LOCAL government units that intend to run a feasibility study for a public-private partnership (PPP) project may avail of a P2.58-billion revolving fund from the Project Development Monitoring Office (PDMF).
The funds, which may also be utilized by national agencies, can specifically support the conduct of pre-feasibility and feasibility studies, project structuring, preparation of bid documents, and project monitoring for the proposed PPP initiative.
“The PDMF has helped provide support to 35 projects, of which 10 were awarded as of July 31, 2017,” said the Department of Finance, in a statement.
The PDMF, which is managed by the PPP Center, started with a P300-million revolving fund and a $6-million initial contribution from the Australian Government. To date, DOF said this revolving fund has grown to about P2.58 billion as of July.
In addition, the PDMF also provides probity advisory services to ensure fairness, accountability, and transparency in the procurement process for PPP projects.
The PPP Center 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 Philippine-based law offices and accountancy firms.
On Sept. 18, the PPP Center will hold the “investPH” forum that will tackle PPP at the LGU level in Mandaluyong City. Generally, PPP is a funding model for a public infrastructure project where the public partner is represented by the government at a local, state and/or national level while the private is represented by privately-owned businesses or corporations involved in a specific area of expertise.
Besides the PDMF, the finance department also advised LGUs that they can also tap local funds, grants or request for allocations under the General Appropriations Act to help fund the pre-investment aspect of proposed PPP projects.