A RECENT World Bank study has earned for the Philippines a high score in public-private partnerships (PPP), particularly in the areas of preparation and procurement of projects.
The 2017 Benchmarking PPP Procurement Report published last week that studied 82 economies gave the Philippines a score of 96 in the preparation of PPPs and 85 in the procurement, two of the four key areas of the PPP project cycle.
It scored 67 in unsolicited proposals and 84 in contract management.
“The economies at the top of the range (score approaching 100) are considered to have a regulatory framework and practices that closely aligns with internationally recognized good practices,” the study said.
The Philippines is also part of the 23 percent out of the 82 economies covered by the report whose PPP regulations ensure that priority projects were consistent with the country’s public investment priorities.
In addition, the World Bank report states that PPP projects in the coutry have to secure the central budgetary authority’s approval, undergo economic analysis, financial viability as well as fiscal affordability and assessments. PPP projects in the country also undergo comparative assessment against public procurement, alongside standardized PPP model contract and transaction documents.
The Philippines has also been cited as having a more comprehensive risk identification methodology.
The World Bank, however, noted that the Philippine PPPs require market assessment. “The PPP Center and the procuring authority must perform a market-sounding process to determine the interest of private sector operators, taking into account different scenarios for revenue and economic growth in the short, medium, and long term,” the report reads.