PPP Center eyes P550-M fund for unsolicited proposals

MANILA, Philippines - The Public-Private Partnership (PPP) Center is considering  the use of the P550 million Project Development and Monitoring Facility (PDMF) to fund the conduct of pre-investment studies for unsolicited project proposals.

The use of the PDMF—a revolving fund tapped by government agencies for funding project preparations—is currently limited to supporting the solicited mode of procurement.

The Duterte administration, however, wants to foster a more welcoming environment for unsolicited proposals under the PPP procurement scheme to fast-track the build up of project pipeline and get these ventures moving.

It plans to complete by 2017 the procurement of around 17 stalled PPP projects collectively valued at $580 billion.

PPP Center executive director Ferdinand Pecson said aside from considering the use of the PDMF in financing the evaluation of unsolicited proposals, the center is also looking at the possibility of building up its own competencies to undertake projects evaluations itself.

“Under the charter of the facility, the use of the PDMF is limited to solicited proposals. But it does not mean that is the permanent thing, so we are trying to modify this,” he said in a recent interview.

“The other thing is, we have discussed internally why not us be the one to actually do that kind of work. We just have to develop our competencies and whenever needed, we will be augmented by consultants,” he added.

He said they have already broached this idea to the Asian Development Bank, one of the sources of funding for the PDMF.

“We have talked to the Asian Development Bank (ADB) and they are willing to support us,” said Pecson.

The Department of Transportation, he said, has already asked the center for assistance in evaluating several proposals for airport projects, some of which are unsolicited.

Pecson said the center is prepared to extend assistance to DOTr but also urged the agency to come up with a  clear airport policy to ensure efficient delivery of public services and good returns for investors.

The PDMF revolving fund was set up in 2011 to help generate a pipeline of viable and well-prepared projects for bidding under the PPP mode.

It is managed by a board composed of the National Economic and Development Authority (NEDA), the Department of Budget and Management, the Department of Finance and the PPP Center. The board sets the guidelines for use of the fund and approved projects for funding.

PDMF finances pre-investment studies, including pre-feasibility studies, feasibility studies, preparation of tender documents, draft contracts, bidding processes and contract negotiations to bid award stage. It also provides project proponents with transaction advisory services to ensure that competitive and transparent processes are observed.

Development partner agencies contributing to the fund include the Asian Development Bank, Australian Agency for International Development (AusAID) and the Canadian International Development Agency (CIDA).