Project Structures and Development

NO

ASPECTS

DESCRIPTION

4.

Available Sectors

Under Section 2.2 of the Revised IRR of R.A. 7718, the construction, rehabilitation, improvement, betterment, expansion, modernization, operation, financing and maintenance of the following types of projects which are normally financed and operated by the public sector which will now be wholly or partly financed, constructed and operated by the private sector, including other infrastructure and development projects as may be authorized by the appropriate agencies, may be proposed:

a. Highways, including expressway, roads, bridges, interchanges, tunnels, and related facilities;

b. Railways or rail-based projects that may or may not be packaged with commercial development opportunities;

c. Non-rail based mass transit facilities, navigable inland waterways and related facilities;

d. Port infrastructures like piers, wharves, quays, storage, handling, ferry services and related facilities;

f. Airports, air navigation, and related facilities; Power generation, transmission, sub-transmission, distribution, and related facilities;

g. Telecommunications, backbone network, terrestrial and satellite facilities and related service facilities;

h. Information technology (IT) and data base infrastructure, including modernization of IT, geo-spatial resource mapping and cadastral survey for resource accounting and planning;

i. Irrigation and related facilities;

j. Water supply, sewerage, drainage, and related facilities;

k. Education and health infrastructure;

l. Land reclamation, dredging and other related development facilities;

m. Industrial and tourism estates or townships, including eco-tourism projects such as terrestrial and coastal/marine nature parks, among others and related infrastructure facilities and utilities;

n. Government buildings, housing projects;

o. Markets, slaughterhouses, and related facilities;

p. Warehouses and post-harvest facilities;

q. Public fish ports and fishponds, including storage and processing facilities;

r. Environmental and solid waste management related facilities such as but not limited to collection equipment, composting plants, landfill and tidal barriers, among others; and

e. Climate change mitigation and adaptation infrastructure projects and related facilities.

5.

Eligible Tender Participants / Project Initiator

Section 1.3 (f) of the Revised IRR of R.A. 7718 provides that "any individual, partnership, corporation or firm, whether local or foreign, including consortia of local, foreign or local and foreign firms, subject to the limitations set in the law, may participate or apply for pre-or simultaneous qualification for projects covered under the provisions of the BOT Law and its Revised IRR."

6.

Types of PPP Structures/Contract Types

1. Pursuant to Section 1.3 (f) of the Revised IRR of R.A. 7718, the following Contractual Arrangements or schemes, as well as other variations thereof, as may be approved by the President, may be undertaken pursuant to the provisions of the revised IRR of the BOT law:

a. Build-and-transfer (BT)

b. Build-leas-and-transfer (BLT)

c. Build-operate-and-transfer (BOT)

d. Build-own-and-operate (BOO)

e. Build-transfer-and-operate (BTO)

f. Contract-add-and-operate (CAO)

g. Develop-operate-and-transfer (DOT)

h. Rehabilitate-operate-and-transfer (ROT)

i. Rehabilitate-own-and-operate (ROO)

2. Pursuant to the Revised Guidelines and Procedures for Entering into Joint Venture Agreements Between Government and Private Entities - Revised JV Guidelines provides the process for Government Owned and Controlled Corporations (GOCCs), Government Corporate Entities (GCEs), Government Instrumentalities with Corporate Powers (GICPs), Government Financial Institutions (GFIs), and State Universities and Colleges (SUCs) in entering into Joint Ventures with the Private Entities.

7.

Types of Project

Pursuant to Section 2.3 of the Revised IRR of R.A. 7718, the list of priority projects shall be consistent with the Philippine Development Plan an Provincial Development and Physical Framework. To wit,

a. National Priority Projects - Projects that are included in the Public Investment Program and comprehensive and Integrated Infrastructure Program; and

b. Local Priority Projects - Projects that are included in the Provincial Development Investment Programs/Local Development Investment Programs.

8.

Project Stages and Implementation for Solicited Proposals

Project Identification

Evaluation/Approval of the

Proposal Approval/Review of the

Contract

Advertisement/Invitation to Pre-Qualify and to

Bid Preparation of Pre-qualification (PQ)

Documents Pre-qualification (PQ) of Bidders

Pre-Bid Conference

Bid Submission and Opening of

Bids Evaluation of Bids

PBAC Recommendation to Award

Head of Agency/Local Government Unit (LGU) Decision to

Award Issuance of Notice of Award (NOA)

Submission of NOA Requirements/Posting/Dissemination of NOA and of Bid

Results Notification of Compliance to NOA

Execution/Signing of Contract

Submission of Original Signed

Contract

9.

Project Stages and Implementation for Unsolicited Proposals

Submission of a Complete Unsolicited Proposal

Advise whether Proposal is Complete/Incomplete/Acknowledge Receipt of the

Proposal Evaluation and Acceptance of Proposal

Endorse Proposal to ICC to Determine

ROR Evaluation/Approval of the

Proposal

Advisory to Original Proponent on Commencement/Mechanics of

Negotiation Negotiation Period

Approval/Review of the Contract

Publication of Invitation for Comparative

Proposals Pre-bid Conference

Submission of Comparative

Proposals Right to Match by the

Original Proponent PBAC

Recommendation to Award

Head of Agency/LGU Decision to

Award Issuance of Notice of Award

(NOA)

Submission of NOA Requirements/Posting/Dissemination of NOA and of Bid

Results Notification of Compliance to NOA

Execution/Signing of Contract

Submission of Original Signed

Contract

10.

Mechanisms to Engage Private Sector at Project Development Stages

Government, through the concerned implementing agencies in coordination with the PPP Center, conduct market sounding activities during project development stage to gain private sector insights in terms of risk sharing and project structuring to ensure that projects are highly bankable and commercially viable.

11.

Project Appraisal and Selection Process

In the identification, selection, and prioritization of PPP projects, the Multi-Criteria Analysis (MCA) approach is used in determining the potential PPP projects and ensuring generation of a credible list of projects that have a relatively higher potential of being procured using the PPP scheme.

The MCA screen also serves as a tool to determine which projects can be undertaken through PPP with some degree of certainty before the implementing agency spends significant resources on their development.

The process in undertaking the pipeline development using the MCA Screen are briefly described as follows:

1. The implementing agency shall identify PPP projects from the priority list using the MCA Screen. The PPP Center shall assist the implementing agencies in developing their evaluation criteria and in prescribing the weights for each criterion;

2. The projects that passed the MCA Screen shall be prioritize for PPP project preparation whose funding could either be through the Project Development and Monitoring Facility (PDMF) or other sources. The higher the score of the project in the MCA Screen, the higher the chances of being the first to be prioritized for the development of the project.

3. The projects shall undergo the Feasibility Stage (FS) 1 or the determination of economic viability. Projects that passed the prescribed economic hurdle rate shall proceed to the next step; and

4. The final stage is wherein projects that passed FS 1 shall be subjected to FS 2 or PPP structuring. At the option of the implementing agency, it may apply funding for transaction advisory support under PDMF or through other means.