"Our administration believes that change is not a mere idea. It is something that must become palpable in our economy, in our roads, and, ultimately and more importantly, in the lives of our people... Let us build, build, and build." – President Benigno Aquino III, March 7, 2011
Riding on the crest of an anti-corruption campaign grounded on transparency the current government seeks to bring about a renewed interest in infrastructure development in the Philippines through public-private partnerships, inviting both local and foreign investors to participate.
Public-private partnerships are not new in the Philippines, having been introduced as early as 1990 under the administration of President Corazon Aquino through Republic Act No. 6957. Amendments to the law were introduced during the Ramos administration.
As a way to emphasize its dedication to infrastructure development through public-private partnerships, the present Aquino government issued Executive Order No. 08 renaming the Build-Operate and Transfer Center to the Public-Private Partnership Center and transferring it from the Department of Trade and Industry to the National Economic Development Agency (NEDA). The NEDA is the Philippine's socio-economic planning agency.
There are two (2) ways to participate in the public-private partnerships. The first is through public bidding, and the second through unsolicited proposals.
For 2011, several projects have been rolled-out while others are currently being prepared for roll-out. Participation in these projects may be done through public bidding. Four road networks, three railway projects, and four airports comprise the first batch of projects. The main emphasis of these projects is to provide transportation networks within and around Metro Manila as well as to provide easier access to tourist destinations.
Unsolicited proposals do not involve public bidding but are instead negotiated. Requirements for unsolicited proposals are that the project involves a new concept or technology and is not part of the priority projects of the administration, and that there is no direct government guarantee, subsidy, or equity required. Additionally, the proposal shall be published for three consecutive weeks to invite comparative or competitive proposals, with the original proponent given the right to match the better price proposal.
Already, several local listed firms such as San Miguel Corporation and DMCI have expressed interest in participating in the PPP program of the present administration. Depending on the industry entered into, Philippine law requires that the project proponent has a certain percentage of Philippine ownership. For the first batch of projects, tollways, railways and airports being public utilities, the operation of these require a 60% Filipino ownership of capital.
A complete and detailed list of rolled-out projects for 2011 may be found at http://ppp.gov.ph
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