How about giving tax incentives to local PPPs?
Expropriations in local PPPs
Certified PPP Advocate
83 Percent Part 2
This average grade of the Philippine public-private partnership (PPP) regulatory framework per the recently published report of the World Bank titled Procuring Infrastructure PPP 2018 (2018 PPP Report), hit it on the mark. Having a clear policy and framework ensures stability, consistency, transparency, integrity, accountability, reliability and enforceability.
This columnist would even give our PPP framework a higher mark, anywhere from 85 percent to 90 percent. He particularly commends the maturity of our unsolicited proposal approach. Our laws and regulations, including jurisprudence, categorically permit this. Other countries, as shown in the 2018 PPP Report, either do not have this or are not as developed.
He notes with agreement that the country should make available online tender documents and publish PPP contracts. These two identified gaps are actually transparency gaps. By the way, (the World Bank may not be aware of this) the template PPP ordinance annexed to Memorandum Circular 120-2016 (Section 37) of the Department of the Interior and Local Government requires the posting of the PPP contract, feasibility or project studies, bidding documents, terms of reference and results of the PSP selection process.
Is an 83-percent rating good? If the passing grade is 75, yes, of course. For those who pursue excellence, it could be better. What is this 83 percent? This is the average mark of the Philippine public-private partnership regulatory framework per the recently published report of the World Bank. The Procuring Infrastructure PPP 2018 (2018 PPP Report) “assesses the regulatory frameworks and recognized good practices that govern PPP procurement across 135 economies.” The “aim of this publication is to help countries improve the governance and quality of PPP projects.”
According to the 2018 PPP Report, “Higher scores signify that an economy’s regulatory framework is in greater compliance with internationally recognized good practices in an area. Lower scores indicate that there is considerable room for improvement because of less adherence to international good practices measured” under said report.
The 83 percent is an average of four scores, i.e., Preparation of PPPs, 85 percent; Procurement of PPPs, 76 percent; PPP Contract Management, 88 percent; and Unsolicited proposals (UPs) for PPPs, 83 percent. The Philippines bested all the countries in Southeast Asia. Singapore was the closest with 66 percent (but with no UPs), followed by Indonesia at 63 percent. The others are Vietnam with 60 percent; Timor Leste, 48 percent; Thailand 43 percent (no UPs); Malaysia, 41 percent; Cambodia, 31 percent; Laos, 29 percent (no UPs); and Myanmar, 21 percent. There was no rating for Brunei Darussalam.
10 what ifs
One way of highlighting the importance and relevance of public-private partnerships (PPPs) is to imagine scenarios. Here are 10 what ifs and what if nots.
So, what if…
- There is no PPP. Then the government will implement, fund, construct, design and operate projects on its own. While government agencies can collaborate with each other, the benefits of having the private sector as partner will be absent. The private sector, under this scenario, would not have the contractual opportunity to introduce its technology, apply its management systems and utilize its resources.
- There is no single PPP law. Actually, this is the case. We have PPP laws and regulations, national and local, and special guidelines issued by government agencies pertaining to different PPP modalities and arrangements. This promotes decentralization among agencies at the same level (vertical) and at lower levels (horizontal). However, several policies could lead to confusion.