Public Private Partnership


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Public Private Partnership

  1. 1. SPECIAL STUDY PSU-LNU-UCU Edwin Badu Rawlings Gbargaye Facilitator Prof Jo B. Bitonio MDM Coordinator
  2. 2. <ul><li>“ Growth will only be possible if we streamline processes to make them predictable, reliable and efficient for those who want to invest. We make sure that the Build-Operate-and Transfer projects will undergo quick and efficient processes. With the help of all government agencies concerned and the people, a process that used to take as short as a year and as long as a decade will now only take six months…” </li></ul>
  3. 3. <ul><li>Title: Reorganizing and renaming the Built-Operate and Transfer (BOT) Center to Public- Private Partnership (PPP) Center of the Philippines, and transferring its attachment from the Department of Trade and Industry (DTI) to the National Economic Development Authority (NEDA). </li></ul><ul><li>Constitutional Basis: The State recognizes the indispensable role of the private sector as the main engine for national development (Sec 20, Article 11, 1987 Const. ) </li></ul>
  4. 4. <ul><li>Legal Basis: The BOT law recognizes the indispensable role of the private sector as the main engine for national growth and development, and provides the most appropriate incentives to mobilize private resources for the purpose of financing the construction, operation and maintenance of infrastructure and development projects normally financed and undertaken by the Government. Sec.1, Rep Act # 7718, BOT law) </li></ul>
  5. 5. <ul><li>MTPDP specified that the government will increasingly mobilize the private sector to accelerate the financing, constructing, rehabilitation, and operation of major infrastructure facilities, obtain the required infrastructure through competitive markets with minimum fiscal burden and government contingent liabilities while protecting the public interest, ensure that users will have adequate, safe, efficient, reliable and affordable infrastructure services, and provide services, and provide private… </li></ul>
  6. 6. <ul><li>proponents who will be generally selected through competition under fair and transparent terms, a level playing field with reasonable returns and sharing of risks. </li></ul><ul><li>Govt. is committed to good governance, transparency, competitiveness, impartially, and accountability in all govt. transactions which include the implementation of infrastructure programs and projects. </li></ul>
  7. 7. <ul><li>There is a need to fast-track the implementation of PPP programs and projects, as a cornerstone strategy of the national devt. plan to accelerate the infrastructure devt of the country and sustain economic growth. </li></ul><ul><li>The BOT Center is mandated to coordinate and monitor projects implemented under the BOT Law, to guide the agencies/LGUs in the preparation and devt of BOT projects, and report to the President and Congress on the progress of all BOT implemented projects. </li></ul>
  8. 8. <ul><li>EO No. 144 (2002) converted the Coordinating Council for Private Sector Participation (CCPSP) to BOT Center, and the CCPSP Technical Secretariat to the Project Monitoring Office, and transfers its attachment from the Office of the President to the DTI. </li></ul><ul><li>To efficiently and effectively implement the MTPDP, there is a need to facilitate the coordination an d monitoring of the PPP Programs and projects by converging these functions to NEDA. </li></ul><ul><li>BOT Center is now at NEDA from DTI. </li></ul>
  9. 9. <ul><li>Shall cover all the programs and projects including all the variants or arrangements under the BOT Law and joint venture agreements. </li></ul><ul><li>-conduct project facilitation and assistance to the national implementing agencies, including GOCCs and LGUs in addressing impediments or bottlenecks in the implementation of PPP programs. </li></ul>
  10. 10. <ul><li>Provide advisory services, technical assistance, trainings and capability devt to agencies/LGUs in PPP project preparation and development. </li></ul><ul><li>Recommend plans, policies and implementation guidelines related to PPP in consultation with appropriate oversight committees, implementing agencies, LGUs and the private sectors. </li></ul>
  11. 11. <ul><li>The PPP center shall be headed by an Executive Director with the rank equivalent to Asst. Director General or Assistant Secretary, who shall be appointed by the President upon recommendation of the NEDA Secretary. </li></ul><ul><li>DBM shall release the funds needed for the financial and operational requirements of the PPP Center, Including P300 million, subject to the submission of a special budget for the purpose. </li></ul>
  12. 12. <ul><li>SONA: called on PPP to help fund infrastructure and other government needs </li></ul><ul><li>Partnership in political will and governance </li></ul><ul><li>BSP doubled single-borrower’s limit (SBL) for corporate borrowers for PPP public infra projects (PDI, 11/19/10, B13) </li></ul><ul><li>Ranked 85 th of 139 countries in the latest World Competitiveness Report </li></ul><ul><li>Malaysia 26, Thailand 38, Indonesia 44 </li></ul>
  13. 13. <ul><li>Infrastructure Philippines 2010 launched on 11/18/10 (Phil Star, 11/19/10,p.1) </li></ul><ul><li>P-Noy: no more backroom deals, rules will be fair, solicited projects at minimum risk </li></ul><ul><li>1 st time cabinet secretaries speak the same language (European Chamber of Commerce) </li></ul><ul><li>Only few projects are close to ready to go and bureaucracy needs expert help to prepare them. </li></ul>
  14. 14. <ul><li>More rooms for PPPs under a level playing field (American Chamber of Commerce) </li></ul><ul><li>Must conform with BOT laws (RA 6957, 7/9/90 & RA 7718, 5/5 </li></ul><ul><li>/94), & procurement law (RA 9184, 1/10/03) </li></ul>
  15. 15. <ul><li>Can the PPP help modernize the Philippines? </li></ul><ul><li>Can the PPP cause more harm than good to the Philippines? </li></ul><ul><li>What is there for the ordinary Filipino to benefit? </li></ul>