World Bank gives high scores to PPP program of PHL

The Philippines' public-private partnership (PPP) program received high scores from the World Bank (WB).

In the WB's report "Benchmarking Public-Private Partnerships Procurement 2017," the country received a score of 96 in "preparation of PPPs."

"Scores nearing 100 are economies that are considered having PPP regulatory frameworks that closely align with internationally recognized good practices”, the WB report said.

The report noted that that the Philippines is among the 23 percent of 82 economies that have PPP regulations that ensure consistency in its priority projects with the country’s investment agenda.

For giving a near perfect score for the country's PPP preparations, the multilateral lender cited that Philippines' PPP projects get central budgetary approval, its prioritization is consistent with public investment prioritization, undergoes economic analysis, fiscal affordability and viability assesment, market assesment, and risk identification.

The WB also noted that the Philippines' PPP projects are subjected to comparative assesment versus public procurement and the draft PPP contract is included in the proposal.

“In the Philippines, for example, procuring authorities must prepare infrastructure or development programs to identify specific priority projects that may be developed as PPPs; ensure that the list of priority projects is consistent with the Philippine Development Plan, the Provincial Development Plan, and the Physical Framework Plan; and submit the list to the National Economic and Development Authority Board or the Investment Coordination Committee for approval”, the report said.

The WB report highlighted that the Philippines has prepared its own comprehensive risk matrix.

“In the Philippines, where the Generic Preferred Risk Allocation matrix indicates the type of risks to be assessed and also includes definitions, proposed allocations and rationales, possible risk mitigation efforts, and suggested contract provisions,” the report said.

The report also underscored the good practice of the PPP Center and implementing agencies (IAs) in conducting a market sounding to evaluate the investors’ interest in the PPP projects.

“The PPP Center and the procuring authority must perform a market-sounding process to determine the interest of private sector operators, taking into account different scenarios for revenue and economic growth in the short, medium, and long terms," WB said.

Moreover, the country scored 85 on procurement of PPPs, 84 for PPP contract management and 67 for unsolicited proposals. — VVP, GMA News