Think tank urges reforms based on PPP experience

MANILA, Philippines - A high profile think tank has urged government to institutionalize reforms based on the four-year performance of the Public-Private Partnership (PPP) program.

In a statement, the Foundation for Economic Freedom (FEF) also recommended that government allow equal opportunities to unsolicited proposals and Swiss Challenges.

The FEF is a non-government organization (NGO) chaired by former Finance Secretary Roberto de Ocampo. Its other prominent members include Romeo Bernardo, Calixto Chikiamco and Ernest Leung.

The group noted there have been gains in developing the country’s infrastructure with the joint participation of the government and private sector bu still challenges abound.

“The challenge lies in sustaining the momentum,” it said.

The first requires legalizing the successful mechanisms put in place, which includes the institutional reforms under Executive Order (EO) 8 and 136, such as the inter-relationship between the National Economic and Development Authority (NEDA), the PPP Center, the PPP Governing Board, and the Project Development Monitoring Facility (PDMF) Committee, as well as the administration of agency-level support received through the PDMF.

“Second, we must build on these mechanisms and improve the implementation of Public-Private Partnerships by among others developing the competitive selection process by allowing unsolicited proposals to be subjected to public bidding and lengthening the period for the Swiss Challenge,” the FEF said.

The group likewise recommended that the joint venture arrangement, or any other future PPP arrangements, be subject to the uniform application of the law, as well as standardizing basic PPP terms and conditions.

The FEF also said that not only the interests of government and the private investors be balanced, but also take into consideration the interest of the consuming public.

“By giving the private sector a stake in nation building, we believe the country can move that much closer to meeting its infrastructure needs,” it said.

Since 2010, the government has a robust pipeline of 57 PPP projects, eight of which have been awarded and were solicited projects originating from the government’s national or local priority list.

Funds allocated for monitoring and supporting the financial and technical capacity of agencies for project development activities are administered efficiently, with 93 percent of such funds allocated to support the project pipeline.