Local government units (LGUs) planning to undertake big-ticket projects via the Public-Private Partnership (PPP) mode can tap a revolving facility with P2.58 billion in funds available for them to check the viability, prepare bid documents, and monitor the progress, of their chosen ventures, according to the Department of Finance (DOF).
The Project Development and Monitoring Facility (PDMF) can be utilized not only by LGUs but other national government agencies as well for fund support in conducting pre-feasibility and feasibility studies, project structuring, preparation of bid documents, and project monitoring for their proposed PPP initiatives, the DOF said.
Managed by the PPP Center, the PDMF also provides probity advisory services to ensure fairness, accountability, and transparency in the procurement process for PPP projects.
The PDMF started with a P300 million revolving fund and a $6 million (approximately P300 million) initial contribution from the Australian government. The Australian grant is administered by the Asian Development Bank.
The fund has since grown to about P2.58 billion as of end-July, according to a report by the Privatization Office to Finance Secretary Carlos Dominguez III at a recent DOF executive committee meeting.
According to the PPP Center website, the PDMF has helped provide support to 35 projects, of which 10 were awarded as of July 31, 2017.
The PPP has formed the Project Preparation and Transaction Advisors Panel, a pool of experts that provides the services granted by the PDMF for potential PPP projects.
The Panel consists of 22 firms, which include Jones Day (USA), Castalia Ltd of New Zealand, KPMG Service Pte. Ltd (Singapore), McKinsey & Co (Philippines), CPCS Transcom (Canada), International Technical Assistance Consultants, SL (Spain), Deloitte Touche Tohmatsu India LLP (India), and BDO LLP (United Kingdom) in coordination with Philippines-based law offices and accountancy firms.
The PPP Governing Board, the overall policy-making body for all PPP-related matters, including the PDMF, is chaired by the head of the National Economic and Development Authority, with the secretary of the DOF as vice chairperson. Its members are the Executive Secretary, the secretaries of the Departments of Budget and Management (DBM), Justice (DOF) and Trade and Industry (DTI), and the private sector co-chairperson of the National Competitiveness Council.
Besides the PDMF, the DOF said LGUs can also tap local funds, grants, or request for allocations under the General Appropriations Act to help fund the pre-investment aspect of their proposed PPP projects, the DOF said. | DOF-PR