PPP revolving fund getting big boost

Anticipating a “more intense” rollout of public-private partnership (PPP) projects, the government is seeking more funds for prebidding works before the revolving facility for this purpose runs out.

The PPP Center stands to get P160 million from the 2012 budget to replenish the revolving fund for PPP preinvestment studies.

Economic Planning Secretary Cayetano W. Paderanga Jr., who is also director-general of the National Economic and Development Authority, said

multilateral agencies might match the P160 million or provide more.

About P284 million of the P550-million Project Development and Monitoring Facility (PDMF) fund is already being used for the preinvestment studies of 10 PPP projects slated for rollout this year, according to Cosette V. Canilao, executive director of the PPP Center, which manages the PDMF.

Development partners have recommended additional funding, Canilao and Paderanga said separately.

The PDMF funding may be depleted by the middle of the year without any fresh funding boost. This was anticipated as early as last year. Thus, efforts to access more funding had started before the change of the year and grants from development partners are now being finalized, Canilao said.

The PPP Center will disclose the total funding it will be able to raise upon completion of all necessary documents, she said.

“With the additional funding, we can really work on several projects,” Paderanga said.

The government must provide counterpart funding for whatever its development partners give. By spending on the feasibility studies, along with plans to tap more advisers, the Philippine government is investing in its own PPP program, Paderanga said.

That’s because the government is bracing up for a “more intense” PPP program this 2012. About 16 PPP projects are lined up for bidding this year, 10 of which are getting PDMF support.

Since funds for preinvestment activities only get replenished when the projects get auctioned off, the revolving facility must be topped up while the bidding process in PDMF-supported projects are ongoing.

The P25-billion Metropolitan Waterworks and Sewerage System New Water Supply is the biggest project slated for rollout this year, according to the PPP Center. The smallest will be the P900-million Vaccine Self-Sufficiency Program of the Department of Health.

The list of projects for rollout also includes the P20.18-billion NLEx-SLEx connector road; P20-billion Balara water hub; P19.69-billion Cala Expressway (Cavite & Laguna side); P11.3-billion LRT 2 East Extension; P10.4-billion PPP for School Infrastructure Project (Batch 1); P10.15-billion Mactan Terminal 2 Airport Development; and P8-billion New Bohol Airport.