Philippines: Strengthening Public-Private Partnerships in the Philippines (Phase 2)

Public sector management / Public administration

The proposed TA will address reform priorities as identified under Loan 3333-PHI:Expanding Private Participation in Infrastructure Program (EPPIP) policy-based loan.

Since 2010, the government has addressed the infrastructure challenge, while maintaining strict fiscal discipline, by initiating a series of reforms that have revived the country's PPP program. These reforms have resulted in the award of nine projects (total investment of $3.0 billion). This robust PPP program roll-out supports the government's intention to raise private investment in infrastructure from 0.4% of GDP in 2013 to 1.1% of GDP in 2015. Spending in infrastructure is expected to grow at around 10% a year in the next decade, reaching a total of $27 billion a year by 2025. As of end March 2015, 45 PPP projects were in the pipeline; estimated investment cost of the first 30 of those projects is about $23.42 billion implying that approximately $15 billion of debt financing for these projects will need to be leveraged.

Improvements to the PPPs enabling environment. In 2013, the government successfully addressed the first set of issues constraining the revival of a well-governed national level PPP program such as the absence of a public office for PPP program facilitation, absence of credible project pipeline, and inadequate implementing rules and regulations of the Build-Operate-Transfer (BOT) law. ADB''s TA 7796 _Strengthening PPPs in the Philippines_, cofinanced by the Governments of Australia and Canada, assisted the operations of the Project Development and Monitoring Facility of the Public-Private Partnership Center (PPPC), and has been instrumental in developing the capacities of key PPP implementing agencies. The TA also assisted the assessment and development of the regulatory framework for PPPs. Following the implementation of TA 7796, the proposed TA will help address the new challenges in the country s PPP reform program and address emerging needs identified during the implementation of PPP reforms. These include:

a) Strengthening implementing units for PPPs.

b) Sustaining institutional reforms for PPPs.

c) Tapping alternative sources of financing for PPP projects.

d) Improving project implementation with probity and independent consultants.

Strengthened capacity of national government implementing agencies

Performance of the PPP Center and other government agencies enhanced

Long-term infrastructure financing mechanisms and tools developed

Well-structured, bankable national PPP projects developed and implemented

A. PPP Enabling Environment Consultants (Firm, International)

(11 international and 17 national person-months; 90:10 Quality- and Cost-Based Selection)

1. Institutional, Legal, Budgetary and Public Utility Regulation Frameworks

2. Capacity Building of Government Staff in PPP Implementation and Management

B. Long-term Infrastructure Financing Mechanisms (Firm, 6 international and 4 national person-months, Fixed Budget Selection)

C. Core Individual Consultants to the PPP Center and Department of Finance

1. Technical Advisor (Individual, International, 25 person-months)

2. Program Implementation Coordinator (Individual, National, 25 person-months)

3. Procurement Specialist (Individual, International, 15 person-months)

D. Noncore Consultants for the PPP Center

1. 4 person-months International

2. 25 person-months National