Академический Документы
Профессиональный Документы
Культура Документы
National/ Local
Government
Funds
2 or all of
the above
City
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Restrictive or Broad
DEFINITION(S) OF PPP
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Definitional Realities
1. No universal definition of PPP
a) each country will have its own definition
b) No one-size-fits-all definition
2. In the Philippines, there is no single law on
PPPs.
a) National Government
I. Only administrative definition
II. Various modalities anchored on different laws, rules,
guidelines, and resolutions
b) Local Government
I. Anchored on local autonomy and fiscal autonomy
II. LGUs enacted PPP Code or JV Ordinances
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NEDA’s Definition
A contractual arrangement
between the government and the
private sector to deliver public
infrastructure and/or public
services.
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PPP Center’s Definition
A contractual agreement between government and
a private firm targeted towards financing,
designing, implementing and operating
infrastructure facilities and 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.
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Broad or Restrictive?
1. PPP = BOT 3. Excludes pure Public
2. Excludes other PPP Financing
Modalities 4. Only provides for one
a) Service Contracts tariff mechanism (rate
b) Management of return), excludes:
Contracts a) Cash Needs
c) Joint Ventures b) Price Cap
d) Disposition c) Revenue Cap
e) Lease and Affermage 5. Only traditionally
f) Corporatization provided by public
g) Donation sector
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Proposed Definition under
Draft DILG MC
At the policy level:
PPP is a developmental, innovative, change and
partnership strategy aimed at promoting the general
welfare, inclusive growth and better quality of life of
Filipinos.
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Why Enter into PPPs
RATIONALE/ VALUE DRIVERS
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Vision
More and
Better
Services
General
Welfare/
Public
Good
Better
Affordable
Value for
and Timely
Money
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Additionality/ Acceleration
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Value for Money
VFM Analysis of a Govt. Buildings PPP Project
$200,000,000
Public Risk-
Affordability Adjusted
$180,000,000
Limit PSC
$160,000,000
$140,000,000
Value
Winning for
PPP
$120,000,000
Base Case
PSC
Bid Money
Benefits
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0
1 2 3 4
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Public Cost Avoidance/
Fiscal Space
Gov’t Priorities
Gov’t Funds
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Risk Allocation
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Innovation
Outputs: What/ Purpose Inputs: How/ Manner
Innovation – Efficiency –
Whole-of-Life Costs –
Service Quality –
Technology Transfer
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Inclusive List
PPP PROJECTS
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Contents of Project Study
1. needs analysis 7. bankability assessment
2. affordability 8. legal viability
assessment assessment
3. value for money 9. market testing if
assessment relevant
4. preliminary risk 10. PPP Option
assessment recommendation
5. stakeholder 11. indicative transaction
assessment implementation plan
6. human resource 12. draft PPP contract
assessment
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THANK YOU
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