investment opportunities public-private …19-kilometer light rail line along aguinaldo highway from...

INVESTMENT OPPORTUNITIES

PUBLIC-PRIVATE PARTNERSHIP CENTERREPUBLIC OF THE PHILIPPINES

republic of the philippinesPUBLIC-PRIVATE PARTNERSHIP CENTER


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INVESTMENTOPPORTUNITIES

february 2018

3 Ambisyon Natin 2040 4 What is PPP? 5 PPPs in the Philippines 6 Public-Private Partnership Center of the Philippines 7 How does the PPP process work? Who can participate? 8 Pipeline of PPP Projects 10 Investment Opportunities 22 Awarded Projects 28 Project Development and Monitoring Facility (PDMF) 29 Policy Initiatives 31 Doing Business in the Philippines 32 Investment Incentives 34 Directory 35 Contact Us | Acknowledgements

TABLE OF CONTENTS

FEBRUARY 2018

Ambisyon Natin 2040

AmBisyon Natin 2040 represents the collective long-term vision and aspirations of the Filipino people for themselves and for the country in the next 25 years. It describes the kind of life the Filipinos want to live, and how the country will be by 2040. As such, it is an anchor for development planning across at least four administrations.

By 2040, Filipinos will enjoy a strongly rooted, comfortable, and secure life.

Build Build Build

Infrastructure is among the top priorities of the government with public spending on infrastructure projects targeted to reach Php 8-9 trillion pesos from 2017-2022.

On April 19, 2017, the government launched the Build Build Build Portal (www.build.gov.ph), which lists down high impact projects, including PPPs, that are envisioned to increase the productive capacity of the economy, create jobs, increase incomes, and strengthen the investment climate leading to sustained inclusive growth.

In 2040, we will all enjoy a stable and comfortable lifestyle, secure in the knowledge that we have enough for our daily needs and unexpected expenses, and that we can plan and prepare for our own and our children’s future. Our family lives together in a place of our own, and we have the freedomtogowherewedesire,protectedandenabledbyaclean,efficient, and fair government.

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PUBLIC-PRIVATE PARTNERSHIPSIN THE PHILIPPINES

Public-Private Partnerships (PPPs) can be broadly defined as a contractual arrangement between the Government and a private partner targeted towards financing, designing, constructing, operating and maintaining infrastructure facilities and services that were traditionally provided by the public sector. It embodies optimal risk allocation whereby risks are allocated to the party best able to manage them at the lowest cost, without compromising the realization of project development objectives.

Projects under the PPP scheme are implemented through the Amended Build-Operate-Transfer (BOT) Law or Republic Act (RA) No. 6957, as amended by RA No. 7718.

WHAT IS PUBLIC-PRIVATE PARTNERSHIP?

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The 1987 Constitution explicitly acknowledges the critical role that the private sector plays in the development agenda of the country. The Duterte Administration aims to address the infrastructure requirements of the Philippines through accelerating the country’s annual infrastructure spending to account for 5% of the Gross Domestic Product (GDP), with Public-Private Partnerships (PPPs) playing a key role.

The government envisions the implemention of infrastructure projects to generate significant employment opportunities, boost economic activities, and attain inclusive growth.

Guided by the principles of transparency, accountability, and good governance, the PPP Program engages the private sector as vital partners who can bankroll critical infrastructure projects that will deliver much needed services for its growing populace.

Under the hallmark of good governance, the Philippine government guarantees that the private sector will be able to do business in an environment that nurtures fair and transparent transactions. The Government ensures that the interests of both the private sector and its citizens are balanced, where policies and procedures are continually enhanced.

The robust pipeline of PPP projects is a product of the government’s continuing efforts to deliver viable and well-structured infrastructure projects that will attract investors to bring their business to the Philippines.

PUBLIC-PRIVATE PARTNERSHIPSIN THE PHILIPPINES

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PUBLIC-PRIVATE PARTNERSHIP CENTER OF THE PHILIPPINES

By virtue of Executive Order No. 8, series of 2010, as amended by Executive Order No. 136, series of 2013, the Public-Private Partnership (PPP) Center of the Philippines is mandated to facilitate the implementation of the country’s PPP Program and projects. The PPP Center serves as the central coordinating and monitoring agency for all PPP projects in the Philippines. Together with the various implementing agencies (IAs), the PPP Center champions the PPP Program. It provides technical advisory services to IAs in the entire life-cycle of critical PPP infrastructure and development projects - from development, approval and procurement to implementation and monitoring stages - ensuring that the projects are bankable, well-structured and highly beneficial to the public.

The PPP Center manages a revolving fund known as the Project Development and Monitoring Facility (PDMF) that gives IAs access to a panel of consulting firms tasked to provide transaction advisory support and multi-disciplinary expertise required to successfully tender PPP projects. The PPP Center also advocates policy reforms to improve the legal and regulatory framework governing the PPP Program.

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WHO CAN PARTICIPATE IN THE PHILIPPINE PPP PROGRAM?

• Regardless of nationality, anyone is encouraged to invest and participate in the Philippine PPP Program subject to technical, financial, and legal requirements.

• Project proponent can obtain financing from foreign and/or domestic sources and/or engage the services of a foreign and/or Filipino contractor.

• 100% foreign equity may be allowed in all areas of investment EXCEPT in case of an infrastructure facility whose OPERATION requires a public utility franchise. In such a case, the facility operator must be Filipino or if a corporation, must be duly registered with the Securities and Exchange Commission (SEC) and at least sixty percent (60%) owned by Filipinos.

DEVELOPMENT STAGE- Project preparation (feasibility study and market sounding activity)- Finalization of project structure

APPROVAL STAGE- Project submission to relevant approving bodies- Project assessment and appraisal- Investment Coordination Committee (ICC) - approval/recommendation- National Economic and Development Authority (NEDA) Board approval

PROCUREMENT STAGE- Pre-qualification (advertisement of Invitation to Pre-qualify and Bid, pre-qualification conference, and submission and evaluation of pre-qualification documents)- Bid proper (pre-bid conference, bid submission, and bid opening and evaluation)- Notice of Award and Contract signing

IMPLEMENTATION STAGE- Financial close- Implementation (preparation of Detailed Engineering Design, construction, and commissioning)- Turnover of facility/infrastructure back to the government

HOW DOES THE PPP PROCESS WORK?

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As of February 2018

Various projects can be financed and implemented through PPPs - from traditional infrastructure projects such as toll roads, airports and transport systems to non-traditional infrastructure such as Information and Communications Technology (ICT) systems and facilities, and social infrastructure projects for education and health.

AWARDED PROJECTS

Completed and Operational Projects

• Muntinlupa-Cavite Expressway (MCX) / Daang Hari-South Luzon Expressway (SLEx) Link Road Project • PPP for School Infrastructure Project (PSIP) Phase I • Automatic Fare Collection System (AFCS) Project • NAIA Expressway (Phase II) Project

Projects under Construction

• PPP for School Infrastructure Project (PSIP) Phase II • Mactan-Cebu International Airport (MCIA) Passenger Terminal Building Project • Metro Manila Skyway (MMS) Stage 3 Project • Southwest Integrated Transport System (SWITS) Project/Parañaque Integrated Terminal Exchange • MRT Line 7 Project • Bulacan Bulk Water Supply Project • Civil Registry System Information Technology Project (Phase II) • Cavite-Laguna Expressway (CALAx) Project

Projects under Pre-Construction

• LRT Line 1 Cavite Extension, Operations & Maintenance Project • South Integrated Transport System (SITS) Project/Taguig Integrated Terminal Exchange • North Luzon Expressway (NLEx) - South Luzon Expressway (SLEx) Connector Road Project • Clark International Airport Expansion Project

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Pipeline of Public-PrivatePartnership Projects

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Projects under Procurement

• Road Transport Information Technology Infrastructure Project (Phase II)

project for approval of relevant government bodies

• Clark International Airport Operations & Maintenance Project

Projects under Review and Development• LRT Line 6 Project• Operations & Maintenance of LRT Line 2 Project• Integrated Transport System - North Terminal Project• San Ramon Newport Project• Cebu Bus Rapid Transit (BRT) Project - System

Manager and Operator Contracts • Duty Free Retail Development Project• One DTI Building Complex Project• Motor Vehicle Inspection System (MVIS) Project• Bonifacio Global City - NAIA BRT


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*Based on BSP Pesos per US Dollar Rate $1 = Php51.34 (as of October 2017 - Monthly Average)

Investment Opportunities

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ROAD TRANSPORT INFORMATION TECHNOLOGY (IT) INFRASTRUCTURE PROJECT (PHASE II) The project involves the upgrade of existing IT infrastructure of the Land Transportation Franchising and Regulatory Board (LTFRB), including: (a) computerization of its manual processes; (b) development of an online database of franchise information; (c) data migration; and (d) procurement, installation, operations and management of IT hardware equipment, software and network development.

The project aims to deliver a transparent and efficient franchising system through streamlining of LTFRB’s current processes and automation. It is expected to clean up existing data; enhance data collection, processing and integration within LTFRB and its related agencies; decrease processing time; promote transparency and ease of use; and improve access to public information and channels for feedback.

Airene M. RobinsonAssistant Secretary for [email protected]

Lisa Marie B. JacintoProject Development OfficerPPP [email protected]

Project cost

PPP scheme

concession period

contact details

Department of Transportation (DOTr) and Land Transportation

Franchising and Regulatory Board (LTFRB)

5.80Million

Build-Transfer-Operate (BTO)

11.5 years (inclusive of 1.5-year application development and installation period)

₱ 298 Million

Implementing agency

$


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LRT LINE 6 PROJECTThe project involves the financing, design, construction, operations & maintenance (O&M), including procurement of the rolling stocks and systems, of a new 19-kilometer light rail line along Aguinaldo Highway from Niyog, Bacoor (the terminus of the LRT Line 1 Cavite Extension Project) to Dasmariñas City in Cavite.

LRT Line 6, as an extended rail system from the existing LRT Line 1, will provide a cost-effective and efficient mode of transport for people travelling within Cavite and to/from Metro Manila. The project will also provide an incentive to the public to relocate to the suburbs of Metro Manila (specifically Cavite Province), thus lessening the burden on Metro Manila infrastructure.

Timothy John BatanAssistant Secretary for [email protected]

Jan Irish V. PlatonProject Development OfficerPPP [email protected]

Project cost

PPP scheme

concession period

contact details

Department of Transportation (DOTr)

Build-Gradual Transfer-Operate-Maintain (BGTOM) / Build-Transfer+Operations & Maintenance (BT+O&M)

30 years (inclusive of 5-year construction

period)

Implementing agency

₱ 65.09 Billion$1.27

Billion


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OPERATIONS & MAINTENANCE of lrt line 2 projectThe project involves the operations & maintenance (O&M) of the existing LRT Line 2 from Recto to Santolan, the 4-kilometer East Extension from Santolan to Masinag and any future extensions to be implemented by the government during the term of the project.

The project aims to:1. improve the transport services of LRT Line 2 by achieving higher levels of train availability, punctuality, customer comfort and other key performance indicators;2. alleviate existing and future traffic problems along LRT Line 2 by encouraging people to use the more efficient LRT instead of on-street transportation;3. promote LRT Line 2 asset preservation through improved O&M services;4. ensure safe and secure travel environment for passengers and safe working conditions for staff; and 5. assist in creating an enabling environment and model for further private sector participation in Manila’s transport infrastructure through the development of a financially sound and effective PPP scheme.

Timothy John BatanAssistant Secretary for [email protected]

Maria Cristina C. CleofasDivision ChiefPPP [email protected]

Project cost

PPP scheme

concession period

contact details

Department of Transportation (DOTr) and Light Rail Transit

Authority (LRTA)

Operations & Maintenance (O&M)

15 years

Implementing agency

No Capex


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Clark international airport OPERATIONS & MAINTENANCE PROJECTClark International Airport is located at the Clark Special Economic and Freeport Zone in Angeles City, Pampanga Province of Central Luzon Region. The government intends to develop and market Clark International Airport as a major gateway to Northern and Central Luzon and attract both airlines and passengers from its catchment area. The project involves the operations & maintenance (O&M) of the existing and the proposed new passenger terminal buildings.

Bases Conversion and Development Authority

(BCDA)

Implementing agency

Arrey A. PerezProject [email protected]

Billy Jane C. CavintaProject Development OfficerPPP [email protected]

contact details


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INTEGRATED TRANSPORT SYSTEM (ITS) - NORTH TERMINAL PROJECT

The project involves the financing, design, construction, operations & maintenance (O&M) of a mass transportation intermodal terminal at the northern outskirts of Metro Manila. The project aims to maximize road usage by reducing vehicle volume and therefore improving traffic flow along Metro Manila’s major thoroughfares, particularly along EDSA.

It will connect passengers coming from Northern Luzon to other transport systems such as rails, city bus, taxi and other public utility vehicles that are serving inner Metro Manila. The project will include passenger terminal buildings, arrival and departure bays, public information systems, ticketing and baggage handling facilities and park-ride facilities.

Mark Richmund de LeonAssistant Secretary for Road Transport and InfrastructureDOTr(+632) 727-7958

contact details


Implementing agency

Billy Jane C. CavintaProject Development OfficerPPP [email protected]


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SAN RAMON NEWPORT PROJECT

The project involves the financing, design, construction, operations & maintenance (O&M) of a world-class seaport to be located within the First Industrial Park of ZamboEcozone.

It aims to improve the competitiveness of the ZamboEcozone and fulfill its vision of becoming a world-class economic zone that will link resources, markets, and other logistical activities that can contribute to the economic development of Zamboanga City and Mindanao.

Christopher Lawrence ArnucoChairman and AdministratorZamboEcozone [email protected]

contact details

Zamboanga City Special Economic Zone

(ZamboEcozone) Authority

Implementing agency

Kristina Azela B. DizaProject Development OfficerPPP [email protected]

Jhoel G. JordaProject Development OfficerPPP [email protected]


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CEBU BUS RAPID TRANSiT (BRT) PROJECT - system manager and bus operator contract

Metro Cebu is the second largest metropolitan area in the Philippines after Metro Manila, and Cebu City is its largest local government unit. It has experienced rapid urbanization and population growth. To address traffic congestion in the city, the Department of Transportation has embarked upon a program of development and implementation of BRT.

The project involves the operations & maintenance (O&M) of a BRT to be constructed in Cebu through Official Development Assistance (ODA). It aims to improve mobility in Cebu by providing a safe, environment-friendly and efficient mode of travel.

Arnulfo P. FabillarAssistant Secretary for Road Transport and [email protected]

Justine E. PadiernosOIC - Division ChiefPPP [email protected]

contact details


Implementing agency

Kristina Azela B. DizaProject Development OfficerPPP [email protected]

Julius Nicoll Z. DalayProject Development OfficerPPP [email protected]

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DUTY free retail developmentproject

contact details

Department of Tourism (DOT) and Duty Free

Philippines Corporation (DFPC)

Implementing agency

Jennifer F. StartChief of Staff - Office of the Chief Operating [email protected]

Lisa Marie B, JacintoProject Development OfficerPPP [email protected]

The project is aimed at expanding the operations of Duty Free Philippines Corporation (DFPC) to international benchmarks in terms of service and profitability. This is in line with DFPC’s goals of improving tourism through better services for tourists and returning Filipino travellers, and increasing revenues for the government.

The project involves the operations & maintenance (O&M) of DFPC activities involving the following:a. Sourcing and purchasing of goods;b. Logistics: inbound logistics, warehousing, and store delivery; andc. Store design, merchandising, and operations.


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MOTOR VEHICLE INSPECTION SYSTEM (MVIS) project

The project involves the financing, design, construction, operations & maintenance (O&M) of centralized, automated and national network of Motor Vehicle Inspection Centers (MVICs) for roadworthiness testing.

It aims to improve the efficiency, effectiveness, reliability and transparency of motor vehicle inspection, thereby ensuring roadworthy and environmentally-sustainable vehicles.

Airene M. RobinsonAssistant Secretary for [email protected]

John Dominic Z. ZafeProject Development OfficerPPP [email protected]

contact details

Department of Transportation (DOTr) and Land Transportation Office

(LTO)

Implementing agency

Marikriz Florenz N. GarciaProject Development OfficerPPP [email protected]


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BONIFACIO GLOBAL CITY - NAIA busrAPID TRANSIT (brt) projectBases Conversion and

Development Authority(BCDA)

Implementing agency

The Bonifacio Global City-NAIA Bus Rapid Transit (BRT) covers the line starting from HYATT Station ending in McKinley, and down line from McKinley to Uptown Station. The planned BRT system will provide a dedicated lane, buses with large traffic volume, suitable stations and intelligent transportation system.

contact details

Christian Paolo R. [email protected]

Eloisa Fe J. LusotanProject Development OfficerPPP [email protected]

ONE dti building complex projectThe One DTI Building Complex is envisioned to accommodate all major functional groups, bureaus, attached agencies and corporations of the Department of Trade and Industry (DTI) currently operating in different buildings within the National Capital Region. Equipped with modern facilities and smart building design, the vision is to facilitate seamless transactions for all DTI clients, either domestic or foreign investors, by having all programs and frontline services of different functional groups and bureaus under one roof.

Along with enhanced government trade transactions, the area’s efficiency will eventually be boosted by facilities where trading, promotional events and other special activities can be conducted.

Lilia ArceAssistant General [email protected]

contact details

Department of Trade and Industry (DTI) and National Development

Company (NDC)

Implementing agency

Blaise Joshua N. MoralesProject Development OfficerPPP [email protected]

Justine E. PadiernosOIC - Division ChiefPPP [email protected]

Photo from: Boholdailynews

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pppawardedprojects


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AWARDED PROJECTS

Completed and Operational Projects

• Muntinlupa-Cavite Expressway (MCX) / Daang Hari-South Luzon Expressway (SLEx) Link Road Project • PPP for School Infrastructure Project (PSIP) Phase I • Automatic Fare Collection System (AFCS) Project • NAIA Expressway (Phase II) Project

Projects under Construction

• PPP for School Infrastructure Project (PSIP) Phase II • Mactan-Cebu International Airport (MCIA) Passenger Terminal Building Project • Metro Manila Skyway (MMS) Stage 3 Project • Southwest Integrated Transport System (SWITS) Project/Parañaque Integrated Terminal Exchange • MRT Line 7 Project • Bulacan Bulk Water Supply Project • Civil Registry System Information Technology Project (Phase II) • Cavite-Laguna Expressway (CALAx) Project

Projects under Pre-Construction

• LRT Line 1 Cavite Extension, Operations & Maintenance Project • South Integrated Transport System (SITS) Project/Taguig Integrated Terminal Exchange • North Luzon Expressway (NLEx) - South Luzon Expressway (SLEx) Connector Road Project • Clark International Airport Expansion Project

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muntinlupa-cavite expressway (mcx)/Daang hari-slex link road ProjectImplementing Agency: Department of Public Works and Highways (DPWH)Project Cost: Php2.23 Billion | $43.44 Million*

Scheme: Build-Transfer-Operate (BTO)Concession Period: 30 yearsPrivate Partner: Ayala Corporation

PPP for school infrastructure project (PSiP) phase IImplementing Agency: Department of Education (DepEd)Project Cost: Php9.89 Billion | $192.64 Million**Scheme: Build-Lease-Transfer (BLT)Concession Period: 10 yearsPrivate Partner: Bright Future Educational Facilities Inc. (Region I) and Citicore - Megawide Consortium Inc. (Region III and IV- A)

AUTOMATIC FARE COLLECTION SYSTEM (afcs) PROJECTImplementing Agency: Department of Transportation (DOTr)Project Cost: Php1.72 Billion | $33.50 MillionScheme: Build-Transfer-Operate (BTO) & Build-Own-Operate (BOO)Concession Period: 10 years Private Partner: AF Payments Inc. (consortium of Ayala and Metro Pacific Groups)

NAIA expressway (phase II) Project Implementing Agency: Department of Public Works and Highways (DPWH)Project Cost: Php17.93 Billion | $349.24 Million***Scheme: Build-Transfer-Operate (BTO) Concession Period: 30 yearsPrivate Partner: Vertex Tollways Development Inc. (VTDI) (subsidiary of San Miguel Corporation)

AWARDED PROJECTS : Completed and Operational

*Original project cost approved by the NEDA Board on July 8, 2011 was Php1.956 Billion. The cost increased to Php2.23 Billion due to the payment of the advance works improvements amounting to Php0.050 Billion as approved by the ICC-CC on November 29, 2011 and Variation Cost amounting to Php0.223 Billion**Approved Budget Ceiling (ABC) of the Build-Lease-Transfer (BLT) contract is Php16.43 Billion***Original project cost approved by the NEDA Board on May 30, 2012 was Php15.86 Billion; the cost increased to Php17.93 Billion due to the Variation Order amounting to Php2.07 Billion

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PPP for school infrastructure project (psip) phase IIImplementing Agency: Department of Education (DepEd)Project Cost: Php3.86 Billion | $75.19 Million* Scheme: Build-Transfer (BT)Concession Period: N/APrivate Partner: Megawide Construction Corp. (Regions I, II, III and CAR); consortium of BSP & Co., Inc. and Vicente Lao Construction Corporation - (Regions X and CARAGA)

mactan-cebu international airport (mcia) passenger terminal building projectImplementing Agency: Department of Transportation (DOTr) and Mactan-Cebu International Airport Authority (MCIAA)Project Cost: Php17.52 Billion | $341.25 MillionScheme: Build-Operate-Transfer (BOT)Concession Period: 25 yearsPrivate Partner: GMR-Megawide Cebu Airport Corporation (GMCAC)

metro manila skyway (MMS) stage 3 projectImplementing Agency: Toll Regulatory Board (TRB)Project Cost: Php37.43 Billion | $729.06 Million**Concession Period: 30 yearsPrivate Partner: Citra Central Expressway Corporation (CCEC) (subsidiary of San Miguel Corporation)

southwest integrated transport system (swits) project/ paranaque integrated terminal exchangeImplementing Agency: Department of Transportation (DOTr)Project Cost: Php2.50 Billion | $48.69 MillionScheme: Build-Transfer-Operate (BTO)Concession Period: 35 yearsPrivate Partner: MWM Terminals Inc. (consortium of Megawide Construction Corporation and WM Property Management Inc.)

AWARDED PROJECTS : UNDER CONSTRUCTION

*The original project cost approved by the NEDA Board on November 29, 2012 was Php13.14 Billion. However, only two out of the five contract packages were successfully procured amounting to Php3.86 Billion**Project cost is based on the final Engineering Design as approved by the Toll Regulatory Board

MRT LINE 7 ProjectImplementing Agency: Department of Transportation (DOTr)Project Cost: Php62.7 Billion | $1.22 BillionScheme: Build-Gradual Transfer-Operate and Maintain (BGTOM)Concession Period: 25 yearsPrivate Partner: Universal LRT Corporation (subsidiary of San Miguel Corporation)

bulacan bulk water supply projectImplementing Agency: Metropolitan Waterworks & Sewerage System (MWSS)Project Cost: Php24.41 Billion | $475.46 MillionScheme: Build-Operate-Transfer (BOT)Concession Period: 30 years Private Partner: Luzon Clean Water Development Corporation (consortium of San Miguel Corporation and Korea Water Resources Corporation)

civil registry system information technology (phase II) project Implementing Agency: Philippine Statistics Authority (PSA)Project Cost: Php1.59 Billion | $30.97 MillionScheme: Build-Transfer-Operate (BTO)Concession Period: 12 years Private Partner: Unisys Public Sector Services Corporation

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cavite-laguna expressway (calax) project

Implementing Agency: Department of Public Works and Highways (DPWH)Project Cost: Php35.43 Billion | $690.10 Million**Scheme: Build-Transfer-Operate (BTO)Concession Period: 35 yearsPrivate Partner: MPCALA Holdings, Inc.

lrt line 1 cavite extension, operations & Maintenance Project Implementing Agency: Department of Transportation (DOTr) & Light Rail Transit Authority (LRTA)Project Cost: Php64.90 Billion | $1.26 Billion*Scheme: Build-Transfer-Operate (BTO)Concession Period: 32 yearsPrivate Partner: Light Rail Manila Corporation (consortium of Metro Pacific Light Rail Corporation, AC Infrastructure Holdings Corporation, and Macquarie Infrastructure Holdings)

south integrated transport system (sits) project/ taguig integrated terminal exchangeImplementing Agency: Department of Transportation (DOTr)Project Cost: Php5.20 Billion | $101.28 Million***Scheme: Build-Transfer-Operate (BTO)Concession Period: 35 yearsPrivate Partner: ARCA South Integrated Terminal, Inc. (subsidiary of Ayala Corporation)

NLex-slex connector road project

Implementing Agency: Department of Public Works and Highways (DPWH)Project Cost: Php23.2 Billion | $451.89 MillionScheme: Build-Operate-Transfer (BOT) (Unsolicited)Concession Period: 37 yearsPrivate Partner: Manila North Tollways Corporation (subsidiary of Metro Pacific Group)

AWARDED PROJECTS : UNDER PRE-CONSTRUCTION

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*Project cost is inclusive of the Php 19.83 billion ODA component**Project cost does not include the approved minimum bid price amounting to Php 20.105 billion***Project cost includes the cost of the C5-FTI-Skyway Connector Road (access ramp) of Php1,198.093 Billion, and cost of land

Clark international airport expansion project Implementing Agency: Bases Conversion and Development Authority (BCDA)Project Cost: Php12.55 Billion | $244.45 MillionScheme: Build-TransferPrivate Partner: Consortium of Megawide Construction Corp. and GMR Infrastructure Ltd.

The Project Development and Monitoring Facility (PDMF) is a revolving pool of funds for engaging project preparation and transaction advisory consultants, probity advisors, and independent consultants.

Scope of services• Preparation of project pre-feasibility and feasibility studies, bid documents and PPP contracts• PPP project structuring• PPP bid process management• Assistance until financial close• Independent consultancy services • Probity advisory services

PDMF Funds$102 million jointly financed by the Philippine Government and the Australian Government, through the Asian Development Bank

Two-Stage Consultant Selection Process

(1) Pre-qualification of Consulting Firms • Firms are retained on indefinite delivery contracts (IDC) without commitment

(2) Call-down Assignment • Electronic submission of technical and financial proposals • Lump-sum or time-based contract, depending on the scope of services

THE PROJECT DEVELOPMENT & MONITORING FACILITY

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Guidelines on the Identification, Selection and Prioritization of PPP Projects

These guidelines aim to institutionalize the criteria and process in the identification, selection, and prioritization of PPP projects using Multi-Criteria Analysis (MCA) approach, which can be a useful tool in determining potential PPP projects that have a relatively higher potential of being procured using the PPP scheme.

Institutionalization of Best Practices in the PPP Process

This issuance aims to institutionalize best practices in PPP procurement and project implementation across government and to guide Implementing Agencies (IAs) in effectively integrating these into their PPP processes.

Policy on Viability Gap Funding (VGF) for PPP Projects

This issuance aims to institutionalize a VGF scheme for PPP projects to make economically-viable PPP projects affordable to the public and, at the same time, improve their commercial attractiveness.

POLICY INITIATIVESSince the launch of the PPP Program, the Government has been advocating measures to enhance the legal and policy environment for private sector participation and to enable a more systematized and faster implementation of the program.

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Appointment of Probity Advisors for PPP Procurement

This issuance aims to institutionalize the appointment of Probity Advisors prior to the commencement of applicable PPP procurement to manage and provide an independent opinion on probity issues that may arise during the procurement process.

Termination Payment for PPP Projects

This issuance aims to identify the specific events that may lead to project termination, and outlines the principles of termination payment calculation.

PPP Monitoring Framework and Protocols

This issuance aims to identify the roles and responsibilities of the key parties involved in monitoring the implementation of PPP projects; to define the protocols for generating, processing, and sharing information for monitoring; and to document information on lessons learned and best practices during project implementation that can be used in planning, evaluating, and implementing future PPP projects.

Policy on Public Consultation and Engagement for PPP Projects

This issuance aims to institutionalize the consultation and engagement of the public, with the end view of improving transparency in the development and implementation of PPP projects.

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Policy on Assessing Value for Money in PPP Projects

This issuance aims to institutionalize Value for Money analysis in PPP projects.

Policy on Managing Government Employees Affected by PPP Projects

This issuance aims to set out a framework for managing government employees affected by PPP projects.

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Sources: National Government Portal, About the Philippines, http://investphilippines.gov.ph/about-the-philippines/ Philippine Statistics Authority, National Quickstat-October 2017, http://psa.gov.ph/content/national-quickstat-october-2017 Philippine Statistics Authority, Literacy of Men and Wommen in the Philippines (Results from the 2008 Functional Literacy, Education, and Mass Media Sur-vey), March 8, 2011, https://psa.gov.ph/content/literacy-men-and-women-philip-pines-results-2008-functional-literacy-education-and-mass-mediaPhilippine Statistics Authority, Philippine Economy Grows by 6.9 % in the Third Quarter of 2017, http://psa.gov.ph/content/philippine-economy-grows-69-per-cent-third-quarter-2017

INVESTMENT INCENTIVESBoard of Investments (BOI) Incentives

• Fiscal Incentives o Income tax holiday o Exemption from taxes and duties on imported spare parts (Net Operating Loss Carry-Over) o Exemption from wharfage dues and export tax, duty, impost and fees (Gross Income Earned) o Reduction of the rates of duty on capital equipment, spare parts and accessories by virtue of Executive Order No. 528 o Tax exemption on breeding stocks and genetic materials o Tax credits o Additional deductions from taxable income

• Non-Fiscal Incentives o Employment of foreign nationals o Simplification of customs procedures o Importation of consigned equipment o Privilege to operate a bonded manufacturing/ trading warehouse

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Source: Board of Investments, Investment Priority Area, http://investphilippines.gov.ph/incentives/board-of-investments/

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Philippine economic zone authority INCENTIVES• Fiscal Incentives o Income Tax Holiday (ITH) - 100% exemption from corporate income tax o Upon expiry of the ITH - 5% special tax on Gross Income and exemption from all national and local taxes (“Gross Income” refers to gross sales or gross revenues derived from the registered activity, net of sales discounts, sales returns and allowances and minus cost of sales or direct costs but before any deduction is made for administrative expenses or incidental losses during a given taxable period) o Tax and duty free importation of raw materials, capital equipment, machineries and spare parts o Exemption from wharfage dues and export tax, impost or fees o VAT zero-rating of local purchases subject to compliance with BIR and PEZA requirements o Exemption from payment of any and all local government imposts, fees, licenses or taxes

However, while under ITH, there is no exemption from real estate tax, except for machineries installed and operated in the economic zone for manufacturing, processing or for industrial purposes, which shall be exempt from real estate taxes for the first three (3) years of operation of such machineries. Production equipment not attached to real estate shall be exempt from real property taxes.

• Non-Fiscal Incentives o Simplified import - export procedures (electronic import permit system and automated export documentation system) o Non-resident foreign nationals may be employed by PEZA-registered economic zone enterprises in supervisory, technical or advisory positions. o Special non-immigrant visa with multiple entry privileges for the following non-resident foreign nationals in a PEZA-registered Economic Zone Enterprise: Investor/s, officers, and employees in supervisory, technical or advisory position, and their spouses and unmarried children under twenty-one (21) years of age. PEZA extends visa facilitation assistance to foreign nationals, and their spouses and dependents.Source: Philippine Economic Zone Authority, Fiscal Incentives, http://www.peza.gov.ph/indexphp/eligible-activities-incentives/fiscal-incentives 33

FERDINAND A. PECSONExecutive Director

Phone: (+632) 709-4146 loc. 2001Email: [email protected]

ELEAZAR E. RICOTEDeputy Executive DirectorPhone: (+632) 709-4146 loc. 2201E-mail: [email protected]

FEROISA FRANCISCA T. CONCORDIADirector IVCapacity Building and Knowledge Management ServicePhone: (+632) 709-4146 loc. 8001E-mail: [email protected]

ATTY. FRANCES YANI P. DOMINGODirector IVLegal ServicePhone: (+632) 709-4146 loc. 4001E-mail: [email protected]

JEFFREY I. MANALODirector IIIPolicy Formulation, Project Evaluation and Monitoring ServicePhone: (+632) 709-4146 loc. 5201E-mail: [email protected]

LAWRENCE G. VELASCODirector IIIProject Development ServicePhone: (+632) 709-4146 loc. 6002E-mail: [email protected]

MIA MARY G. SEBASTIANDeputy Executive DirectorPhone:(+632) 709-4146 loc. 2301E-mail: [email protected]

ATTY. MA. LERMA L. ADVINCULADirector IVProject Development and MonitoringFacility ServicePhone: (+632) 709-4146 loc. 3001E-mail: [email protected]

MARIA THERESA L. LARANANGDirector IVAdministrative ServicePhone: (+632) 709-4146 loc. 7001E-mail: [email protected]

JOMEL ANTHONY V. GUTIERREZDirector IIICapacity Building and Knowledge Management ServicePhone (+632) 709-4146 loc. 8201E-mail: [email protected]

Public-Private Partnership Center8th Floor, One Cyberpod Centris, EDSA cor.

Quezon Ave., Quezon City 1100Trunkline: (+632) 709-4146

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ACKNOWLEDGEMENTSRoad IT: http://apphocus.com/network-infrastructure/ITS North Terminal: http://ayosaoi.wordpress.comClark International Airport (O&M) Project: https://iorbitnews.com/San Ramon Newport Project: http://www.sidc.ie/our-projects/saudi-arabia/opportunity-analysis-of-red-sea-foundation,-saudi-arabiaBRT Cebu: http://theubpost.mn/wp-content/uploads/2016/08/0023ae9888c1158b2e9f07.jpgDuty Free Retail Development Project: https://outoftownblog.comOne DTI Building Complex: https://www.bdcnetwork.com/

PPPCenter.Philippines

@PPP_Ph PPPPinas

Public-Private Partnership Center of the Philippines

for more information, please visit:www.ppp.gov.ph

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for inquiries, kindly e-mail:[email protected]

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8th Floor, One Cyberpod Centris, EDSA cor. Quezon Ave., Quezon City 1100

(+632) 709-4146 | www.ppp.gov.ph

investment opportunities public-private …19-kilometer light rail line along aguinaldo highway from...

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