by the Coordinating Council for Private Sector Participation
The current Medium-Term Philippine Development Plan (MTPDP) highlights private sector participation (PSP) as a cornerstone with which to achieve the country's economic development and growth targets.
President Gloria Macapagal-Arroyo's commitment to this policy was underscored in her State of the Nation Address delivered at the opening of Congress this year, when she stated "In focusing on infrastructure, we will harness the private sector via the build-operate-and- transfer (BOT) law."
The Coordinating Council for Private Sector Participation (CCPSP) is the government's central body responsible for promoting private sector participation (PSP) in infrastructure development through the use of the Build-Operate-and-Transfer (BOT) Law. Formerly known as the Coordinating Council of the Philippine Assistance program (CCPAP), CCPSP is an autonomous unit attached to the Office of the President.
A specialized BOT agency, CCPSP's goal is to find financial, technical, institutional, and legal solutions to help government agencies make PSP/BOT projects work. It actually bridges the gap between public needs and private sector resources.
HISTORY OF CCPSP
Prior to its reorganization, CCPAP was created in January 1989 to oversee and facilitate the effective mobilization and utilization of Official Development Assistance (ODA). In September 1993, citing a need for a more focused and pro-active approach to the implementation of the Build-Operate-Transfer (BOT) program, the CCPAP Chairman was designated Presidential Action Officer for the promotion of BOT and related schemes.
In May 1994, the amended BOT Law which was co-authored by President Arroyo, institutionalized CCPAP's role in advancing the country's BOT program, mandating it as the national coordinating and monitoring body for BOT projects.
By virtue of an executive issuance issued in 1999, CCPAP was reorganized and converted to CCPSP. The latter is now empowered to coordinate and monitor the program of government on PSP (PSP) in infrastructure and other development initiatives. The executive issuance, in effect, expanded the coverage of the BOT program into the PSP Program, which now includes projects implemented under the BOT scheme and its variants, joint venture agreement (JVA), concession arrangement, service and management contracts, and other forms of public-private partnership.
VISION AND MISSION
CCPSP's vision is effective, efficient, and sustainable infrastructure systems and services to meet the basic needs of every Filipino and spur economic development. Its mission-to actively promote public-private partnership as a cornerstone of the national infrastructure development plan.
CORE FUNCTIONS
In line with its mandate, CCPSP shall focus its services on the development and monitoring of PSP/BOT projects, which are its core areas of expertise.
Project Development. CCPSP offers both technical and financial assistance to implementing agencies (IAs) and local government units (LGUs).
Technical Assistance entails the pre-screening of projects for possible PSP financing, review of technical assumptions, market assessment, and provision of legal advice.
Financial Assistance comes in the form of the Project Development Facility (PDF).
The PDF is a loan facility developed by CCPSP to assist IAs and LGUs in the preparation and packaging of PSP/BOT projects. The PDF can be used for the preparation of pre-investment studies and bid documents. It is designed as a revolving fund with the project development cost being reimbursed by the winning bidder. This feature is intended to ensure the continuous re-flow of funds to the PDF.
The funding facility consists of funds from various financial institutions administered by different fund managers. The management of the fund is governed by a common set of policy and implementation guidelines set by a Steering Committee. CCPSP provides technical support to the Steering Committee and the Fund Managers.
While to date the seed capital for the PDF comes from the United States Agency for International Development (USAID) and the Asian Development Bank (ADB), CCPSP intends to explore other funding sources for the facility.
Marketing activities focus on promoting the PPP Program and projects to potential investors and project stakeholders through on-line advertising, promotional events and publications.
Policy Review and Formulation are conducted in coordination with implementing agencies and oversight agencies to create a policy environment that is responsive to private sector concerns and ensures the protection of consumers and the public in general.
Capacity Building is conducted to enhance the skills of IAs and LGUs in determining emerging opportunities and in shepherding projects through the preparation and approval process.
Project Monitoring. CCPSP's involvement continues even after the project's successful tender and award. A vital service it provides is monitoring of the project during construction and implementation vis-à-vis the signed contract to ensure that all parties especially the consumers receive the services envisioned in the BOT contract. Project monitoring and facilitation also complete the comprehensive assistance provided by CCPSP to all PSP undertakings.
PROJECTS IN THE DEVELOPMENT STAGE
To date, there are 116 projects in various stages of development listed under the Philippine Private Sector Participation program costing US$25.7 billion of actual and potential investments. Of these, 83 are national projects and 33 are local. The following are some of the national and local projects that are in various stages of development:
Ninoy Aquino International Airport (NAIA) Expressway Project
The NAIA Expressway Project will connect the new International Terminal 3 and the Centennial Terminal 2 to the Metro Manila Skyway/ South Luzon Expressway to the East and Roxas Boulevard in the West through a high speed, elevated toll road. Estimated at US$ 195 million, the project will be implemented from 2001 to 2006 by the Department of Public Works and Highways (DPWH).
The NAIA Expressway project will receive a US$150,000 grant for the preparation of its feasibility study and bid documents through the PDF managed by CCPSP. The grant will be sourced from the USAID contribution to the PDF.
CCPSP recently issued the Notice to Proceed to Angel Lazaro and Associates, the consultancy firm that will re-validate the findings of earlier studies on the feasibility of the NAIA Expressway project.
North Harbor Privatization Project
The project will involve the modernization of the Manila North Harbor through the operation and management of its various facilities/services by private sector operator(s) in a BOT arrangement with Philippine Ports Authority (PPA). The project aims
PPA has signified its intention to avail of CCPSP's technical assistance through the PDF. The Technical Assistance Agreement (TAA) between PPA and CCPSP is being finalized. Signing of the TAA is scheduled for November 2001.
North Luzon Expressway Extension to San Jose, Nueva Ecija (NLEE East)
A Build-Operate-Transfer project, the proposed NLEE seeks to serve the frequently traveled Pan-Philippine Highway corridor that leads to the rich agricultural areas of San Jose City, Nueva Ecija. The route will act both as a local road and an important regional artery, providing a link to the northern provinces of Region II through which agricultural and other products reach the main market in Metro Manila. The project, estimated at US$ 351 million, starts from the Circumferential Roads 5 and 6 in Quezon City, stretches north towards San Ildefonso and San Miguel in Bulacan, and ends in San Jose, Nueva Ecija. The 126-kilometer expressway runs parallel to the Pan Philippine Highway.
Presently, the DPWH is waiting for the construction of the three bypass roads that may affect the viability of the project. The preparation of the project pre-feasibility study through the PDF is being considered.
General Santos City Integrated Transport Terminal and Commercial Complex
Dramatic increase in population and rapid economic growth has made General Santos City (GSC) one of the fastest growing cities in the Philippines. In anticipation of the growing infrastructure needs of the city, a number of projects is now in various stages of implementation. The Integrated Transport Terminal and Commercial Complex has been identified as one of the projects whose implementation is crucial to the fulfillment of the city's economic goals.
The project is expected to decongest the central business district and provide a clean venue for transport activities and goods exchange. Increased consumer spending in the terminal and in the commercial complex is expected to induce incremental production of goods and services leading to potential generation of employment opportunities within the influenced area.
The US$ 2.81 million-project shall consist of the following components: (a) site acquisition and development; (b) supporting road access; (c) bus, jeepney, taxi and tricycle terminal; and (d) market/commercial facilities; (e) adequate parking; (f) support facilities/utilities; and (g) other complementary facilities.
In response to the request for technical assistance by the city government, the CCPSP through the USAID BOT III contract, commissioned Schema Konsult, to conduct the pre-investment study and prepare tender documents for the project. The pre-feasibility study and the draft contract have been completed. However, the National Economic and Development Authority-Investment Coordinating Committee has asked for a hearing on the project parametric formula. The hearing has yet to be scheduled.
Davao Integrated Water Resource Project
The Provincial Government of Davao del Norte in partnership with six municipalities in the province has decided to implement the Davao Integrated Water Resource Project through the Build-Operate-Transfer (BOT) scheme.
The proposed BOT project is an integrated water supply system that will provide potable water for the cities of Tagum and Panabo and the municipalities of Asuncion, Carmen B. Dujali, and New Corella. The untapped spring sources in New Corella north of Tagum City and other ground water and surface water sources in the area will be used for water source development and utilization. The project would service an estimated population of 250,000 and is estimated to cost US$ 28 million.
In a joint resolution, the provincial government requested the CCPSP-BOT Center for technical assistance in the preparation of the project feasibility study and tender/bid documents through the Local Government Unit Private Infrastructure Project Development Facility (LGUPIPDF). The Land Bank of the Philippines (LBP) is the LGUPIPDF fund manager with CCPSP as its technical support. Sinclair Knight Merz (SKM) of Australia has been commissioned for one year by LBP as the consultant for LGUPIPDF.
SKM has submitted the technical and financial proposals for the project and are now being reviewed by CCPSP.
Information Technology Projects
CCPSP strongly advocates the adoption of computer technology to improve the operation and increase the revenues of local government units (LGUs). To encourage them to undertake information technology (IT)-related projects, CCPSP developed a Generic Information Systems Plan (GISP) that seeks to maximize the potential of a computer-based system in local government setting. The GISP for LGUs is designed to be implemented with PSP through a Build-Lease-Transfer (BLT) or other arrangements. The involvement of the private sector is expected to provide the necessary financial and technical expertise in the LGU IT project.
To date, 23 LGUs mostly from Luzon have signed a Technical Assistance Agreement with CCPSP to fast track their computerization projects.
CCPSP WEBPAGE
The CCPSP homepage was re-designed and fine-tuned to contain a more user-friendly and comprehensive presentation of PSP-related information. This includes organizational overview of CCPSP, the PSP legal framework, CCPSP publications, and project updates.
The site also features hyperlinks with the homepage of key government agencies, i.e., LogoNet.
* 1 US$ = PhP 50