Expr Philippines
Transcript of Expr Philippines
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Streamlining theStreamlining the
Philippine BOT ProcessPhilippine BOT ProcessBy Janet A. BautistaBy Janet A. Bautista
17-19 February 2009Interregional Expert Group Meeting
On Public-Private Partnerships in Infrastructure
Development
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Overview of PSPOverview of PSP
Enactment of the BOT Law (Republic Act
6957) in 1990 Mobilize greater private sector participation in public
infrastructure
Amended BOT Law (RA 7718) in 1994 Expanded the different PPP arrangements
Recognized policy to deliver much neededinvestments in infrastructure development
One of the major policy thrusts in the Medium-TermPhilippine Development Plan (MTPDP)
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The Philippine BOT LawThe Philippine BOT Law
The law provided a legislated set of rules togovern PPP infrastructure investments
It standardized several aspects of theinvestment process and identified levels ofauthority in the approvals process
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BOT ProcessBOT Process
Project Identification and Preparation Evaluation & Approval Investment
Coordination Committee (ICC) approval
process ICC Core Secretariat :Review/Evaluation
ICC- Technical Board : Review and approval
ICC-Cabinet Committee : Approval
NEDA Board: Confirmation of the Approval
Procurement/competitive selection of theprivate sector proponent
Contract Implementation
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Issues Raised Concerning the BOT ProcessIssues Raised Concerning the BOT Process
Poor project preparation
Lack of funds to finance pre-investment studies
Delayed approvals and negotiations process
Failure to properly monitor performance ofdeliverables after contract execution
Inability to implement effective monitoring
often leads to disagreements between thegovernment and the private sector
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BOT Law Implementing Rules andBOT Law Implementing Rules and
Regulations (IRR) AmendmentsRegulations (IRR) Amendments
1998 - Revisions focused on clarifying theprocurement requirements and procedures for thecompetitive bidding and Swiss challenge processes
2006 Dealt with ways to fast track BOT
government approvals by prescribing a single passfrom a two-pass review process
Proposed IRR Amendments (2007) Remove the power of the Investment Coordination
Committee (ICC) to review and approve specific BOTprojects and contracts
Shorten the permissible processing time for BOT
projects
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Model Concession AgreementModel Concession Agreement
Prescribed and uniform contractualagreements to integrate best practices
and ensure that the governments , andultimately the consumers interest isprotected.
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Solicited BOT ProcessSolicited BOT Process
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Project Identification & PreparationProject Identification & Preparation
National Economic andDevelopment Authority(NEDA)
Proponent Agency
Implementing Agency/Local Government Unit
Regional DevelopmentCouncil (RDC)
Funding Agency(USAID,WB,ADB,AusAID)
Private Consultant
Private Sector
Prepare
Infrastructure DevtProgram for BOT
Include priorityprojects in
MTPDP/MTPIP
Include priorityprojects inRDP/RDIP
Identify List ofPriority Projects
ApprovePriorityProjects
Prepare
BOTProposal
Tap projectdevelopment
facilities
Providefunds forstudiesConduct
InitialReview
Y
HireConsultants
PreparesBOT Proposal
RejectsRequest
N
Finalizeproposal forsubmission
to ICC
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BOT Approval (1/ 2)BOT Approval (1/ 2)
National Economic andDevelopment Authority(NEDA)
Proponent AgencyImplementing AgencyLocal Government Unit
Regional DevelopmentCouncil (RDC)
Department of Environmentand Natural Resources (DENR)-Environmental Management Board(EMB)
Department of Budget
and Management (DBM)
Department of Finance (DOF)-Corporate Affairs Group (CAG)
Other concerned/related governmentagencies
RDC endorsement
Securenecessaryclearances
ConductProject
Review
Y
N
ConductProjectReview
ConductProjectReview
Conduct
ProjectReview
ConductProjectReview
Reject/Recommend changes
Y
N Reject/Recommend changes
Issue EnvironmentalClearance Certificate
Y
N
Issue Certification BudgetCover Availability, if needed
Non-issuance of certificate
Identify government
guarantee requirements
Issue Environmental
Clearance Certificate
Issue EnvironmentalClearance Certificate
Y
Y
N
Submit FS andall requirements
to ICC
Acknowledge receipt andcommence with the
review/approval process
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BOT approval (2/ 2)BOT approval (2/ 2)
Regulatory Body
Proponent AgencyImplementing AgencyLocal Government Unit
ICC-Technical Board
NEDA Board(Chaired by the President
of the Philippines)
ICC-Cabinet Committee
InvestmentCoordinationCommittee (ICC)-Secretariat
FinalApproval
Confirmationof approval
Y
N
Final review ofICC-TB
endorsement
Deliberate/Review Project
Conductevaluation/assessment and
prepareevaluation
report
Defer
approval
N
ApproveProject/Endorse to
ICC-CC
Defer approval for
further review
Refer project toProponent Agency
Endorse project/contract to ICC-TB
Y
Y
Prepare for theselection of
private sectorinvestor
N
Confirmtolls/fees/rentals/charges
Adjustments ontolls/fees/rentals/
charges
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Selection of Private Sector Investor/ PartnerSelection of Private Sector Investor/ Partner
Proponent AgencyImplementing AgencyLocal Government Unit
Private Sector(Interested Bidders)
Issuance ofRequest forProposals
AdvertisementInvitation to Pre-qualify and Bid
Prepare andsubmit
qualification
documents andbid proposal
Securequalificationforms and
tenderdocuments
Preparation of Pre-
qualification (PQ)Documents
Creation of Bids andAwards Committee
(BAC)
Evaluation ofProposals
QualificationTechnicalFinancial
Qualified
TechnicalEvaluation
Technically
Qualified
FinancialEvaluation
Approval ofAward
ContractApproval and
Execution
Complywith the
conditions
of Award
Sign the BOTContract
Pre-bid Conference
3-envelope system
Proponent Agency R i d
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Contract ImplementationContract Implementation
Proponent AgencyImplementing AgencyLocal Government Unit
Private Sector(Winning Proponent)
Private Banks(Foreign/Local)
Private Sector(Operation Company)
Submit forapproval
FinancialClosure
DetailedEngineering
Design
IssuePerformanceGuarantee
Minimum designand performance
standards &specifications
Review andapprovedetailed
engineeringdesigns and
plans
ProjectConstruction
ProjectOperation &Maintenance
Issue
PerformanceGuarantee
Cash, bank draft,surety bond, letter of
credit, guarantee,insurance
Review and Monitor ProjectConstruction, Operation and
Maintenance
Operate &maintain the
Facility
ROWacquisition
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Unsolicited BOT ProcessUnsolicited BOT Process
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Project Identification & PreparationProject Identification & Preparation
National Economic andDevelopment Authority(NEDA)
Proponent Agency
Implementing Agency/Local Government Unit
Regional DevelopmentCouncil (RDC)
Funding Agency(USAID,WB,ADB,AusAID)
Private Banks
PrivateSector
Confirm
project isnot
includedunder listof priorityprojects
PrepareUnsolicited
BOTProposal
AcceptsProposal and
grants OriginalProponent
Status
N
Submitproposal toProponent
Agency
ORIGINALPROPONENT
Status
Rejects
Request
Y
Review and
evaluateprojectqualification
as anunsolicitedproposal
Negotiatewith
OriginalProponent
ApprovesProject and
endorseproject forapproval
National Economic and Acknowledge receipt and
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BOT approval (1/ 2)BOT approval (1/ 2)
Development Authority(NEDA)
Proponent AgencyImplementing AgencyLocal Government Unit
Regional DevelopmentCouncil (RDC)
Department of Environmentand Natural Resources (DENR)-Environmental Management Board(EMB)
Department of Budgetand Management (DBM)
Department of Finance (DOF)-Corporate Affairs Group (CAG)
Other concerned/related governmentagencies
Private Sector/Investor
RDC endorsement
Assist privet sector insecuring necessary
clearances
ConductProjectReview
Y
N
ConductProjectReview
ConductProject
Review
ConductProjectReview
ConductProjectReview
Reject/Recommend changes
Y
NReject/Recommend changes
Issue Environmental Clearance
Certificate
N
Issue Certification Budget CoverAvailability, if needed
Non-budget cover Certification
Confirm project requires nogovernment undertaking
Non-issuance of requiredclearance
Issue clearance/certificate
Y
Y
N
Submit FS and all
requirements to ICC
commence with thereview/approval process
Secure necessary
clearances
Endorse project to ICCfor review and
approval
Regulatory Body
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BOT approval (2/ 2)BOT approval (2/ 2)
Private Sector
(Original Proponent)
Proponent AgencyImplementing AgencyLocal Government Unit
NEDA Board(Chaired by the Presidentof the Philippines)
ICC-Cabinet Committee
ICC-Technical Board
InvestmentCoordinationCommittee (ICC)-Secretariat
FinalApproval
Confirmationof approval
Y
N
Final review ofICC-TB
endorsement
Deliberate/Review Project
Conductevaluation/assessment
and prepareevaluation
report
Deferapproval
N
ApproveProject/Endorse to
ICC-CC
Defer approval forfurther review
Refer project toProponent Agency
Endorse project/contract to ICC-TB
Y
Y
Prepare for theconduct of the SwissChallenge Process
N
Adjustments oftolls/fees/rentals/
charges
Confirmationof approval
Acceptance of
Terms andConditions
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Sw iss Challenge P rocessSw iss Challenge Process
Proponent AgencyImplementing AgencyLocal Government Unit
Private Sector(Interested Bidders/Challengers)
Original Proponent
Issuance ofRequest forComparative
Proposals
AdvertisementInvitation for
Comparative Proposals
Prepare andsubmit bid
proposal
Secure formsand tender
documents
Preparation of
Tender Documents
Creation of Bids andAwards Committee
(BAC)
Evaluation ofProposals
QualificationTechnicalFinancial
Qualified
TechnicalEvaluation
Technically
Qualified
FinancialEvaluation
Approval ofAward
ContractApproval and
Execution
Complywith the
conditions
of Award
Sign the BOTContract
Posts bid bond
Re-formats and re-
submit proposal
Right-to-matchthe best proposal
Pre-Bid Conference
3-envelope system
Proponent AgencyReview and
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Contract ImplementationContract Implementation
Implementing AgencyLocal Government Unit
Private Sector(Winning Proponent)
Private Banks(Foreign/Local)
Private Sector(Operation Company)
Submit forapproval
FinancialClosure
DetailedEngineering
Design
IssuePerformanceGuarantee
Minimum designand performance
standards &specifications
Review andapprovedetailed
engineeringdesigns and
plans
ProjectConstruction
ProjectOperation &Maintenance
Issue
PerformanceGuarantee
Cash, bank draft,surety bond, letter of
credit, guarantee,insurance
Review and Monitor ProjectConstruction, Operation and
Maintenance
Operate &maintain the
Facility
ROWacquisition
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Thank youThank you