Creating viable investment environments in the Philippines

Opportunity

In 2010, a Public-Private Partnership Center was set up in the Philippines to manage and administer the Project Development and Monitoring Fund (PDMF), aimed at enhancing the investment environment for Public-Private Partnerships (PPP) and building a robust pipeline of viable and well-prepared PPP infrastructure projects. 

It initially covers the project preparation and transaction advisory cost for PPP projects. Upon successful PPP tendering, the winning private proponent reimburses or pays the actual project preparation and transaction advisory cost plus a cost recovery fee. For successfully tendered PPP projects, reimbursement of the PDMF support is a condition precedent for contract award.

The US$102 million PDMF is co-funded by the Government of the Philippines and the Government of Australia, through a technical assistance from the Asian Development Bank (ADB). As of 2016, the Government of Australia and the Government of the Philippines have contributed US$18 million and US$84 million, respectively. The Government of Australia’s funding channelled through ADB enables application of ADB consultant selection guidelines to the entire PDMF. 

Collaboration

Atkins Acuity was selected to be part of the Panel of Transaction Advisors of the PPP Center of the Philippines. The 22 selected consultancies provide project preparation and transaction advisory services for potential PPP projects for various implementing agencies.

Achievement

Projects that have been developed and/or awarded cover various industries such as rail, aviation, port, toll roads, transport terminals, flood control systems, water source development and water distribution, agriculture, health, information and communication technology, education, energy and other social infrastructure such as prison and court houses. Significant examples include:

  • North-South Railway Project (South Line) – a US$3.79 Billion project for the financing, design, construction, rehabilitation, operation and maintenance of a 653-kilmeter rail line from Metro Manila to the southern provinces in Luzon.
  • Light Rail Transit Line 2 – a project for the operation and maintenance of the existing 13.8-kilometre 11-station Light Rail Transit Line 2 and its extensions located from eastern to western areas of Metro Manila.
  • Regional Airports Project – a US$2.45 Billion project for the financing, design, expansion, operation and maintenance of 5 regional airports in Visayas and Mindanao regions.
  • Bulacan Bulk Water Supply Project - a US$524 Million project for the financing, design, construction, operation and maintenance of conveyance facilities, treatment facilities and water source in Bulacan, an adjacent province north of Metro Manila that will benefit around 3 million residents of the area.

Further projects are here: http://ppp.gov.ph/?page_id=26100  

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