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INVESTMENT
PARTNERSHIP CENTER
INVESTMENT OPPORTUNITIES
OPPORTUNITIES
OF THE PHILIPPINES
february 2018
PUBLIC-PRIVATE
INVESTMENT
OPPORTUNITIES
FEBRUARY 2018
Ambisyon Natin 2040
AmBisyon Natin 2040 represents the collective long-term vision and
aspirations of the Filipino people for themselves and for the country in the
next 25 years. It describes the kind of life the Filipinos want to live, and
how the country will be by 2040. As such, it is an anchor for development
planning across at least four administrations.
By 2040, Filipinos will enjoy a strongly rooted, comfortable, and secure life.
In 2040, we will all enjoy a stable and comfortable lifestyle, secure in the
knowledge that we have enough for our daily needs and unexpected
expenses, and that we can plan and prepare for our own and our children’s
future. Our family lives together in a place of our own, and we have the
freedom to go where we desire, protected and enabled by a clean, efficient,
and fair government.
On April 19, 2017, the government launched the Build Build Build Portal
(www.build.gov.ph), which lists down high impact projects, including PPPs,
that are envisioned to increase the productive capacity of the economy,
create jobs, increase incomes, and strengthen the investment climate
leading to sustained inclusive growth.
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WHAT IS PUBLIC-PRIVATE
PARTNERSHIP?
Public-Private Partnerships (PPPs) can be broadly
defined as a contractual arrangement between the
Government and a private partner targeted towards
financing, designing, constructing, operating and
maintaining infrastructure facilities and services that were
traditionally provided by the public sector. It embodies
optimal risk allocation whereby risks are allocated
to the party best able to manage them at the lowest
cost, without compromising the realization of project
development objectives.
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PUBLIC-PRIVATE PARTNERSHIPS
IN THE PHILIPPINES
The 1987 Constitution explicitly acknowledges the critical
role that the private sector plays in the development agenda
of the country. The Duterte Administration aims to address
the infrastructure requirements of the Philippines through
accelerating the country’s annual infrastructure spending to
account for 5% of the Gross Domestic Product
(GDP), with Public-Private Partnerships (PPPs) playing a
key role.
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HOW DOES THE PPP PROCESS WORK?
DEVELOPMENT STAGE
- Project preparation (feasibility study and market sounding activity)
- Finalization of project structure
APPROVAL STAGE
- Project submission to relevant approving bodies
- Project assessment and appraisal
- Investment Coordination Committee (ICC) - approval/recommendation
- National Economic and Development Authority (NEDA) Board approval
PROCUREMENT STAGE
- Pre-qualification (advertisement of Invitation to Pre-qualify and Bid,
pre-qualification conference, and submission and evaluation of
pre-qualification documents)
- Bid proper (pre-bid conference, bid submission, and bid opening and
evaluation)
- Notice of Award and Contract signing
IMPLEMENTATION STAGE
- Financial close
- Implementation (preparation of Detailed Engineering Design,
construction, and commissioning)
- Turnover of facility/infrastructure back to the government
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Pipeline of Public-Private
Partnership Projects
As of February 2018
Various projects can be financed and implemented through PPPs - from traditional infrastructure
projects such as toll roads, airports and transport systems to non-traditional infrastructure
such as Information and Communications Technology (ICT) systems and facilities, and social
infrastructure projects for education and health.
AWARDED PROJECTS
Completed and Operational Projects
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Projects under Procurement
• Road Transport Information Technology Infrastructure
Project (Phase II)
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INVESTMENT
OPPORTUNITIES
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Investment Opportunities
$ 5.80
Million ₱Million
298 and Regulatory Board (LTFRB), including: (a)
computerization of its manual processes; (b)
development of an online database of franchise
PPP scheme information; (c) data migration; and (d) procurement,
Build-Transfer-Operate installation, operations and management of IT hardware
(BTO) equipment, software and network development.
concession period
The project aims to deliver a transparent and efficient
11.5 years (inclusive of 1.5-year franchising system through streamlining of LTFRB’s
application development and current processes and automation. It is expected
installation period)
to clean up existing data; enhance data collection,
processing and integration within LTFRB and its
contact details
related agencies; decrease processing time; promote
Airene M. Robinson transparency and ease of use; and improve access to
Assistant Secretary for Planning
DOTr public information and channels for feedback.
airene.robinson@dotr.gov.ph
Lisa Marie B. Jacinto
Project Development Officer
PPP Center
lbjacinto@ppp.gov.ph
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Investment Opportunities
contact details
Timothy John Batan
Assistant Secretary for Rail
DOTr
tjbatan.dotc@gmail.com
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Investment Opportunities
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Investment Opportunities
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Investment Opportunities
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Investment Opportunities
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Investment Opportunities
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Investment Opportunities
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Investment Opportunities
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Investment Opportunities
Eloisa Fe J. Lusotan
Project Development Officer
PPP Center
ejlusotan@ppp.gov.ph
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Investment Opportunities
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Investment Opportunities
ppp
awarded
projects
AWARDED PROJECTS
Completed and Operational Projects
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AWARDED PROJECTS : Completed and Operational
*Original project cost approved by the NEDA Board on July 8, 2011 was Php1.956 Billion. The cost increased to Php2.23
Billion due to the payment of the advance works improvements amounting to Php0.050 Billion as approved by the ICC-CC on
November 29, 2011 and Variation Cost amounting to Php0.223 Billion
**Approved Budget Ceiling (ABC) of the Build-Lease-Transfer (BLT) contract is Php16.43 Billion
***Original project cost approved by the NEDA Board on May 30, 2012 was Php15.86 Billion; the cost increased to Php17.93
Billion due to the Variation Order amounting to Php2.07 Billion
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AWARDED PROJECTS : UNDER CONSTRUCTION
*The original project cost approved by the NEDA Board on November 29, 2012 was Php13.14 Billion. However, only two out of
the five contract packages were successfully procured amounting to Php3.86 Billion
**Project cost is based on the final Engineering Design as approved by the Toll Regulatory Board
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MRT LINE 7 Project
Implementing Agency: Department of Transportation (DOTr)
Project Cost: Php62.7 Billion | $1.22 Billion
Scheme: Build-Gradual Transfer-Operate and
Maintain (BGTOM)
Concession Period: 25 years
Private Partner: Universal LRT Corporation
(subsidiary of San Miguel Corporation)
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AWARDED PROJECTS : UNDER PRE-CONSTRUCTION
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THE PROJECT DEVELOPMENT &
MONITORING FACILITY
Scope of services
• Preparation of project pre-feasibility and feasibility
studies, bid documents and PPP contracts
• PPP project structuring
• PPP bid process management
• Assistance until financial close
• Independent consultancy services
• Probity advisory services
PDMF Funds
$102 million jointly financed by the Philippine Government
and the Australian Government, through the Asian
Development Bank
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POLICY
INITIATIVES
Since the launch of the PPP Program, the
Government has been advocating measures to
enhance the legal and policy environment for
private sector participation and to enable a more
systematized and faster implementation of the
program.
Guidelines on the Identification, Selection and
Prioritization of PPP Projects
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Appointment of Probity Advisors for Policy on Assessing Value for Money
PPP Procurement in PPP Projects
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doing business in the philippines
Sources:
National Government Portal, About the Philippines, http://investphilippines.gov.
ph/about-the-philippines/
Philippine Statistics Authority, National Quickstat-October 2017, http://psa.gov.
ph/content/national-quickstat-october-2017
Philippine Statistics Authority, Literacy of Men and Wommen in the Philippines
(Results from the 2008 Functional Literacy, Education, and Mass Media Sur-
vey), March 8, 2011, https://psa.gov.ph/content/literacy-men-and-women-philip-
pines-results-2008-functional-literacy-education-and-mass-media
Philippine Statistics Authority, Philippine Economy Grows by 6.9 % in the Third
Quarter of 2017, http://psa.gov.ph/content/philippine-economy-grows-69-per-
cent-third-quarter-2017
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doing business in the philippines
INVESTMENT INCENTIVES
Board of Investments (BOI) Incentives
• Fiscal Incentives
o Income tax holiday
o Exemption from taxes and duties on imported
spare parts (Net Operating Loss Carry-Over)
o Exemption from wharfage dues and export tax,
duty, impost and fees (Gross Income Earned)
o Reduction of the rates of duty on capital
equipment, spare parts and accessories by
virtue of Executive Order No. 528
o Tax exemption on breeding stocks and genetic
materials
o Tax credits
o Additional deductions from taxable income
• Non-Fiscal Incentives
o Employment of foreign nationals
o Simplification of customs procedures
o Importation of consigned equipment
o Privilege to operate a bonded manufacturing/
trading warehouse
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Philippine economic zone
authority INCENTIVES
• Fiscal Incentives
o Income Tax Holiday (ITH) - 100% exemption from
corporate income tax
o Upon expiry of the ITH - 5% special
tax on Gross Income and exemption from all
national and local taxes (“Gross Income” refers to
gross sales or gross revenues derived from the
registered activity, net of sales discounts, sales
returns and allowances and minus cost of sales or
direct costs but before any deduction is made for
administrative expenses or incidental losses during
a given taxable period)
o Tax and duty free importation of raw materials,
capital equipment, machineries and spare parts
o Exemption from wharfage dues and export tax,
impost or fees
o VAT zero-rating of local purchases subject to
compliance with BIR and PEZA requirements
o Exemption from payment of any and all local
government imposts, fees, licenses or taxes
• Non-Fiscal Incentives
o Simplified import - export procedures (electronic
import permit system and automated export
documentation system)
o Non-resident foreign nationals may be employed
by PEZA-registered economic zone enterprises in
supervisory, technical or advisory positions.
o Special non-immigrant visa with multiple entry
privileges for the following non-resident foreign
nationals in a PEZA-registered Economic Zone
Enterprise: Investor/s, officers, and employees in
supervisory, technical or advisory position, and
their spouses and unmarried children under
twenty-one (21) years of age. PEZA extends visa
facilitation assistance to foreign nationals, and their
spouses and dependents.
Source: Philippine Economic Zone Authority, Fiscal Incentives, http://www.peza.gov.ph/index
php/eligible-activities-incentives/fiscal-incentives 33
Public-Private Partnership Center
8th Floor, One Cyberpod Centris, EDSA cor.
Quezon Ave., Quezon City 1100
Trunkline: (+632) 709-4146
FERDINAND A. PECSON
Executive Director
Phone: (+632) 709-4146 loc. 2001
Email: fapecson@ppp.gov.ph
LAWRENCE G. VELASCO
Director III
Project Development Service
Phone: (+632) 709-4146 loc. 6002
E-mail: lgvelasco@ppp.gov.ph
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for more information, please visit:
www.ppp.gov.ph
follow our social media accounts:
Public-Private Partnership
PPPCenter.Philippines Center of the Philippines
@PPP_Ph PPPPinas
ACKNOWLEDGEMENTS
Road IT: http://apphocus.com/network-infrastructure/
ITS North Terminal: http://ayosaoi.wordpress.com
Clark International Airport (O&M) Project: https://iorbitnews.com/
San Ramon Newport Project: http://www.sidc.ie/our-projects/saudi-arabia/opportunity-analysis-of-red-sea-foun
dation,-saudi-arabia
BRT Cebu: http://theubpost.mn/wp-content/uploads/2016/08/0023ae9888c1158b2e9f07.jpg
Duty Free Retail Development Project: https://outoftownblog.com
One DTI Building Complex: https://www.bdcnetwork.com/
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8th Floor, One Cyberpod Centris, EDSA cor.
Quezon Ave., Quezon City 1100
(+632) 709-4146 | www.ppp.gov.ph