A vice chairman of the House Committee on Appropriations last Sunday urged local government units (LGUs) to tap P2.58-billion Project Development and Monitoring Facility (PDMF) for public-private partnership (PPP) projects.
Rep. Luis Ray Villafuerte of Camarines Sur said the P2.58- billion PDMF managed by the PPP Center has now become even more relevant for LGUs as business conglomerates, like the Ayala Group and the First Metro Investment Corp. (FMIC), have started scouting projects outside Metro Manila to take part in the Duterte administration’s planned “golden age of infrastructure”.
Villafuerte, citing reports, said big firms, which, among others, also include the Gotianun-led Cyberzone Properties Inc., have now trained their sights on big-ticket infrastructure projects in the provinces to seize business opportunities offered by the government’s massive infrastructure program.
He said the 2.58-billion fund can be used by LGUs to check the viability of, and efficiently prepare and monitor their large-scale development projects undertaken via PPP mode.
Villafurerte added the national government has encouraged LGUs to tap the PDMF’s revolving facility to fund the prefeasibility and feasibility studies, project structuring, preparation of bid documents and project monitoring for their proposed PPP initiatives, which, he said, are all crucial in ensuring the success of infra projects at the local government level.
“These major infrastructure projects implemented in partnership with the private sector would transform LGUs into engines of economic growth, which is the only way to disperse investments, create enough jobs and spur inclusive growth in the regions,” he said.
“It will also open opportunities for private firms in search of new business locations and thereby foster a better environment for investments outside Metro Manila and other major urban centers,” said Villafuerte, who is also vice chairman of the House Committee on Local Government.
Villafuerte is the main author of House Bill 5805, which seeks to strengthen the PPP mode of financing large-scale government projects by expanding the composition of the PPP Board.
He said his bill aims to strengthen the PPP mode of financing projects, he had also proposed that the PDMF be extensively used to provide financial and technical support for LGUs during the preparation and monitoring phases of their respective projects.
Villafuerte said the PDMF offers LGUs world-class consultancy services from firms such as BDO Llp. of the United Kingdom, KPMG Service Pte. Ltd. of Singapore, McKinsey & Co. (Philippines), CPCS Transcom of Canada, International Technical Assistance Consultants, SL of Spain and Deloitte Touche Tohmatsu India Llp.
He added his proposed law seeks to accelerate public infrastructure development by strengthening the PPP institutional framework; provide financial and technical support through PDMF; optimize project risks and obtain government support and expand the PPP contractual arrangements.
It also seeks to provide for transparent and competitive bidding; set standard contents and implementation of PPP projects for transparency, consistency and predictability; and grant incentives to PPP projects.
The bill updates the build-operate-transfer law by including joint ventures, operations and maintenance contracts, and the supply-and-operate mode, which allow the private sector to supply and operate an infrastructure facility, in the list of contractual arrangements that the government may undertake in implementing PPP projects.
It also affirms the authority of LGUs to enact their respective ordinances, code or guidelines for PPP projects.