Philippines approves funding for feasibility of 5 PPP projects

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Philippines approves funding for feasibility of 5 PPP projects

The Philippine Project Development and Monitoring Facility (PDMF) Committee has granted funding support to five more PPP projects. These include the bus rapid transit (BRT) linking R1 and R10, development of the Ninoy Aquino International Airport, Land Transportation Franchising and Regulatory Board (LTFRB) computerization project, food processing terminal in Clark, and the preservation and restoration of heritage sites in the City of Manila.

The various implementing agencies granted PDMF support will be given funding to procure consultants from the PDMF's panel of internationally recognized firms that would prepare the feasibility studies and provide them transaction support services during the PPP project approval and bidding stages.

Three of the five approved for PDMF funding support are projects of the Department of Transportation and Communications (DOTC).

First is the R1-R10 Mass Transport System Project that will provide a public transportation system, through a BRT system, linking the cities of Navotas and South Caloocan via Roxas Boulevard (R-1) and Bonifacio Drive and Pres. F. Marcos Highway (R-10) to the cities of Manila, Pasay and Parañaque. This proposed BRT system is expected address the growing demand for public transportation in the area.

The second project of DOTC is the Road Transport IT Infrastructure Project Phase II. The project aims to make LTFRB's client services more transparent and accessible to the public by modernizing the agency's information and communication technologies (ICT) infrastructure. It will ensure that LTFRB's database is accurate and consistent with related information found in other agencies. At the same time this project will streamline their current business processes.

Third on DOTC's list is the private sector participation in the development and operations and maintenance of the country's main airport gateway, the NAIA. This project aims to enhance the operational efficiency and increase air traffic movements for  NAIA Terminals 1,2,3 and 4, including the proposed terminal 5. The project involves airport improvements to meet international standards and possible expansion of facilities during the concession period.

Also approved during the PDMF Committee meeting is the Clark Green City (CGC) Food Processing Terminal Project of the Bases Conversion and Development Authority (BCDA). Similar to the Food Terminal Inc. (FTI) in Bicutan, the project is envisioned to be a "stock exchange" of fresh agricultural produce and processed products within CGC. It entails the establishment and operations of required infrastructures and facilities by the private sector for processing, handling, storage, and distribution of agri-fishery products utilizing integrated research and development technology.

Lastly, the PDMF Committee approved the Manila Heritage and Urban Renewal Project (MHURP) of the Privatization and Management Office of the Department of Finance.  The MHURP aims to preserve heritage buildings and landmarks through adaptive reuse. It will also revitalize important historical districts in the City of Manila making them as vibrant tourist zones. The project involves the preservation of the Manila Central Post Office, Liwasang Bonifacio, Manila Metropolitan Theater, Bureau of Customs Building, and the redevelopment of the South Harbor Expanded Port Zone (SHEPZ).

To date, the PDMF has provided funding support to thirty-nine (39) out of the fifty-seven (57) projects under the PPP pipeline. Five (5) out of seven (7) successfully tendered PPP projects have been supported by PDMF. As a revolving fund, PDMF reimbursements or reflows amounting to US$ 6.2Million, have already been received from the successfully tendered projects.

Established in 2010, the PDMF had initial funding of USD7 Million put in by the government.   Through an Asian Development Bank (ADB) administered Technical Assistance to the Philippine PPP Program, contributions (USD 6 Million and USD 12 Million) from the Australian Government were later added. The Philippine government also put in an additional counterpart contribution of USD 37.5 Million. The total available fund of the PDMF is now at USD 62.5 Million and is currently being tapped to support projects in the PPP pipeline.

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