PPP Center's funds may dry up by mid-2012
MANILA, Philippines - The agency in charge of facilitating projects under the Public-Prive-Partnership scheme may find its revolving fund depleted by mid-2012.
Three donors are studying extending some $18.5 million funds for the PPP Center, partly to replenish its P550 million-worth revolving fund, called Project Development and Monitoring Facility (PDMF), used to finance pre-investment studies for projects under the PPP scheme.
Asian Development Bank (ADB) Philippine Country Director Neeraj Jain told reporters on Wednesday, April 11, that the PDMF may receive additional funding of $15 million from the Australian and Canadian governments while another $3.5 million will be extended for capacity building activities.
"By the end of this month, we would sign an agreement with the government to provide an additional $15 million for the Project Development and Monitoring Facility. We are very bullish on it. We think the government is coming to a point where it can really launch a very sustainable rules-based PPP program," Jain explained during a briefing for the launch of the Asian Development Outlook (ADO), the flagship publication of the Manila-based multilateral development bank.
Funds from donors
Of this $15 million, $12 million is proposed to be allocated in replenishing the PDMF while some $3.5 million will be extended for capacity building of local government units (LGUs).
The Australian government may extend the $15 million while ADB may be contributing $0.5 million.
Another $3 million may be coming in the next 2 or 3 months from the Canadian government through the Canadian International Development Agency (CIDA), Jain said.
These funds, too, will be added to the PDMF.
Currently, around P284 million has already been spent to finance the pre-investment studies of 10 of the 16 PPP projects scheduled to be rolled out this year. The other 6 projects' pre-investment studies have been financed through implementing agency funds and donor assistance.
Apart from the 16 projects for rollout this year, the PPP pipeline still includes 43 other projects that have not yet undertaken pre-investment studies. These are crucial in project preparation and evaluation because they cover the design and scope of the project as well as give a sense of how much a project will cost to implement and complete a project under a PPP scheme.
This pipeline includes
- 15 projects to be implemented by the Department of Transportation and Communication (DOTC)
- 9 projects, Department of Public Works and Highways (DPWH)
- 8 projects with Local Government Units (LGUs)
- 2 projects for the Department of Agriculture (DA)
- 2 projects for the Metropolitan Waterworks and Sewerage System (MWSS)
The list of pipeline projects also include one project each for the:
- Department of Education
- Department of Justice
- Department of Finance
- National Irrigation Administration
- Department of Foreign Affairs
- Office of the Solicitor General
- Department of National Defense
- Technical Education and Skills Development Authority
- Land Transportation Office