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1、ASIAN DEVELOPMENT BANKAPRIL 2025PUBLICPRIVATEPARTNERSHIP MONITORPHILIPPINESPUBLICPRIVATE PARTNERSHIP MONITORPHILIPPINESAPRIL 2025Creative Commons Attribution 3.0 IGO license(CC BY 3.0 IGO)2025 Asian Development Bank6 ADB Avenue,Mandaluyong City,1550 Metro Manila,PhilippinesTel+63 2 8632 4444;Fax+63

2、2 8636 2444www.adb.orgSome rights reserved.Published in 2025.ISBN 978-92-9277-236-9(print);978-92-9277-237-6(PDF);978-92-9277-238-3(ebook)Publication Stock No.SGP250097-2DOI:http:/dx.doi.org/10.22617/SGP250097-2The views expressed in this publication are those of the authors and do not necessarily r

3、eflect the views and policies ofthe Asian Development Bank(ADB)or its Board of Governors or the governments they represent.ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use.The mention of specific companies or

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5、 to the legal or other status of any territory or area.This work is available under the Creative Commons Attribution 3.0 IGO license(CC BY 3.0 IGO)https:/creativecommons.org/licenses/by/3.0/igo/.By using the content of this publication,you agree to be bound bytheterms of this license.For attribution

6、,translations,adaptations,and permissions,please read the provisions andterms of use at https:/www.adb.org/terms-use#openaccess.This CC license does not apply to non-ADB copyright materials in this publication.If the material is attributed toanother source,please contact the copyright owner or publi

7、sher of that source for permission to reproduce it.ADB cannot be held liable for any claims that arise as a result of your use of the material.Please contact pubsmarketingadb.org if you have questions or comments with respect to content,or if you wish toobtain copyright permission for your intended

8、use that does not fall within these terms,or for permission to use the ADB logo.Corrigenda to ADB publications may be found at http:/www.adb.org/publications/corrigenda.Notes:In this publication,“$”refers to United States dollars.ADB recognizes“China”as the Peoples Republic of China.On the cover:Wor

9、kers picking coffee at a farm in Amadeo,Cavite;sea turtle in Apo Reef Natural Park;children in Mindanao;hospital staff during the inauguration and turnover of the Pandemic Subnational Reference Laboratory in SanFernando,Pampanga;overpass connecting to light-rail transit line in Divisoria,Manila;and

10、cattle raising near the windfarm in Saoit,Ilocos Norte.Photos by L.Ledesma,C.Navarro,E.Sales,V.Villafranca,D.Tanabe,and A.Benavente.Graphic design by Claudette Rodrigo.ContentsTables and Figures .vForeword .xAcknowledgments .xiiDefinition of Terms .xiiiAbbreviations .xixCurrency Equivalents .xxvGuid

11、e to Understanding the PublicPrivate Partnership Monitor .xxviI.Overview .1Governments Strategy Action Plan forPublicPrivate Partnerships.10Challenges to PublicPrivate Partnerships inthePhilippines.11II.National PublicPrivate Partnership Landscape .13National PublicPrivate Partnership EnablingFramew

12、ork.14Environmental and Social Issues.69Land Rights.71Government Financial Support for PublicPrivate Partnership Projects.72PublicPrivate Partnership Project Statistics.79Sources of PublicPrivate Partnership Financing.81Key Sources of PublicPrivate Partnership Financing.83III.Sector-Specific PublicP

13、rivate Partnership Landscape .87Roads.87Railways.101Ports.112Airports.123Energy.138Water and Wastewater.154ContentsivInformation and Communication Technology.169Agriculture and Fisheries.181Social Infrastructure.189Other Infrastructure:Municipal Solid Waste.206IV.Local Government PublicPrivate Partn

14、ership Landscape .213Local Governance System in the Philippines.215Infrastructure Development Plans of Local Governments.217PublicPrivate Partnership Enabling Framework for Local Government Projects.218Eligible Sectors for Potential PublicPrivate Partnership with Local Governments.229Revenues for Lo

15、cal Governments.238Borrowings by Local Governments.241Budgetary Allocation to Local Governments.241Credit Rating of Local Governments.242Appendix:Methodology .243References .247Tables and FiguresTables1 Major Sponsors Active in the Infrastructure Sector.62 Evolution of the PublicPrivate Partnership

16、Legal and Regulatory Framework in the Philippines.153 Laws and Regulations Enabling Private Sector Participation in the Philippines.174 Major Reforms Under the PublicPrivate Partnership Code of the Philippines.195 Outstanding Bankability Issues in the PublicPrivate Partnership Legal and Regulatory F

17、ramework.216 Guidelines and Requirements to Be Issued Pursuant to the PublicPrivate Partnership Code and Its Implementing Rules and Regulations.237 BuildOperateTransfer Contractual Arrangements Under the Amended BOT Law.268 Contractual Arrangements of Successfully Procured Projects.299 Eligible Type

18、s of Projects Under the PublicPrivate Partnership Code.3010 National Economic and Development Authority Entities Supporting PublicPrivate Partnerships in the Philippines.3211 Other Principal Public Entities Supporting PublicPrivate Partnerships in the Philippines.3512 Approving Bodies and Approval T

19、hresholds/Coverage for National PublicPrivate Partnership Projects.3813 Required Contents of a Complete Feasibility Study.4314 Preferred Risk Allocation Under the Generic Preferred Risk Allocation Matrix.4615 Attachments to NEDA Guidelines,Dated 25April 2024.5216 Procurement Milestones for a Two-Sta

20、ge Bidding Process for a Solicited PublicPrivate Partnership Project.5417 Salient Activities to Mainstream Environmental,Displacement,Social,and Gender Concerns.7118 Government Undertakings for PublicPrivate Partnership Projects.7319 PublicPrivate Partnership Projects Database,October 2024.7920 Key

21、Infrastructure Financing Sources in the Philippines.8321 Active Lenders to PublicPrivate Partnership Projects in 36 Months Preceding December 2023.8522 Active Project Sponsors in the Philippines in 36 Months Preceding December 2023.8623 Philippine Road Functional Classification Criteria.87Tables and

22、 Figuresvi24 Roads Sector Laws and Regulations.9025 PublicPrivate Partnership Priority Road Projects,as of August 2024.9326 Pipeline PublicPrivate Partnership Road Projects,as of October 2024.9427 Pipeline PublicPrivate Partnership Road Transport Projects,as of October 2024.9528 Tariffs for National

23、 PublicPrivate Partnership Road Projects.9929 PublicPrivate Partnership Priority Railway Projects,as of August 2024.10530 Pipeline PublicPrivate Partnership Railway Projects,as of October 2024.10631 Tariffs for Railway Projects.11032 Investment Arrangements Under the Port Terminal Management Regulat

24、ory Framework.11333 Relevant Mandates and Functions of Regulatory Agencies in the Ports Sector.11334 PublicPrivate Partnership Priority Port Projects,as of August 2024.11635 Pipeline PublicPrivate Partnership Port Projects,as of October 2024.11736 Vessel and Cargo Charges for the Ports Sector in the

25、 Philippines.12137 Relevant Functions of Airports Sector Regulatory Agencies in the Philippines.12638 PublicPrivate Partnership Priority Airport Projects,as of August 2024.12839 Pipeline PublicPrivate Partnership Airport Projects,as of October 2024.12940 Installed Power Capacity by Plant Type in the

26、 Philippines,2023.13841 Key Laws and Regulations in the Energy Sector.13942 Current Sectors of the Electric Power Industry.14243 Energy Sector Regulatory Authorities in the Philippines.14344 Pipeline PublicPrivate Partnership Energy Projects,as of October 2024.14645 Feed-In Tariffs.15146 Key Laws an

27、d Regulations in the Water and Wastewater Sector.15447 Water and Wastewater Sector Regulatory Agencies.15548 Pipeline PublicPrivate Partnership Water and Wastewater Projects,as of October2024.16249 Average Water Tariff in Water Districts in the Philippines,2023.16650 Current Domestic Water Tariff in

28、 Metro Manila,2024.16651 Key Laws and Regulations in the Information and Communication Technology Sector.17052 Information and Communication Technology Sector Regulatory Agencies.17153 PublicPrivate Partnership Priority Information and Communication Technology Projects,as of August 2024.17454 Pipeli

29、ne PublicPrivate Partnership Information and Communication Technology Projects,as of October 2024.17555 Pipeline PublicPrivate Partnership Agriculture and Fisheries Projects,as of October 2024.18556 PublicPrivate Partnership Priority Social Infrastructure Projects,as of August 2024.19957 Pipeline Pu

30、blicPrivate Partnership Social Infrastructure Projects,as of October 2024.20058 Pipeline PublicPrivate Partnership Municipal Solid Waste Projects,as of October 2024.208Tables and Figuresvii59 Local Government PublicPrivate Partnership Landscape Key Indicators.21360 National Government Directives to

31、Support Full Devolution.22061 Local Development Councils and Regional Development Councils.22162 Basic Services and Facilities Devolved to Provinces Under the Local Government Code.23063 Basic Services and Facilities Devolved to Municipalities Under the Local Government Code.23164 Basic Services and

32、 Facilities Devolved to Barangays Under the Local Government Code.23265 Pipeline Local PublicPrivate Partnership Projects,as of October 2024.23466 Sources of Revenues of Local Government Units,2022.239A1 Critical Macroeconomic and Infrastructure Sector Indicators for the Philippines.243Figures1 Indi

33、cative Total Project Costs of Infrastructure Flagship Projects by Sector,as of August 2024 .42 PublicPrivate Partnership Projects Financially Closed and Canceled,19902023.53 Investments in PublicPrivate Partnerships by Sector,19902023.64 Various Modes of Procuring PublicPrivate Partnership Projects,

34、19902023.75 PublicPrivate Partnership Projects Under Preparation and Procurement,2023.86 PublicPrivate Partnership Projects with Government Support,19902023.87 Payment Mechanism for PublicPrivate Partnerships,19902023.98 Foreign Sponsor Participation,19902023.99 Submission of a Solicited National Pu

35、blicPrivate Partnership Project.5610 Submission of an Unsolicited National PublicPrivate Partnership Project.5711 Submission of an Unsolicited National PublicPrivate Partnership Project (Comparative Challenge).5812 Oversight and Management of the Project Development and Monitoring Facility.7713 Appl

36、ication Process for Project Development and Monitoring Facility.7814 Philippine Road Network.8915 PublicPrivate Partnership Roads Under Preparation and Procurement.9416 Modes of Procurement for PublicPrivate Partnership Roads.9617 PublicPrivate Partnership Road Projects Reaching Financial Close.9718

37、 PublicPrivate Partnership Road Projects with Foreign Sponsor Participation.9719 Government Support to PublicPrivate Partnership Road Projects.9820 Payment Mechanisms for PublicPrivate Partnership Road Projects.9821 Philippine Railway Network.10222 PublicPrivate Partnership Railway Projects Under Pr

38、eparation and Procurement.10523 Modes of Procurement for PublicPrivate Partnership Railway Projects.10724 PublicPrivate Partnership Railway Projects Reaching Financial Closure.10825 PublicPrivate Partnership Railway Projects with Foreign Sponsor Participation.108Tables and Figuresviii26 Government S

39、upport to PublicPrivate Partnership Railway Projects.10927 Payment Mechanism for PublicPrivate Partnership Railway Projects.10928 PublicPrivate Partnership Port Projects Under Preparation and Procurement.11629 Modes of Procurement for PublicPrivate Partnership Port Projects.11830 PublicPrivate Partn

40、ership Port Projects Reaching Financial Closure.11831 PublicPrivate Partnership Port Projects with Foreign Sponsor Participation.11932 Government Support to PublicPrivate Partnership Port Projects.11933 Payment Mechanism for PublicPrivate Partnership Port Projects.12034 Philippine Airports.12335 Pub

41、licPrivate Partnership Airport Projects Under Preparation and Procurement.12836 Modes of Procurement for PublicPrivate Partnership Airports Projects.13037 PublicPrivate Partnership Airport Projects Reaching Financial Closure.13038 PublicPrivate Partnership Airport Projects with Foreign Sponsor Parti

42、cipation.13139 Government Support to PublicPrivate Partnership Airport Projects.13140 Payment Mechanisms for PublicPrivate Partnership Airport Projects.13241 PublicPrivate Partnership Energy Projects Under Preparation and Procurement.14642 Modes of Procurement for PublicPrivate Partnership Energy Pr

43、ojects.14743 Independent Power Producer/PublicPrivate Partnership Energy Projects Reaching Financial Closure.14844 Independent Power Producer/PublicPrivate Partnership Energy Projects with Foreign Sponsor Participation.14845 Government Support to PublicPrivate Partnership Energy Projects.14946 Payme

44、nt Mechanism for PublicPrivate Partnership Energy Projects.14947 Legal and Regulatory Framework for Water Supply and Sanitation Services.15848 PublicPrivate Partnership Water and Wastewater Projects Under Preparation and Procurement.16249 Modes of Procurement for PublicPrivate Partnership Water and

45、Wastewater Projects.16350 PublicPrivate Partnership Water and Wastewater Projects Reaching Financial Closure.16451 PublicPrivate Partnership Water and Wastewater Projects with Foreign Sponsor Participation.16452 Government Support to PublicPrivate Partnership Water and Wastewater Projects.16553 Paym

46、ent Mechanism for PublicPrivate Partnership Water and Wastewater Projects.16554 PublicPrivate Partnership Information and Communication Technology Projects Under Preparation and Procurement.17455 Modes of Procurement for PublicPrivate Partnership Information and Communication Technology Projects.177

47、56 PublicPrivate Partnership Information and Communication Technology Projects Reaching Financial Closure.17757 PublicPrivate Partnership Information and Communication Technology Projects with Foreign Sponsor Participation.178Tables and Figuresix58 Government Support to PublicPrivate Partnership Inf

48、ormation and Communication Technology Projects.17859 Payment Mechanism for PublicPrivate Partnership Information and Communication Technology Projects.17960 PublicPrivate Partnership Agriculture and Fisheries Projects Under Preparation and Procurement.18561 Modes of Procurement for PublicPrivate Par

49、tnership Agriculture and Fisheries Projects.18662 PublicPrivate Partnership Agriculture and Fisheries Projects Reaching Financial Closure.18763 PublicPrivate Partnership Agriculture and Fisheries Projects with Foreign Sponsor Participation.18764 Government Support to PublicPrivate Partnership Agricu

50、lture and Fisheries Projects.18865 Payment Mechanism for PublicPrivate Partnership Agriculture and Fisheries Projects.18866 Overview of the Philippine Education Sector.19467 PublicPrivate Partnership Social Infrastructure Projects Under Preparation and Procurement.19968 Modes of Procurement for Publ

51、icPrivate Partnership Social Infrastructure Projects.20269 PublicPrivate Partnership Social Infrastructure Projects Reaching Financial Closure.20270 PublicPrivate Partnership Social Infrastructure Projects with Foreign Sponsor Participation.20371 Government Support to PublicPrivate Partnership Socia

52、l Infrastructure Projects.20372 Payment Mechanism for PublicPrivate Partnership Social Infrastructure Projects.20473 PublicPrivate Partnership Municipal Solid Waste Projects Under Preparation and Procurement.20874 Modes of Procurement for PublicPrivate Partnership Municipal Solid Waste Projects.2097

53、5 PublicPrivate Partnership Municipal Solid Waste Projects Reaching Financial Closure.21076 PublicPrivate Partnership Municipal Solid Waste Projects with Foreign Sponsor Participation.21077 Government Support to PublicPrivate Partnership Municipal Solid Waste Projects.21178 Payment Mechanism for Pub

54、licPrivate Partnership Municipal Solid Waste Projects.21179 Local Government Structure in the Philippines.21680 Approval Process for a Local PublicPrivate Partnership Project.22281 Submission of a Solicited Local PublicPrivate Partnership Project.22482 Submission of an Unsolicited Local PublicPrivat

55、e Partnership Project.22583 Submission of an Unsolicited Local PublicPrivate Partnership Project(Comparative Challenge).22684 Local PublicPrivate Partnership Projects Under Preparation and Procurement,2023.23385 Local PublicPrivate Partnership Projects Under Preparation and Procurement,as of October

56、 2024.234ForewordThe PublicPrivate Partnership Monitor,a key publication of the Asian Development Bank(ADB),presents a detailed review of the current state of the publicprivate partnership(PPP)enabling environment for selected countries.The PPP Monitor for the Philippines includes more than 500 qual

57、itative and quantitative indicators to profile the national PPP environment,the sector(for twelve identified sectors)and local government specific PPP landscape.The PPP Monitor also features an interactive online version allowing users to compare the key PPP parameters and features across ADBs devel

58、oping member countries(DMCs).We are grateful for the valuable contributions made by the PublicPrivate Partnership Center of the Philippines(PPP Center),which enriched the analysis and findings presented in this document.The evolution of the Philippines PPP framework began in the 1990s,with 305 proje

59、cts in the roads,railways,ports,airports,energy,water and wastewater,ICT,agriculture and fisheries,social infrastructure,and solid waste sectors reaching financial close between 1990 and 2023(excluding canceled projects).Most of these initiatives have focused on the energy,transport,and water and wa

60、stewater sectors,marking key areas for private sector engagement.Despite this early push,the Philippines still has vast unrealized potential for private sector investment in infrastructure.Given the vast need for to upgrade infrastructure to continue economic growth,PPPs are now more essential than

61、ever for infrastructure and social projects in the Philippines.Increased private sector participation can relieve the fiscal strain on the government while accelerating project execution and enhancing technical,operational,and cost efficiencies.The Philippines is among the fastest-growing economies

62、in the region,boosted by a robust investment grade rating and increased public spending,which have attracted more foreign investments.However,the coronavirus disease(COVID-19)pandemic has widened the infrastructure funding gap,and well-structured PPPs delivered within a robust enabling environment w

63、ill drive sustainable infrastructure development.Consistency in policy and a robust regulatory framework are crucial to encourage private sector involvement in large-scale infrastructure projects.ADB has been working closely with the Philippines to create a strong enabling environment for PPPs.Foste

64、ring private sector development by promoting green growth and PPPs is one of the key strategic objectives and priority areas in ADBs country partnership strategy for the Philippines,20242029.The partnership between the Philippines and ADB has reached an all-time high,with the Philippines emerging as

65、 one of ADBs largest client DMCs.ADB assisted the Philippines in developing its PPP Code,which became law in 2023,and its implementing rules and regulations issued in 2024.Since its establishment in 2010,ADB has been in close partnership with the PPP Center and with support focused on strengthening

66、governance,advancing PPP advocacy,and building capacity within the PPP Center and implementing agencies in the Philippines,both national and local.Working in concert with the PPP Center,ADB has been supporting the Government of the Philippines via the provision of transaction advisory services inclu

67、ding for the Ninoy Aquino International Airport upgrade project that financially closed in 2024.ForewordxiPublications like ADBs PPP Monitor serve as valuable diagnostic tools,highlighting where the comparative advantages and gaps in legal,regulatory,and institutional frameworks are for investor and

68、 government consideration.We hope that this PPP Monitor will be informative to the continued dialogue between the public and private sectors and further support the Philippines as an attractive PPP market to fill the gaps in the infrastructure sector that will improve the lives and livelihood of the

69、 citizens.F.Cleo KawawakiHead,Office of Markets Development and Public Private PartnershipAsian Development BankAcknowledgmentsThe PublicPrivate Partnership MonitorPhilippines was prepared by the Asian Development Bank(ADB)Office of Markets Development and PublicPrivate Partnership(OMDP)in close coo

70、rdination with the Philippines Country Office.A team of market development advisory specialists from OMDP led the effort in developing,refining,and streamlining the analytical framework for capturing the national,subnational,and sectoral PPP-related landscape that has been drawn on to produce this d

71、ocument.The PPP Monitor uses data published by the governments of ADB developing member countrieson their official websites and in reports,publications,laws,and regulationsas well as data published by ADB and other multilateral development agencies and included in industry publications and databases

72、 such as those of the World Bank,the European Bank for Reconstruction and Development,the Organisation for Economic Co-operation and Development,the World Economic Forum,the International Monetary Fund,Economist Impact(Infrascope index scores),the Global Infrastructure Hub,TheGlobalE,Bloomberg,S&P G

73、lobal,Trading Economics,and the PPP Legal Resource Center.ADB has partnered with Tantoco Villanueva&De Guzman Law Offices(Tavidell Law),which shared its deep expertise on the Philippines PPP market and provided inputs in developing the PPP Monitor for the Philippines.TermDefinitionPublicprivate part

74、nership(PPP)Contractual arrangement between public(national,state,provincial,or local)and private entities through which the skills,assets,and/or financial resources of each of the public and private sectors are allocated in a complementary manner,thereby sharing the risks and rewards,to seek to pro

75、vide optimal service delivery and good value to citizens.In a PPP,the public sector retains the ultimate responsibility for service delivery,although the private sector provides the service for an extended time.Within Asian Development Bank operations,all contracts,such as performance-based contract

76、s(management and service contracts),lease-operate-transfer,build-own-operate-transfer,design-build-finance-operate,variants,and concessions,are considered as various forms of PPP.Excluded are:contracts involving turnkey design and construction as part of public procurement(engineering,procurement,an

77、d construction contracts);simple service contracts that are not linked to performance standards(those that are more aligned with outsourcing to private contractor staff to operate public assets);construction contracts with extended warranties and/or maintenance provisions of,for example,up to 5years

78、 post-completion(wherein performance risk sharing is minimal as the assets are new and need only basic maintenance);and all privatization and divestures.Approving bodyA national or local government body authorized to approve a project as a PPP in the Philippines.Availability-/performance-based payme

79、ntsMethod of investment recovery in PPP projects,whereby payments to the private party are made by the implementing agency over the lifetime of a PPP contract in return for making infrastructure or services available for use at acceptable and contractually agreed performance standards.Buildleasetran

80、sfer(BLT)A PPP contractual arrangement whereby a private partner is authorized to finance and construct an infrastructure or development facility and,upon its completion,turns it over to the implementing agency concerned on a lease arrangement for a fixed period after which ownership of the facility

81、 is automatically transferred to the implementing agency.Buildownoperate(BOO)A PPP contractual arrangement whereby a private partner is authorized to finance,construct,own,operate and maintain an infrastructure or development facility from which the private partner is allowed to recover its total in

82、vestment,operating,and maintenance costs plus a reasonable return thereon by collecting tolls,fees,rentals,or other charges from facility users.Definition of Termscontinued on next pageDefinition of TermsxivTermDefinitionBuildoperatetransfer(BOT)BOTs and similar arrangements are specialized concessi

83、ons in which a private firm or consortium finances and develops a new infrastructure project or a major component according to performance standards set by the government.Under BOTs,the private sector developer provides the capital required to build a new facility.Importantly,the private operator no

84、w owns the assets for a period set by contractsufficient to give the developer time to recover investment costs through user charges.Buildtransfer(BT)A PPP contractual arrangement that may be used in the construction of any infrastructure or development project,including critical facilities that,for

85、 security or strategic reasons,must be operated directly by the government,whereby the private partner undertakes the financing and construction of a given infrastructure or development facility and,after its completion,turns it over to the implementing agency concerned,which pays the proponent on a

86、n agreed schedule its total investments expended on the project,plus a reasonable rate of return thereon.Buildtransferoperate(BTO)A PPP contractual arrangement whereby the public sector contracts out the building of an infrastructure facility to a private entity such that the contractor builds the f

87、acility on a turnkey basis,assuming cost overrun,delay,and specified performance risks.Once the facility has been commissioned satisfactorily,title is transferred to the implementing agency.The private entity,however,operates the facility on behalf of the implementing agency.Commercial closeIndicate

88、s the signing of the PPP contract between the implementing agency and the private partner.Usually occurs after the terms and conditions of the draft PPP contract are negotiated and agreed between the implementing agency and the identified private sector developer.ConcessionA PPP type that makes the

89、concessionaire(established by the selected private sector developer)responsible for the full delivery of services in a specified area,including operation,maintenance,collection,management,and construction and rehabilitation of the system.Importantly,the private sector developer is responsible for al

90、l capital investment.Although the concessionaire is responsible for providing the assets,such assets are publicly owned even during the concession period.The public sector is responsible for establishing performance standards and ensuring the concessionaire meets them.In essence,the public sectors r

91、ole shifts from being the service provider to regulating the price and quality of service.Direct agreementAn agreement normally made between the concessionaire(established by the private sector developer),the implementing agency,and the lenders.The agreement usually gives the lenders step-in rights

92、to take over the operation of the key PPP contracts.Dispute resolutionA process to resolve any dispute between the implementing agency and the private sector developer as agreed in the PPP contract.The possible dispute resolution mechanisms in a PPP contract could include resolution through:discussi

93、on between both parties,a dispute resolution board,expert determination,mediation or conciliation,or arbitration.Environmental impact assessmentA process of evaluating the likely environmental impacts of a proposed project or development,taking into account interrelated socioeconomic,cultural,and hu

94、man health impacts,both beneficial and adverse.Feed-in-tariff(FIT)A policy mechanism designed to accelerate investment in renewable energy technologies by offering long-term purchase agreements for the sale of renewable energy electricity.continued from previous pagecontinued on next pageDefinition

95、of TermsxvTermDefinitionFinancial closeThe specific milestone in a PPP contract where the private partner successfully secures all necessary project and financing agreements,which confirms that all prior conditions have been met,allowing the private partner to draw down the financing,as applicable,t

96、o commence work on the PPP project.Financial equilibriumA mechanism in a PPP contract for dealing with changes,when changes in specified conditions and circumstances trigger compensating changes to the terms of the agreement.Some civil law jurisdictions emphasize economic or financial equilibrium pr

97、ovisions that entitle a partner to changes in the key financial terms of the contract to compensate for certain types of exogenous events that may otherwise impact returns.The partner is protected as the economic balance of the contract must be maintained and adequate compensation paid for damages s

98、uffered.Unexpected changes that merit financial equilibrium may arise from force majeure(major disasters or civil disturbances),government action,and unforeseen changes in economic conditions.Force majeureAn event that is beyond the reasonable control of the affected party,as a result of which such

99、partys performance of its obligations under the PPP contract is prevented or rendered impossible.Force majeure events may include:war,civil war,armed conflict,or terrorism;nuclear,chemical,or biological contamination,unless the source or the cause of the contamination is the result of the actions of

100、 or breach by the concessionaire or its subcontractors;pressure waves caused by devices traveling at supersonic speeds,which directly causes either party(the“affected party”)to be unable to comply with all or a material part of its obligations under the contract;or any other similar events that are

101、beyond the reasonable control of the affected party and prevent or render impossible the performance by such party of its obligations under the PPP contract.Government guaranteeAn agreement under which the government agrees to bear some or all risks of a PPP project.It represents a secondary obligat

102、ion that legally binds the government to take on an obligation if a specified event occurs.A government guarantee constitutes a contingent liability,for which there is uncertainty as to whether the government may be required to make payments,and,if so,how much and when it will be required to pay.In

103、practice,government guarantees are used when debt providers are unwilling to lend to a private party in a PPP because of concerns over credit risk and potential loan losses.Government guarantees can also be used to benefit equity investors in a PPP company when they require protection against the in

104、vestment risks they bear.Government pays(off-take)Represents the payment made by the implementing agency to the concessionaire(established by the private sector developer)for the infrastructure assets provided and services delivered through a PPP project.These payments could be:usage-basedfor exampl

105、e shadow tolls or output-based subsidies;based on availabilitythat is,conditional on the availability of an asset or service to the specified quality;and upfront subsidies based on achieving certain agreed milestones.Hybrid arrangementA method of investment recovery in PPP projects when payments to

106、the private party are made as a combination of user charges and availability payments over the lifetime of a PPP contract,in return for making infrastructure or services available for use at acceptable and contractually agreed performance standards.Implementing agencyA national or local government e

107、ntity authorized to undertake PPP projects in the Philippines.continued from previous pagecontinued on next pageDefinition of TermsxviTermDefinitionIndependent power producer(IPP)schemeA method of investment recovery in PPP projects whereby payments to the private party are made as a combination of

108、user charges and availability payments over the lifetime of a PPP contract,in return for making infrastructure or services available for use at acceptable and contractually agreed performance standards.Institutional arbitrationAn arbitration process in which a specialized institution intervenes and

109、takes on the role of administering the arbitration process between the implementing agency and the private sector developer for a PPP project-related dispute.This institution would have its own set of rules,which would provide a framework for the arbitration,and its own form of administration to ass

110、ist in the process.Joint ventureA PPP contractual arrangement whereby the implementing agency performing its proprietary function and the private partner pool resources comprising capital,services,or assets,including equipment,land,or intellectual property,to jointly undertake a specific activity wi

111、thin a specific period of cooperation,to deliver an infrastructure or development project and service that the public sector typically provides.Lease contractUnder a lease contract,the private sector developer is responsible for the service in its entirety and undertakes obligations relating to qual

112、ity and service standards.Except for in new and replacement investments,which remain the responsibility of the government contracting agency,the operator provides the service at their expense and risk.The duration of the leasing contract is typically 10years and may be renewed for up to 20years.Resp

113、onsibility for service provision is transferred from the public sector to the private sector and the financial risk for operation and maintenance is borne entirely by the private sector operator.In particular,the operator is responsible for losses and for unpaid consumers debts.Leases do not involve

114、 any sale of assets to the private sector.Lenders step-in rightsLenders rights in project-financed arrangements to“step in”to the project companys position in the contract to take control of the infrastructure project where the project company is not performing.Local government unit(LGU)A territoria

115、l and political subdivision of the Philippines at the local level,which may be a barangay,municipality,city,or province.Management contractA PPP type that expands the services to be contracted out to include some or all of the management and operation of the public service(e.g.,utility,hospital,port

116、 authority).Although ultimate obligation for service provision remains in the public sector,daily management control and authority are assigned to the private partner or contractor.In most cases,the private partner provides working capital but no financing for investment.Material adverse government

117、action An act of the government of which the private partner had no knowledge,or of which it could not be reasonably expected to have had knowledge,prior to,and that occurs after,the effectivity of the PPP contract,other than an act that is authorized or permitted under the PPP contract,which(i)spec

118、ifically discriminates against the sector,industry,or project and(ii)has a significant negative effect on the ability of the private partner to comply with any of its obligations under the approved PPP contract.This may include unanticipated regulatory risks.Nominal interest rateThe interest rate ap

119、plicable to a borrowing before taking inflation adjustment into account.In certain cases,nominal interest rate also refers to the advertised or stated interest rate on a borrowing,without taking into account any fees or compounding of interest.Nominal interest rate=Real interest rate+Inflation ratec

120、ontinued from previous pagecontinued on next pageDefinition of TermsxviiTermDefinitionNon-recourse/limited-recourse project financingThe financing of the development or exploitation of a right,natural resource,or other asset where the bulk of the financing is to be provided by way of debt and is to

121、be repaid principally out of the assets being financed and their revenues.Project bond financingAn alternative source of financing infrastructure project by means of placing bonds.Project developmentIndicates the stage of the PPP project life cycle,including PPP project identification,preparation,st

122、ructuring,and procurement up to commercial close between the implementing agency and the private sector developer.Real interest rateThe interest rate applicable to a borrowing that takes the inflation rate into account.Real interest rate=Nominal interest rate Inflation rateRehabilitateoperatetransfe

123、r(ROT)A PPP contractual arrangement whereby an existing facility is turned over to the private sector to refurbish,operate,and maintain for a franchise period,at the expiry of which the legal title to the facility is turned over to the implementing agency.Regulatory frameworkA framework encompassing

124、 all laws,regulations,policies,binding guidelines or instructions,other legal texts of general application,judicial decisions,and administrative rulings governing or setting precedent in connection with PPPs.In this context,the term“policies”refers to other government-issued documents,which are bind

125、ing on all stakeholders,are enforced in a manner similar to laws and regulations,and provide detailed instructions for the implementation of PPPs.Risk allocation matrixMatrix indicating the allocation of the consequences of each risk to one of the parties in the PPP contract or agreeing to deal with

126、 the risk through a specified mechanism that may involve sharing the risk.SanggunianThe body that exercises the local legislative power of the LGU.Service contractA PPP type under which the government contracting agency hires a private company or entity to carry out one or more specified tasks or se

127、rvices for a period,typically 13years.The government contracting agency remains the primary provider of the infrastructure service and contracts out only portions of its operation to the private partner.The private partner must perform the service at the agreed cost and must typically meet performan

128、ce standards set by the government contracting agency.Government contracting agencies generally use competitive bidding procedures to award service contracts,which tend to work well given the limited period and narrowly defined nature of these contracts.Social impact assessmentIncludes the processes

129、 of analyzing,monitoring,and managing the intended and unintended social consequencesboth positive and negativeof planned interventions(policies,programs,plans,projects)and any social change processes invoked by those interventions.Its primary purpose is to bring about a more sustainable and equitab

130、le biophysical and human environment.Social infrastructureCovers social services,including hospitals,schools and universities,prisons,housing,and courts.State-owned enterprise A company or enterprise owned by the government or in which the government has a controlling stake.Swiss challenge or compar

131、ative challengeA process in public procurement whereby an implementing agency that has received an unsolicited bid for a project publishes details of the bid and invites third parties to match or exceed it.Tax holidayA government incentive program that offers tax reduction or elimination to projects

132、 and/or businesses.In the context of a PPP project,tax holidays are provided to exempt the concessionaire from making any tax payments during the initial demand ramp-up period to make the project financially viable.continued from previous pagecontinued on next pageDefinition of TermsxviiiTermDefinit

133、ionUnsolicited proposal(USP)A proposal made by a private party to undertake a PPP project.It is submitted at the initiative of the private party rather than in response to a request from the implementing agency.User chargesThe method of investment recovery in a revenue-based PPP,whereby payments to

134、the private party are fully derived from tariffs paid by users or off-takers over the lifetime of a PPP contract,in return for making infrastructure or services available for use at acceptable and contractually agreed performance standards.Viability gap funding A type of subsidy that the government

135、may extend to make an economically viable revenue-based PPP project financially viable but that does not include government payments for right-of-way and resettlement.continued from previous page4PH Pambansang Pabahay Para sa Pilipino(National Housing for Filipinos Program)ACMF ASEAN Capital Markets

136、 ForumADB Asian Development BankADR alternative dispute resolutionASEAN Association of Southeast Asian NationsBCDA Bases Conversion Development AuthorityBEDP Basic Education Development PlanBFAR Bureau of Fisheries and Aquatic ResourcesBLGF Bureau of Local Government FinanceBLT buildleasetransferBOO

137、 buildownoperateBOT buildoperatetransferBSP Bangko Sentral ng Pilipinas(Central Bank of the Philippines)BTO buildtransferoperateCAAP Civil Aviation Authority of the PhilippinesCDC Clark Development CorporationCDIA Cities Development Initiative for AsiaCHEd Commission on Higher EducationCIAC Construc

138、tion Industry Arbitration CommissionCLIPs Consolidated List of Investment ProgramsCOA Commission on AuditComDev Committee on DevolutionCOVID-19 coronavirus diseaseDBCC Development Budget Coordination CommitteeDBM Department of Budget and ManagementDBP Development Bank of the PhilippinesAbbreviations

139、AbbreviationsxxDENR Department of Environment and Natural ResourcesDepEd Department of EducationDHSUD Department of Human Settlements and Urban DevelopmentDICT Department of Information and Communications TechnologyDILG Department of the Interior and Local GovernmentDMC developing member countryDOE

140、Department of EnergyDOF Department of FinanceDOH Department of HealthDOJ Department of JusticeDOTr Department of TransportationDPWH Department of Public Works and HighwaysDTP devolution transition planDWR Department of Water ResourcesECC environmental compliance certificateECCD early childhood care

141、and developmentEIS Environmental Impact StatementEMB Environmental Management BureauEPIRA Electric Power Industry Reform Act(Republic Act No.9136)ERC Energy Regulatory CommissionFIT feed-in tariffFIT-All FIT AllowanceGAA General Appropriations ActGDP gross domestic productGEDSI gender equality,disab

142、ility,and social inclusionGOCC government-owned and controlled corporationGPRAM Generic Preferred Risk Allocation MatrixHEI higher education institutionHSH High Standard HighwayICC Investment Coordination Committee of the NEDA BoardICC-CC ICC Cabinet CommitteeICC-TB ICC Technical BoardICT informatio

143、n and communication technologyAbbreviationsxxiIFC International Finance CorporationIFP infrastructure flagship projectIPP independent power producerIRR Implementing Rules and RegulationsIWMP Integrated Water Resources Master PlanJICA Japan International Cooperation AgencyLBP Land Bank of the Philipp

144、inesLDC local development councilLGC Local Government Code of 1991LGU local government unitLRT Light Rail TransitLRTA Light Rail Transit AuthorityLTFRB Land Transportation Franchising and Regulatory BoardLUCs local universities and collegesLWUA Local Water Utilities AdministrationM&E monitoring and

145、evaluationMAGA material adverse government actionMARINA Maritime Industry AuthorityMCA Multi-Criteria AnalysisMCIA MactanCebu International AirportMCIAA MactanCebu International Airport AuthorityMIAA Manila International Airport AuthorityMRT Metro Rail TransitMWSS Metropolitan Waterworks and Sewerag

146、e SystemNAIA Ninoy Aquino International AirportNEDA National Economic and Development AuthorityNGA national government agencyNGCP National Grid Corporation of the PhilippinesNHA National Housing AuthorityNHMFC National Home Mortgage Finance CorporationNIA National Irrigation AdministrationNLEX North

147、 Luzon ExpresswayNPC National Power CorporationAbbreviationsxxiiNREB National Renewable Energy BoardNSSMP National Sewerage and Septage Management ProgramNSWMC National Solid Waste Management CommissionNTA national tax allotmentNTC National Telecommunications CommissionNWRB National Water Resources

148、BoardO&M operation and maintenanceODA official development assistanceOECD Organisation for Economic Co-operation and DevelopmentOMDP Office of Markets Development and PublicPrivate PartnershipOPS original proponent statusPBAC Prequalification,Bids,and Awards CommitteePCG Philippine Coast GuardPDMF P

149、roject Development Monitoring FacilityPDP Philippine Development Plan 20232028PEZA Philippine Economic Zone AuthorityPFDA Philippine Fisheries Development AuthorityPHFDP Philippine Health Facility Development PlanPhilGuarantee Philippine Guarantee CorporationPhilHealth Philippine Health Insurance Co

150、rporationPhilSys Philippine Identification SystemPNR Philippine National RailwaysPPA Philippine Ports AuthorityPPP publicprivate partnershipPPPGB PPP Governing BoardPSA Philippine Statistics AuthorityPSALM Power Sector Assets and Liabilities Management CorporationPSIP PPP for School Infrastructure P

151、rojectPTCs parameters,terms and conditionsPTMRF Port Terminal Management Regulatory FrameworkPWSSMP Philippine Water Supply and Sanitation Master PlanRDC regional development councilREPA renewable energy payment agreementAbbreviationsxxiiiRESA renewable energy supply agreementROT rehabilitateoperate

152、transferROW right-of-wayRPS Renewable Portfolio StandardsRROR reasonable rate of returnRRU Railway Regulatory UnitSBL single borrowers loan limitSBMA Subic Bay Metropolitan AuthoritySEC Securities and Exchange CommissionSLEX South Luzon ExpresswaySTOA supplemental toll operation agreementSUC state u

153、niversity or collegeSWRB Subic Water Regulatory BoardTESDA Technical Education and Skills Development AuthorityTIEZA Tourism Infrastructure Enterprise Zone AuthorityTLBA Trust Liability Bank AccountTransCo National Transmission CorporationTRB Toll Regulatory BoardUHC Universal Health CareUNCITRAL Un

154、ited Nations Commission on International Trade LawUNICEF United Nations Childrens FundUSP unsolicited proposalVFM value for moneyVGF viability gap fundingWESM Wholesale Electricity Spot MarketWRC Water Regulatory CommissionWRMO Water Resources Management OfficeWTE waste-to-energykbps kilobits per se

155、condkm kilometerkm2 square kilometerkWh Kilowatt-hourm3 cubic meterAbbreviationsxxivMW megawattMWp megawatt peak Philippine peso%percent$United States1$0.01715$1 58.30Currency Equivalents(As of 28October 2024)The PublicPrivate Partnership Monitor(PPP Monitor),a flagship publication of the Asian Deve

156、lopment Bank(ADB),profiles the current state of the PPP enabling environment in ADBs developing member countries(DMCs)in Asia and the Pacific.The PPP Monitor features also a data-driven,interactive online version that allows users to compare and contrast the key PPP parameters and attributes across

157、the featured DMCs.While the featured countries represent a small sample,more countries will be continually added into the PPP Monitor,which is expected to become a knowledge base for the government and the business community for assessing a countrys PPP environment.The PPP Monitor provides a snapsho

158、t of the overall PPP landscape in the country.This downloadable guide also assesses more than 500 qualitative and quantitative indicators that have been structured per topicthe national PPP landscape,the sector-specific PPP landscape(for nine identified infrastructure sectors with a separate section

159、 for other sectors),and the PPP landscape for local government projects.The PPP Monitor also captures the critical macroeconomic and infrastructure sector indicators(including the new Business Ready B-Ready 2024 scores)from globally accepted sources.Each of the topics and associated subtopics presen

160、ted below is characterized by qualitative and quantitative indicators.Qualitative indicators take the form of a question to which“Yes,”“No,”“Not Applicable,”or“Unavailable”answers can be given.Quantitative indicators are represented in the form of numbers,ratios,investment value,and duration.For eac

161、h of the DMCs covered,the information and data are organized along the following topic clusters:OverviewTopicSubtopicsOverview Overview of the PPP legal and regulatory framework Number of PPP projects reaching financial close from 1990 till end of 2023 across sectors Total investment made in PPPs fr

162、om 1990 to 2023 across sectors Features of past PPP projects including number of PPPs procured through various modes Number of PPP projects under preparation and procurement Number of PPP projects supported by the government Payment mechanism for PPPs Foreign sponsor participation in PPPs from 1990

163、to 2023 Challenges associated with the PPP landscape in the country Guide to Understanding the PublicPrivate Partnership MonitorGuide to Understanding the PublicPrivate Partnership MonitorxxviiNational PublicPrivate Partnership LandscapeIndicatorsTo profile the national PPP landscape,the indicators

164、are grouped into three major categories:national PPP enabling framework,government support for PPP projects,and maturity of the PPP market.TopicSubtopicsNational PPP legal and regulatory framework Details on the legal and regulatory framework applicable to PPPs and its evolution since the introducti

165、on of PPPs in the country Details on the other supporting laws and regulations governing PPPs in the countryPPP types Details on the PPP types allowed to be used according to the PPP legal and regulatory framework.In case the PPP legal and regulatory framework does not specify PPP types,this section

166、 provides the details on the specific PPP types that have been adopted for various PPP projects at various stages of the PPP life cycleEligible sectors Details on various infrastructure sectors for which projects could be procured via the PPP route according to the PPP legal and regulatory framework

167、PPP institutional framework Details on the PPP institutional framework,including availability of a PPP unit,functions of the PPP unit,principal public entities associated with PPPs and their respective functions,and public entities responsible for PPP project identification,appraisal,approval,oversi

168、ght,and monitoringThe PPP process Details on the various stages of the PPP process,including PPP project identification,preparation,structuring,procurement,and management according to the PPP legal and regulatory framework in the countryPPP standard operating procedures,toolkits,templates,and model

169、bid documents Details on the standard operating procedures,and standard templates or model bidding documents available for PPPs(if any)Details on the key clauses in a PPP agreement based on review of select PPP agreements already executed and/or of the PPP legal and regulatory frameworkLenders secur

170、ity rights Rights of lenders,including the charge of project assetsTermination and compensation Definition on whether the private player is eligible for compensation in case of PPP project termination for various reasonsUnsolicited PPP proposals Details on the possibility of submission of unsolicite

171、d PPP proposals,and their treatment,including potential advantages provided to the unsolicited PPP proposal proponent at the PPP procurement stageForeign investor participation restrictions Definition on whether there are any statutory restrictions on foreign equity investments and ownership in PPP

172、projectsDispute resolution Definition of the dispute resolution process and the mechanisms available in the countryEnvironmental and social issues Details on whether the legal and regulatory framework governing PPPs stipulates a mechanism for managing the environmental and social impacts of a PPP pr

173、oject,including potential environmental and social issues that a PPP project could causeLand rights Definition of the various mechanisms through which landownership and/or land use rights could be provided to the private partner in respect of the project site for a PPP project Details on land record

174、s and registration that could be provided to the private partnerGovernment financial support for PPP projects Details on the various mechanisms of government financial support available to make PPP projects financially viable,including funding and revenue support Salient features of government finan

175、cial support mechanisms availablecontinued on next pageGuide to Understanding the PublicPrivate Partnership MonitorxxviiiTopicSubtopicsProject development funding support Details on the various sources through which funding could be availed for the development activities(preparation,structuring,and

176、procurement)of a PPP project Details on stages of the PPP project development during which such funding could be availed and utilized,including payments to transaction advisorsPPP project statistics Details on the key PPP statistics in the country,such as availability of(i)a PPP database showing dis

177、tribution of PPP projects across sectors and across various stages of the PPP life cycle and(ii)a national PPP project pipeline and its alignment with the National Infrastructure Plan for the countrySources of PPP financing Details on the sources of financing for PPP projects in the country Details

178、on typical key financing terms for various sources of financing,banks active in project finance for the past 24months,active PPP project sponsors in the country for the past 24months,availability of a derivatives market,and availability of credit rating agencies in the countrySector-Specific PublicP

179、rivate Partnership Landscape IndicatorsTo profile the sector-specific PPP landscape,the indicators are grouped into five major categories:(i)sector-specific PPP contracting agencies,(ii)sector laws and regulations,(iii)sector master plan(including sector-specific PPP pipeline),(iv)features of past P

180、PP projects in the sector,and(v)sector-specific challenges for PPPs.Sectors that do not appear consistently across the featured countries are covered under the“Other Sectors”category in the sector-specific PPP landscape.TopicSubtopicsImplementing agencies in the sector Details on which government ag

181、encies could act as the contracting agencies for a PPP projectSector laws and regulations Details on the applicable sector laws and regulations for PPP projects,including the sector regulators and their respective functionsForeign investment restrictions in the sector Details on the maximum allowed

182、foreign equity investment in greenfield PPP projects in the sectorStandard contracts in the sector Specification on whether standard contracts are available for PPP projects in the sectorSector master plan Details on the master plan and/or road map adopted for infrastructure development in the secto

183、r by the national government and the corresponding line ministry Details on the pipeline of PPP projects for the sector aligned with this sector master plan and/or road map Details on the PPP projects under preparation and procurement in the sectorFeatures of past PPP projects Features of past PPP p

184、rojects based on supporting indicators in terms of the number and value(where applicable)of PPP projects for each supporting indicatorTariffs applicable to the sector Details on the indicative tariffs applicable in the sector based on the examples of select PPP or other projects operational in the s

185、ectorcontinued on next pagecontinued from previous pageGuide to Understanding the PublicPrivate Partnership MonitorxxixTopicSubtopicsTypical risk allocation for PPP projects in the sector Details on the typical risk allocation between the government contracting agency and the private partner based o

186、n examples of select PPP projects that have achieved commercial closeFinancing details for PPP projects in the sector Typical financing details based on past PPP projects on the lines of the supporting indicatorsChallenges associated with PPPs in the sector Details on the PPP-related and sector-spec

187、ific challenges facing PPP projects in the sectorLocal Government PublicPrivate Partnership LandscapeTo profile the PPP landscape for local government projects,the indicators are grouped into seven major categories:(i)local governance system,(ii)infrastructure development plans for local governments

188、,(iii)sectors in which local governments can implement PPPs,(iv)revenue sources for local governments,(v)borrowings by local governments,(vi)budgetary allocation to local governments,and(vii)credit rating of local governments.TopicSubtopicsKey indicators related to local governments in the country D

189、etails on the local governments using select key indicators on(i)number and levels of local governments,(ii)typical expenditure profile and heads,(iii)typical revenue profile and heads,(iv)typical debt profile and heads,and(v)grants and transfers from the higher levels of governmentLocal governance

190、system Details on the local governance system in the country,including the various levels of local governments;their roles,responsibilities,and functions;and the devolution of powers from the higher levels of government to the various levels of local governmentsInfrastructure development plan for lo

191、cal governments Details on the infrastructure development plans prepared by the local governments based on their capital investment projects in the pipeline,and the coverage of such infrastructure development plansPPP enabling framework for local governments Details on the PPP enabling framework app

192、licable to local government PPP projects,including PPP legal and regulatory framework,PPP policy framework,and PPP institutional frameworkEligible sectors for PPPs for local governments Details on the eligible sectors in which PPPs could be undertaken by the local government as government contractin

193、g agencyRevenues for local governments Details on the typical sources of revenue for local governmentsBorrowings by local governments Details on the typical sources of debt financing available for local governments and the purpose for which borrowed funds could be usedBudgetary allocation to local g

194、overnments Details on the budgetary allocations and transfers to the local governments from the higher levels of governmentCredit rating of local governments Details on the precedence of local governments being rated by credit rating agencies in the country,and the details of credit ratings obtained

195、 by select local governments in the pastcontinued from previous pageGuide to Understanding the PublicPrivate Partnership MonitorxxxTime PeriodsThe research was carried out in 2024 to reflect its status as of the end of 2023.Therefore,some indicator data may have changed between the said period and t

196、he publication date of this report.In country-and sector-level sections,quantitative data in relation to the number of projects reflect the cumulative number of projects over the periods 19902021,19902022,and 19902023.Otherwise,the data represent the status of each year.The listed pipeline projects

197、per sector,however,cover PPP pipeline projects published by the PPP Center as of October 2024.I.OverviewThe Philippines recognizes the indispensable role of the private sector,encourages private enterprise,and provides incentives for needed investments.1 This state policy,embodied in the 1987 Philip

198、pine Constitution,provides the impetus for publicprivate partnerships(PPPs)in the Philippines.These have been a key component of the overall strategy and development agenda of the Government of the Philippines for inclusive growth.The country prides itself on having had a well-developed and vibrant

199、PPP framework since the 1990s,with the advent of its buildoperatetransfer(BOT)law,Republic Act No.6957,and its amendatory legislation,Republic Act No.7718(“Amended BOT Law”).Since 2010,the Philippine government has introduced many governance reforms to the BOT framework governing PPPs.These reforms

200、include the establishment of the PPP Governing Board(PPPGB),the PublicPrivate Partnership Center of the Philippines(PPP Center),and the Project Development and Monitoring Facility(PDMF)to provide financial support in preparing PPP projects.The PPPGB issues policy circulars and resolutions clearly de

201、fining and detailing PPP processes and mechanisms,including the roles,responsibilities,and functions of various parties involved in a PPP;ways to identify PPP projects(via Multi-Criteria Analysis MCA);termination payments;preferred risk allocation;and environmental and social safeguards for PPPs,amo

202、ng others.The PPP Center has proved to be working efficiently in facilitating PPP project preparation and development,building the capacity of government contracting agencies,advocating policy reforms,monitoring the implementation of PPP projects,and building up a PPP knowledge system.It also builds

203、 partnerships with organizations that aim to accelerate infrastructure development in the countryside,such as the Mindanao Development Authority,the Development Academy of the Philippines,and the League of Cities of the Philippines.The project preparation and bidding are generally carried out using

204、experienced,international transaction advisors through the PDMF.2 In addition to performing its coordination and monitoring functions,the PPP Center has been actively implementing capacity-building activities with implementing agencies,including local government units(LGUs)and water districts,in par

205、tnership with the Asian Development Bank(ADB),World Bank,and Infrastructure Asia among others.In 2020,coronavirus disease(COVID-19)was declared a global pandemic.According to the World Bank,the Philippines was one of the countries hit hardest in the East Asia and Pacific region.3 The country went in

206、to one of the worlds longest and strictest lockdowns beginning in March of that year.For more than a year,most of the country was under some form of mobility restriction.In the second quarter of 2020,the economy went into its deepest contraction,at 16.9%.4 Nevertheless,the Philippines is still one o

207、f the most dynamic economies in the East Asia and Pacific region.Its economic dynamism is rooted in strong consumer demand supported by a vibrant labor market and robust remittances.The poverty rate declined from 23.3%in 2015 to 18.1%in 2021 despite the 1 Republic of the Philippines.1987.The Constit

208、ution of the Republic of the Philippines.2 ADB.2020.PublicPrivate Partnership Monitor:Philippines.3 World Bank.2022.Supporting the Philippines COVID-19 Emergency Response.4 Government of the Philippines.2023.Philippine Development Plan 20232028.2PublicPrivate Partnership MonitorPhilippinesshocks end

209、ured by the COVID-19 pandemic and other global headwinds,such as high global commodity prices and tight global financial conditions.The Philippine economy remained robust at 5.5%growth in 2023,which is among the top growth performances in the East Asia and Pacific region.Over the medium term,the gro

210、wth outlook continues to be supported by strong domestic demand,driven by a robust labor market,continued public investments,and the positive effects of recent investment policy reforms that could boost private investment.5The global economy was expected to rebound after the pandemic,but Russias war

211、 in Ukraine from February 2022 caused commodity prices to increase.The Philippines nominal debt nearly doubled,from 7.7trillion($132.06billion as of 28October 2024)in 2019 to around 13.4trillion($229.81billion)right after the pandemic.Geopolitical tensions meant the cost of borrowings climbed post-p

212、andemic as central banks raised their interest rates to combat inflation.The Philippines is refinancing the large borrowings contracted during the low interest period in 20202022 with new debts that bear higher interest rates.The country is using debt to spur economic recovery by investing in more i

213、nfrastructure and human capital development,even as it aims to push its debt-to-gross domestic product(GDP)ratio below 60%in the medium term.6 As of the first half of 2024,the Philippines debt-to-GDP ratio stood at 60.9%,down from 61.0%a year before.7Taking off from lessons learned from the COVID-19

214、 pandemic,the Philippine government adopted the Philippine Development Plan 20232028(PDP)in early 2023.8 The PDP is based on an eight-point socioeconomic agenda consisting of food security,improved transportation,affordable and clean energy,health care,education,social services,sound fiscal manageme

215、nt,and bureaucratic efficiency.It seeks to enhance connectivity through infrastructure and transport to link markets to each other,as well as to pursue greater collaboration between the local and national governments and operationalize the Philippine Supreme Courts ruling in the Mandanas-Garcia case

216、 to optimize the sharing of responsibility between them.9 It also recognizes the rationale for favoring PPPs in enhancing and upgrading infrastructure,given the countrys tight national fiscal space constraining public investments.Over the PDPs implementation period,annual spending on infrastructure

217、is estimated at 5%6%of GDP,and,in line with this,the government will continue to tap viable funding mechanisms to augment public resources in financing critical infrastructure projects,such as reinvigorating PPPs in financing priority infrastructure projects.10Challenges encountered by various imple

218、menting agencies and lessons learned in PPPs for over 3decades led to the passage in December 2023 of the PublicPrivate Partnership Code of the Philippines(Republic Act No.11966)(“PPP Code”).The PPP Code effects major reforms in the PPP framework to achieve three main objectives:addressing ambiguiti

219、es in the existing law,responding to key challenges affecting the implementation of PPP projects,and fostering a more competitive and enabling environment for PPPs.The PPP Code repeals,among others,the Amended BOT Law and consolidates the legal frameworks for private sector participation in both nat

220、ional and local infrastructure and development projects,including joint venture arrangements and other contractual arrangements for toll road projects or toll facilities.The Implementing Rules and Regulations(IRR)of the PPP Code were issued in 2024.Apart from the PPP Code,a key reform supporting PPP

221、s has been relaxation of the nationality requirement for investment in certain sectors.Earlier,in 2022,the Philippines amended the Public Service Act by limiting the public utilities that are subject to the 60%Filipino nationality requirement under the Philippine Constitution to 5 World Bank.Philipp

222、ines Overview.6 Department of Finance.2024.Agenda for Prosperity:Fulfilling the Needs and Aspirations of the Filipino People Revenue and Financing Program.7 Bureau of the Treasury.2024.National Government H1 2024 Fiscal Deficit at 4.9%of GDP Debt Ratio Recorded at 60.9%.8 Government of the Philippin

223、es.2023.Executive Order No.14,Series of 2023.9 See Supreme Court of the Philippines.2018.Mandanas v.Ochoa,G.R.No.199802.10 Government of the Philippines.2023.Philippine Development Plan 20232028.Overview3only those that operate,manage,or control in the following sectors:distribution or transmission

224、of electricity;petroleum and petroleum product pipeline transmission systems;water pipeline distribution systems and wastewater pipeline systems,including sewerage pipeline systems;seaports;and public utility vehicles.11 Also in 2022,the Department of Energy(DOE)removed the nationality requirement f

225、or renewable energy in relation to the exploration,development,and utilization of solar,wind,hydro,and ocean or tidal energy.12 The government continues to push for further critical reforms to sustain economic growth in the medium to long term,such as reforms to the Philippine capital markets,amendm

226、ents to the Right-of-Way Act,creation of a Department of Water Resources,amendments to the Foreign Investors Long-Term Lease Act,and amendments to the Electric Power Industry Reform Act(EPIRA).13Despite these reforms,the Philippines world competitiveness is far from ideal.Out of 67 countries,it curr

227、ently ranks 52nd in terms of overall performance,dropping seven notches from 45th place in 2020 to 52nd place in 2023 in IMDs World Competitiveness Rankings.The Philippines is also at the bottom of the list among its neighboring peers,ranking 13th out of 14 countries in Asia and the Pacific.In infra

228、structure,the Philippines ranks 61st out of 67 countries,with its positions for infrastructure for health and environment and for education at a low 61 and 63,respectively.14To bridge the infrastructure gap,the National Economic and Development Authority(NEDA)approved 75infrastructure flagship proje

229、cts(IFPs)in 2017 under the Build-Build-Build Program of the previous administration,costing 1.6trillion($27.44billion as of 28October 2024),which was later increased to 112 in 2021 with a total cost of 4.7trillion($80.6billion as of 28October 2024).However,most of these IFPs were financed through of

230、ficial development assistance(ODA),and not PPPs.In 2023,NEDA introduced the IFPs under the Build-Better-More Program.15 The IFPs represent vital and transformative infrastructure initiatives that are urgently required to exemplify the overall Build-Better-More Program.They will be incentivized and b

231、e given priority in budget preparation and review and processing of approvals,clearances,and authorizations,within the processing time and deadlines provided by law.16 As of August 2024,there are 47 IFPs that are identified as PPP projects under physical connectivity(roads and bridges,rail,air,urban

232、 transport,maritime,and data management)and health,with a indicative total project costs of 2,852.05billion($48.92billion as of 28October 2024).17In the governments approved national budget of 6.326trillion($108.49billion as of 28October 2024)under the General Appropriations Act(GAA)for the fiscal y

233、ear 2025,education and health are top priorities.Education has the highest allocation at 16.7%,or 1.055trillion($18.09billion as of 28October 2024),while health accounts for 4.2%of the national budget,or 267.8billion($4.59billion as of 28October 2024).The government will finance the construction of

234、at least 6,000 classrooms and continue the implementation of the Universal Health Care Act.Agriculture receives 3.8%,or 237.4billion($4.07billion as of 28October 2024)to support farmers and fisherfolk.To finance the administrations flagship Build-Better-More Program,the Department of Public Works an

235、d Highways(DPWH)has been allocated the second-highest budget at 15.9%,or 11 Government of the Philippines.2021.Republic Act No.11659.However,the amendment restricts foreign equity in entities engaged in the operation and management of critical infrastructure such as telecommunications to 50%,unless

236、the country of the foreign investor accords reciprocity to Philippine nationals.12 See section on Foreign Investor Participation Restrictions for details on the current nationality requirements of the Philippines.13 National Economic and Development Authority(NEDA).2024.Agenda for Prosperity:Fulfill

237、ing the Needs and Aspirations of the Filipino People Updates on the Philippine Development Plan and Recent Economic Outlook.14 IMD.Philippines.15 The Build-Better-More Program is the infrastructure program of the Philippine government.Under the strategy framework of the PDP,the overarching objective

238、 for the infrastructure sector over the medium term is to build better more,to enable economic transformation for a prosperous,inclusive,and resilient society.16 NEDA.2023.Infrastructure Flagship Projects(IFPs)under the Build-Better-More Program.17 NEDA.2024.Infrastructure Flagship Projects(accessed

239、 27October 2024).4PublicPrivate Partnership MonitorPhilippines1.007trillion($17.27billion as of 28October 2024)while the Department of Transportation(DOTr)receives the highest increase,from 74billion($1.27billion as of 28October 2024)in 2024 to 123.7billion($2.12billion as of 28October 2024),account

240、ing for 2%of the national budget for 2025.18The Philippines currently maintains two lists of infrastructure projects.The PPP Center maintains a database of PPP projects and publishes a list of PPP projects identified across various sectors.NEDA publishes the list of IFPs that are funded by governmen

241、t appropriations under the General Appropriations Act(GAA),ODA and/or PPPs.Figure 1 shows the priority infrastructure projects that are ongoing and planned across the various IFP sectors(physical connectivity,water resources,agriculture,health,digital connectivity,power and energy,education,and othe

242、r infrastructure),regardless of funding source,with the indicative total project costs per sector(in$million).Projects in the physical connectivity sector account for the largest share in value,with 135 projects for roads,railways,ports,airports,and other transport having a total indicative project

243、cost of 8,394.42billion($143,964.30million as of 28October 2024).Figure 1:Indicative Total Project Costs of Infrastructure Flagship Projects by Sector,as of August 2024 ($million)143.964.3012.588.963.664.441.641.603.093.69174.76524.10365.81Physical ConnectivityDigital ConnectivityWater ResourcesPowe

244、r and EnergyAgricultureEducationHealthOther InfraNote:Physical connectivity projects include roads,railways,ports,airports,and other transport projects while digital connectivity projects include broadband,data center,digital infrastructure,and Philippine Identification System.Source:NEDA.2024.Infra

245、structure Flagship Projects(accessed 27October 2024).18 Department of Budget and Management(DBM).2024.Agenda for Prosperity:Fulfilling the Needs and Aspirations of the Filipino People FY2025 Total Expenditure Program;Department of Budget and Management.2024.Briefer on the 2025 Proposed National Budg

246、et AGENDA FOR PROSPERITY:Fulfilling the Needs and Aspirations of the Filipino People;Government of the Philippines.2025.General Appropriations Act(GAA)FY 2025;Presidential Communications Office.2024.Education remains top priority in 6.32T natl budget.Overview5From 1990 to 2023,about 305 PPP projects

247、 from different sectors successfully achieved financial closure,excluding those that were canceled.19 During this period,11 PPP projects were canceled(3.48%of the total number of projects).20 Figure 2 shows the number of PPP projects that achieved financial closure and that werecanceled.Figure 2:Pub

248、licPrivate Partnership Projects Financially Closed and Canceled,19902023224711124911714870010211420RoadsRailwaysAirportsPortsEnergyWater andwastewaterICTAgricultureandfisheriesSocialinfrastructureSolid wasteActive and concludedCanceledICT=information and communication technology.Note:Total projects

249、include projects that are active,concluded,and canceled.For the purpose of the graph,PPP projects noted as“under implementation”in the PPP Center Projects List/Database are assumed to have reached financial closure.Theroads sector includes road transport projects such as terminals.The energy sector

250、includes FIT projects.The agriculture and fisheries sector includes public market projects.Sources:Department of Energy(DOE).2024.List of Renewable Energy(RE)Plants with Certificate of Endorsement(COE)to Energy Regulatory Commission(ERC)for Feed-in Tariff(FIT)Eligibility as of March 2024;PPP Center.

251、Corporate Planning and Development Division.Projects List(provided 9August 2024);World Bank.Infrastructure Finance,PPPs and Guarantees.Country Snapshots.Philippines.Custom Query(accessed 28August 2024);Tavidell Law.19 PPP projects“under implementation”in the PPP Center database are assumed to have r

252、eached financial closure.20 PPP Center.Corporate Planning and Development Division.Projects List(provided 9August 2024);World Bank.Infrastructure Finance,PPPs and Guarantees.Country Snapshots.Philippines.6PublicPrivate Partnership MonitorPhilippinesFigure 3 depicts total investment in each sector fr

253、om 1990 to 2023,and the average size of a PPP project in each of these sectors.Table 1 lists the major sponsors that are active in the infrastructure sector.Figure 3:Investments in PublicPrivate Partnerships by Sector,199020237.352.9716.870.897.488.910.300.020.450.150.350.992.410.130.210.120.020.000

254、.060.03RoadsRailwaysAirportsPortsEnergyWater andwastewaterICTAgricultureandfisheriesSocialinfrastructureSolid wasteSector-wise total investments in PPPs(US$billion)Average project size(US$billion)ICT=information and communication technology.Note:Total projects include projects that are active,conclu

255、ded,and canceled.Energy projects under a feed-in tariff scheme are not considered for the purpose of this graph.Projects for which the value of PPP is unavailable have been excluded for the purpose of total and average investment calculations.Sources:DOE.2024.List of Renewable Energy(RE)Plants with

256、Certificate of Endorsement(COE)to Energy Regulatory Commission(ERC)for Feed-in Tariff(FIT)Eligibility as of March 2024;PPP Center.Corporate Planning and Development Division.Projects List(provided 9August 2024);World Bank.Infrastructure Finance,PPPs and Guarantees.Country Snapshots.Philippines.Custo

257、m Query(accessed 28August 2024);Tavidell Law.Table 1 lists the major sponsors active in the infrastructure sector in the Philippines,with at least three PPP projects under implementation,preparation,or procurement for the period 19902023.Table 1:Major Sponsors Active in the Infrastructure SectorProj

258、ect SponsorCountry of OriginNumber of PPP ProjectsAboitiz InfraCapital,Inc./Aboitiz Equity Ventures/Aboitiz PowerPhilippines8Alsons Power GroupPhilippines4Ayala CorporationPhilippines6Citicore Holdings Investment,Inc.Philippines5International Container Terminal Services Inc.Philippines3JG Summit Hol

259、dings,Inc.Philippines3Manila Water Company,Inc.Philippines11Marubeni CorporationJapan8Megawide Construction CorporationPhilippines7Metro Pacific Investments CorporationPhilippines19continued on next pageOverview7Project SponsorCountry of OriginNumber of PPP ProjectsMTD Capital BerhadMalaysia4Ormat I

260、nc.United States3Pamana Water CorporationPhilippines4Prime Asset Ventures,Inc./PrimeWater Infrastructure CorporationPhilippines55SMC Infrastructure/San Miguel Holdings CorporationPhilippines23Udenna Infrastructure CorporationPhilippines5Unisys Australia,LimitedAustralia4Sources:DOE.2024.List of Rene

261、wable Energy(RE)Plants with Certificate of Endorsement(COE)to Energy Regulatory Commission(ERC)for Feed-in Tariff(FIT)Eligibility as of March 2024;PPP Center.Corporate Planning and Development Division.Projects List(provided 9August 2024);World Bank.Infrastructure Finance,PPPs and Guarantees.Country

262、 Snapshots.Philippines.Custom Query(accessed 28August 2024);Tavidell Law.From 1990 to 2023,88 PPP projects were procured through a competitive bidding process and 108 through unsolicited proposals(USPs)across various infrastructure sectors.Further,12 PPP projects were procured through the granting o

263、f a franchise(a supplemental toll operation agreement)for road projects pursuant to Presidential Decree Nos.1112(Toll Operation Decree)and 1113,as amended.In addition,81 renewable energy projects were issued certificates of endorsement by the DOE to the Energy Regulatory Commission(ERC)for feed-in-t

264、ariff(FIT)eligibility.Figure 4:Various Modes of Procuring PublicPrivate Partnership Projects,1990202302128102331758727524638128760RoadsRailwaysAirportsPortsEnergyWater andwastewaterICTAgricultureandfisheriesSocialinfrastructureSolid wasteDirect negotiationsGrant of franchise pursuant to P.D.1113 FIT

265、Unsolicited proposalsCompetitive biddingFIT=feed-in-tariff,ICT=information and communication technology,P.D.=Presidential Decree.Note:Total projects include projects that are active and concluded,and for which procurement information is available.Sources:DOE.2024.List of Renewable Energy(RE)Plants w

266、ith Certificate of Endorsement(COE)to Energy Regulatory Commission(ERC)for Feed-in Tariff(FIT)Eligibility as of March 2024;PPP Center.Corporate Planning and Development Division.Projects List(provided 9August 2024);World Bank.Infrastructure Finance,PPPs and Guarantees.Country Snapshots.Philippines.C

267、ustom Query(accessed 28August 2024);Tavidell Law.Table 1 continued8PublicPrivate Partnership MonitorPhilippinesFigure 5 shows the number of projects under preparation and procurement in 2023.Figure 5:PublicPrivate Partnership Projects Under Preparation and Procurement,202325181272166442010020021Road

268、sRailwaysAirportsPortsEnergyWater andwastewaterICTAgricultureandfisheriesSocialinfrastructureSolid wasteProjects in preparationProjects in procurementICT=information and communication technology.Note:The roads sector includes road transport projects such as bus transport,public transport modernizati

269、on,transportation database,terminal,and active transport projects.The ports sector includes port services and transport such as ferry system projects.The air traffic services-air navigation services project is under ICT.The agriculture and fisheries sector includes food hub,slaughterhouse and public

270、 market projects.Source:PPP Center.Corporate Planning and Development Division.Projects List(provided 9August 2024).From 1990 to 2023,one project was supported through viability gap funding(VGF)and none of the PPPs benefited from a government guarantee(Figure 6).Figure 6:PublicPrivate Partnership Pr

271、ojects with Government Support,199020231RoadsRailwaysAirportsPortsEnergyWater andwastewaterICTAgriculture andfisheriesSocialinfrastructureSolid wasteViability gap fundingICT=information and communication technology.Sources:DOE.2024.List of Renewable Energy(RE)Plants with Certificate of Endorsement(C

272、OE)to Energy Regulatory Commission(ERC)for Feed-in Tariff(FIT)Eligibility as of March 2024;PPP Center.Corporate Planning and Development Division.Projects List(provided 9August 2024);World Bank.Infrastructure Finance,PPPs and Guarantees.Country Snapshots.Philippines.Custom Query(accessed 28August 20

273、24);Tavidell Law.Overview9During the same period,119 PPP projects were awarded based on user charges,and 140 PPP projects based on government/LGU pay(offtake)(Figure 7).Figure 7:Payment Mechanism for PublicPrivate Partnerships,199020231837807425111101120101051RoadsRailwaysAirportsPortsEnergyWater an

274、dwastewaterICTAgriculture andfisheriesSocialinfrastructureSolid wasteUser feesGovernment/LGU pay(oftake)ICT=information and communication technology,LGU=local government unit.Note:The graph does not reflect projects where information on their respective payment mechanisms is unavailable.Sources:DOE.

275、2024.List of Renewable Energy(RE)Plants with Certificate of Endorsement(COE)to Energy Regulatory Commission(ERC)for Feed-in Tariff(FIT)Eligibility as of March 2024;PPP Center.Corporate Planning and Development Division.Projects List(provided 9August 2024);World Bank.Infrastructure Finance,PPPs and G

276、uarantees.Country Snapshots.Philippines.Custom Query(accessed 28August 2024);Tavidell Law.Over the past decade,the Philippines has witnessed the active participation of foreign sponsors.A total of 37projects have attracted participation from foreign sponsors,predominantly in the energy sector.Figure

277、 8 shows the distribution of PPP projects across various infrastructure sectors.Figure 8:Foreign Sponsor Participation,199020235.4%8.1%5.4%2.7%59.5%8.1%8.1%2.7%0.0%0.0%AirportsICTPortsAgriculture and fisheriesRoadsEnergySocial infrastructureRailwaysWater and wastewaterSolid wasteICT=information and

278、communication technology.Note:The graph does not reflect projects where information on foreign sponsor participation is unavailable.Sources:DOE.2024.List of Renewable Energy(RE)Plants with Certificate of Endorsement(COE)to Energy Regulatory Commission(ERC)for Feed-in Tariff(FIT)Eligibility as of Mar

279、ch 2024;PPP Center.Corporate Planning and Development Division.Projects List(provided 9August 2024);World Bank.Infrastructure Finance,PPPs and Guarantees.Country Snapshots.Philippines.Custom Query(accessed 28August 2024);Tavidell Law.10PublicPrivate Partnership MonitorPhilippinesGovernments Strategy

280、 Action Plan forPublicPrivate PartnershipsThrough the years,the Philippine government has made great strides in pursuing an enabling environment for PPPs in the country.Its efforts to address regulatory roadblocks have included lifting foreign ownership restrictions on certain sectors,enacting the P

281、PP Code,and prioritizing bills to improve institutional arrangements and introduce reforms in key sectors,among others.The PDP highlights the importance of PPPs at the national and local levels and,as such,the Philippine government continues to pursue efforts to improve the enabling environment for

282、PPPs.The PDPs strategy action plans for private sector participation/engagement include the following Reconfigure PPPs through the enactment of the PPP Code to address crosscutting issues of a weak competition environment and attract foreign investments.Prepare infrastructure sectoral master plans a

283、nd road map to provide a more comprehensive understanding of infrastructure gaps and needs and serve as a sound basis for identifying PPPs.Strengthen PPPs on technical and vocational education and training.Create and facilitate the adoption of modern production technologies for the agriculture,fores

284、try,and fisheries sector.Strengthen the role of domestic investor firms,especially in rural areas,in drawing foreign partnerships in greenfield investments.Examine unique PPP transaction arrangements with the private sector,especially for the agriculture,forestry,and fisheries sector.Foster capital

285、market development by incentivizing PPPs to become publicly listed firms and supporting the development of a local credit market and a credible and independent LGU credit rating system.Improve/upgrade existing airports to meet aerodrome design safety standards set by international and local airport

286、authorities.Encourage PPPs to enhance and strengthen investments in managing and developing water infrastructure and services and manage obstacles to private sector participation.Foster the resilience of communities and institutions.Support private sector partners in aligning their respective enviro

287、nmental,social,and governance targets and investments(e.g.,corporate social responsibility programs)with local priorities and targets on climate change adaptation and disaster risk reduction to efficiently allocate limited resources toward building resilience.2121 Government of the Philippines.2023.

288、Philippine Development(PDP)Plan 20232028.Overview11Challenges to PublicPrivate Partnerships inthePhilippinesGovernment spending,along with the timely implementation of programs and projects under the national budget and capital formation through the implementation of the governments infrastructure a

289、nd PPP programs,is expected to drive growth.On the other hand,risks to the growth outlook include,among others,the effects of climate change,delays in the enactment of critical reforms,weak absorptive capacity of implementing agencies and LGUs,and geopolitical tensions and conflicts.22The PPP Code h

290、as come a long way in relation to addressing the major issues that have hounded PPPs in the Philippines over the years.Still,further legal,regulatory,and institutional reforms are necessary to address the following remaining key challenges to PPPs delays in right-of-way(ROW)or site acquisition by th

291、e government,which delay/adversely affect the implementation of PPP projects;political and regulatory risks occasioned by political interference in the rate-setting and adjustment mechanisms of PPP contracts,and inability of PPP contracts to endure changes in the administration,which are among the m

292、ajor deterrents in attracting investors,especially international entities,to participate in the countrys PPP program;lack of clarity and efficiency in the payment of government compensation or financial support to the concessionaire,which requires an appropriation and a determination by the Commissi

293、on on Audit(COA),which has jurisdiction over money claims against the Philippine government,as well as lack of a robust framework for managing fiscal commitment and contingent liabilities;application of the nationality requirement to sectors as required by the Constitution and certain laws,especiall

294、y since the nationality requirement not only limits the ownership of the entity and the composition of the board of directors but also requires that all executive and managing officers of the entity must be Filipinos.Meeting qualification and prequalification requirements to comply with nationality

295、requirements,especially for listed companies,is also a challenge during procurement,thus limiting competition;major changes to the project structure,terms,and conditions of PPP projects after they are already launched for bidding,thereby delaying procurement or even resulting in bidding failure;the

296、assessment of unpaid real property tax and related enforcement actions taken by certain LGUs on certain PPP project assets,which has become an issue during the procurement of some PPP projects,such as the Manila Light Rail Transit(LRT)-1 Cavite Extension Operation and Maintenance,MactanCebu Internat

297、ional Airport(MCIA),and CaviteLaguna Expressway projects;23 challenges within the implementing agency,including lack of capacity to review and appraise projects and related contracts,interface issues related to the coordination of various teams within the implementing agency,and limited capacity and

298、 lacking guidelines for monitoring and evaluation(M&E)of projects;22 NEDA.2024.Agenda for Prosperity:Fulfilling the Needs and Aspirations of the Filipino People Updates on the Philippine Development Plan and Recent Economic Outlook.23 Following issues raised by bidders during the procurement of thes

299、e projects concerning real property tax,the government assumed liability for real property tax due to LGUs on project assets,except those relating to the commercial business of the concessionaire.12PublicPrivate Partnership MonitorPhilippines unwillingness on the part of implementing agencies to ent

300、er into a direct agreement with project finance lenders.Existing PPP contracts permit only an acknowledgment and consent agreement(in prescribed form annexed to the PPP contract)to be signed among the implementing agency,the concessionaire and the lenders agent,wherein the implementing agency acknow

301、ledges the assignment by the concessionaire of its rights under the PPP contract and the creation of permitted security interest;despite improvements in the USP framework under the PPP Code,presence of the original proponents right to match continuing to act as a deterrent to comparative bidders,mak

302、ing USPs less competitive and not aligned with the framework for solicited PPPs and best practices;challenges to arbitration,which include a legal framework imposing mandatory referral of construction-related disputes to a Philippine quasi-judicial institution,the Construction Industry Arbitration C

303、ommission,and the related judicial process,which often takes several years to conclude;and natural hazards,especially strong typhoons that hit the country every year,which are among the greatest challenges to PPP infrastructure in the Philippines.Infrastructure has to be designed,built,operated,and

304、maintained to be climate and disaster resilient.It is crucial that a pragmatic approach be put in place to address these challenges.This will require the cooperation of all three branches of the Philippine government:executive,legislative,and judicial.II.National PublicPrivate Partnership LandscapeT

305、he Amended BOT Law and its IRR provided the primary enabling legal framework for PPPs in the Philippines in the 1990s.The enactment of the PPP Code on 5December 2023 and the issuance of its IRR on 22March 2024 significantly improved the enabling environment for PPPs in the country.The PPP Code repea

306、ls,among others,the Amended BOT Law and consolidates the legal frameworks for private sector participation in both national and local infrastructure and development projects,including joint venture arrangements and other contractual arrangements for toll road projects or toll facilities.The PPP enab

307、ling framework in the Philippines now comprises the PPP Code,its IRR,and the guidelines issued by each of the Investment Coordination Committee(ICC)of the NEDA Board,the PPPGB,the PDMF Committee,the Development Budget Coordination Committee(DBCC),the COA,the regulatory boards,and the implementing ag

308、encies.On 25April 2024,the NEDA Board approved the new NEDA BoardICC Guidelines on the Review and Approval of PPP Proposals Requiring ICC and/or NEDA Board Approval pursuant to the PPP Code.The PPP Code and its IRR mandate the issuance of other guidelines to operationalize their provisions and to en

309、sure efficient submission by implementing agencies.24The PPP Code institutionalizes and strengthens the PPP Center and the PPPGB.The powers and functions of the PPP Center include assisting implementing agencies in identifying,prioritizing,developing,and maintaining a pipeline of PPP projects;provid

310、ing project advisory services and technical assistance to implementing agencies,approving bodies,and other oversight agencies in all PPP-related matters;reviewing PPP contracts for national PPP projects;providing regular monitoring and status reports on the implementation of the PPP program;developi

311、ng the capacities of implementing agencies,approving bodies,PPP units,and other relevant government stakeholders on PPPs;serving as the central repository of all PPP project information;acting as procurement agent upon the request of the implementing agency;acting as secretariat to the PDMF Committe

312、e;and managing and administering the PDMF and now also the new PPP Risk Management Fund created under the PPP Code.24 Please refer to Table 6 for the list of these guidelines.Although there are still some guidelines that have yet to be issued,this does not in any way prevent PPPs from proceeding pur

313、suant to the PPP Code and its IRR.The guidelines,once issued,are,as a general rule,applied prospectively.14PublicPrivate Partnership MonitorPhilippinesThe PPP Center reports to the PPPGB and is attached to NEDA for policy and program coordination.The PPPGB is the overall policymaking body for all PP

314、P-related matters,including the PDMF,and is responsible for setting the strategic direction of the PPP program and PPP projects and creating an enabling policy and institutional environment for PPPs.As of August 2024,the NEDA Board has approved 186 IFPs with an indicative total project costs of 9,68

315、0.33billion($166.02billion as of 28October 2024)and were identified as PPP projects under physical connectivity(roads and bridges,rail,air,urban transport,maritime,and data management)and health for an indicative total project costs of 2,852.05billion($48.92billion as of 28October 2024).25National P

316、ublicPrivate Partnership EnablingFramework1.National PublicPrivate Partnership Legal and Regulatory FrameworkParameterDoes the country have:National PPP laws and regulations?Public financial management laws and regulations?Sector-specific laws and regulations?Procurement laws and regulations?Environ

317、mental laws and regulations?Laws and regulations for social compliance?Laws and regulations governing land acquisition and ownership?Taxation laws and regulations?Employment laws and regulations?Licensing requirements?What are the other components of the PPP legal and regulatory framework?Other key

318、supporting components(elaborated below)include NEDA BoardICC Guidelines on the Review and Approval of PPP Proposals Requiring ICC and/or NEDA Board Approval pursuant to the PPP Code,25April 2024;and other guidelines to be issued pursuant to the PPP Code and its IRR.ICC=Investment Coordination Commit

319、tee,IRR=Implementing Rules and Regulations,NEDA=National Economic and Development Authority,PPP=publicprivate partnership.=Yes,O=No,NA=Not Applicable,UA=Unavailable.25 NEDA.2024.Infrastructure Flagship Projects(accessed 27October 2024).National PublicPrivate Partnership Landscape15Evolution of the P

320、ublicPrivate Partnership Legal and Regulatory Framework in the PhilippinesFor more than 3decades,the Amended BOT Law had been the enabling law for PPPs in the Philippinesuntil the PPP Code took effect in December 2023.Although there were no changes to the Amended BOT Law after it took effect in 1994

321、,its IRR was revised four timesin 2008,2012,March 2022,and September 2022.Table2 presents the evolution of the legal and regulatory framework of PPPs in the Philippines across the various administrations.Table 2:Evolution of the PublicPrivate Partnership Legal and Regulatory Framework in the Philipp

322、inesYearEnactment/IssuanceDescriptionPresident Corazon Aquino1987Philippine ConstitutionDeclared that the state recognizes the indispensable role of the private sector,encourages private enterprise and provides incentives to needed investments1989Administrative Order No.105Create the Coordinated Cou

323、ncil on Philippines Assistance Program(CCPAP)to take the lead role in coordinating efforts to effectively mobilize international aid and to ensure its successful implementation1990BuildOperateTransfer Law(Republic Act No.6957)Authorized all government infrastructure agencies,including government-own

324、ed or controlled corporations(GOCCs)and LGUs to enter into contract with the private sector for the financing,construction,and operation and maintenance(O&M)of any financially viable infrastructure facility,but only through the buildoperatetransfer(BOT)and buildtransfer(BT)schemes,and on a solicited

325、 basis1991Local Government Code of 1991(Republic Act No.7160)Empowered LGUs to exercise powers for its efficient and effective governance and those essential to the promotion of general welfare;authorized LGUs to discharge functions and responsibilities necessary,appropriate,or incidental to the eff

326、icient and effective provision of basic services and facilities through joint ventures and other cooperative arrangements with the private sector,such as PPPsPresident Fidel Ramos1993Memorandum Order No.166Directed the CCPAP chair,with the assistance of the CCPAP Secretariat,to establish and operate

327、 a one-stop BOT Center,to be accessible to both the public and private sectors1994Administrative Order No.109Created the Presidential Committee on Flagship Programs and Projects to orchestrate the identification,prioritization,and implementation of flagship programs and projectsthat is,highly strate

328、gic infrastructure programs and projects approved by the President and the CabinetRepublic Act No.7718 Authorized private sector participation not only in infrastructure projects but also in development projects,to be implemented through the various BOT schemes described therein and other variations

329、 approved by the President of the Philippines;authorized unsolicited proposals and direct negotiation;designated the CCPAP as the agency responsible for the coordination and monitoring of projects implemented under the lawIRR of the Amended BOT LawImplemented the provisions of the Amended BOT Law(Re

330、public Act No.6957,as amended by Republic Act No.7718)continued on next page16PublicPrivate Partnership MonitorPhilippinesYearEnactment/IssuanceDescriptionPresident Joseph Estrada1999Administrative Order No.67Converted the CCPAP into the Coordinating Council for Private Sector Participation(CCPSP),w

331、hich was tasked to coordinate and monitor the program of the government on private sector participation(PSP)in its infrastructure and other development activities,expanded the coverage of the BOT Program into other forms of PSP;formalized provision by the CCPSP of technical assistance support throug

332、h technical assistance agreements with implementing agenciesAdministrative Order No.69Prescribed procedures for review by the Local Water Utilities Administration(LWUA)of BOT and similar proposals on water supply and water districts2000Administrative Order No.103Reorganized the CCPSP by designating

333、the chair of the Presidential Committee on Flagship Programs and Projects as ex-officio chair of the CCPAPPresident Gloria Macapagal-Arroyo2002Executive Order No.144Converted the CCPSP into the BOT Center to undertake activities related to the development of BOT,and also PSP programs and projects,including projects with ODA under the BOT Law,and assisting in BOT/PSP project development by providin