Indicative of the private sector’s confidence in the Philippine economy, a total of 20 unsolicited proposals have already been submitted to the Investment Coordination Committee (ICC) secretariat of the National Economic Development Authority (NEDA) as of Sept. 20, 2019.
In a statement on Wednesday, NEDA said of the 20 proposals, one Public-Private Partnership (PPP) project, the Unsolicited Build-Operate-Transfer (BOT) Proposal on the Bulacan International Airport in Bulakan, Bulacan, was approved by the NEDA Board last December 2018. It had a recently signed concession agreement.
Two other projects, the unsolicited proposal for the New Panglao Bohol International Airport and the Unsolicited Build-Operate-Transfer Proposal: Ninoy Aquino International Airport, have been reviewed by the ICC Technical Board (ICC-TB) and is due for ICC-Cabinet Committee action within the last week of September.
Ten of the 20 unsolicited proposals have been presented to the ICC-TB but have yet to complete ICC requirements or comply with ICC instructions.
These include unsolicited proposals for the Davao People Mover Project; C5 MRT 10 Project; Build-Transfer-Operate Proposal for the Fort Bonifacio-Makati Sky Train Project; Build-Operate-Transfer proposal for the 50-year Integrated development Plan for the Mactan-Cebu International Airport; and IT Project for City of Naga-Unlad Bayan Local Government Information System.
Other unsolicited proposals which need to comply with ICC instructions are the Operate-Add-Transfer (OAT) Proposal for the Laguindingan Airport; OAT proposal for the Davao International Airport; Operate-Maintain-Upgrade-Transfer proposal for the operation and maintenance and facility upgrade of Kalibo International Airport; Light Rail Transit 6 Cavite Line A Project; and the MRT 11 Project.
NEDA said seven of the 20 unsolicited proposals are still under ICC Secretariat evaluation and undergoing refinements based on technical discussions with ICC member agencies, sponsor agencies, and/or original private proponents of these proposals.
These projects include the Cavite-Tagaytay-Batangas Expressway; Tarlac-Pangasinan-La Union Expressway Extension Project; Build-Transfer-Operate and Maintain Proposal: Cebu Monorail Transit System Project; Philippine Charity Sweepstakes Office Corporate Center Project; North Luzon Express Terminal Project; and Finance, Design, Develop, Operate, and Maintain the Bureau of Immigration Tourist-Visa Section Online System Project.
NEDA said the review of submitted unsolicited proposals requires a whole-of-government and whole-of-society approach, considering all the laws that these projects must comply with and their potential impact on various facets of development.
“NEDA always ensures that these unsolicited proposals in our pipeline are carefully selected and thoroughly reviewed. Selected are those that fit into the goals and strategies of the government, as in the Philippine Development Plan 2017-2022. Importantly, they should follow the Build-Operate-Transfer or BOT law, among others,” said Socioeconomic Planning Secretary Ernesto M. Pernia.
NEDA said it is looking into the technical, financial, economic, social, and environmental aspects of the projects submitted for appraisal. These include a review of the proponent’s financial model to check the rates of return and if they are consistent with proposed legal obligations under the draft concession agreement.
“This review entails a round of negotiations between the government and the private sector proponent. We need to ensure that once awarded, the project will be implemented without undue legal and political risks succeeding administrations have to face,” said Pernia.
“We view these unsolicited proposals as an indication of private sector confidence in the Philippine economy. NEDA is doing its best to efficiently and speedily process these, allowing the private sector to innovate, while keeping in mind the public’s interest over the medium and long term,” Pernia added.