The Asian Development Bank (ADB) and the Government of Japan will offer a technical assistance (TA) of $2 million to help the Philippine government strengthen its appraisal process for public-private partnerships (PPPs) as the country’s pipeline of projects grows.
“Public-private partnerships are increasingly helping the Government of the Philippines meet its goals for reducing the country’s infrastructure gap and boosting facilities for the provision of social services such as education and healthcare,” said Aziz Haydarov, Public-Private Partnership Specialist in ADB’s Southeast Asia Department.
The pipeline of PPP projects in the Philippines grew from 11 projects in November 2011 to 51 in January 2014. Projects including four expressways, two classrooms, one light rail, and one hospital have been awarded, with an estimated investment value of $3.4 billion.
In 2013, the government announced its intention to increase public infrastructure investments to five percent of the gross domestic product in 2016, to bring the Philippines on par with the regional average. Six PPP projects, also worth $3.4 billion, are currently at the bidding stage, with another four projects worth $1.4 billion undergoing government approval. Another 20 projects are under preparation and 13 under conceptualization.
To continue building a robust pipeline, the Philippine government has asked for the $2 million technical assistance, funded by the Japan Fund for Poverty Reduction and administered by ADB, to strengthen the capacity and systems of the National Economic and Development Authority in appraising PPP projects prior to government approval and of the Department of Finance in sustainable management of fiscal cost, including contingent liabilities, arising from a growing PPP project portfolio.