP Center worked One DTI Building Complex Project). Meanwhile, the
to build a pipeline that reflected these priorities, assisting local government of the City of Cebu commenced the
implementing agencies (IAs) both from the national investment studies for its Solid Waste Management
and local government to develop, structure, tender, and Project, which will be finished in 2019.
implement PPP projects of varying scope and scale.
There is a current initiative to embark on green and Other solicited projects in the pipeline include (i) the Road
renewable resources projects, as well as health projects, Transport Information Technology Infrastructure Project
that are spearheaded by national and local IAs. (Phase II) of the Land Transportation Franchising and
Regulatory Board (LTFRB); (ii) the Baggao Water Supply
Solicited PPP projects Project of the local government of Baggao, Cagayan; and
(iii) the Angat Hydroelectric Power Plant (AHEPP) Project
Solicited projects continued to be part of the PPP Rehabilitation, Operation and Maintenance of Auxiliary
Center’s traditional PPPs. Some notable solicited #4 and #5 of the Metropolitan Waterworks and Sewerage
projects that were assisted in 2018 include the San System (MWSS).
Ramon Newport Project with the Zamboanga City Special
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2018 AN N UAL R EP ORT
In 2018, there was an observed increase in the number airports, such as the (i) Operation & Maintenance of the
of big-ticket and medium-scale unsolicited project New Bohol International Airport; (ii) Davao International
proposals submitted to both national and local IAs. Airport Development, Operation, and Management; and
Noteworthy were the ones approved by the relevant (iii) Operation & Maintenance and Facility Upgrade of the
approving bodies such as the Quezon City Integrated Kalibo International Airport.
Solid Waste Management Facility and the Bulacan
International Airport. Both projects are targeted to be Other unsolicited projects in the pipeline are the (i)
awarded within 2019. PEZA Electronic Payment Solution; (ii) proposals for the
Pampanga Bulk Water Supply for Districts 1, 3, and 4 and
The Department of Transportation (DOTr) also received for District 2; (iii) Kalibo Meat Plant; (iv) Redevelopment
a number of unsolicited proposals for railways and of Panabo Town Center; (v) East-West Rail; (vi) Mactan–
airports, some of which were already elevated to the Cebu International Airport Integrated Development Plan;
Investment Coordination Committee for evaluation, (vii) Preservation and Development of Laguna de Bay
review, and approval. This included railway projects Project; and (viii) IT Project for the City of Naga, Cebu-
such as the (i) Fort Bonifacio–Makati Skytrain, (ii) C5 UNLAD BAYAN Local Government Information System.
MRT-10, (iii) Modified LRT 6, (iv) MRT-11 Project, and
(v) Davao People Mover. There were also proposals for
17
PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
To sustain this function, the PPP Center conducts regular project site visits
in order to monitor the performance of PPP projects that have already been
awarded and are now in various stages of implementation.
In 2018, the PPP Center conducted project site visits nationwide. Some of
these visited PPP projects include the following:
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2018 AN N UAL R EP ORT
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PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
Since the inception of the Project Development and Monitoring Facility (PDMF), a total of 37 contracts worth
US$60.26 million (59% of the total fund) have commenced their implementation, with 25 contracts closed as of
December 31, 2018.
Of the US$60.26 million consultancy contracts, 61.03% were committed to DOTr-implemented projects, while 8.15%
were committed to DPWH-implemented projects. The total breakdown of obligated and earmarked PDMF funds is
illustrated below.
3.15%
1.38% 2.23% Department of
Transportation
0.63%
Department of Public
Works and Highways
Metropolitan Waterworks
5.39% and Sewage System
Philippine National
4.01% Oil Company
Department of Agriculture
Department of Health
61.03%
Department of Justice
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2018 AN N UAL R EP ORT
In terms of sector, 74.46% was allocated to transport projects while the remaining 25% was shared among the water,
agriculture, education, energy, health, information technology, and justice/security sectors.
To sustain the revolving feature of the PDMF Fund, the PPP Center is authorized to recover the cost of the PDMF
support provided for a project. By end-2018, 28% or a total of US$17.98 million has been recovered, which may now be
used to fund more projects approved for PDMF support.
2.23%
6.80%
3.15%
4.73% Transportation
1.38% Water
0.63%
Agriculture
Total PDMF Funds
6.61% Obligated and Education
Earmarked
(by Sector)
Energy
Health
IT
Justice/Security
74.46%
21
PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
Kick-off meeting between PPP Center and AFD, where both parties define the scope of technical assistance
to support the capacity building needs of LGUs.
New and Potential Development Partners 6, 2018 and the PPPGB on March 22, 2018. This
amendment closes the gap in the provision of support
The PDMF is being co-funded by the Government of to implementing agencies (IAs) as the previous use of
Australia. In 2018, the PPP Center started exploring PDMF excluded JV arrangements.
potential partnerships with new funding sources such
as the Urban Climate Change Resilience Trust Fund IAs such as government-owned-and-controlled-
(UCCRTF) and Agence Française de Développement corporations (GOCCs), government corporate entities
(AFD) to ensure the sustainability of the PDMF fund. (GCEs), government instrumentalities with corporate
powers (GICPs), government financial institutions
In December 2018, the UCCRTF approved a top up (GFIs), state universities and colleges (SUCs), and local
funding of US$3 million under the Asian Development government units (LGUs) that are contemplating JV
Bank Technical Assistance No. 7796-PHI, which is arrangement in implementing their projects will benefit
comprised of US$2.5 million for PDMF and US$500,000 from this amendment.
for capacity building. This new funding targets emerging
sectors such as urban resilience, renewable energy, The inclusion of projects structured as JVs to be
water supply and sanitation, solid waste management, among those eligible for PDMF support is driven by the
open/green spaces, food security, flood control, increased emphasis on the broadening of infrastructure
disaster risk management, and green infrastructure. The development to areas outside Metro Manila where
PDMF component will also prioritize support to local national government agencies, including the PPP Center,
implementing agencies. intensify their support to LGUs in implementing their
priority infrastructure and development projects. Given
Empowering JVAs through PDMF that LGUs are predominantly entering into joint venture
(JV) arrangements under their local PPP ordinances
Projects undertaken through joint venture (JV) pursuant to their local autonomy provided under the 1987
arrangements are now eligible for PDMF support Constitution, the PPP Center can now offer PDMF as an
following the approval of its inclusion in the PDMF option for technical assistance in addition to its existing
Guidelines by the PDMF Committee on March support in project development.
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2018 AN N UAL R EP ORT
Improved project monitoring through Independent good industry practice and the prescribed minimum
Consultants performance standards and specifications (MPSS).
The systems development entails the verification
To assist implementing agencies in monitoring and validation of the system from data quality, IT
compliance to prescribed standards and specifications security, system performance, reliability, and availability
during the implementation phase of the project, the standpoint including technical, security, deployment,
PDMF use was expanded to include independent architecture-related documents submitted by the
consulting (IC) services. On April 10, 2018, the first IC Concessionaire.
contracts were signed for the Civil Registry System –
Information Technology Project Phase II (CRS-ITP2) and On the other hand, the IC scope of work for the Clark
the Clark International Airport Engineering, Procurement, International Airport EPC Project involves the review,
and Construction (EPC) Project. certification, and monitoring of the vertical and horizontal
works, mechanical, engineering, plumbing and specialist
The IC scope of work for the CRS-ITP2 includes the systems, and equipment installation. The IC is tasked
provision of Independent Verification and Validation (IVV) to ascertain that these components are compliant with
services for the civil works and systems development the EPC Agreement and the MPSS, from the design and
component of the project to the Philippine Statistics construction phases until testing and commissioning.
Authority. The civil works involve the monitoring of the
construction of the CRS Building in compliance with
The construction of the new terminal building of Clark International Airport is expected to be completed in 2020.
(Photo source: Bases Conversion and Development Authority)
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PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
The PPP Governing Board is the overall policy making body for all PPP-related matters. It sets the strategic direction of the
PPP Program and creates an enabling policy and institutional environment for PPP.
In line with the continuing efforts to address policy gaps The framework highlights the following: (i) the roles
in the PPP program and to fast-track the implementation and responsibilities of the PPP Center, including but
of PPP projects, the PPP Center crafted several policies not limited to project advisory services, trainings, and
that are vital to the progression and success of the capacity development, and assistance in project approval,
program. with regard to JVAs; (ii) a streamlined process (i.e.,
applicable timelines and procedures) that the PPP Center
Assistance framework for JVAs shall follow in extending its assistance; and (iii) the PPP
Center’s inclusion of JVAs in its project information
As part of its mandate to facilitate the implementation database, and in its monitoring and facilitation mandates.
of all PPP programs and projects including joint venture
agreements (JVAs), the PPP Center formulated the Mainstreaming environmental, displacement,
Framework on Assistance in Joint Venture Agreements social, and gender safeguards in PPPS
in 2018. The framework addresses the growing relevance
of JVAs as a viable project implementation option for Recognizing the value of preventing negative impact
implementing agencies (IAs), especially for government- on people and the environment in implementing
owned and controlled corporations (GOCCs), local PPP projects, the PPP Governing Board (PPPGB)
government units (LGUs), and water districts. It also issued Resolution No. 2018-12-02, also known as the
clarifies the assistance that the PPP Center can provide “Safeguards in PPP: Mainstreaming Environmental,
to IAs in undertaking JVAs as a project scheme, based on Displacement Social, and Gender Concerns” in
existing guidelines and policies. December 2018.
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2018 AN N UAL R EP ORT
These safeguards are expected to minimize delays due and public properties and resettlement of informal settler
to the IAs’ limited resources and capacity to review all families; (iii) considerations for indigenous peoples; (iv)
safeguard policies—which are currently fragmented under protection and consideration of vulnerable groups, such
various issuances. as persons with disability (PWDs); (v) gender equality
and women empowerment; and (vi) culture and heritage
This resolution outlines several safeguard standards preservation.
and consolidates them into a single document to ensure
the streamlining of the PPP project development and Reporting and monitoring PPP’s spending
approval process. This document helps IAs address and contingent liabilities
safeguard issues throughout the PPP project cycle by (i)
identifying the issues and their corresponding mitigating It is part of the PPP Center’s mandate to monitor PPP
measures, (ii) integrating these measures into the project projects and to ensure that contractual milestones and
terms and the PPP contract, and (iii) implementing obligations are met. It must also provide updates and
monitoring mechanisms to ensure that safeguard relevant PPP projects’ information to all concerned
measures are complied with and any unforeseen bodies and agencies. In the process of fulfilling these
environmental and social issues are properly managed. mandates, the difficulty of collecting data on both public
and private sector spending, as well as the contingent
The scope of the guidelines includes the following: (i) liabilities arising from the same, soon became evident.
safeguards from environmental impacts and resilience
to climate change; (ii) managing operational concerns Thus, the PPPGB tasked the PPP Center and the
on right-of-way (ROW), including acquisition of private Department of Budget and Management (DBM) to craft
a joint circular that will standardize the reporting and
monitoring of public and private sector spending on
PPPs, including the contingent liabilities arising from
these. This aims to improve and regularly update the
database of PPP projects, along with projected and
actual spending on PPPs, and the contingent liabilities
arising from the same. This will help the government
track infrastructure spending targets and ensure the early
mitigation of fiscal risks.
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PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
A roundtable discussion on
managing the PPP component
of hybrid PPP projects was
conducted in November 2018
with various stakeholders
Guidelines in managing the PPP component Continuous advocacy for the PPP Act
of hybrid projects
To further boost the PPP Program, the PPP Center has
The PPP Center, with the firm guidance and direction been pushing for the enactment of the proposed PPP Act
from the PPPGB, continues to support the hybrid during the 17th Congress. This law seeks to modernize
model after the administration adopted the Hybrid PPP the 24-year old Build-Operate-Transfer (BOT) Law, the
approach by drafting a “Suggested Guide on Managing legal framework that governs the participation of the
Greenfield Solicited Hybrid PPP Projects.” These private sector in infrastructure development.
guidelines aim to provide (i) a standard understanding of
the hybrid PPP model, (ii) an understanding of the risks In 2018, the House of Representatives Technical Working
associated with the hybrid model, and (iii) measures that Group, chaired by Albay Representative Jose Maria
IAs may consider to be able to mitigate and manage the “Joey” Salceda, finalized the draft substitute bill, which
risks inherent in a hybrid PPP project. consolidated nine PPP bills filed by various legislators.
Following this, the House Committee on Public Works
In 2018, the PPP Center conducted consultation sessions and Highways, chaired by Marikina City Congressman
with concerned stakeholders from the government and Bayani Fernando, approved the Committee Report
the private sector to seek their inputs on the risks and seeking the committee’s adoption of the draft substitute
best practices that must be considered in pursuing bill.
hybrid projects. With inputs now gathered, the guideline
document is now set for approval by the PPPGB in 2019. The bill will boost the PPP Program by providing clearer
It will be rolled out via an information campaign for IAs, and simpler rules for faster PPP implementation. This will
PPP stakeholders, and partners. make the PPP Act more responsive to the requirements
of a robust program and contribute significantly to the
country’s Golden Age of Infrastructure.
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2018 AN N UAL R EP ORT
Representatives from the PPP Center, ADB, and Sustainable Infrastructure Foundation (SIF) discuss the
operational framework of the Project Information and Management System (PIMS) tool.
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PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
The MOA between the PPP Center and the Philippine Competition Commission aims to enhance the level of
coordination between the two agencies in developing the culture of competition in PPP projects.
Stratbase ADR Institute for Strategic Under the MOA, the two agencies agreed to share
and International Studies resources and information in the enforcement of
competition matters, including the formulation of
The PPP Center forged a partnership with the Stratbase guidelines for the facilitation and review of PPP projects.
ADR Institute for Strategic and International Studies They also agreed to conduct consultative meetings and
(ADRi) through a MOA signed on July 24, 2018. Through joint capacity-building activities on competition issues
the MOA, both parties committed to work together in and related concerns.
organizing PPP-related roundtable discussions and in
advocating policy initiatives. Tourism Infrastructure and Enterprise Zone
Authority
One of the activities conducted through this partnership
was the roundtable discussion on unsolicited proposals The PPP Center signed a MOA with the Tourism
held on October 15, 2018. Discussions focused on the Infrastructure and Enterprise Zone Authority (TIEZA) on
legal framework, processes, and current updates on the November 20, 2018 to formalize their collaboration and
unsolicited proposal policy reforms. This roundtable technical assistance on public-private partnership (PPP)
event resulted in the gathering of inputs that will be used
to address important issues in unsolicited proposals.
The event was attended by key current and former
government officials, such as former PPP Center
Executive Director Cosette Canilao, former PPP Center
Deputy Executive Director Jose Emmanuel Reverente, and
former Secretary of NEDA Romulo Neri.
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Through the Australia Awards, elected scholars from partner government agencies are given
the opportunity to take up postgraduate studies in Australian universities.
(Photo source: Australia Awards Philippines)
projects. The MOA signified the start of the focused selected PPP Center employees to take up the Master
technical and capacity-building support that the PPP of Science in Public Policy Program (MSPPM) with a
Center will provide to TIEZA in developing and rolling out concentration on PPPs at the CMU-A. Through the MOU,
their PPP projects, particularly in the tourism sector. the PPP Center may also request CMU to undertake
research papers or case studies on the Philippine PPP
Australia Awards Program; or the CMU may request PPP Center officials to
serve as resource persons in MSPPM courses.
With its partnership with the Australia Awards and
Alumni Engagement Program–Philippines (AAAEP-P) in
place, an organization training needs analysis (OTNA)
was conducted for the PPP Center. This analysis aimed
to identify the learning and development needs of key
people in the PPP Center that may be addressed by
appropriate learning and development interventions
in the near future. The partnership also provided a
scholarship opportunity for PPP Center employees
who would like to pursue higher education programs in
Australia for 2019–2020 academic year. The PPP Center
had processed its nominees for the Australia Awards
scholarship. Qualified scholars will be announced in the
first quarter of 2019.
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ORGANIZATIONAL DEVELOPMENTS
The PPP Center was also a finalist for the PPP Awards
2018 under the Government PPP Promoter of the
Year category. It has been a consistent finalist for this
prestigious PPP award, which recognizes excellence in
PPPs around the world.
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Recognizing excellence and team work In-house trainings, such as Change Leadership and
Project Management, were conducted to equip
Hard work, collaboration, and commitment among the employees with the necessary skills to navigate
workforce are crucial in securing stability and achieving organizational change leadership, and further enhance
success for the PPP Center. On March 1, 2018, the PPP their skills and knowledge in managing PPP projects and
Center held its 2017 Gawad Awards to recognize the other PPP-related initiatives. Several experts were invited
extraordinary achievements of the staff that benefited not to talk on the Data Privacy Act, PhilHealth, and GSIS
only the agency but also its stakeholders and partners. processes and updates, and Security Awareness and
Several awards were given to outstanding technical and Workplace.
nontechnical staff, officials, and units to honor them for
their valuable contributions. Type of Learning and Development Activity
Knowledge sharing
sessions
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In 2018, two officers from the Project Development Service (PDS) and the Project Development and Monitoring
Facility Service (PDMFS) were qualified to undergo the Public Management Development Program–Middle Managers
Class (PMDP-MMC) at the Development Academy of the Philippines. Scholars who complete the PMDP-MMC earn a
master’s degree in Development Management.
“Taking the Public Management Development “The PMDP was an eye-opener that taught me to
Program – Middle Managers Class (PMDP - MMC) be a high-performing and high-potential member of
of the Development Academy of the Philippines the bureaucracy. The Program equips its scholars
(DAP) was not planned, but when the opportunity with technical skills, ethics, and commitment to
came, I grabbed it without thinking twice. This help in achieving a more inclusive and sustained
highly extensive training was no easy path to take. progress for the country through better public
The Program helped me realize my strengths and service delivery. I am thankful to the PPP Center for
recognize my weaknesses as a public manager and giving me the opportunity to be one of the scholars
a leader. Through my experience at PMDP MMC, I of the PMDP Middle Managers Class Batch 18 and
have developed stronger critical thinking, and the experience this PMDP journey.”
ability to adapt to new settings and environment
and work harmoniously with others despite the Kristine Joy T. Fajardo
differences in views and opinions. Financial Analyst IV
(DAP Batch 18 Sibol)
I am thankful for more opportunities ahead of me
after taking the PMDP MMC. There is a greater
opportunity for career advancement and even for
personal growth and development. After this, I know
that there will still be more room for improvement
and continuous learning.”
The PPP Center was also able to send one officer as a scholar under the Japanese Grant Aid for Human Resource
Development Scholarship (JDS). This scholar is currently studying at Meiji University, Graduate School of Governance
Studies and taking up a masteral course in Public Policy. The JDS was established by the Government of the
Philippines in 2002 with the assistance of the Government of Japan. Its objective is to support human resources
development in the Philippines, targeting young government officials who are expected to be leaders of the country,
and to engage them in formulating and implementing social and economic development policies upon their return to
public service.
“I’m glad that PPP Center recognizes human resource our discussions and sharpens our critical analysis of
development as a vital and necessary initiative for the various governance issues to form research driven policy
institution to continue fulfilling its mandate to contribute recommendations and adopt good practices in other
to the country’s economic growth within the infrastructure countries.
sector.
Upon my return, I look forward to sharing the tools and
Presently, I am attending Meiji University’s Graduate skills I have developed to help the Center further improve
School of Governance Studies in Japan where I hope its services not only to the implementing agencies
to earn my Master’s degree in Public Policy major in but also to continue building a desirable PPP policy
Governance Studies. The experience is truly invaluable framework in the country.”
as each class is composed of fellow government
officers who carry their own country experiences, while Agape Sem B. Comendador
being mentored by former government officials and Training Specialist III
very capable subject matter experts. This enriches
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2018 AN N UAL R EP ORT
Several activities to promote health and wellness and These invitations helped promote and keep Philippine
entrepreneurship were also launched. The annual PPP stakeholders and partners constantly informed
sportsfest, with sports tournaments such as basketball, on the status and new developments of PPPs in the
volleyball, and badminton, was successfully initiated. country. Officials from foreign governments also
Talks on Sleep and Wellness, Navigating Mid-life, How’s routinely visited the PPP Center—making it a regional
and Why’s of Family Food Gardening, and T’ai Chi: The hub for PPP study visits. Delegations from Indonesia,
Benefits of Mindful Movement Practices in the Workplace, Bhutan, Solomon Islands, and Azerbaijan paid a courtesy
among others, were also delivered and attended by the visit to learn how PPP works in the country.
staff. Under entrepreneurship, a Meat Processing Seminar
was also held as part of the Program for Senior Citizens
and Persons with Disabilities (PWDs), and those with Raising greater awareness and active sharing
ages 35 and above. of PPP information
Knowledge sharing and keeping Media organizations—as one of the valuable partners of
PPP stakeholders informed the Philippine PPP Program—were always on the loop
on the different PPP milestones and initiatives during
As a credible source of PPP information, the PPP Center the year. On December 20, 2018, the PPP Center, led by
provided several platforms and accepted opportunities to Executive Director Ferdinand A. Pecson, invited several
share its experiences not only in the Philippines but also journalists to provide them with the year-end updates
in international events. on PPP Program and Projects. As part of the Asian
Development Bank’s (ADB) Annual Governors Meeting,
In September 2018, Deputy Executive Director 35 journalists from 17 ADB member countries visited
Eleazar Ricote discussed the country’s medium-term the PPP Center for a briefing. The agency, represented
development plan and the role of PPPs in the country’s by Deputy Executive Director Mia G. Sebastian, was also
infrastructure agenda at the 4th Philippines-Canada Joint invited at the Radyo Pilipinas Tunog ng Progreso program
Commission on Bilateral Cooperation held in Ottawa, on September 14, 2018 to provide updates on PPPs at
Canada. Similarly, Director Feroisa Concordia and the local level. During the year, several press releases
Director Jeffrey Manalo were also given the opportunity were also picked up by major national newspapers
to talk about the Philippine PPP experience at the 9th while officials were interviewed by news agencies to
World Urban Forum in Malaysia and the 3rd Financial discuss PPP projects and initiatives. Social media
Reform for Economic Development Forum in Pakistan, campaigns were undertaken for some concerns, such
respectively. as information dissemination on unsolicited proposals,
hybrid PPPs, and project status. These were part of the
efforts to continuously educate the public on PPPs.
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Aside from encouraging more local PPP projects, the to more local IAs in 2019. One strategy is the conduct
PPP Center looks forward to adding more green projects of clustered regional capacity-building activities for
with climate resiliency components in its 2019 pipeline. local government units (LGUs), water districts, and
The Project Development and Monitoring Facility (PDMF) state universities and colleges (SUCs). The other is to
is set to support IAs in developing projects that are urban strengthen its PPP Knowledge Corners by providing
resilient and address climate change mitigation and training-workshops for the NEDA Regional Offices.
adaptation.
To expand the NGA Guidebook that was published
The PPP Center is also supporting the development of in 2018, a series of guidebooks are also slated to be
PPP projects in the health sector, where projects are developed. These include the PPP Project Development
expected to support easier access to the universal health Guidebook, the Guidebook on PPP Project Approval
care for Filipinos. The PPP Center has started assisting and Procurement, and the PPP Project Implementation
the University of the Philippines in its Philippine General Guidebook.
Hospital (PGH) Diliman - Operation & Maintenance
Project, and the UP Cancer Center in Manila. More The PPP Center also intends to produce sector-
PPP projects are also being eyed for the emerging specific PPP guidebooks for LGUs—covering projects
tourism sector with the signing of the memorandum under the solid waste management, universal health
of agreement (MOA) on the provision of technical care, renewable energy, and the water sectors. These
assistance with the Tourism Infrastructure and Enterprise are envisioned to help LGUs understand the unique
Zone Authority (TIEZA). considerations when identifying, developing, procuring,
and implementing projects using the PPP scheme.
To support these several fronts in PPP development,
the PPP Center is also setting its sights to reaching out
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2018 AN N UAL R EP ORT
Similarly, case studies focusing on best practices As the central coordinating and monitoring agency of
and lessons learned from awarded PPP projects shall PPPs, the PPP Center is committed to ensure that the
be developed. For 2019, these shall focus on the Philippine PPP environment will continue to be attractive
Muntinlupa–Cavite Expressway (MCX) and the PPP to international and local investors. It will also continue
for School Infrastructure Projects (PSIP) as initial case to ensure that the national and local governments are
studies. capable and ready to implement an increasing number of
PPP projects—in partnership with the private sector and
Fostering a competitive and transparent other PPP stakeholders
PPP environment
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PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
MANAGEMENT
COMMITTEE
Ferdinand A. Pecson
Executive Director
Eleazar E. Ricote
Deputy Executive Director
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2018 AN N UAL R EP ORT
Jeffrey I. Manalo
Lawrence G. Velasco Director III, Policy Formulation,
Director III, Project Evaluation and
Project Development Service Monitoring Service
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PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
PPP CENTER
UNITS
40
2018 AN N UAL R EP ORT
41
PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
PPP CENTER
UNITS
LEGAL SERVICE
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2018 AN N UAL R EP ORT
ADMINISTRATIVE SERVICE
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PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
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2018 AN N UAL R EP ORT
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PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
PUBLIC-PRIVATE PARTNERSHIP CENTER OF THE PHILIPPINES
STATEMENT OF FINANCIAL POSITION
( ALL FUNDS )
AS OF DECEMBER 31, 2018
(In Philippine Peso)
Non-Current Assets
Property, Plant and Equipment 8 32,084,719.22 35,041,420.52
Intangible Assets 9 8,359,868.57 10,044,084.71
Other Non-Current Assets
Total Non - Current Assets 40,444,587.79 45,085,505.23
LIABILITIES
Current Liabilities
Financial Liabilities 10 1,086,366.43 686,499.42
Inter-Agency Payables 11 15,844,481.53 7,182,508.33
Intra-Agency Payables 12 46,200.65
Trust Liabilitites 13 46,097,388.66
Other Payables 14 1,152,978.85 1,113,627.20
Total Current Liabilities 64,227,416.12 8,982,634.95
Non-Current Liabilities -
Total Non - Current Liabilities - -
Total Liabilities 64,227,416.12 8,982,634.95
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PUBLIC-PRIVATE PARTNERSHIP CENTER OF THE PHILIPPINES 2018 AN N UAL R EP ORT
STATEMENT OF CASH FLOWS
( ALL FUNDS )
FOR THE YEAR ENDED DECEMBER 31, 2018
(In Philippine Peso)
2018 2017
Cash Flows from Operating Activities
Cash Inflows
Receipt of Notice of Cash Allocation 239,459,182.41 283,789,177.98
Collection of Income/Revenues 3,892,672.96 4,436,741.27
Collection of Receivables 57,050,721.44 22,878,869.46
Receipt of Inter-Agency Fund Transfers 6,200,000.00
Receipt of Trust Liabilities 59,259,331.17
Other Receipts (Refund of Excess Cash Advance) 310,347.38 128,812.16
Adjustments - -
Total Cash Inflows 366,172,255.36 311,233,600.87
Cash Outflows
Remittance to National Treasury 752,225.84 4,347,341.35
Payment of Expenses 141,003,456.47 100,649,191.61
Purchase of Inventories 260,695.00 2,606,227.96
Grant of Cash Advances (Unliquidated during the Year) 1,007.00 153,627.58
Prepayments 6,726,365.59 4,247,413.44
Payment of Accounts Payable 669,506.91 9,350,230.09
Remittance of Personnel Benefits Contributions and Mandatory Deductions 22,901,764.41 28,352,108.92
Grant of Financial Assistance/Subsidy - 46,100,000.00
Other Disbursements 146,082,305.47 51,123,864.76
Reversal of Unutilized NCA 1,422,695.36 1,448,223.75
Adjustments - 6,526.24
Total Cash Outflows 319,820,022.05 248,384,755.70
Effects of Exchange Rate Changes on Cash and Cash Equivalents 2,605,650.76 105,093.47
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PU BLIC -P RIVAT E PA RT NER S HIP C ENT ER
PUBLIC-PRIVATE PARTNERSHIP CENTER OF THE PHILIPPINES
STATEMENT OF CHANGES IN NET ASSETS/EQUITY
( ALL FUNDS )
FOR THE YEAR ENDED DECEMBER 31, 2018
(In Philippine Peso)
2017
Note 2018 Restated
Balance at January 1 25.1 3,550,826,509.36 3,396,767,020.40
Changes in accounting policy -
Prior Period Adjustments / Unrecorded Income and Expenses -
Other Adjustments
Restated balance 3,550,826,509.36 3,396,767,020.40
RECEIPTS
PAYMENTS
Personnel Services 24 81,124,000.00 99,053,904.00 98,741,145.11 312,758.89
Maintenance and Other Operating Expenses 24 406,169,000.00 403,652,500.00 212,516,022.12 191,136,477.88
Capital Outlay 24 3,752,000.00 3,752,000.00 3,677,519.29 74,480.71
Financial Expenses 2,600.82 2,600.82 -
Total Payments 491,045,000.00 506,461,004.82 314,937,287.34 191,523,717.48
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2018 AN N UAL R EP ORT
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PUBLIC-PRIVATE PARTNERSHIP CENTER
ISSN: 2350-7934
Published by:
CHAMPIONING
LOCAL PPPs
PUBLIC-PRIVATE PARTNERSHIP CENTER
OF THE PHILIPPINES
8th Floor, One Cyberpod Eton Centris,
EDSA, Quezon City, 1100, Philippines,
Tel: 632.709-4146
Email: info@ppp.gov.ph
2018 ANNUAL REPORT
www.ppp.gov.ph
Facebook: PPPCenter.Philippines
Twitter: @PPP_Ph
ISSN: 2350-7934
Published by:
PUBLIC-PRIVATE PARTNERSHIP CENTER
OF THE PHILIPPINES
8th Floor, One Cyberpod Eton Centris,
EDSA, Quezon City, 1100, Philippines
Tel: (632) 709-4146
Email: info@ppp.gov.ph
www.ppp.gov.ph
Facebook: PPPCenter.Philippines
Twitter: @PPP_Ph