Planning Organizations, NEDA

Structure and Functions

 Outline of presentation
• History of Philippine Planning Institutions

• The NEDA

• National Planning

• Regional Coordination and Regional Delineation in Perspective

• Investment Programming and Project Monitoring and

Evaluation

• Managing other sources of financing development

• Managing Risks and Responsibilities in Public-Private

Partnership
 HISTORY OF
PHILIPPINE Planning
Institutions
 Philippine Planning Institutions after World War II
• National Urban Planning Commission (E098), 1948
• Real Property Board, 1947
• Capital City Planning Commission (RA333), 1947
• Segmentation of urban governance with the chartering of Pasay City (1947),
Quezon City (1948), and Caloocan City (1963)
• National Planning Commission (Presidential Letter of Instruction 367), 1950,
combined NUPC, RPB, and CCPC
• NPC and National Economic Council– separated Economic Planning from Spatial
Planning – continued to this day by the HLURB and NEDA
• 10-point Industrialization and Infrastructure program was launched in 1954.
Import Substitution Industrialization (ISI) was adopted 1948-1967 rather than
export-oriented agri-based industrialization. RA 2264 Local Autonomy Act of
1959 empowered LGUs to form local planning boards to craft development
plans under the guidance of NPC and to enact zoning ordinances and
subdivision rules
 Philippine Planning Institutions after World War II
(continued)
• Philippine Homesite and Housing Corporation in 1950 (now NHA)
purchased 1,572 hectares for P2-million in Quezon City to relocate
residents of Tondo Foreshoreland.
• PHHC adopted Clarence Perry’s “Principles of Neighborhood Unit”
in Projects 2 (Roxas), 3 (Quirino), 4, 6 (Pagasa), 7, 8
• Start of Philippine suburbanization: Philamlife Homes West
Triangle– the first suburb along Highway 54 (now EDSA)
• Home Financing Corporation (now NHMFC)
• First Filipino Urban Planners: 1950s
– Dean Emeritus Cesar H. Concio, Arch. Serafin G. Aquino Jr., Manuel T.
Mañosa Jr., Ignacio S. Capili, Benjamin T. Gomez, Arch. Antonio Kayan (not
PIEP), and Arch. Ruperto Gaite (NU-FEU, not PIEP)
 Planning Milestones during the Marcos Era
• UNDP assisted formation of UP-Institute of Planning in 1964 (RA
4341) which was renamed Institute of Environmental Planning
(1974) and then further renamed School of Urban and Regional
Planning (1983)
• PIEP was established in 1969
• UP-IEP and UP-CPA (now UP-NCPAG) conceptualized “Manila Bay
Metropolitan Region” in 1971 but plan was not officially adopted
• PD#1 Integrated Reorganization Plan delineated the country into
11 administrative regions
• Town Planning was institutionalized in 1973 thru Development
Academy of the Philippines Task Force on Human Settlements.
 Planning Milestones during the Marcos Era
(continued)
• PD 933 in 1976 stated that the objective of development is to liberate communities
from urban blight and congestion and to promote ecological balance
• Start of Metropolitan Planning of “Greater Manila Area” in 1975 with Presidential
Decree 824 : Four cities & 17 towns were amalgamated under Metro Manila
Commission (annexation model).
• National Environmental Policy and Philippine Forestry Code promulgated in 1977
• Environmental Impact Assessment System started in 1978
• PD 1308 in 1978 created the Environmental Planning Profession
• Integrated Area Development as Micro-Regional Approach focused on the 20 poorest
provinces– in Bicol Region, Aurora, Catanduanes, Zamboanga provinces, Bohol, Basilan
• Promotion of Rural Development through Farmers Marketing Cooperatives (FACOMAs),
Rural Improvement Clubs (RIC), 4-H youth clubs (head, hearts, hands, health),
Samahang Nayon, Irrigators Associations, Cooperative Rural Banks, and programs like
KKK.
• National Land Use Committee chaired by NEDA as per Letter of Instruction 1350 in
1984.
NEDA: what it is and what it
does?
 What NEDA is?
• The central planning agency of the country

• The independent planning agency (according to the 1987

Constitution)

• Socio-economic development planning agency

• Sectoral development and physical framework planning

agency

• Development agency (more than just mere planning)

 Functions of NEDA: Broad strokes
• Development planning and policy formulation

• Investment programming and budgeting

• ODA management

• Project monitoring and evaluation

• Public Private Partnership (PPP) project coordination

and evaluation
Structure of NEDA: Broad strokes

NEDA Board

Interagency
Attached Agencies
Committees

NEDA Secretariat

NEDA Central Office NEDA Regional

Offices
 NEDA Interagency Committees
• Investment Coordinating Committee
• Development Budget Coordinating Committee
• Infrastructure Development Committee
• Social Development Committee
• Regional Development Committee (RDCom)
• Legislative-Executive Development Advisory Council (LEDAC)

Other Committees (examples)

• National Project Monitoring Committee
• National Land Use Committee
 Attached Agencies
• Philippine Statistics Authority ( merger of NSO, NSCB and BAS)

• Statistical Research and Training Institute

• Philippine Institute for Development Studies

• Public Private Partnership Center

Functions vis-à-vis Major Outputs
Physical/ Develop- Investment Annual
Land Use ment Plan Program Budget
Plan
Annual
NFPP MTPDP MTPIP
Budget

Budget
RPFP RDP RDIP proposal of
RLAs
 Regional Development Council
• The counterpart of the NEDA Board at the regional level

• Its functions mirror the functions of the NEDA Board

• Chair and Co-chair are from the government (local) and

private; appointed by the President

• Has regular sectoral and special committees

 Sectoral, regular and special
committees of the RDC
• Macro-intersectoral and Development Administration
Committee
• Infrastructure Development Committee
• Social Development Committee
• Economic Development Committee

Other committees (examples)

• Regional Statistical Coordinating Committee
• Regional Project Monitoring Committee
• Regional Land Use Committee
• Regional Committee on Sustainable Development
• Regional Gender and Development Coordinating Committee
 BACKGROUND OF
REGIONAL DELINEATION
 Historical context of regional delineation
I. Initial Reorganization and Regionalization Efforts
II. The Integrated Reorganization Plan of 1972
III. Creation of the Central Mindanao Region
IV. The Primate City Dimension
V. The Northern Luzon mountainous area
VI. The Mindanao Dimension
VII. The Southern Tagalog Region Dimension
 I. INITIAL REORGANIZATION AND
REGIONALIZATION EFFORTS

• The Reorganization Plan 53-A of the Government

Survey and Reorganization Commission of 1954:
– Divided the country into 8 regions
– Bases: provincial contiguity, geographical features,
transportation and communication facilities, and cultural
and language groupings
 I. INITIAL REORGANIZATION AND
REGIONALIZATION EFFORTS
• The Council of Administrative Management Plan of
1965
– Issued by Pres. Macapagal but was overtaken by the
request to Congress of his successor for authority to
reorganize the government machinery
– About the same period, a number of special laws were
enacted which focused on the development of certain
preferred areas, e.g., MDA, BDC, CLCVA, LLDA
– The proliferation of specialized agencies led to the
proposal for evenly balanced regional development for all
regions.
 II. THE INTEGRATED REGORGANIZATION PLAN
OF 1972
• RA 5435 created the Commission on Reorganization
in 1968, followed by PD 1
– Establishing the Integrated Reorganization Plan on
September 24, 1972
– Dividing the country into 11 regions
– The concept of regionalization included both
decentralized administrative management and regional
planning
– Creation of the regional development councils (RDCs)
II. THE INTEGRATED REGORGANIZATION PLAN
OF 1972
• The 11 regions and their regional centers:
– Region I (Ilocos Region) – San Fernando
– Region 2 (Cagayan Valley) – Tuguegarao
– Region 3 (Central Luzon) – San Fernando
– Region 4 (Southern Tagalog) – Greater Manila
– Region 5 (Bicol Region) – Legaspi City
– Region 6 (Western Visayas) – Iloilo
– Region 7 (Central Visayas) – Cebu City
– Region 8 (Eastern Visayas) – Tacloban
– Region 9 (Western Mindanao) – Zamboanga City
– Region 10 (Northern Mindanao) – Cagayan de Oro
– Region 11 (Southern Mindanao) – Davao City
 III. CREATION OF THE CENTRAL MINDANAO
REGION

• PD 742 created Region XII (Central Mindanao) on

July 1975
– Increased the number of regions to 12
– The design of Mindanao regions was dependent on
national integrative policy: if the purpose is to integrate,
then the regions should be vertically delineated on a
north-south pattern; if the intention is to maintain and
preserve minority enclaves, then horizontal divisions
would be preferred
 IV. THE PRIMATE CITY DIMENSION
• The split of Region IV into IV and IV-A
– PD 879 (January 23, 1976) subdivided Region IV into IV and
IV-A
– Region IV – provinces on the mainland southern Luzon
– Region IV-A – island provinces of southern Luzon
– Increased the number of regions to 13
• Creation of the National Capital Region
– PD 1396 (June 2, 1978) reorganized Region IV into the NCR
and Region IV.
– Region IV-A was re-designated as part of Region IV
– Total number of regions remained the same (13)
 V. THE NORTHERN LUZON MOUNTAINOUS
AREA
• Creation of the Cordillera Autonomous Region
– EO 220 (July 15, 1987) created the Cordillera Autonomous
Region with Baguio City as the regional center
– The CAR was to have a Cordillera Regional Assembly and
a Cordillera Executive Board
– Total number of regions increased to 14
 VI. THE MINDANAO DIMENSION
• The Autonomous Region of Muslim Mindanao
– RA 6734 (August 1, 1989) established the ARMM
– EO 429 (October 12, 1989) as amended by EO 439
(implementing orders of the RA), brought major changes in
the regional configurations in Mindanao
– Region 9 – 5 provinces; Pagadian City as the regional center
– Region 10 – 6 provinces; CDO remained as the center
– Region 11 – 4 provinces; Davao City as the center
– Region 12 – 3 provinces; Marbel as the new regional center
– ARMM – 4 provinces; Cotabato City “as the temporary site
of the provisional capital”.
 VI. THE MINDANAO DIMENSION
• The Autonomous Region of Muslim Mindanao
– The resulting configuration had the odd effect of two
mainland provinces which had hardly contiguous
boundaries
– While politically expedient, the resulting geographical
configuration vis-à-vis Region XII made it difficult to
undertake rational physical planning for either ARMM of
Region XII
– The transfer of centers was supposedly be made effective
within eight months after the issuance of the EOs, they
were questioned at the Supreme Court on January 26, 1991,
with the subsequent issuance of a Temporary Restraining
Order a few days afterward.
 VI. THE MINDANAO DIMENSION
• Region XIII or Caraga Region
– RA 7901 (February 25, 1995)
• created the Caraga Region with 4 provinces and 2 cities.
• Transferred Sultan Kudarat from Region XII to Region XI.
– Number of regions increased to 16
• Creation of the Zone of Peace and Development
– Creation of the Zone of Peace and Development (ZOPAD)
and the Southern Philippines Council for Peace and
Development covering 14 provinces and ten cities
 VI. THE MINDANAO DIMENSION
• Creation of the Zone of Peace and Development
– Placed a regional super-layer which could create problems
of authority
– At that time, it was difficult and premature to determine
the configuration of the final autonomous region that is to
result from these initial steps, but very likely those
provinces with a high degree of Muslim inhabitants would
be more likely to be included
 VI. THE MINDANAO DIMENSION
• Reorganization of the Administrative Regions is
Mindanao
– EO 36 (Sept. 19, 2001)
– Regions is Mindanao:
• Region IX (Zamboanga Peninsula); 3 provinces and 5
cities
• Region X (Northern Mindanao); 5 provinces and 6 cities
• Region XI (Davao Region); 4 provinces and 5 cities
• Region XII (SOCCSKSARGEN); 4 provinces and 5 cities
• Region XIII (Caraga Region); 4 provinces and 2 cities
• ARMM; 5 provinces and the city of Marawi
 VII. SOUTHERN TAGALOG REGION
REDELINEATION
• Dividing Region IV into Region IV-A and Region IV-B
– EO 103 (May 17, 2002)
– Region IV-A (CALABARZON); 5 provinces and 9 cities
– Region IV-B (MIMAROPA); 5 provinces and 2 cities
 Regionalization: Summary

• 17 regions:
– 15 administrative regions
– 1 metropolitan region or capital region
– 1 autonomous region
• Regional delineation (likewise, regional centers) still
being reviewed; thus, evolving
– Political considerations
– Economic considerations
– Social and cultural considerations
– Physical considerations
FINANCING OPTIONS FOR
DEVELOPMENT PROJECTS
 Financing development in perspective
• Framework for Investment

• Official Development Assistance

• Investment Coordinating Committee

• Build-Operate-Transfer Scheme and the Public-

Private Partnership
 Improving the low savings rate of the
country through:
 Stable macroeconomic environment

 Safe and sound financial system

 Higher tax effort

 Good governance
 Foreign direct investments (FDIs) and other
private financial flows to complement domestic
resources for financing development

 Challenge is not to have more foreign capital, but

to have these foreign capital best suited to our
development needs

 An important ingredient of foreign capital is the

transfer of skills and technology to recipient
countries
 Protection for local industries

 Pushes for fair trade in the WTO

 Opening of market for products of export interest

to developing countries

 Meaningful participation of stakeholders

(including civil society, business, labor) in trade
policy formulation
 Need to develop a good strategy for mobilizing
resources to achieve development goals

 Need for the country to improve the efficient use

of ODA resources
 Goals and National Strategies
Reject Project
(MTPDP)

No
Department Objectives, Roles Is the project consistent with No Is the project relevant or offer
Programs and Projects national priorities/mandates? positive opportunities?
Yes Yes
Economically/Socially viable? No
Study Further
Regionally Equitable?
Yes
No
Is the project cost efficient?
Yes
Yes No
Is External Funding required Implement project

Other Sources BOT/PPP ODA

No Need Outside Yes

Expertise?

Hire local Hire foreign

expertise consultants

No Terms and Conditions of Loans/Contracts fair and Yes

consistent w/ government policies?
Yes
Renegotiate or Redesign Is the new design okay No Look for Other
Financial Package with funder? Fund Sources
 Sources
National domestic revenues (e.g.
taxes)
ODA loans and grants
borrowing/bond flotation
private sector grants/donations
private sector investment (e.g. PPP
and its variant schemes)
 Sources
internal revenue allotment
local taxes and income
national government grants
ODA loans and grants
borrowing/bond flotation
private sector grants/donations
private sector investment
 Loans and grants to the Philippines provided by
bilateral and multilateral institutions:
(1) promotion of economic development

(2) concessional in character, i.e. lower interest rates and

longer maturity/grace periods
 Bilateral
Japan, Germany, US, Australia, NZ, France, Austria, Spain,
etc.

Multilateral
WB, ADB, UNDP
soft loans
- interest rates range from 0% to 7%
- maturity periods range from 10-50 yrs.
- grace periods range from 5-10 yrs.

grants
- no repayment obligation
- provided in the form of experts,
equipment, and training
capital formation
commodity aid/supply of goods
balance of payments support
budget support
 Assistance
Framework Project NEDA
Formulation Identification Evaluation
and Review

Negotiations Implementation ICC

and Signing and Monitoring Evaluation

Donor NEDA NEDA Board

Appraisal Endorsement to Endorsement
Donor
 transfer of technology
 pre-investment activities
 research and development
 institution building
 human resources development
 Assistance
Framework Project NEDA
Formulation Identification Evaluation
and Review

Negotiations Implementation
and Signing and Monitoring

Donor NEDA
Appraisal Endorsement to
Donor
provide unconditional/untied grants
constitute least debt-servicing
requirements
have no unnecessary policy conditionalities
allow domestic procurement and local
employment
 M
GOP Aspects A
Donor Aspects
T
•Priority of the project C •Comparative advantage
•Project nature and requirements H (technology, management and
I systems)
•Timing of implementation
N •Thrusts or areas of assistance
•Project preparedness G
•Terms/conditions and types of
•GOP policies and strategies assistance
•Availability of counterpart funding P
•Donor’s project and budget
R
cycles
O
C
E
S
S
 INVESTMENT
COORDINATING
COMMITTEE
 An inter-agency committee established under
Executive Order No. 230, entitled “Reorganizing the
National Economic and Development Authority”
engaged in rationalizing national public investments
and expenditures.
Review the fiscal, monetary and BOP implications of MCPs
and recommend to the President the timetable of the
implementation of these projects;

Submit to the President a status of the fiscal (budgetary), monetary

(credit), and BOP implications of MCPs

Review/evaluate specific MCPs with respect to technical,

financial, economic,social, and institutional development,
feasibility/viability as well as from the context of sectoral plans
and geographical strategies, and submit to the NEDA Board (NB)
for confirmation of ICC action
 NEDA BOARD

ICC CABINET
COMMITTEE

ICC TECHNICAL BOARD

ICC SECRETARIAT
Confirms ICC decisions

NEDA Board approval as pre-conditions for:

Loans and guarantees of national government;

Private sector access to ODA financing;
Obtaining BSP authority to negotiate for foreign
loans and Monetary Board approval for foreign
borrowings; and
Budgetary appropriations.
 ICC Technical Board
Establishes desirability of the proposed projects vis-à-vis national
government priorities and other considerations

Membership:
NEDA - Chair
DOF – Co-Chair
OP
DBM
DTI
DA
BSP
DENR
PPP Center
DOE
 ICC Cabinet Committee
• Affirms ICC-TB recommendation of project approval
• Measures implications of proposed investments with existing
policies

Secretary of Finance - Chair

Secretary of Socio-Economic Planning – Co-Chair
Executive Secretary of the President
Secretary of Budget & Management
Secretary of Trade and Industry
Secretary of Agriculture
BSP Governor
Secretary of Energy
Executive Director of PPP Center
Programs and projects of national line agencies costing
PhP300 million and above or will entail a foreign borrowing of
at least US$5 million;
New activities of GOCCs and GFIs requiring investments that
has to be financed by NG-guaranteed loan;
PPP projects of NGAs and GOCCs costing up to PhP300 million
and local BOT/PPP projects to be implemented by LGUs costing
above PhP200 million;
Projects involving private sector access to concessional ODA
loan financing through on-lending arrangements and/or NG
financing guarantees;
D/E studies; and
Ongoing projects involving changes in scope; change in cost
above established sensitivity parameters and budgetary
allocation relative to original/prior ICC approval; or, extension
in implementation period or loan validity of more than 12
months
 Financial E
V
 Economic A
 Technical L
U
 Environmental A
 Institutional T
I
 Social O
N
 Sensitivity analysis
PUBLIC-PRIVATE PARTNERSHIP
 PPP: defined

PPP can be broadly defined as a contractual agreement between

government and a private firm targeted towards end-to-end
services that were traditionally provided by the public sector. It
embodies optimal risk allocation between the parties –
minimizing cost while realizing project developmental objectives.
Thus, the project is to be structured in such a way that the
private sector gets a reasonable rate of return on its investment.
 Elements of PPP

• A contractual agreement between the public sector

and the private sector

• Shared risks and resources

• Value for Money

• Outcome orientation
 Policy and Legal Framework
1987 Constitution Section 20, Article II (“The State recognizes the
indispensable role of the private sector, encourages private enterprise, and
provides incentives to needed investments.”)

Build-Operate-Transfer Law
• RA 6957 (allowed LGUs to enter into contractual arrangements with the
private sector to implement infrastructure projects through two variants –
Build-Operate-Transfer (BOT) and Build-Transfer-Operate (BTO))

• RA 7718 (acknowledged the authority of State Universities and Colleges

(SUCs), Government-Owned and Controlled Corporations (GOCCs) and
Government Financial Institutions (GFIs) to enter into contracts, as allowed
by their respective charters.)
 Policy and Legal Framework
Other Related Laws

• Public Service Act (Commonwealth Act No. 146, as amended)

• Foreign Investments Act of 1991 (RA 7042, as amended by RA 8179)

• Foreign Borrowings Act of 1966 (RA 4860)

• Omnibus Investments Code of 1987 (EO 226, as amended)

• Government Procurement Reform Act of 2003 (RA 9184)

 Comparison: BOT and PPP
RA 6957
Declaration of  Recognizes the indispensable role of
Policy the private sector for national growth
and development
 Provides incentives to mobilize
private resources for the purpose of
financing the construction, operation
and maintenance of infrastructure
and development projects normally
financed and undertaken by the
Government
Private Initiative  Emphasizes the solicitation of
in Infrastructure expertise from a duly prequalified
private contractor through build-
operate-and-transfer or build-and-
transfer scheme
RA 7718
 Recognizes the indispensable role of
the private sector for national
growth and development
 Clarifies the provision of incentives
in mobilizing private resources with
the inclusion of minimum
government regulations, procedures
and specific government
undertakings for the private sector
as the need arises
 Emphasizes the solicitation of
expertise of individuals, groups or
corporations in the private sector
who have extensive experience in
undertaking infrastructure or
development project
 Comparison: BOT and PPP
RA 6957
Priority Projects  Provides that local projects 
funded and implemented by
the local government units
concerned shall be submitted
to the local development
councils for confirmation or
approval  Provides that local projects shall follow the
 Clarifies the acceptance of ‘unsolicited’
RA 7718
Enhances the provision of RA 6957 by citing
all concerned government agencies,
Government-Owned Controlled
Corporations (GOCCs) and LGUs shall
identify priority development programs for
PPP
approval process for different cost ceilings,
to wit: (a) Three Hundred Million Pesos
(PhP300,000,000) for approval of the
Investment Coordination Committee (ICC)
of National Economic and Development
Authority (NEDA); and (b) more than
PhP300,000,000 for the approval of the
NEDA Board
proposals provided that such comply with
the provision of the Implementing Rules
and Regulations (IRR)
 Comparison: BOT and PPP
RA 6957 RA 7718
Eligible Projects  Infrastructure  Cites infrastructure or
development projects, and
emphasizes the inclusion of non-
traditional infrastructure sectors
such education, health, and
agriculture
Variants  BOT and BTO  Includes other variants - BOT, BT,
BOO, BLT, BTO, CAO, DOT, ROT,
ROO, and other variants as may
be approved by the President
 PPP Modalities and Role Delineation
PPP Modality Role of the Private Role of the Notes/Remarks
Proponent Government
Build-Operate- Finances and Provides franchise Includes a
Transfer (BOT) constructs; operates (if required) and supply-and-operate
and maintains regulates activities scheme, a
facility for a fixed of BOT contractor; contractual
term; collects fees acquires ownership arrangement
and charges to of facilities at the whereby the
recover investments end of cooperation supplier of
plus profit; transfers period equipment and
facility at the end of machinery for a
cooperation period given infrastructure
(maximum of 50 facility, if the
years) interest of the
Government so
requires, operates
the facility.
 PPP Modalities and Role Delineation
PPP Modality Role of the Private Role of the Notes/Remarks
Proponent Government

Build-and-Transfer Finances and Acquires ownership May be employed in

(BT) constructs; turns of facility after any project,
over ownership of construction; including critical
the facility to compensates facilities which, for
government after proponent at agreed security or strategic
project completion amortization reasons, must be
schedule operated by the
Government.
 PPP Modalities and Role Delineation
PPP Modality Role of the Private Role of the Notes/Remarks
Proponent Government
Build-Own-Operate Finances, constructs Provides All BOO projects
(BOO) and owns facility; authorization and upon
operates and assistance in securing recommendation of
maintains facility in approval of BOO the NEDA-ICC shall
perpetuity (facility contract; possesses be approved by the
operator may be the option to buy the President of the
assigned); collects output/service Philippines.
fees and charges to provided by the BOO
recover investments operator
and profits
 PPP Modalities and Role Delineation
PPP Modality Role of the Private Role of the Notes/Remarks
Proponent Government

Build-Lease-Transfer Finances and Compensates Akin to Lease-to-

(BLT) constructs; turns proponent by way of Own
over project after lease of facility at
completion; transfers agreed term and
ownership of facility schedule; owns
after facility after
cooperation/lease cooperation/lease
period period
Build-Transfer- Finances and Owns facility after Minimizes
Operate (BTO) constructs on a turn- commissioning construction risk
key basis; transfers delays
title of facility after
commissioning;
operates the facility
under an agreement
 PPP Modalities and Role Delineation
PPP Modality Role of the Private Role of the Notes/Remarks
Proponent Government
Contract-Add- Adds to an existing Collects rental There may or may
Operate (CAO) facility; operates payment under not be a transfer
expanded project for agreed terms and arrangement with
an agreed franchise schedule; regains regard to the added
period control at the end of facility provided by
lease term the Project
Proponent.
Develop-Operate- Builds and operates a Regains possession Project proponent
and-Transfer (DOT) new infrastructure; of property turned enjoys some benefits
transfers over to investor after the initial investment
property/facility at cooperation period creates such as
the end of the higher property or
cooperation period rent values; akin to
BOT with the option
to develop adjoining
property
 PPP Modalities and Role Delineation
PPP Modality Role of the Private Role of the Notes/Remarks
Proponent Government

Rehabilitate- Refurbishes, Provides franchise to

Also used to
Operate-and-Transfer operates, and ROT company; describe the
(ROT) maintains facility; regains legal title of
purchase of facility
facility is turned over property/ facility from abroad,
after the franchise after franchise importing,
period period refurbishing,
erecting and
consuming it within
the host country.
Rehabilitate-Own- Refurbishes and Turns over facility Period to operate is
Operate (ROO) owns facility; and provides dependent on
operates facility in franchise to operate; franchise agreement.
perpetuity as long as may opt to share in
there is no franchise the income of ROO
violation company
 Agencies and Committees for PPP
Bodies/Agencies General Functions
ICC Recommends to the President the approval of proposed
major capital projects based on evaluation procedures
covering fiscal and monetary considerations and outcomes
INFRACOM Advises and recommends to the President government
policies, programs and projects concerning infrastructure
development consistent with national development
objectives and priorities
RDC Serves as clearing house for key regional development
policy or program proposals which impact on two or more
regions
 Agencies and Committees for PPP
Bodies/Agencies General Functions
NEDA Secretariat Provides technical staff support and assistance on the
various aspects of development planning and policy
formulation, and coordination, evaluation and monitoring
of plan implementation
PPP Center Provides advisory services and technical assistance in PPP
project preparation and development, conducts project
facilitation and assistance, and monitors and facilitates the
implementation of the priority PPP Programs and Projects
 Comparison: Traditional and PPP Modalities
Traditional Funding Modalities Public-Private Partnership
Provides limited role of the private  Recognizes the essential role of the
sector in local infrastructure and private sector as the main engine
development projects for national growth and
development

Provides important services as  Enhances provision of services by

designed by the public sector without utilizing the most appropriate
considering the revenue stream technology and expertise which can
be transferred to the public sector
 Comparison: Traditional and PPP Modalities
Traditional Funding Modalities Public-Private Partnership
Limited coverage to implement local  Can implement priority
infrastructure and development infrastructure projects without the
projects due to availability of funds burden of raising funds
 Allows the public sector to utilize its
funds for other purposes
 Faster project implementation and
ensured operating efficiency

High probability of absorbing risk by  Delegation of responsibility and risk

the government between the public and private
sector - lessened risk on the part of
the government due to risk-shared
allocation
 Comparison: Traditional and PPP Modalities
Traditional Funding Modalities Public-Private Partnership
Defined cost ceiling for projects  Cost ceiling is more reliant on the
depending on the traditional funding project’s viable revenue stream
modality

Financing option is defined and  Flexible financing, including use of

structured private capital; Ready source of
funds during lean periods
 Potential Benefits
1. Access to private sector financial resources, technology, technical
expertise and operating competence
2. Mitigation of fiscal and resource limitations
3. Prospective operational cost savings for local governments
4. Reallocation of national and LGU resources for other priority needs
5. Flexibility in management of national and LGU assets
6. Cost-based/market-based fares, fees and charges for greater service
sustainability
7. Professionalization of personnel and organizational structures
8. Profit motivation impetus to ensure efficiency and effectiveness in
service delivery
9. Protection of projects from possible adverse political interferences in
service delivery
10. Investment incentives
 Possible PPP Projects
Infrastructure
Eligible Projects
Sectors
Agriculture and  Agricultural development facilities such as: irrigation facilities;
Fisheries agricultural produce storage and warehousing facilities;
agricultural produce processing and post-harvest facilities;
livestock facilities
 Fisheries and aquatic resources facilities such as: public fish ports;
fish ponds; fisheries storage facilities; fisheries processing facilities
Commercial and  Local trading support infrastructure such as: markets;
Industrial slaughterhouses
Development  Business district development facilities such as: business district
establishment; business district expansion; business district
revitalization/ rehabilitation
 Industrial area development, including related infrastructures and
utilities for: industrial estates; township establishment
 Possible PPP Projects
Infrastructure Sectors Eligible Projects
Education  Education and education support facilities such as:
school buildings; education-related facilities such
as dormitories, hostels, hometels and student
centers

Environmental and Solid  Environment and solid waste management

Waste Management facilities such as: solid waste collection equipment;
composting plans and facilities; sanitary landfills;
tidal barriers

Government  Government buildings and operations centers

 Possible PPP Projects
Infrastructure Sectors Eligible Projects
Forestry  Community-based forestry projects

Health  Healthcare and health-related infrastructure such

as: hospitals; health centers; clinics; lying-in
centers; pharmacies and drug stores; emergency
medical stations; animal bite centers

Housing  Housing projects

 Possible PPP Projects
Infrastructure Sectors Eligible Projects
Information and  Information technology (IT) and database
Communication infrastructure that includes: IT modernization;
Technology (ICT) Systems geospatial resource mapping; cadastral survey for
and Facilities resource accounting and planning

Land Use  Land reclamation and dredging

Roads and Bridges  Provincial, city and municipal roads; bridges

 Possible PPP Projects
Infrastructure Sectors Eligible Projects
Social Welfare  Social welfare services and facilities such as: day
care centers; emergency response units; social
welfare distribution centers

Transportation  Transportation facilities and infrastructure such as:

transport management system; transport
terminals; airports; ports

Water and Sanitation  Local water supply systems such as: sewerage
systems; drainage facilities
PPP Process
 Levels Description
National Economic and · National projects costing more than
Development Authority (NEDA) PhP300 Million upon Investment
Board Coordination Committee (ICC)
recommendation
· National negotiated projects regardless
of amount upon ICC recommendation
Investment Coordination · National projects costing below PhP300
Committee (ICC) Million
· National projects costing above PhP300
Million for NEDA Board approval
· National negotiated projects regardless
of amount for NEDA Board approval
· Local projects costing above PhP200
Million
Regional Development Council · Local projects costing above Php50-200
(RDC) Million
City Development Councils · Local projects costing PhP50 Million and
(CDC) below
Provincial Development Councils · Local projects costing PhP20-50 Million
(PDC)
Municipal Development Councils · Local projects costing PhP20 Million and
(MDC) below
The final approval of projects, duly confirmed by the respective development
councils (e.g., RDC, CDC, PDC and MDC), is vested on the Local Sanggunians as
provided for the in the Local Government Code and the BOT Law.i

i
Section 2.7 of the IRR of the Amended BOT Law (RA 7718) – for revision based on the newly approved
IRR
Scope of Feasibility of PPP Projects

Viability Scope
Technical and · Technical engineering options and constraints associated
Preliminary Design with the technical design and construction of the project
· Preliminary design, construction drawings, and schedules,
and PPP specifications for the facility
Operational/ · Revenue and cost factors associated with project
Institutional construction, operation and maintenance, and market
forces affecting the revenue stream
Environmental and · Potential environmental or social impacts associated with
Social Impact project construction and measures to mitigate adverse
impacts
Financial and · Economic and financial feasibility of the project in terms of
Economic both technical and environmental considerations
PPP Procurement Process: Solicited

Option 1 Option 2
PPP Procurement Process: Unsolicited
 What we have discussed:
• NEDA and its functions of planning, policy formulation,
investment programming, project evaluation and monitoring,
and PPP coordination and management

• Regionalization and the regional development council

• The ICC as coordinator of investments and official

development assistance

• Nature and types of ODA

• The PPP and its variants