Philippines: Strengthening Public Private Partnerships in the Philippines

Transcription

1 Major Change in Technical Assistance Project Number: TA Number: 7796-PHI March 2012 Philippines: Strengthening Public Private Partnerships in the Philippines

2 CURRENCY EQUIVALENTS (as of 6 March 2012) Currency unit peso (P) P1.00 = $0.023 $1.00 = P ABBREVIATIONS ADB Asian Development Bank AusAID Australian Agency for International Development BOT build operate transfer CIDA Canadian International Development Agency DOF Department of Finance DRMO Debt Risk Management Office LGU local government unit NEDA National Economic and Development Authority NGA national government agency PDMF Project Development and Monitoring Facility PPP public private partnership TA technical assistance infrastructure public private partnership GLOSSARY Refers to power plants, highways, ports, airports, canals, dams, hydropower projects, water supply, irrigation, telecommunications, railroad and railways, transport systems, land reclamation projects, industrial estates or townships, housing, government buildings, tourism projects, solid-waste management, information technology networks and database infrastructure, education and health facilities, sewerage, drainage, and dredging. Describes a range of possible relationships among public and private entities in the context of infrastructure and other services. The public partners in a public private partnership are government entities, including ministries, departments, municipalities, or state-owned enterprises. The private partners can be local or international and may include businesses or investors with technical or financial expertise relevant to the project. The government s contribution to a public private partnership may take the form of capital for investment (available through tax revenue), a transfer of assets, or other commitments or in-kind contributions that support the partnership. The government also provides social responsibility, environmental awareness, local knowledge, and an ability to mobilize political support. The private sector s role in the partnership is to make use of its expertise in commerce, management, operations, and innovation to run the business efficiently. The private partner may also contribute investment capital depending on the form of contract. NOTE In this report, $ refers to US dollars.

3 Vice-President S. Groff, Operations 2 Director General K. Senga, Southeast Asia Department (SERD) Country Director N. Jain, Philippines Country Office, SERD Team leader Team member A. Haydarov, Country Economist, SERD O. Rillo, Project Analyst, SERD The views expressed herein are those of the consultant and do not necessarily represent those of ADB s members, Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

4 CONTENTS Page I. PROPOSED MAJOR CHANGES FOR CONSIDERATION 1 II. BACKGROUND 1 III. IMPLEMENTATION PROGRESS 2 IV. RATIONALE FOR THE PROPOSED CHANGES 3 V. DUE DILIGENCE 5 VI. THE PRESIDENT'S RECOMMENDATION 5 APPENDIXES 1. Revised Design and Monitoring Framework 6 2. List of Linked Documents 9

5 I. PROPOSED MAJOR CHANGES FOR CONSIDERATION 1. An increase in technical assistance (TA) amount by $15.5 million as described in para. 16, which will finance the major changes in scope as described in paras , is proposed for Board consideration. 1 The proposed increase is due to the progress in the government s PPP program resulting in faster-than-expected absorption of TA funding for the preparation of bankable PPP projects, and the need to provide more comprehensive TA support to sustain the positive momentum in PPP reforms. The revised design and monitoring framework is in Appendix 1. II. BACKGROUND 2. Impact, outcome, and outputs. The impact will be increased private sector investment in infrastructure. The outcome will be improved government capacity to promote, develop, and implement PPP projects. The TA (i) supports capacity building and institutional strengthening of the National Economic and Development Authority (NEDA), the PPP Center attached to NEDA, the Department of Finance (DOF), and selected government agencies (capacity building component); and (ii) provides cofinancing to the Project Development and Monitoring Facility (PDMF) to prepare bankable PPP projects for competitive bidding (PDMF component). The capacity building component s outputs are (i) strengthening PPP legal and regulatory frameworks, (ii) strengthening the capacity of the PPP Center, (iii) institutionalizing PPP best practices in selected line departments and local government units, and (iv) establishing longterm financing and risk management mechanisms. The PDMF component s output is the development of well-structured bankable PPP projects. 3. The TA is grant-financed by ADB ($1.5 million); the Government of Australia through AusAID ($7 million); the Government of Canada through CIDA (equivalent of $1.2 million); and the Government of the Philippines (equivalent of $7 million). 2 The total TA budget is $16.7 million. Cofinancing by the governments of Australia and Canada are administered by ADB. The TA was approved by the Board on 24 March The TA letter was signed on 1 April The expected TA completion date is 31 July NEDA is the executing agency for the TA. DOF and the PPP Center are implementing agencies. 4. Delivery of the outputs of the capacity building component is supported through the provision of national and international individual consultants to the PPP Center and DOF, and recruitment of two international firms one for PPP policy, institutional, legal, information management strengthening and capacity building of selected government agencies; and the other for operationalization of an infrastructure financing facility. Delivery of the PDMF component is supported through the establishment of a panel of firms retained, without commitment, under indefinite delivery contracts for a 3-year period, and subsequent selection of a firm from the panel for PPP project preparation assignments. 5. Implementation arrangements. Implementation of the capacity building component is administered by ADB. The consultants are engaged by ADB in accordance with ADB s Guidelines on the Use of Consultants (2010, as amended from time to time). All disbursements under this component are in accordance with ADB s Technical Assistance Disbursement 1 The Government of the Philippines counterpart funding for TA will increase by the equivalent of $11.5 million. 2 ADB and CIDA are financing the capacity building component. AusAID is financing both the capacity building component ($1 million) and the PDMF component ($6 million). The Government of the Philippines has provided the equivalent of $7 million as the initial funding of the PDMF. 3 ADB Technical Assistance to the Republic of the Philippines for Strengthening Public Private Partnerships in the Philippines. Manila (TA 7796-PHI).

6 2 Handbook (2010, as amended from time to time). Implementation of the PDMF component is delegated to the PPP Center. Recruitment of consulting firms under the PDMF component is conducted by the PPP Center in accordance with ADB s Guidelines on the Use of Consultants. Selection of the firms for the panel (including updating the panel) and selection of a firm from the panel for the first assignment is subject to prior review by ADB. Selection of firms from the panel for subsequent assignment is on a post-review basis. The TA proceeds for PDMF cofinancing are disbursed in accordance with ADB s Loan Disbursement Handbook (2007, as amended from time to time). 4 III. IMPLEMENTATION PROGRESS 6. The infrastructure committee of the NEDA board established the TA s oversight structure (project steering committee and the technical working group) and the PDMF board. In October 2011, the PDMF board approved PDMF guidelines to ensure recovery and sustainability of the PDMF consistent with principles of good governance. The progress of TA implementation is summarized below Capacity building component. The international firm on PPP policy, institutional, legal, information management strengthening and capacity building has (i) started development of a comprehensive manual on PPPs for national government agencies (NGAs), (ii) substantively updated the PPP manual for local government units (LGUs) developed with the support of the World Bank, (iii) completed the first phase of reviewing the government s institutional set-up for PPPs, and (iv) progressed in the development of policy papers on selected PPP topics to inform the process of amending the build operate transfer (BOT) Law. 6 Training of PPP Center staff, government oversight agencies, and selected line departments on priority PPP topics will be completed by June Four staff of the PPP Center attended PPP training abroad. Two workshops on risk management and contingent liabilities in PPPs have been conducted for the staff of the Debt Risk Management Office (DRMO) of DOF, NEDA, the PPP Center, and selected line departments. 8. Project Development and Monitoring Facility component. The PDMF governance framework has been established. The panel of firms retained on a noncommittal basis under indefinite delivery contracts for 3 years has been established. 7 The PDMF board has approved nine proposals for PPP project development tying up nearly 90% of the currently available PDMF funds. For the first two assignments, the consultants have already delivered feasibility studies. Contracts for three assignments have been concluded, while contracts for four assignments are expected to be concluded by the end of March Synergy with ADB operations and development partner coordination. The TA supports implementation of PPP-related policy actions of the proposed program cluster on increasing competitiveness for inclusive growth. TA implementation is also coordinated with ongoing ADB operations supporting PPPs. 9 Supervision of TA implementation is coordinated with the cofinancing partners, AusAID and CIDA, which joined the inception mission in July 4 Project preparation cost is shared on a gross basis: 44% from the TA s contribution to the PDMF and 56% from the government s contribution to the PDMF. Taxation issues are treated according to the TA framework agreement between the government and ADB dated 8 February Performance Overview (accessible from the list of linked documents in Appendix 2). 6 Republic Act No. 6957, dated 9 July 1990 (as amended by Republic Act No. 7718, dated 8 May 1994). 7 The updated panel is expected to be disclosed on the PPP Center s website by the end of March Updated Procurement Plan (accessible from the list of linked documents in Appendix 2). 9 ADB Report and Recommendation of the President to the Board of Directors: Proposed Loan and Administration of Grant for Credit for Better Health Care Project. Manila (Loan 2515-PHI).

7 and the review mission in December Regular development partner consultation meetings convened by the PPP Center facilitate broader coordination with development partners. IV. RATIONALE FOR THE PROPOSED CHANGES 10. Progress in the government s public private partnership program. The first solicited PPP project was successfully bid out in December Progress was also achieved in improving the governance framework for PPPs: (i) amendments to the implementing rules and regulations of the BOT Law have been finalized; (ii) significant funding (P35 billion) has been allocated to line departments in to cover the government s share in PPPs; (iii) the PDMF, as a sustainable mechanism for producing bankable solicited PPP projects, has become fully operational and with sufficient budget; 11 and (iv) the PPP Center has become the nodal office in the government for PPP policy and project quality enhancement. The proposed changes, presented in paragraphs below, will help maintain the PPP governance reform momentum and support the development of a more comprehensive pipeline of bankable PPP projects. 11. Matching Public Private Partnership Center s capacity with increased demand for its services. Operationalization of the PDMF and firming up of agencies PPP project pipelines resulted in a higher-than-expected demand for the PPP Center s expert advice. Though the number of PPP Center staff has increased and 12 consultants were provided by the TA, this pool of experts is still insufficient to match the increased demand for PPP Center services by NGAs and LGUs. 12. Strengthening Public Private Partnership Center s information technology infrastructure for better knowledge management. The TA supports development of a framework for a comprehensive knowledge portal of the PPP Center. The portal will be used both by the PPP Center for its internal purposes, and by the government agencies for enhancing the quality of managing PPPs throughout the PPP project cycle. However, to make the knowledge portal work, the PPP Center s IT infrastructure needs to be improved. 13. Regular public private partnership capacity building of government agencies. Under the TA, training materials, on the basis of the PPP manuals for NGAs and LGUs, will be developed and train-the-trainer training conducted for the PPP Center staff to deliver targeted PPP capacity building. To ensure sustainability and coherence of capacity building of government agencies at the national and local government levels in PPPs, it is important to help the PPP Center develop training materials for systematic delivery of PPP capacity building to NGAs and LGUs by accredited educational institutions. 14. Enhancing capacity of the Debt and Risk Management Office s staff. There is a need to build the capacity of DOF s DRMO staff to ensure effective management of fiscal liabilities arising from PPP projects, including risk allocation and management of contingent liabilities, as well as adequate coverage of viability gap funding. 15. Topping up of the Project Development and Monitoring Facility. The available PDMF resources are likely to be fully committed by the end of March Until reflow of funds 10 The project involves construction of a new 4-kilometer four-lane toll road connecting Daang Hari Road in Cavite with the South Luzon Expressway. 11 In 2012, the government s additional financing of the PDMF is (i) P160 million from the general budget, (ii) P150 million from the Department of Agriculture, and (iii) P500 million from the Department of Public Works and Highways.

8 4 into the PDMF begins (expected to start in the second half of 2013), replenishment of the PDMF is critical for a sustained rollout of properly prepared PPP projects Increasing total technical assistance budget by $27 million. 13 The financing through ADB will increase by $15.5 million: (i) $15 million will be financed on a grant basis by the Government of Australia and administered by ADB; 14 and (ii) $0.5 million will be financed on a grant basis by ADB s Technical Assistance Special Fund (TASF-other sources). 15 Counterpart funding by the Government of the Philippines will increase by the equivalent of $11.5 million for the PDMF component Changes in scope. The TA s impact and outcome will not change. The performance indicator of the outcome will increase from five to 12 PPP projects to be ready by the TA completion date. To ensure sustained support to the PPP agenda of the Philippine Development Plan, , an extension of the TA completion date by 3 years to 31 July 2016 is proposed. Output 1 of the TA remains unchanged. Changes in outputs 2 5 are presented below. Changes in output indicators are in the revised DMF (Appendix 1). 18. Output 2: Strengthened capacity of the Public Private Partnership Center. It is proposed to (i) expand support to the PPP Center to develop and test training materials for PPP capacity building; (ii) expand the PPP Center s consultant pool, including national consultants, to be gradually absorbed by the PPP Center as regular staff; (iii) increase inputs of the existing consultants to align with the proposed TA extension; and (iv) upgrade the PPP Center s IT infrastructure to implement the PPP Center s knowledge portal Output 3: Institutionalized Public Private Partnership best practices. At LGUs, it is proposed to support strengthening of PPP units, institutional processes and budgeting for PPPs, and development of a pipeline of bankable PPP projects Output 4: Established long-term financing and risk guarantee mechanisms. It is proposed to support DOF in (i) developing guidelines on risk allocation and contingent liabilities and policies and mechanisms on government financing of its share in PPPs, and (ii) sustainably 12 The PDMF is a revolving fund. Reflows are from the winning bidder if bidding is successful or from the government agency if the bidding is unsuccessful. 13 A TA review mission was conducted jointly by ADB, AusAID, and CIDA on 5 9 December The mission discussed the request of the government for expanding the TA and agreed with the government on the structure, implementation arrangements, and financing aspects of the increase in the TA budget. 14 This amount includes ADB's administration fee, audit cost, bank charges and provision for foreign exchange fluctuations (if any), to the extent that these items are not covered by the interest and investment income earned on this grant, or any additional grant contribution by the Government of Australia. Of the $15 million, $6 million will finance the capacity building component and $9 million will finance the PDMF component. 15 ADB s additional financing will be for the capacity building component. CIDA is considering an additional $3 million for the TA s capacity building component. Once this additional cofinancing is confirmed, another increase in TA budget will be processed in the third quarter of 2012, proposing suitable reallocation among the TA s capacity building and PDMF components. 16 Revised Financing Plan (accessible from the list of linked documents in Appendix 2). 17 Additional Consultants for the Public Private Partnership Center and Department of Finance; Indicative Information Technology Requirements for the Public Private Partnership Center s Knowledge Portal (accessible from the list of linked documents in Appendix 2). 18 Local Government Units Proposed for Inclusion in the TA (accessible from the list of linked documents in Appendix 2).

9 5 strengthening the staffing of DOF s DRMO through recruitment of national consultants to be gradually absorbed by DOF as regular staff Output 5: Well-structured bankable public private partnership projects developed. It is proposed to increase the TA s financing of the PDMF by $9 million. The cost-sharing ratio of 44:56 will remain unchanged (footnote 4). V. DUE DILIGENCE 22. The proposed increase in TA budget will help to further (i) mainstream PPPs in the government s policies and institutions and help the government expand the pipeline of properly prepared and transparently contracted PPP projects, (ii) anchor the PPP Center at the center of the government s PPP network, and (iii) sustain the PDMF as the government s major mechanism of financing PPP project preparation in a coordinated and high-quality manner. 23. Implementation arrangements. The TA oversight structures, as described in para. 17 of the TA report (footnote 3), remain the same. Under the capacity building component, (i) recruitment of consultants will be carried out by ADB in accordance with ADB s Guidelines on the Use of Consultants; (ii) all disbursements will be in accordance with ADB s Technical Assistance Disbursement Handbook; and (iii) procurement of IT hardware and software will be carried out by ADB in accordance with ADB s Procurement Guidelines (2010, as amended from time to time). 20 Under the PDMF component, (i) recruitment of consultants will be conducted by the PPP Center in accordance with ADB s Guidelines on the Use of Consultants, and (ii) TA proceeds for PDMF cofinancing will be disbursed in accordance with ADB s Loan Disbursement Handbook. Financial management and reporting of the project accounts will follow para. 20 of the TA report (footnote 3). 24. Midterm review an important safeguard. Resources will be committed in two phases: the first phase will be until 31 July 2013, and the second phase will be until 31 July The decision on whether to move to the second phase will depend on the joint ADB AusAID CIDA midterm review to take place between the fourth quarter of 2012 and the first quarter of The midterm review will assess the sustainability of the PPP Center and the PDMF mechanism, and progress in critical PPP reforms. Hence, consultants will be contracted only up to 31 July The proposed changes comply with the project administration instruction on administering grant-financed technical assistance. 21 Comments from the Central Operations Services Office, Office of the General Counsel, Controller s Department, and the Office of Cofinancing Operations have been addressed. VI. THE PRESIDENT'S RECOMMENDATION 26. The President recommends that the Board approve the increase in technical assistance (TA) amount by $15.5 million as described in para. 16, which will finance the major changes as described in paras If the Board approves the recommended increase in TA amount, the necessary agreements and TA records will be amended to reflect the changes where appropriate. 19 Additional Consultants for the Public Private Partnership Center and the Department of Finance (accessible from the list of linked documents in Appendix 2). 20 Costs under this component will be charged to the funding sources on a pro-rata basis (footnote 16). 21 ADB Administering Grant-Financed Technical Assistance. Project Administration Instructions. PAI Manila.

10 6 Appendix 1 REVISED DESIGN AND MONITORING FRAMEWORK Design Summary Impact Increased private sector investment in infrastructure Outcome Improved government capacity to promote, develop, and implement PPP projects Outputs 1. Strengthened PPP enabling framework 2. Strengthened capacity of the PPP Center Performance Targets and Indicators For the next 3 years after TA completion: Gross value of public sector construction as percentage of overall construction gross value increases on average by 2 percentage points annually (2009 baseline: 46.6%) a Private sector s investment commitment in infrastructure (except in energy) increases on average by 5 percentage points annually (2009 baseline: $947 million) At least 12 competitively tendered PPP projects (except in the energy sector) are ready for implementation by the end of July 2016 b By the end of June 2013: Amendments to PPP-related legal and regulatory framework developed, including on mainstreaming environmental and gender aspects Rules and regulations enforced on (i) fiscal impact of PPPs, (ii) viability gap financing, and (iii) risk-sharing mechanisms in PPP projects Streamlining of the government s PPP institutional set-up enforced By the end of June 2012: Comprehensive PPP manuals for NGAs and LGUs adopted, incorporating standardized PPP documents, tool kits, requirements and timelines for approval process, and sectorspecific guidelines (including environmental sustainability and gender-responsiveness checklists) enforced At least one twinning partnership established Data Sources and Reporting Mechanisms NSCB s Philippines statistical yearbooks Annual reports on infrastructure availability, including reports of DOF and NEDA World Bank Private Participation in Infrastructure Database Government reports including from DOF, NEDA, and other line departments and agencies Annual reports of project sponsors and financiers Draft bills and IRRs Relevant orders of the government or line departments Websites and reports of DOF, NEDA, and the PPP Center PPP Center reports and website Assumptions and Risks Assumption Stable macroeconomic environment, internal sociopolitical situation Long-term debt and equity financing for PPP projects available Risks Deterioration of the government s fiscal situation Weakening of government political support for PPP Business-unfriendly decisions of the government Assumptions Timely approvals from concerned government agencies and bodies Appropriate incentives for private sector participation provided (regulatory risk guarantees and rightof-way acquisition) Risk Delays in development of bankable PPP projects Assumption Timely and efficient review of amendments in the executive and the legislature Risk Delays in legal and regulatory policy reforms caused by vested interest or weak capacity Assumption Adequate funding (including for website and knowledge management) and staffing of the PPP Center Risk Staff turnover at the

11 Appendix 1 7 Design Summary 3. Institutionalized PPP best practices 4. Established long-term financing and risk guarantee mechanisms 5. Wellstructured bankable PPP projects developed Performance Targets and Indicators with other countries PPP centers PPP Center website updated and all relevant documents uploaded PPP management information system developed By the end of June 2012: Successes and failures in PPP analyzed and institutionalization suggestions developed By the end of June 2013: PPP units in 5 line departments strengthened and internal PPP processes institutionalized 100 staff members involved with PPP in DOF, NEDA, DBM, and other line departments are successfully trained in various aspects of PPP, including on environmental and social/gender assessment and analysis By the end of 2013: PPP management function in 10 LGUs institutionalized 100 staff of LGUs involved with PPPs are successfully trained in various aspects of PPP, including on environmental and social/gender assessment and analysis By the end of 2013: Two regulatory frameworks for infrastructure financing facilities and guarantees against selected PPP-related risks are adopted At least 10 staff of DOF are trained on risk identification, allocation, and contingent liabilities estimation in PPP projects Guidelines on risk identification, allocation, and assessment of contingent liabilities at project and budget level are adopted Frameworks on funding of contingent liabilities, and other government financing of its share in PPP projects adopted DOF s Debt and Risk Management Office adequately staffed and trained At least five well-structured PPP projects developed annually through the PDMF b At least three well-structured LGU PPP projects competitively bid out by the end of June 2015 PDMF governance structure and transaction advisors selection process adopted by June 2011 Data Sources and Reporting Mechanisms DOF, NEDA, and other department and line agency reports Reports of LGUs and PPP Center Government or its agencies orders or other legal acts NEDA and DOF reports and websites World Bank Private Participation in Infrastructure Database NEDA and PPP Center reports and websites Assumptions and Risks PPP Center Assumption Institutional and organizational arrangements in place in the national and local government agencies for PPP capacity building Risk Reorganization of national government agencies Change in LGU commitment caused by change in LGU leadership Government staff turnover Assumptions Continuity of institutional arrangements at DOF Timely review and adoption of the guidelines and frameworks Risk Staff turnover at DOF Assumptions Adequate budgetary allocations to PDMF for 2011 and subsequent years Risk Lack of acceptance of mandate and capacity to prepare, bid, and manage implementation of PPP projects

12 8 Appendix 1 Activities with Milestones Output 1: Strengthened PPP enabling framework 1.1 Develop comprehensive PPP manuals for NGAs and LGUs (by Q2 2012). 1.2 Revise PPP sector guidelines in selected line departments (by Q3 2012). 1.3 Review and draft legal acts for improving government s PPP institutional set-up (by Q2 2012). 1.4 Develop policy papers on selected topics related to BOT Law amendments (by Q3 2012). 1.5 Draft new IRRs to the amended BOT Law (by Q4 2013). 1.6 Review and draft amendments to PPP-related legislation to harmonize with BOT Law and IRRs (by Q4 2012). Output 2: Strengthened capacity of the PPP Center 2.1 Conduct workshops and on-the-job training for the PPP Center staff in priority aspects of PPPs (by Q2 2012). 2.2 Develop training materials on the basis of the PPP manuals for NGAs and LGUs (by Q3 2012). 2.3 Train staff of the PPP Center on the basis of the developed training materials (by Q4 2012). 2.4 Conduct train-the-trainer training for PPP Center staff to deliver PPP training to government staff on the basis of the developed training materials (by Q2 2013). 2.5 Facilitate PPP Center s establishing of twinning partnerships (by Q2 2012). 2.6 Prepare a manual on the selection of PPP project preparation consultants (by Q2 2012). 2.7 Update PPP Center website structure and design (by Q2 2012). 2.8 Develop concept of PPP Center's intranet, including improving its database to cover sexdisaggregated information (by Q2 2013). 2.9 Develop detailed proposal for the full implementation of information technology systems in the PPP Center (by Q3 2012) Deployment of knowledge portal of the PPP Center (by Q3 2012) Completed information technology training of PPP Center staff (by Q2 2012). Output 3: Institutionalized PPP best practices 3.1 Conduct on-the-job training for the staff of the government oversight agencies and selected line departments in selected priority aspects of PPP policies and projects (by Q2 2012). 3.2 Train staff of the government oversight agencies and selected line departments on the basis of the developed training materials (by Q2 2013). 3.3 Conduct analysis of successes and failures in PPPs at the national and local level and suggest optimal institutionalization of PPP best practices (by Q2 2012). 3.4 Conduct analysis of PPP institutional processes in selected five line departments (by Q4 2012). 3.5 Conduct analysis of PPP institutional set-up in the selected LGUs (by Q4 2012). 3.6 Conduct training for staff of LGUs involved with PPPs in various aspects of PPP, including on environmental and social/gender assessment and analysis (by Q4 2013). Output 4: Established long-term financing and risk guarantee mechanisms 4.1 Develop regulatory and other measures for establishing long-term infrastructure investment financing and risk guarantee mechanisms (by Q4 2013). 4.2 Conduct training of DOF staff on risk identification, allocation, and contingent liabilities estimation in PPP projects (by Q4 2011). 4.3 Develop guidelines on risk allocation and assessment of contingent liabilities (by Q4 2012). 4.4 Develop frameworks on funding of contingent liabilities, and other government financing of its share in PPP projects (by Q1 2013). Inputs ADB, Government of Australia, Government of Canada: $25.2 million Government of the Philippines: $18.5 million Output 5: Well-structured bankable PPP projects developed 5.1 For PDMF-approved projects, prepare pre-investment studies and provide transaction advisory support up to financial close (by Q2 2016). ADB = Asian Development Bank, BOT = build operate transfer, DBM = Department of Budget and Management, DOF = Department of Finance, IRRs = implementing rules and regulations, LGU = local government unit, NEDA = National Economic Development Authority, NGA = national government agency, NSCB = National Statistics Coordination Board, PDMF = Project Development and Monitoring Facility, PPP = public private partnership, Q = quarter, TA = technical assistance. a In the Philippine System of National Accounts, all construction owned by the government, whether government or privately managed, is classified public construction. All other construction is classified private. Source: NSCB. b Projects will be gender-responsive, as defined in NEDA s Harmonized Gender and Development Guidelines for Project Development, Implementation, Monitoring and Evaluation. Sources: Asian Development Bank, National Statistics Coordination Board, and World Bank s Private Participation in Infrastructure Database.

13 Appendix Performance Overview 2. Revised Financing Plan LIST OF LINKED DOCUMENTS Supplementary Documents 3. Revised Financing Plan (breakdown by funding source) 4. Updated Procurement Plan 5. Additional Consultants for the Public Private Partnership Center and the Department of Finance 6. Indicative Information Technology Requirements for the Public Private Partnership Center s Knowledge Portal 7. Local Government Units Proposed for Inclusion in the TA