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2015/FDM1/023 Session: 6

The Philippine Public Private Partnership Experience

Purpose: Information

Submitted by: Philippines

Finance and Central Bank Deputies’ MeetingTagaytay, Philippines

5-6 March 2015

Enhanced Legal & Regulatory

Framework

Revised BOT Law Implementing Rules and Regulations

EO 78 mandating the inclusion of Alternative Dispute Resolution mechanisms in PPP contracts

Revised Joint Venture Guidelines

PPP Code for Local Government Units

Establishment of the Contingent Liability Fund in the annual General Appropriations Act (GAA)

Developed Robust PPP Pipeline

9 awarded projects with a total value of USD 2.90 Billion

50 projects in the pipeline in various stages of development amounting to over USD 21 Billion

40 Projects with Project Development and Monitoring Facility (PDMF) support

22 renowned PDMF panel of consulting firms 3

Improvements in the PPP

Process

New PPP Appraisal Process

Conduct of Market Sounding

Conduct of One-on-One meetings with Prequalified Bidders

Building Capacities

PPP Manual for LGUs and NGAs

PPP Capacity Building Program for national implementing and oversight agencies, LGUs, and government corporations

Implementation of the LGU PPP Strategy

4

Strengthening Delivery and

Implementation Framework

Hiring of independent consultants through the PDMF

Probity advisory for big-ticket projects

Contract Standardization

Strengthening framework, processes, and inter-agency coordination in implementation of awarded projects

Enhancing the PPP monitoring framework

Building Capacities

Development of PPP Knowledge Management Portal

National Govt. Agency (NGA) PPP

Manual Institutional Partnerships with

Infrastructure New South Wales Australia and Japan International Cooperation Agency

Further enhancing the Legal &

Regulatory Framework

Enactment of the PPP Act Issuance of Policy Circular and

Guidelines on Pipeline Development, Termination Payments, Viability Gap Funding, Material Adverse Government Actions, and PPP Best Practices

Institutionalization of the Contingent Liability Fund into the PPP Act

Repository of PPP-related information:

Policies;

legal and regulatory framework;

tender process;

sample contracts;

PPP best practices;

list of private firms, consultants, and experts

involved in PPP projects; and list of PPP projects undertaken by APEC

economies.

Interconnectivity of KM Portals in the APEC region

Serve as platform for PPP information sharing among APEC member countries

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BACKGROUND

Serves as a central database for the PPP Program (e.g.

contracts, project documents, policies, issuances, references,

knowledge products, etc.)

Serve as primary source of reliable PPP information

Provides venues for information sharing, dialogue and

consultation with public/private/ local/national and

international PPP stakeholders

Helps provide fast and reliable systems to facilitate

timely/efficient report generation

Supports the full range of knowledge requirements of all its

internal and external users

STAKEHOLDERS

Program Stakeholders – National Economic and

Development Authority, Department of Finance, PPP Center

Development Partners – ADB, AusAID, CIDA

Implementing Agencies (National Government

Agencies/Local Government Units)

PDMF Transaction Advisors

Investors

Other Government Institutions

General Public

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KM Portal Information Systems

Developed Under Development

Virtual Data Room Web-based facility for

information dissemination

during bidding process

Intended Users:

Prospective investor,

Implementing Agencies’

Project Officers, and PPP

Center’s Project Officers

Will utilize Secure Socket

Layer (SSL) Certificate

from trusted Certificate

Authority (CA)

PPP Center Website

Project Information and

Management System

Consultants Management

System

Document Management

and Tracking System

E-Library

Intranet

10

CONCEPTUAL FRAMEWORK

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Provide standard contract templates for APEC member

economies

Serve as a guidance document incorporating PPP best

practices (contract provisions to include, among others,

Material Adverse Government Action, Termination

Payment Regime, and Alternative Dispute Resolution

Provision)

Aims to streamline the drafting of PPP concession

agreements and thus reduce due diligence cost

Encourage private sector participation in PPP projects

through transparent and predictable contract terms

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Proposed Standard Contract Provisions (1 of 2)

Conditions Precedent Setting conditions that must be complied with by either the

grantor or concessionaire prior to certain pre-agreed timelines

(e.g. concessionaire achieving financial close; the procurement

of an Independent Consultant; procurement of relevant

consents; and delivery of rights-of-way, etc.)

Material Adverse Government Action (MAGA) Provision governing actions which directly and materially affects

the Concessionaire of a PPP Project in performing its obligations

under the relevant PPP Contract

Termination Payment Regime Provision defining the triggers for contract termination and

amount payable by the government or the concessionaire

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Proposed Standard Contract Provisions (2 of 2)

Alternative Dispute Resolution Provision Use of ADR mechanisms through conciliation and negotiation,

mediation and arbitration, as an alternative procedure in

achieving speedy and impartial justice and de-clogging court

dockets

Other essential contract provisions: Lock-in period

Securing the appropriate insurance cover

Provisions on Force Majeure

Posting of performance securities

Reportorial requirements of the concessionaire

Capacity Extension (as applicable)

Ownership of assets

Handback of assets

Transparency and Good Governance Provisions