REPUBLIC OF THE PHILIPPINES

PUBLIC-PRIVATE PARTNERSHIP CENTER

INVESTMENT

PARTNERSHIP CENTER
INVESTMENT OPPORTUNITIES

OPPORTUNITIES

OF THE PHILIPPINES
february 2018
PUBLIC-PRIVATE

INVESTMENT
OPPORTUNITIES

republic of the philippines

PUBLIC-PRIVATE PARTNERSHIP CENTER
TABLE OF CONTENTS
3 Ambisyon Natin 2040
4 What is PPP?
5 PPPs in the Philippines
6 Public-Private Partnership Center of the Philippines
7 How does the PPP process work? Who can participate?
8 Pipeline of PPP Projects
10 Investment Opportunities
22 Awarded Projects
28 Project Development and Monitoring Facility (PDMF)
29 Policy Initiatives
31 Doing Business in the Philippines
32 Investment Incentives
34 Directory
35 Contact Us | Acknowledgements

FEBRUARY 2018
 Ambisyon Natin 2040
AmBisyon Natin 2040 represents the collective long-term vision and
aspirations of the Filipino people for themselves and for the country in the
next 25 years. It describes the kind of life the Filipinos want to live, and
how the country will be by 2040. As such, it is an anchor for development
planning across at least four administrations.

By 2040, Filipinos will enjoy a strongly rooted, comfortable, and secure life.

​ In 2040, we will all enjoy a stable and comfortable lifestyle, secure in the
​knowledge that we have enough for our daily needs and unexpected
expenses, and that we can plan and prepare for our own and our children’s
future. Our family lives together in a place of our own, and we have the
freedom to go where we desire, protected and enabled by a clean, efficient,
and fair government.

Build Build Build

Infrastructure is among the top priorities of the government with public
spending on infrastructure projects targeted to reach Php 8-9 trillion pesos
from 2017-2022.

On April 19, 2017, the government launched the Build Build Build Portal
(www.build.gov.ph), which lists down high impact projects, including PPPs,
that are envisioned to increase the productive capacity of the economy,
create jobs, increase incomes, and strengthen the investment climate
leading to sustained inclusive growth.

3
 WHAT IS PUBLIC-PRIVATE
PARTNERSHIP?
Public-Private Partnerships (PPPs) can be broadly
defined as a contractual arrangement between the
Government and a private partner targeted towards
financing, designing, constructing, operating and
maintaining infrastructure facilities and services that were
traditionally provided by the public sector. It embodies
optimal risk allocation whereby risks are allocated
to the party best able to manage them at the lowest
cost, without compromising the realization of project
development objectives.

Projects under the PPP scheme are implemented through

the Amended Build-Operate-Transfer (BOT) Law or
Republic Act (RA) No. 6957, as amended by RA No.
7718.

4
 PUBLIC-PRIVATE PARTNERSHIPS
IN THE PHILIPPINES
The 1987 Constitution explicitly acknowledges the critical
role that the private sector plays in the development agenda
of the country. The Duterte Administration aims to address
the infrastructure requirements of the Philippines through
accelerating the country’s annual infrastructure spending to
account for 5% of the Gross Domestic Product
(GDP), with Public-Private Partnerships (PPPs) playing a
key role.

The government envisions the implemention of infrastructure

projects to generate significant employment opportunities,
boost economic activities, and attain inclusive growth.

Guided by the principles of transparency, accountability,

and good governance, the PPP Program engages the
private sector as vital partners who can bankroll critical
infrastructure projects that will deliver much needed services
for its growing populace.

Under the hallmark of good governance, the Philippine

government guarantees that the private sector will be able
to do business in an environment that nurtures fair and
transparent transactions. The Government ensures that
the interests of both the private sector and its citizens are
balanced, where policies and procedures are continually
enhanced.

The robust pipeline of PPP projects is a product of the

government’s continuing efforts to deliver viable and well-
structured infrastructure projects that will attract investors to
bring their business to the Philippines.

5
________________________________________________________

PUBLIC-PRIVATE PARTNERSHIP CENTER OF

THE PHILIPPINES
________________________________________________________

By virtue of Executive Order No. 8, series of 2010, as amended

by Executive Order No. 136, series of 2013, the Public-Private
Partnership (PPP) Center of the Philippines is mandated to facilitate the
implementation of the country’s PPP Program and projects. The PPP
Center serves as the central coordinating and monitoring agency for all
PPP projects in the Philippines. Together with the various implementing
agencies (IAs), the PPP Center champions the PPP Program. It provides
technical advisory services to IAs in the entire life-cycle of critical PPP
infrastructure and development projects - from development, approval and
procurement to implementation and monitoring stages - ensuring that the
projects are bankable, well-structured and highly beneficial to the public.

The PPP Center manages a revolving fund known as the Project

Development and Monitoring Facility (PDMF) that gives IAs access to a
panel of consulting firms tasked to provide transaction advisory support
and multi-disciplinary expertise required to successfully tender PPP
projects. The PPP Center also advocates policy reforms to improve the
legal and regulatory framework governing the PPP Program.

6
HOW DOES THE PPP PROCESS WORK?
DEVELOPMENT STAGE
- Project preparation (feasibility study and market sounding activity)
- Finalization of project structure

APPROVAL STAGE
- Project submission to relevant approving bodies
- Project assessment and appraisal
- Investment Coordination Committee (ICC) - approval/recommendation
- National Economic and Development Authority (NEDA) Board approval

PROCUREMENT STAGE
- Pre-qualification (advertisement of Invitation to Pre-qualify and Bid,
pre-qualification conference, and submission and evaluation of
pre-qualification documents)
- Bid proper (pre-bid conference, bid submission, and bid opening and
evaluation)
- Notice of Award and Contract signing

IMPLEMENTATION STAGE
- Financial close
- Implementation (preparation of Detailed Engineering Design,
construction, and commissioning)
- Turnover of facility/infrastructure back to the government

WHO CAN PARTICIPATE IN THE

PHILIPPINE PPP PROGRAM?
• Regardless of nationality, anyone is encouraged to invest and participate in
the Philippine PPP Program subject to technical, financial, and legal
requirements.

• Project proponent can obtain financing from foreign and/or domestic

sources and/or engage the services of a foreign and/or Filipino contractor.

• 100% foreign equity may be allowed in all areas of investment EXCEPT in

case of an infrastructure facility whose OPERATION requires a public utility
franchise. In such a case, the facility operator must be Filipino or if a
corporation, must be duly registered with the Securities and Exchange
Commission (SEC) and at least sixty percent (60%) owned by Filipinos.

7
Pipeline of Public-Private
Partnership Projects
As of February 2018

Various projects can be financed and implemented through PPPs - from traditional infrastructure
projects such as toll roads, airports and transport systems to non-traditional infrastructure
such as Information and Communications Technology (ICT) systems and facilities, and social
infrastructure projects for education and health.

AWARDED PROJECTS
Completed and Operational Projects

• Muntinlupa-Cavite Expressway (MCX) / Daang Hari-South Luzon Expressway

(SLEx) Link Road Project
• PPP for School Infrastructure Project (PSIP) Phase I
• Automatic Fare Collection System (AFCS) Project
• NAIA Expressway (Phase II) Project

Projects under Construction

• PPP for School Infrastructure Project (PSIP) Phase II
• Mactan-Cebu International Airport (MCIA) Passenger Terminal Building Project
• Metro Manila Skyway (MMS) Stage 3 Project
• Southwest Integrated Transport System (SWITS) Project/Parañaque Integrated
Terminal Exchange
• MRT Line 7 Project
• Bulacan Bulk Water Supply Project
• Civil Registry System Information Technology Project (Phase II)
• Cavite-Laguna Expressway (CALAx) Project

Projects under Pre-Construction

• LRT Line 1 Cavite Extension, Operations & Maintenance Project

• South Integrated Transport System (SITS) Project/Taguig Integrated Terminal
Exchange
• North Luzon Expressway (NLEx) - South Luzon Expressway (SLEx)
Connector Road Project
• Clark International Airport Expansion Project

8
Projects under Procurement
• Road Transport Information Technology Infrastructure
Project (Phase II)

project for approval of

relevant government bodies
• Clark International Airport Operations & Maintenance
Project

Projects under Review and

Development
• LRT Line 6 Project
• Operations & Maintenance of LRT Line 2 Project
• Integrated Transport System - North Terminal Project
• San Ramon Newport Project
• Cebu Bus Rapid Transit (BRT) Project - System
Manager and Operator Contracts
• Duty Free Retail Development Project
• One DTI Building Complex Project
• Motor Vehicle Inspection System (MVIS) Project
• Bonifacio Global City - NAIA BRT

9
 INVESTMENT
OPPORTUNITIES

*Based on BSP Pesos per US Dollar Rate

$1 = Php51.34 (as of October 2017 - Monthly Average)

10
 Investment Opportunities

Implementing agency ROAD TRANSPORT INFORMATION

Department of Transportation
(DOTr) and Land Transportation
TECHNOLOGY (IT) INFRASTRUCTURE
Franchising and Regulatory
Board (LTFRB) PROJECT (PHASE II)
Project cost The project involves the upgrade of existing IT
infrastructure of the Land Transportation Franchising

$ 5.80
Million ₱Million
298 and Regulatory Board (LTFRB), including: (a)
computerization of its manual processes; (b)
development of an online database of franchise
PPP scheme information; (c) data migration; and (d) procurement,
Build-Transfer-Operate installation, operations and management of IT hardware
(BTO) equipment, software and network development.
concession period
The project aims to deliver a transparent and efficient
11.5 years (inclusive of 1.5-year franchising system through streamlining of LTFRB’s
application development and current processes and automation. It is expected
installation period)
to clean up existing data; enhance data collection,
processing and integration within LTFRB and its
contact details
related agencies; decrease processing time; promote
Airene M. Robinson transparency and ease of use; and improve access to
Assistant Secretary for Planning
DOTr public information and channels for feedback.
airene.robinson@dotr.gov.ph
Lisa Marie B. Jacinto
Project Development Officer
PPP Center
lbjacinto@ppp.gov.ph

11
Investment Opportunities

Implementing agency LRT LINE 6 PROJECT

Department of
Transportation (DOTr)
The project involves the financing, design, construction,
operations & maintenance (O&M), including
procurement of the rolling stocks and systems, of a new
Project cost 19-kilometer light rail line along Aguinaldo Highway
from Niyog, Bacoor (the terminus of the LRT Line 1
$1.27
Billion ₱ Billion
65.09 Cavite Extension Project) to Dasmariñas City in Cavite.

LRT Line 6, as an extended rail system from the

PPP scheme existing LRT Line 1, will provide a cost-effective
Build-Gradual Transfer- and efficient mode of transport for people travelling
Operate-Maintain (BGTOM) within Cavite and to/from Metro Manila. The project
/ Build-Transfer+Operations will also provide an incentive to the public to relocate
& Maintenance (BT+O&M)
to the suburbs of Metro Manila (specifically Cavite
Province), thus lessening the burden on Metro Manila
concession period infrastructure.
30 years (inclusive of
5-year construction
period)

contact details
Timothy John Batan
Assistant Secretary for Rail
DOTr
tjbatan.dotc@gmail.com

Jan Irish V. Platon

Project Development Officer
PPP Center
jvplaton@ppp.gov.ph

12
 Investment Opportunities

Implementing agency OPERATIONS & MAINTENANCE of lrt

Department of Transportation
(DOTr) and Light Rail Transit
line 2 project
Authority (LRTA)
The project involves the operations & maintenance
(O&M) of the existing LRT Line 2 from Recto to
Project cost Santolan, the 4-kilometer East Extension from
Santolan to Masinag and any future extensions to be
No Capex implemented by the government during the term of the
project.
PPP scheme
The project aims to:
Operations & Maintenance
(O&M)
1. improve the transport services of LRT Line 2 by
achieving higher levels of train availability,
concession period punctuality, customer comfort and other key
performance indicators;
15 years 2. alleviate existing and future traffic problems along
LRT Line 2 by encouraging people to use the more
contact details efficient LRT instead of on-street transportation;
Timothy John Batan
3. promote LRT Line 2 asset preservation through
Assistant Secretary for Rail improved O&M services;
DOTr
tjbatan.dotc@gmail.com
4. ensure safe and secure travel environment for
passengers and safe working conditions for staff; and
Maria Cristina C. Cleofas
Division Chief
5. assist in creating an enabling environment and
PPP Center model for further private sector participation
cccleofas@ppp.gov.ph
in Manila’s transport infrastructure through the
development of a financially sound and effective PPP
scheme.

13
Investment Opportunities
Implementing agency
Bases Conversion and
Development Authority
(BCDA)
contact details
Arrey A. Perez
Project Manager
BCDA
aaperez@bcda.gov.ph
Billy Jane C. Cavinta
Project Development Officer
PPP Center
bccavinta@ppp.gov.ph
14
Clark international airport
OPERATIONS & MAINTENANCE PROJECT
Clark International Airport is located at the Clark
Special Economic and Freeport Zone in Angeles
City, Pampanga Province of Central Luzon Region.
The government intends to develop and market
Clark International Airport as a major gateway to
Northern and Central Luzon and attract both airlines
and passengers from its catchment area. The project
involves the operations & maintenance (O&M) of the
existing and the proposed new passenger terminal
buildings.

Implementing agency
Department of
Transportation (DOTr)
contact details
Mark Richmund de Leon
Assistant Secretary for Road
Transport and Infrastructure
DOTr
(+632) 727-7958
Billy Jane C. Cavinta
Project Development Officer
PPP Center
bccavinta@ppp.gov.ph
Investment Opportunities
INTEGRATED TRANSPORT SYSTEM (ITS) -
NORTH TERMINAL PROJECT
The project involves the financing, design, construction,
operations & maintenance (O&M) of a mass
transportation intermodal terminal at the northern
outskirts of Metro Manila. The project aims to maximize
road usage by reducing vehicle volume and therefore
improving traffic flow along Metro Manila’s major
thoroughfares, particularly along EDSA.
It will connect passengers coming from Northern Luzon
to other transport systems such as rails, city bus,
taxi and other public utility vehicles that are serving
inner Metro Manila. The project will include passenger
terminal buildings, arrival and departure bays, public
information systems, ticketing and baggage handling
facilities and park-ride facilities.
15
Investment Opportunities

Implementing agency SAN RAMON NEWPORT PROJECT

Zamboanga City Special
Economic Zone The project involves the financing, design, construction,
(ZamboEcozone) Authority
operations & maintenance (O&M) of a world-class
contact details seaport to be located within the First Industrial Park of
ZamboEcozone.
Christopher Lawrence Arnuco
Chairman and Administrator
ZamboEcozone Authority It aims to improve the competitiveness of the
zamboecozone.arnuco@gmail. ZamboEcozone and fulfill its vision of becoming a
com
world-class economic zone that will link resources,
Kristina Azela B. Diza
Project Development Officer
markets, and other logistical activities that can
PPP Center contribute to the economic development of Zamboanga
kbdiza@ppp.gov.ph
City and Mindanao.
Jhoel G. Jorda
Project Development Officer
PPP Center
jgjorda@ppp.gov.ph

16
 Investment Opportunities

Implementing agency CEBU BUS RAPID TRANSiT (BRT)

Department of PROJECT - system manager and bus
Transportation (DOTr)
operator contract
contact details
Metro Cebu is the second largest metropolitan area in
Arnulfo P. Fabillar the Philippines after Metro Manila, and Cebu City is its
Assistant Secretary for Road
Transport and Infrastructure
largest local government unit. It has experienced rapid
DOTr urbanization and population growth. To address traffic
Afabillar@yahoo.com
congestion in the city, the Department of Transportation
Justine E. Padiernos has embarked upon a program of development and
OIC - Division Chief implementation of BRT.
PPP Center
jepadiernos@ppp.gov.ph

Kristina Azela B. Diza

The project involves the operations & maintenance
Project Development Officer (O&M) of a BRT to be constructed in Cebu through
PPP Center
kbdiza@ppp.gov.ph
Official Development Assistance (ODA). It aims
to improve mobility in Cebu by providing a safe,
Julius Nicoll Z. Dalay
Project Development Officer
environment-friendly and efficient mode of travel.
PPP Center
jzdalay@ppp.gov.ph

17
Investment Opportunities
Implementing agency
Department of Tourism
(DOT) and Duty Free
Philippines Corporation
(DFPC)
contact details
Jennifer F. Start
Chief of Staff -
Office of the Chief Operating
Officer
DFPC
startjf@dfp.com.ph
Lisa Marie B, Jacinto
Project Development Officer
PPP Center
lbjacinto@ppp.gov.ph
18
DUTY free retail development
project
The project is aimed at expanding the operations
of Duty Free Philippines Corporation (DFPC) to
international benchmarks in terms of service and
profitability. This is in line with DFPC’s goals of
improving tourism through better services for tourists
and returning Filipino travellers, and increasing
revenues for the government.
The project involves the operations & maintenance
(O&M) of DFPC activities involving the following:
a. Sourcing and purchasing of goods;
b. Logistics: inbound logistics, warehousing, and store
delivery; and
c. Store design, merchandising, and operations.
 Investment Opportunities

Implementing agency MOTOR VEHICLE INSPECTION SYSTEM

Department of
(MVIS) project
Transportation (DOTr) and
Land Transportation Office The project involves the financing, design, construction,
(LTO)
operations & maintenance (O&M) of centralized,
contact details automated and national network of Motor Vehicle
Inspection Centers (MVICs) for roadworthiness testing.
Airene M. Robinson
Assistant Secretary for Planning
DOTr It aims to improve the efficiency, effectiveness, reliability
airene.robinson@dotr.gov.ph
and transparency of motor vehicle inspection, thereby
John Dominic Z. Zafe
Project Development Officer
ensuring roadworthy and environmentally-sustainable
PPP Center vehicles.
jzzafe@ppp.gov.ph

Marikriz Florenz N. Garcia

Project Development Officer
PPP Center
mngarcia@ppp.gov.ph

19
Investment Opportunities

Implementing agency BONIFACIO GLOBAL CITY - NAIA bus

Bases Conversion and
Development Authority
(BCDA)
contact details
Christian Paolo R. Quillamor
BCDA
crquillamor@bcda.gov.ph
rAPID TRANSIT (brt) project
The Bonifacio Global City-NAIA Bus Rapid Transit
(BRT) covers the line starting from HYATT Station
ending in McKinley, and down line from McKinley to
Uptown Station. The planned BRT system will provide a
dedicated lane, buses with large traffic volume, suitable
stations and intelligent transportation system.​

Eloisa Fe J. Lusotan
Project Development Officer
PPP Center
ejlusotan@ppp.gov.ph

20

Photo from: Boholdailynews
Implementing agency
Department of Trade and Industry
(DTI) and National Development
Company (NDC)
contact details
Lilia Arce
Assistant General Manager
NDC
lla3_arce@yahoo.com
Justine E. Padiernos
OIC - Division Chief
PPP Center
jepadiernos@ppp.gov.ph
Blaise Joshua N. Morales
Project Development Officer
PPP Center
bnmorales@ppp.gov.ph
Investment Opportunities
ONE dti building complex project
The One DTI Building Complex is envisioned to
accommodate all major functional groups, bureaus,
attached agencies and corporations of the Department
of Trade and Industry (DTI) currently operating in
different buildings within the National Capital Region.
Equipped with modern facilities and smart building
design, the vision is to facilitate seamless transactions
for all DTI clients, either domestic or foreign investors,
by having all programs and frontline services of
different functional groups and bureaus under one roof.
Along with enhanced government trade transactions,
the area’s efficiency will eventually be boosted by
facilities where trading, promotional events and other
special activities can be conducted.
21
Investment Opportunities

ppp
awarded
projects
AWARDED PROJECTS
Completed and Operational Projects

• Muntinlupa-Cavite Expressway (MCX) / Daang Hari-South Luzon

Expressway (SLEx) Link Road Project
• PPP for School Infrastructure Project (PSIP) Phase I
• Automatic Fare Collection System (AFCS) Project
• NAIA Expressway (Phase II) Project

Projects under Construction

• PPP for School Infrastructure Project (PSIP) Phase II
• Mactan-Cebu International Airport (MCIA) Passenger Terminal Building Project
• Metro Manila Skyway (MMS) Stage 3 Project
• Southwest Integrated Transport System (SWITS) Project/Parañaque
Integrated Terminal Exchange
• MRT Line 7 Project
• Bulacan Bulk Water Supply Project
• Civil Registry System Information Technology Project (Phase II)
• Cavite-Laguna Expressway (CALAx) Project

Projects under Pre-Construction

• LRT Line 1 Cavite Extension, Operations & Maintenance Project

• South Integrated Transport System (SITS) Project/Taguig Integrated Terminal
Exchange
• North Luzon Expressway (NLEx) - South Luzon Expressway (SLEx)
Connector Road Project
• Clark International Airport Expansion Project

23
 AWARDED PROJECTS : Completed and Operational

muntinlupa-cavite expressway (mcx)/

Daang hari-slex link road Project
Implementing Agency: Department of Public Works and
Highways (DPWH)
Project Cost: Php2.23 Billion | $43.44 Million*
Scheme: Build-Transfer-Operate (BTO)
Concession Period: 30 years
Private Partner: Ayala Corporation

PPP for school infrastructure project

(PSiP) phase I
Implementing Agency: Department of Education (DepEd)
Project Cost: Php9.89 Billion | $192.64 Million**
Scheme: Build-Lease-Transfer (BLT)
Concession Period: 10 years
Private Partner: Bright Future Educational Facilities
Inc. (Region I) and Citicore -
Megawide Consortium Inc. (Region
III and IV- A)

AUTOMATIC FARE COLLECTION SYSTEM (afcs)

PROJECT
Implementing Agency: Department of Transportation (DOTr)
Project Cost: Php1.72 Billion | $33.50 Million
Scheme: Build-Transfer-Operate (BTO) &
Build-Own-Operate (BOO)
Concession Period: 10 years
Private Partner: AF Payments Inc. (consortium of
Ayala and Metro Pacific Groups)

NAIA expressway (phase II) Project

Implementing Agency: Department of Public Works and
Highways (DPWH)
Project Cost: Php17.93 Billion | $349.24 Million***
Scheme: Build-Transfer-Operate (BTO)
Concession Period: 30 years
Private Partner: Vertex Tollways Development Inc.
(VTDI) (subsidiary of San Miguel
Corporation)

*Original project cost approved by the NEDA Board on July 8, 2011 was Php1.956 Billion. The cost increased to Php2.23
Billion due to the payment of the advance works improvements amounting to Php0.050 Billion as approved by the ICC-CC on
November 29, 2011 and Variation Cost amounting to Php0.223 Billion
**Approved Budget Ceiling (ABC) of the Build-Lease-Transfer (BLT) contract is Php16.43 Billion
***Original project cost approved by the NEDA Board on May 30, 2012 was Php15.86 Billion; the cost increased to Php17.93
Billion due to the Variation Order amounting to Php2.07 Billion
22
 AWARDED PROJECTS : UNDER CONSTRUCTION

PPP for school infrastructure project (psip)

phase II
Implementing Agency: Department of Education (DepEd)
Project Cost: Php3.86 Billion | $75.19 Million*
Scheme: Build-Transfer (BT)
Concession Period: N/A
Private Partner: Megawide Construction Corp. (Regions
I, II, III and CAR); consortium of BSP &
Co., Inc. and Vicente Lao Construction
Corporation - (Regions X and CARAGA)

mactan-cebu international airport (mcia)

passenger terminal building project
Implementing Agency: Department of Transportation (DOTr) and
Mactan-Cebu International Airport
Authority (MCIAA)
Project Cost: Php17.52 Billion | $341.25 Million
Scheme: Build-Operate-Transfer (BOT)
Concession Period: 25 years
Private Partner: GMR-Megawide Cebu Airport
Corporation (GMCAC)

metro manila skyway (MMS) stage 3 project

Implementing Agency: Toll Regulatory Board (TRB)
Project Cost: Php37.43 Billion | $729.06 Million**
Concession Period: 30 years
Private Partner: Citra Central Expressway Corporation
(CCEC) (subsidiary of San Miguel
Corporation)

southwest integrated transport system (swits)

project/ paranaque integrated terminal exchange
Implementing Agency: Department of Transportation (DOTr)
Project Cost: Php2.50 Billion | $48.69 Million
Scheme: Build-Transfer-Operate (BTO)
Concession Period: 35 years
Private Partner: MWM Terminals Inc. (consortium of
Megawide Construction Corporation
and WM Property Management Inc.)

*The original project cost approved by the NEDA Board on November 29, 2012 was Php13.14 Billion. However, only two out of
the five contract packages were successfully procured amounting to Php3.86 Billion
**Project cost is based on the final Engineering Design as approved by the Toll Regulatory Board
23
 MRT LINE 7 Project
Implementing Agency: Department of Transportation (DOTr)
Project Cost: Php62.7 Billion | $1.22 Billion
Scheme: Build-Gradual Transfer-Operate and
Maintain (BGTOM)
Concession Period: 25 years
Private Partner: Universal LRT Corporation
(subsidiary of San Miguel Corporation)

bulacan bulk water supply project

Implementing Agency: Metropolitan Waterworks & Sewerage
System (MWSS)
Project Cost: Php24.41 Billion | $475.46 Million
Scheme: Build-Operate-Transfer (BOT)
Concession Period: 30 years
Private Partner: Luzon Clean Water Development
Corporation (consortium of San
Miguel Corporation and Korea Water
Resources Corporation)

civil registry system information technology

(phase II) project
Implementing Agency: Philippine Statistics Authority (PSA)
Project Cost: Php1.59 Billion | $30.97 Million
Scheme: Build-Transfer-Operate (BTO)
Concession Period: 12 years
Private Partner: Unisys Public Sector Services
Corporation

cavite-laguna expressway (calax) project

Implementing Agency: Department of Public Works and
Highways (DPWH)
Project Cost: Php35.43 Billion | $690.10 Million**
Scheme: Build-Transfer-Operate (BTO)
Concession Period: 35 years
Private Partner: MPCALA Holdings, Inc.

24
 AWARDED PROJECTS : UNDER PRE-CONSTRUCTION

lrt line 1 cavite extension, operations &

Maintenance Project
Implementing Agency: Department of Transportation (DOTr) &
Light Rail Transit Authority (LRTA)
Project Cost: Php64.90 Billion | $1.26 Billion*
Scheme: Build-Transfer-Operate (BTO)
Concession Period: 32 years
Private Partner: Light Rail Manila Corporation
(consortium of Metro Pacific Light Rail
Corporation, AC Infrastructure Holdings
Corporation, and Macquarie
Infrastructure Holdings)

south integrated transport system (sits)

project/ taguig
integrated terminal exchange
Implementing Agency: Department of Transportation (DOTr)
Project Cost: Php5.20 Billion | $101.28 Million***
Scheme: Build-Transfer-Operate (BTO)
Concession Period: 35 years
Private Partner: ARCA South Integrated Terminal, Inc.
(subsidiary of Ayala Corporation)

NLex-slex connector road project

Implementing Agency: Department of Public Works and
Highways (DPWH)
Project Cost: Php23.2 Billion | $451.89 Million
Scheme: Build-Operate-Transfer (BOT)
(Unsolicited)
Concession Period: 37 years
Private Partner: Manila North Tollways Corporation
(subsidiary of Metro Pacific Group)

Clark international airport expansion project

Implementing Agency: Bases Conversion and Development
Authority (BCDA)
Project Cost: Php12.55 Billion | $244.45 Million
Scheme: Build-Transfer
Private Partner: Consortium of Megawide Construction
Corp. and GMR Infrastructure Ltd.

*Project cost is inclusive of the Php 19.83 billion ODA component

**Project cost does not include the approved minimum bid price amounting to Php 20.105 billion
***Project cost includes the cost of the C5-FTI-Skyway Connector Road (access ramp) of
Php1,198.093 Billion, and cost of land

25
 THE PROJECT DEVELOPMENT &
MONITORING FACILITY

The Project Development and Monitoring Facility (PDMF)

is a revolving pool of funds for engaging project preparation
and transaction advisory consultants, probity advisors, and
independent consultants.

Scope of services
• Preparation of project pre-feasibility and feasibility
studies, bid documents and PPP contracts
• PPP project structuring
• PPP bid process management
• Assistance until financial close
• Independent consultancy services
• Probity advisory services

PDMF Funds
$102 million jointly financed by the Philippine Government
and the Australian Government, through the Asian
Development Bank

Two-Stage Consultant Selection Process

(1) Pre-qualification of Consulting Firms
• Firms are retained on indefinite delivery contracts (IDC)
without commitment

(2) Call-down Assignment

• Electronic submission of technical and financial proposals
• Lump-sum or time-based contract, depending on the
scope of services

28
POLICY
INITIATIVES
Since the launch of the PPP Program, the
Government has been advocating measures to
enhance the legal and policy environment for
private sector participation and to enable a more
systematized and faster implementation of the
program.
Guidelines on the Identification, Selection and
Prioritization of PPP Projects

These guidelines aim to institutionalize the criteria

and process in the identification, selection, and
prioritization of PPP projects using Multi-Criteria
Analysis (MCA) approach, which can be a useful
tool in determining potential PPP projects that
have a relatively higher potential of being procured
using the PPP scheme.

Institutionalization of Best Practices in the

PPP Process

This issuance aims to institutionalize best practices

in PPP procurement and project implementation
across government and to guide Implementing
Agencies (IAs) in effectively integrating these into
their PPP processes.

Policy on Viability Gap Funding (VGF) for PPP

Projects

This issuance aims to institutionalize a VGF

scheme for PPP projects to make economically-
viable PPP projects affordable to the public and,
at the same time, improve their commercial
attractiveness.

29
Appointment of Probity Advisors for Policy on Assessing Value for Money
PPP Procurement in PPP Projects

This issuance aims to institutionalize the This issuance aims to institutionalize

appointment of Probity Advisors prior to Value for Money analysis in PPP
the commencement of applicable PPP projects.
procurement to manage and provide an
independent opinion on probity issues Policy on Managing Government
that may arise during the procurement Employees Affected by PPP Projects
process.
This issuance aims to set out a
Termination Payment for PPP Projects framework for managing government
employees affected by PPP projects.
This issuance aims to identify the
specific events that may lead to project
termination, and outlines the principles of
termination payment calculation.

PPP Monitoring Framework and

Protocols

This issuance aims to identify the roles

and responsibilities of the key parties
involved in monitoring the implementation
of PPP projects; to define the protocols
for generating, processing, and sharing
information for monitoring; and to
document information on lessons
learned and best practices during project
implementation that can be used in
planning, evaluating, and implementing
future PPP projects.

Policy on Public Consultation and

Engagement for PPP Projects

This issuance aims to institutionalize

the consultation and engagement of the
public, with the end view of improving
transparency in the development and
implementation of PPP projects.

30
doing business in the philippines

Sources:
National Government Portal, About the Philippines, http://investphilippines.gov.
ph/about-the-philippines/
Philippine Statistics Authority, National Quickstat-October 2017, http://psa.gov.
ph/content/national-quickstat-october-2017
Philippine Statistics Authority, Literacy of Men and Wommen in the Philippines
(Results from the 2008 Functional Literacy, Education, and Mass Media Sur-
vey), March 8, 2011, https://psa.gov.ph/content/literacy-men-and-women-philip-
pines-results-2008-functional-literacy-education-and-mass-media
Philippine Statistics Authority, Philippine Economy Grows by 6.9 % in the Third
Quarter of 2017, http://psa.gov.ph/content/philippine-economy-grows-69-per-
cent-third-quarter-2017

31
 doing business in the philippines

INVESTMENT INCENTIVES
Board of Investments (BOI) Incentives

• Fiscal Incentives
o Income tax holiday
o Exemption from taxes and duties on imported
spare parts (Net Operating Loss Carry-Over)
o Exemption from wharfage dues and export tax,
duty, impost and fees (Gross Income Earned)
o Reduction of the rates of duty on capital
equipment, spare parts and accessories by
virtue of Executive Order No. 528
o Tax exemption on breeding stocks and genetic
materials
o Tax credits
o Additional deductions from taxable income

• Non-Fiscal Incentives
o Employment of foreign nationals
o Simplification of customs procedures
o Importation of consigned equipment
o Privilege to operate a bonded manufacturing/
trading warehouse

Source: Board of Investments, Investment Priority Area, http://investphilippines.gov.ph/

incentives/board-of-investments/

36
32
Philippine economic zone
authority INCENTIVES
• Fiscal Incentives
o Income Tax Holiday (ITH) - 100% exemption from
corporate income tax
o Upon expiry of the ITH - 5% special
tax on Gross Income and exemption from all
national and local taxes (“Gross Income” refers to
gross sales or gross revenues derived from the
registered activity, net of sales discounts, sales
returns and allowances and minus cost of sales or
direct costs but before any deduction is made for
administrative expenses or incidental losses during
a given taxable period)
o Tax and duty free importation of raw materials,
capital equipment, machineries and spare parts
o Exemption from wharfage dues and export tax,
impost or fees
o VAT zero-rating of local purchases subject to
compliance with BIR and PEZA requirements
o Exemption from payment of any and all local
government imposts, fees, licenses or taxes

However, while under ITH, there is no exemption from

real estate tax, except for machineries installed and
operated in the economic zone for manufacturing,
processing or for industrial purposes, which shall be
exempt from real estate taxes for the first three (3)
years of operation of such machineries. Production
equipment not attached to real estate shall be exempt
from real property taxes.

• Non-Fiscal Incentives
o Simplified import - export procedures (electronic
import permit system and automated export
documentation system)
o Non-resident foreign nationals may be employed
by PEZA-registered economic zone enterprises in
supervisory, technical or advisory positions.
o Special non-immigrant visa with multiple entry
privileges for the following non-resident foreign
nationals in a PEZA-registered Economic Zone
Enterprise: Investor/s, officers, and employees in
supervisory, technical or advisory position, and
their spouses and unmarried children under
twenty-one (21) years of age. PEZA extends visa
facilitation assistance to foreign nationals, and their
spouses and dependents.
Source: Philippine Economic Zone Authority, Fiscal Incentives, http://www.peza.gov.ph/index
php/eligible-activities-incentives/fiscal-incentives 33
 Public-Private Partnership Center
8th Floor, One Cyberpod Centris, EDSA cor.
Quezon Ave., Quezon City 1100
Trunkline: (+632) 709-4146

FERDINAND A. PECSON
Executive Director
Phone: (+632) 709-4146 loc. 2001
Email: fapecson@ppp.gov.ph

ELEAZAR E. RICOTE MIA MARY G. SEBASTIAN

Deputy Executive Director Deputy Executive Director
Phone: (+632) 709-4146 loc. 2201 Phone:(+632) 709-4146 loc. 2301
E-mail: eericote@ppp.gov.ph E-mail: mgsebastian@ppp.gov.ph

FEROISA FRANCISCA T. CONCORDIA ATTY. MA. LERMA L. ADVINCULA

Director IV
Capacity Building and Knowledge
Management Service
Phone: (+632) 709-4146 loc. 8001
E-mail: ftconcordia@ppp.gov.ph
Director IV
Project Development and Monitoring
Facility Service
Phone: (+632) 709-4146 loc. 3001
E-mail: lladvincula@ppp.gov.ph

ATTY. FRANCES YANI P. DOMINGO MARIA THERESA L. LARANANG

Director IV Director IV
Legal Service Administrative Service
Phone: (+632) 709-4146 loc. 4001 Phone: (+632) 709-4146 loc. 7001
E-mail: fpdomingo@ppp.gov.ph E-mail: mllaranang@ppp.gov.ph

JEFFREY I. MANALO JOMEL ANTHONY V. GUTIERREZ

Director III
Policy Formulation, Project Evaluation
and Monitoring Service
Phone: (+632) 709-4146 loc. 5201
E-mail: jimanalo@ppp.gov.ph
Director III
Capacity Building and Knowledge
Management Service
Phone (+632) 709-4146 loc. 8201
E-mail: jvgutierrez@ppp.gov.ph

LAWRENCE G. VELASCO
Director III
Project Development Service
Phone: (+632) 709-4146 loc. 6002
E-mail: lgvelasco@ppp.gov.ph

34
 for more information, please visit:
www.ppp.gov.ph
follow our social media accounts:
Public-Private Partnership
PPPCenter.Philippines Center of the Philippines

@PPP_Ph PPPPinas

for inquiries, kindly e-mail:

info@ppp.gov.ph

ACKNOWLEDGEMENTS
Road IT: http://apphocus.com/network-infrastructure/
ITS North Terminal: http://ayosaoi.wordpress.com
Clark International Airport (O&M) Project: https://iorbitnews.com/
San Ramon Newport Project: http://www.sidc.ie/our-projects/saudi-arabia/opportunity-analysis-of-red-sea-foun
dation,-saudi-arabia
BRT Cebu: http://theubpost.mn/wp-content/uploads/2016/08/0023ae9888c1158b2e9f07.jpg
Duty Free Retail Development Project: https://outoftownblog.com
One DTI Building Complex: https://www.bdcnetwork.com/

35
8th Floor, One Cyberpod Centris, EDSA cor.
Quezon Ave., Quezon City 1100
(+632) 709-4146 | www.ppp.gov.ph