PH PPP framework gains high scores from WB

By: - Reporter / @bendeveraINQ
/ 12:18 AM September 30, 2016

The Philippines’ public-private partnership (PPP) framework has gained high scores from the World Bank, especially in preparation and procurement.

In a report titled “Benchmarking Public-Private Partnerships Procurement 2017” released Thursday, the World Bank gave the Philippines a score of 96 in “preparation of PPPs.”


According to the report, economies with scores approaching 100 “are considered to have a PPP regulatory framework that closely aligns with internationally recognized good practices.”

The World Bank noted that in the Philippines, PPP projects get the central budgetary authority’s approval as well as undergo economic analysis, financial viability and fiscal affordability and assessments.


PPP projects in the country also undergo comparative assessment against public procurement, alongside standardized PPP model contract and/transaction documents.

A draft PPP contract was also being included in the request for proposals, the report noted.

Also, the World Bank said that the Philippines was among only 23 percent of the 82 economies covered by the report whose PPP regulations ensure that priority projects were consistent with the country’s public investment priorities.

“In the Philippines, 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 World Bank noted.

The country also has a more comprehensive risk identification methodology.

“In the Philippines … 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.

Unlike most surveyed economies, the Philippines was among the few that required market assessment, according to the World Bank.


“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” in the country, it said.

In procurement of PPPs, the Philippines scored 85; in unsolicited proposals, 67; and in PPP contract management, the country’s score was 84.

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