Aspects

Item

The Republic of Korea

The Philippines

Indonesia

Institutional

Public-private partnership (PPP) laws and regulations

PPP Law

• Act on the Promotion of Private Capital into Social Overhead Capital Investment and the Enforcement Decree of the PPP Act (1994): Beginning of the systematic management of PPP

• Private Participation in Infrastructure Act (PPP Act) and the Enforcement and Decree of the PPP Act (1999): Fundamental law for PPP in infrastructure

• Public-Private Partnerships in Infrastructure Act (2005) and Enforcement Decree of the PPP Act (2005 to present): Establishes a management system suited to the public nature of PPPs, and strengthens institutional support to promote private investment in infrastructure

Major related regulations

• Basic Plan for PPPs: A basic plan for PPPs must be established in accordance with the PPP Act. The Ministry of Economy and Finance publishes it in the form of an annual announcement.

PPP Law

• Republic Act No. 6957 (1990): Build-Operate-Transfer Law (BOT Law).

• Republic Act No.7718 (1994): Strengthens 1990 act.

• Republic Act No. 7160 (1991): Provides a local government code.

• Republic Act No. 8974 (2000): Facilitates the acquisition of right- of-way site for national government infrastructure projects and for other purposes.

• Republic Act No. 8975 (2000): Ensures the expeditious implementation and completion of government infrastructure projects by prohibiting lower courts from issuing temporary restraining orders

• Republic Act No. 9184 (2003): Modernizes, standardizes, and regulates government procurement

• Republic Act No. 10752 (2016): Facilitates the acquisition of right- of-way site for national government infrastructure projects

Major related regulations

• Executive Order No. 423 (2005): Rules and procedures for reviewing and approving government contracts

• Executive Order No. 8 (2010) as amended by Executive Order No. 136 (2013): Reorganizes and renames the Build-Operate- Transfer Center to the Public- Private Partnership Center of the Philippines, and transfers its attachment from the Department of Trade and Industry to the National Economic and Development Authority (NEDA)

• Executive Order No. 78 (2012): Mandates provisions on the use of alternative dispute resolution mechanisms in contracts involving build-operate-transfer projects, joint venture agreements between the government and private entities, and those entered into by local government units

General Regulations on PPPs

• Presidential Regulation No. 38 (2015): Cooperation between government and business entities on infrastructure

• Presidential Regulation No. 78 (2010): Government guarantee for infrastructure PPP projects

Major related regulations

• Ministerial Regulation of Finance No. 8 (2016): Guidelines on government guarantee

• Head of National Procurement Agency Regulation No. 19 (2015): Procurement guidelines for businesses on infrastructure PPPs

• Ministerial Regulation of Finance No. 190 (2015): Availability payments for infrastructure PPPs

• Ministerial Regulation of Home Affair No. 96 (2016): Availability payments for regional infrastructure PPPs

• Ministerial Regulation of Finance No. 223 (2012): Viability gap funding

Types of PPP procurement

• Build-operate-transfer

• Build-transfer-lease

• Build-transfer-operate

• Build-own-operate

• Build-lease-transfer

• Rehabilitate-operate-transfer

• Rehabilitate-own-operate

• Rehabilitate-transfer-lease

• Build-transfer

• Build-lease-transfer

• Build-operate-transfer

• Build-own-operate

• Build-transfer-operate

• Contract-add-operate

• Develop-operate-transfer

• Rehabilitate-operate-transfer

• Rehabilitate-own-operate

• Build-operate-transfer

• Build-own-operate

• Design-build-operate

• Design-build-lease

• Build-buy-operate

Eligible facilities

• Roads: Roads and appurtenances, parking lots, intermodal transfer centers, intelligent transport systems, public garages for taxis

• Rail: Railways, urban railways, railway facilities

• Ports: Harbor facilities, fishery harbor facilities, infrastructure facilities linking new harbors to the supporting arterial network

• Airports

• Water resources: Multipurpose dams, river facilities, waterworks systems, intermediate waterwork

• Information and communication: Telecommunication facilities, super high-speed information and communication networks, information and communication networks, spatial information systems, infrastructure for ubiquitous (smart) cities

• Energy: Electric source facilities, gas supply facilities, integrated energy facilities, new and renewable energy facilities

• Environment: Sewage systems, public sewage treatment facilities, excrement facilities, facilities for reuse of sewage and wastewater, waste disposal facilities, wastewater treatment terminal facilities, public treatment facilities

• Distribution: Logistics terminals, logistics complexes, bus terminals

• Culture, sports, and tourism facilities: Tourist facilities, resort complexes, specialized sports facilities, public sports facilities, libraries, museums, art galleries, international conference facilities, cultural facilities, facilities for bicycle riding, youth recreation facilities, science museums, urban parks

• Education: Kindergartens, elementary and secondary schools, higher education facilities

• National defense

• Housing

• Industrial complexes

• Welfare: Nursing facilities, childcare facilities

• Forestry: Natural and recreational forests, arboretums

• Public offices

• Crematoriums

• Highways/roads

• Rail

• Port

• Airports

• Power generation

• Telecommunication

• Information technology and databases

• Irrigation infrastructure

• Water supply

• Education and health infrastructure

• Land reclamation, dredging

• Industrial and tourism estates or townships

• Government buildings, housing projects

• Markets, slaughterhouses

• Warehouses, post-harvest facilities

• Public fish ports, fishponds

• Environmental and solid waste management

• Climate change mitigation and adaptation infrastructure

• Transport, roads

• Water resources and irrigation

• Drinking water

• Central wastewater management

• Local wastewater management

• Waste management systems

• Telecommunication and informatics

• Electricity

• Oil, gas, and renewable energy

• Energy conversion

• Urban facilities

• Education facilities

• Sports and culture facilities

• Area infrastructure

• Tourism

• Health

• Prisons

• Public housing

Financial support

Project Development Fund

None

• Project Development and Monitoring Fund, set up in 2010, for government finances to be used for developing PPPs.

• PT Sarana Multi Infrastructure provides the infrastructure development finances.

Government support

• Construction subsidy

• Risk-sharing system

► Build-transfer-operate, risk sharing

► Build-transfer-operate, adjusted

• Credit guarantee

• Buyout right

• Compensation on termination

• Infrastructure bonds

• Infrastructure funds

• Tax treatment

• Case by case approach: No guarantee for unsolicited projects

• Cost sharing: Implementing agency or local government unit bears a portion of the capital expense for an infrastructure PPP project. Government share may be financed from direct appropriations or official development assistance

• Credit enhancement: Can include government guarantees on project performance

• Direct government equity: Subscription by the government or any of its agencies or local government units of shares or other securities convertible to shares of a project company's stock. The subscription can be paid by cash or assets.

• Direct support: The government contracting agency may contribute certain physical facilities to an infrastructure PPP project. It can also cover certain capital costs and provide operating subsidies through the annual national or regional budget.

• Land acquisition: The Ministry of Finance through its State Asset Management Agency (LMAN) launched a new scheme for land acquisition of national strategic projects in 2017. LMAN provides land funds for all nationally strategic projects for timely land acquisition.

• Contingent support: Government guarantee to compensate a PPP project company if a specified risk happens

• Indonesia Infrastructure Guarantee Fund: State-owned company for evaluating, structuring, and managing guarantees to mitigate government-related contractual risks in PPP projects

• Tax incentives and viability gap funding: The government, through the Ministry of Finance, may extend tax incentives to private partners for certain types of projects. Viability gap funding is available as government support for up to 50% of the construction, equipment, and installation costs of an infrastructure PPP project. It may also be used for interest payments during the construction period.

Land and buildings

Foreign ownership for land and buildings

No restrictions

The 1987 Constitution sets out foreign- ownership limits on landownership. Companies that are at least 60% owned by Filipinos may acquire private land, but they may only lease and not own public land.

Land acquisition support by government

The concessionaire has expropriation rights under the PPP Act and may entrust land purchase, compensation for losses, and resettlement, among other things, to the competent authority or the head of the relevant local government.

Department of Public Works and Highways has allocations for public infrastructure projects, including for land acquisition. The Public-Private Partnership Strategic Support Fund was established to cover costs for right-of-way acquisitions and related costs, including resettlement costs. The fund is a lump-sum appropriation included in an implementing agency's (IA) budget.

In 2015, LMAN was established to fund land acquisitions for infrastructure projects. The scope of support was extended to national strategic projects by Ministry of Finance Regulation No. 21 (2017).

Selection processes

Project processes and guidelines

Solicited projects

Designation of an eligible project Public notification of a request for proposals Review and evaluation of project plans Completion of concession agreement and designation of concessionaire Approval of the implementation plan Confirmation of completion

Unsolicited projects

Proposal filing Review of the proposal and value-for-money test (Public and Private Infrastructure Investment Management Center) Submission of a review opinion Public notice of the proposal Review and evaluation of the proposals Designation of concessionaire Approval of the implementation plan Confirmation of completion

Solicited projects

Project identification Business case development Feasibility study Project approval Tender process (based on the BOT Law's implementing rules and regulations) Approval and execution of the contract (based on the BOT Law's implenting rules and regulations) Notice to commence

Unsolicited projects

The starting point of this process is the submission by the private proponent of a complete proposal to the head of the IA Acknowledgement of receipt of proposal by the IA Approval of project (Investment Coordinating Committee [ICC]/ NEDA board) Evaluation of the proposal and issuance of original proponent status that no other similar proposals will be entertained and proponent given the right to match complying comparative proposals Submission for ICC approval Negotiating IA informs private proponent of the mechanics for negotiation and period of negotiations Solicitation of comparative proposal (managed by Pre-qualification, Bids, and Awards Committee, using the same principles and transparency measures as in a competitive tender) Evaluation of comparative proposals (adopts three stage evaluation: qualification, technical proposal, and financial proposal) Right to match in the event of a more superior comparative proposal Approval and execution of contract Notice to commence

Solicited projects

Identification of potential projects Prioritization of project Issuance of PPP project plan list Completion of prefeasibility study Completion of readiness study Government contracting agency (GCA) prepares the procurement plan for public tender Evaluation of prequalification document of prospective bidders Submission of proposal Opening of bidding documents Evaluation of offers Written record of procurement results Tender winner stipulation Stipulation of a single bidder Objections, if any, from other bidders Issuance of inner stipulation letter Signing of PPP agreement Financial closure

Unsolicited projects

Submission of project concept document and qualification of the to-be-proponent (TbP) GCA evaluates the project concept document GCA issues approval for the TbP to carry out feasibility study TbP submits the prefeasibility study document GCA evaluates feasibility study GCA issues approval of the feasibility study TbP completes and submits the feasibility study document and fulfillment of prequalification GCA evaluates feasibility study document and the fulfillment of prequalification requirements GCA designates the TbP as the proponent and determines the compensation option GCA prepares tender and bid documents for the competitive tender process Calls for expressions of interest Bidders submit expressions of interest Prequalification announcement) Bidders take part in the prequalification Announcement of request for proposal Prequalified bidders and the proponent may take part in the tender process Bid preparation and submission Evaluation of bid documents Designation of the preferred bidder bonus-point option Designation of the preferred bidder right-to-match option Announcement of the preferred bidder Signing of PPP agreement

Project lists

None

The PPP Center publishes and updates the status of PPP pipeline projects.

PPP Book, annually yearly by the Ministry of National Development Planning, outlines the PPP project plans.