AGRA Philippine PPP 101 ( Private Public Partnership )

Summary

The video script 'Philippine PPP 101' outlines the importance of Public-Private Partnerships (PPP) in the Philippines' development, highlighting their role across government levels and in various sectors like infrastructure and social services. It explains PPP as a collaborative venture between the government and private sector, sharing risks and benefits, and compares it to a marriage contract or a boat ride. The script details the selection process for private partners, emphasizing the principles of public advantage, competition, and transparency. Ultimately, PPP is portrayed as a strategic approach for inclusive growth and improved quality of life for Filipinos, embodying the spirit of Bayanihan.

Takeaways

• 🏛️ Public-Private Partnerships (PPP) in the Philippines are a priority program aimed at key development studies and are undertaken by implementing agencies at various government levels.
• 🤝 PPPs involve collaboration between implementing agencies and a Private Sector Proponent (PSP), where both parties exchange resources, share obligations, and apportion risks for a project.
• 🛠️ PPP projects can be either 'hard' infrastructure projects like airports and bridges, or 'soft' social service projects like hospitals and classrooms.
• 🔄 The bundling approach in PPP allows for the combination of projects to increase viability and service provision, such as building an evacuation center with an intermodal transport terminal.
• 💸 PPP is likened to a marriage contract or a credit card scheme, where the government receives services now and pays later, sharing functions and risks with the PSP.
• 🇵🇭 In the Philippines, PPP can have multiple meanings due to the absence of a single governing law, with at least 24 PPP modalities and nine stated in the Build-Operate-Transfer (BOT) Law.
• 🏗️ Under the BOT Law, the PSP assumes responsibility for financing, designing, constructing, and operating the project, with the government regulating and setting policies.
• 📚 Other laws and regulations may apply to different types of PPPs, such as the Electric Power Industry Reform Act for power and transmission projects.
• 🤔 The selection of a PSP must follow parameters of public advantage, accountability, competition, and transparency, ensuring the PSP is capable and qualified.
• 🏆 The selection process for a PSP can involve competitive selection through open bidding, or the competitive challenge method involving unsolicited proposals from the PSP.
• 🌐 PPP is not just about a single project but is a developmental strategy for innovative change and partnership, promoting inclusive growth and improving the quality of life for Filipinos.

Q & A

What is the main focus of the video script 'Philippine PPP 101'?

The video script focuses on explaining the concept of Public-Private Partnerships (PPPs) in the Philippines, their importance, how they function, and the various modalities involved.

At what levels of government can PPPs be undertaken in the Philippines?

PPPs in the Philippines can be undertaken at three levels of government: national government agencies, government corporations and instrumentalities, and local government units.

What is the role of a Private Sector Proponent (PSP) in a PPP project?

A Private Sector Proponent (PSP) collaborates with implementing agencies for a particular project, exchanging resources, sharing obligations, apportioning risks, and meeting the benefits of the project.

What are the examples of hard infrastructure projects in PPPs?

Examples of hard infrastructure projects in PPPs include reclamation, airports, seaports, roads, bridges, monorail, water supply, power, and market redevelopment.

What are the examples of soft social service projects in PPPs?

Examples of soft social service projects in PPPs include hospitals, classrooms, and agriculture development-related projects.

What is the bundling approach in PPP projects?

The bundling approach in PPP projects involves combining different projects together to ensure viability and provision for more services. For instance, an evacuation center may be built with an intermodal transport terminal, a gas station, and a mall.

How is a PPP similar to a marriage contract or a credit card scheme?

A PPP is similar to a marriage contract or a credit card scheme in that the government gets the service today and pays for it later, sharing the functions and corresponding risks with the PSP.

What are the different PPP modalities mentioned in the script?

The script mentions at least 24 PPP modalities, with nine being stated in the Build-Operate-Transfer (BOT) Law, also known as Republic Act No. 6957, as amended by RA 7718.

What is the role of the government in the VLT (Build-Lease-Transfer) modality?

In the VLT modality, the PSP designs, finances, builds, and operates the road, and at the end of the long-term period, transfers the asset to the government.

How does the government select the PSP for a PPP project?

The government selects the PSP through competitive procedures that follow four parameters: public advantage, accountability, competition, and transparency. The PSP must be legally, technically, and financially capable and meet the nationality requirements.

What is the significance of the term 'Bayanihan' in the context of PPPs in the Philippines?

The term 'Bayanihan' signifies the Filipino tradition of community spirit where stakeholders help carry a shanty from one place to another, symbolizing trust and working together towards a common goal. In the context of PPPs, it represents the partnership strategy aimed at promoting inclusive growth and a better quality of life for Filipinos.