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THE PHILIPPINE
PUBLIC-PRIVATEPARTNERSHIP (PPP)PROGRAM
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Strengthens competitiveness
Improves access to basic and socialservices
Enhances the scope and quality ofeconomic and social infrastructure
Investment in StrategicInfrastructure
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Contractual arrangement between
government and private sector to
deliver public infrastructure and/orpublic services
PPP Definition
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Private sector offers efficiency gains
Private sector participation can accelerate
the provision of public services
Governments role can be rationalized
Rationale of PPP
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Republic Act 7718 or BOT Law
Latest IRR amended in 2006
PPP Legal Framework
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Many allowable variants
Covers most infrastructure sectors
Allows reasonable return on investments
made by the private sector
Institutionalizes provision of government
support
Salient Features of theBOT Law
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Build-Operate-Transfer (BOT)
Build and Transfer (BT)
Build-Own-and-Operate (BOO)
Build-Lease-and-Transfer (BLT)Build-Transfer-and-Operate (BTO)
Contract-Add-and-Operate (CAO)
Develop-Operate-and-Transfer (DOT)
Rehabilitate-Own-and-Transfer (ROT)
Rehabilitate-Own-and-Operate (ROO)
Other variations as may beapproved by the President of the Philippines
Authorized BOT Variants
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Eligible Infrastructure &Development Projects
Power Plants
Highways
Railroads & Railways
Ports
Airports
Transport Systems
Telecommunications
Information Technology
Canals, Dams, Irrigation,Water Supply
Land Reclamation
Sewerage, Drainage, Dredging,
Solid Waste Management
Tourism, Education
Health FacilitiesIndustrial & Tourism Estates
Markets, Warehouses,
Slaughterhouses
Housing
Government BuildingsOther Infrastructure/ Development
Project
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Project proponent repaid through: Tolls, fees, rentals and other charges from
users of facility for a fixed term not to exceed50 years
Share in revenue of the project
Other non-monetary payments
Repayment Schemes
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Fiscal Incentives Incentives under Omnibus Investment Code
(OIC) upon registration with BOI
Incentives under OIC subject to inclusion in thecurrent Investment Priorities Plan
LGU incentives subject to the provisions of theLG Code and other pertinent laws
Government Support
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Cost Sharing Projects with difficulty sourcing funds may be
partially financed from direct government
appropriations (GAA) and/or Official DevelopmentAssistance (ODA)
Financing from GAA or ODA not to exceed 50%of project cost
Government Support
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PPP Process
IAs/GOCCs/
LGUs(SponsoringGovernment
Units)
Completed FS
Right of Way Acquisition (ROWA)
Plans
Draft PPP agreement Proposed risk allocation
Valuation of direct and contingent
government support
Implementation plan with
organizational & admin
requirements
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PPP Center
PROJECT APPROVAL PROCESS
Priority Projects under the MTPDP/MTPIP and CIIP
IAs/GOCCs/LGUs
(SponsoringGovernment
Units)
Solicited Proposals (6 months)
Unsolicited Proposals (9 months or more)
PPP Process
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NEDA Secretariat / LGUs
IAs /GOCCs/LGUs / Private Sector
Private Sector
IAs /GOCCs/LGUs
IAs /GOCCs/LGUs (PPP Center to assist)
IAs /GOCCs/LGUs
Investment Coordination Committee (ICC)NEDA Board
Responsible Party
Project Review and Evaluation
Invitation and Prequalification
Preparation and Submission of Bids
Award and start of Implementation
End
Project Submission to NEDA ICC
Evaluation of Bids
LGUs / ICC Approval: ICC TB and ICC CC NEDA Board
Start
Project Approval andBidding Flowchart
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Project Development and Monitoring Fund(PDMF)
Support for Infrastructure Development
Support Mechanisms
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10 Priority PPP Projects
Project Name Project Cost
MRT/LRT Ex ansion Pro ram: Privatization of LRT 1 O eration & Maintenance
MRT/LRT Expansion Program: Privatization of MRT 3 Operation & Maintenance
MRT/LRT Ex ansion Pro ram: LRT 1 South Extension Pro ect DOTC/LRTA
New Bohol Airport Development
Puerto Princesa Airport Development
New Legaspi (Daraga) Airport Development
Privatization of La uindin an Air ort O eration &Maintenance DOTC/MIAA/CAAP
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THANK YOU!
PUBLIC-PRIVATE PARTNERSHIP (PPP)
CENTERNational Economic and Development Authority (NEDA)
Tel. No:: (+63 2) 897-6826 Fax No:: (+63 2) 899-8821www.botcenter.gov.ph