PPP Conversations #6 with Rep. Arlene Arcillas

June 5, 2017
admin
PPP

PPP Conversations #6 with Rep. Arlene Arcillas

TO date, some 80 provinces, cities and municipalities have adopted their own framework on public-private partnerships (PPPs) through the passage of local ordinances. This columnist hopes that, in the near future, the City of Santa Rosa will adopt its own to further accelerate development started by First District Rep. Arlene B. Arcillas when she was the city chief executive.

In a briefing last week on PPP, organized by Rep. Arlene B. Arcillas and attended by incumbent Mayor Dan Fernandez and Vice Mayor Arnold Arcillas, the city leaders disclosed their plans for integrated land development, market redevelopment, solid-waste management, mass transit, reclamation, sports development and knowledge creation. Representative Arlene shares with us her vision of the city, propelled by PPP.

• What is your concept of PPP?

Broadly, PPP is a partnership between a public entity and a private entity. Going deeper on the essence and objective of PPPs, it can address the limited financial resources for local infrastructure projects of the public sector, thereby, allowing the allocation of public funds for other government initiatives. PPP is also a program structured for both sectors to gain improved efficiency and project implementation process in delivering quality services to the public.

May 29, 2017
admin
PPP

PPP Conversations No. 5 with Laguna Lake Development Authority

On May 24 the Philippine Reclamation Authority, led by its General Manager (GM) Janilo Rubiato, and the Laguna Lake Development Authority (LLDA), represented by GM Jaime Medina, signed an Expression of Cooperation (EOC). The cooperation sets in motion two strategies aimed at advancing President Duterte’s “Build, Build, Build” program along Laguna Lake.

Pursuing legal reclamation, addressing illegal reclamation activities and undertaking developmental and sustainable projects along Laguna Lake will be jointly explored and addressed by the two government agencies through government-to-government (G2G) arrangements and public-private partnerships (PPPs). Your columnist, who witnessed the EOC signing, discussed the two-pronged strategy with LLDA general manager Medina.

What is your concept of PPP?

The concept of PPP, as the name implies, is a contractual arrangement between a public and private establishment and/or entities where, through mutual agreements, utilizes the skills of the private sector for the delivery of certain services to the general public at no cost to the public sector (government). In a softer approach, PPP shall mean that the public (people) shall have a chance to do business with the private sector.

May 22, 2017
admin
PPP

PPP Conversations No. 4 with National Housing Authority General Manager Jun Escalada

The socialized-housing gap cannot be plugged by the National Housing Authority (NHA) alone. Support from the private sector, among other stakeholders, must be harnessed. Under the innovative and participatory leadership of NHA General Manager Marcelino “Jun” Escalada Jr., public-private partnerships (PPPs) will be aggressively promoted.

The NHA will soon adopt its PPP Guidelines and organize a conference to sound off invitations for projects. The NHA recently signed a memorandum of understanding for a possible PPP for informal-settler families in Metro Manila. Escalada shares his thoughts on PPP.

What is your concept of PPP?

PPP is an arrangement that the government can adopt to hasten economic development by encouraging the private sector to help out in improving the quality of public assets and the efficiency of public services. The thrust of the current administration is to “build, build and build” infrastructure for the next six years. This opens up opportunities for the private sector to help the government boost economic growth and create more jobs.

What makes PPP a viable development strategy for socialized housing?

I think PPP is a viable development strategy for socialized housing. PPP will bring in private-sector capital and expertise in addressing the increasing housing need. Based on a 2016 housing-need study, the Philippines has a projected need of 6.57 million units by 2022, which represents accumulated needs for socialized, economic, low-cost and the open market.

May 15, 2017
admin
PPP

PPP Conversations #3 with Makati Mayor Abby A professor can be no prouder when his or her student makes his or her own distinct mark in the field of local governance, the subject this columnist teaches at the Ateneo Law…

May 8, 2017
admin
PPP

PPP conversations #2 with Ayala Group

The Ayala Group is one of the leading proponents and believers of the Philippine Public-Private Partnership (PPP) Program. Since 1996, it has been engaged in a water concession and, in the recent past, has been awarded the Muntinlupa-Cavite Expressway tollway, automated fare-collection system, extension of Light Rail Transit 1 system and integrated terminal system under the build-operate-transfer law.

Lawyer Solomon M. Hermosura, managing director, group head of corporate governance, general counsel, compliance officer and corporate secretary of Ayala Corp.,tells us Ayala’s PPP journey in this second edition of PPP conversations.

The Ayala Group has been an active participant in PPP projects. Why?

The Ayala Group’s commitment to PPP goes beyond any single project or legal framework. Whether the project involves hard infrastructure or investments in health and education, we see PPP as an avenue to be the government’s partner in effectively and efficiently delivering on the needs of the public.

What are the essential elements and ingredients for success in PPP projects?

We have been most successful in our PPP projects when stakeholders are committed to the desired outcome and cooperate toward getting the project done. We need to work closely with communities, similar to Manila Water’s previous experience in its “Tubig Para sa Barangay” program, which connected unserved and vulnerable communities to a safe and cheaper water supply. Our current work in the human infrastructure sector—health and education—is a response to glaring gaps that require complementary solutions.

May 2, 2017
admin
PPP

LGUs can; 10 reasons why; and why they should

By what authority can local government units (LGUs) undertake public-private partnerships (PPPs) in building-building-building at the community level? Here are the 10 reasons why:

(1) LGUs enjoy local autonomy. LGUs have the freedom to adopt their own PPP frameworks, and determine the requirements and procedures for the selection of the private-sector proponent (PSP), provided, no law is violated. They can undertake projects based on their priorities. They cannot be compelled to pursue PPPs and undertake a particular PPP project.

(2) LGUs have fiscal autonomy. They have the discretion to source additional revenues using the PPP approach, and to create fiscal space for other projects and activities. They have the power to allocate these revenues based on their priorities. Revenues generated from PPPs can be used for general or specific purposes.

(3) For as long as not prohibited by law. Under the liberal view of local autonomy, LGUs can, for as long as no law is violated, pursue PPPs for the general welfare even if there is no express statutory grant of power.

April 24, 2017
admin
PPP

PPP conversations: No. 1 with PPP Center

What do stakeholders have to say about public-private partnerships (PPPs)? What are their PPP stories? What are their roles and perceptions?

Starting today PPP Lead will feature PPP Conversations. This columnist will propound frequently asked questions to be answered by PPP stakeholders. Our first conversation will be with the PPP Center (PPPC), which will share with us its reason for being and its view on this developmental strategy.

Agra: What is your concept of PPP?

PPPC: PPPs are contractual arrangements between the government and the private sector, intended to accelerate the delivery of infrastructure and development projects or services. Republic Act (RA) 7718, or the Amended BOT law and its implementing rules and regulations (IRR), generally govern PPPs in the Philippines, supplemented by other relevant policies that make up the country’s legal and institutional framework for PPPs.

Is PPP critical for development? Why?

PPP is critical input to growth and development being a funding resource for selected infrastructure and development projects and a mechanism to free up government’s fiscal space for other development requirements. At the same time, it harnesses private sector efficiencies and innovation in the critical aspects of project design construction, operations, maintenance and actual service delivery.