expr philippines

8/8/2019 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)


Proponent AgencyImplementing AgencyLocal Government Unit


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


Conduct

ProjectReview


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

l d


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BOT approval (2/ 2)BOT approval (2/ 2)

Regulatory Body


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


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


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


Proponent Agency

Implementing Agency/Local Government Unit


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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Development Authority(NEDA)



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


Y

N


ConductProject

Review



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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Private Sector

(Original Proponent)


NEDA Board(Chaired by the Presidentof the Philippines)

ICC-Cabinet Committee

ICC-Technical Board

InvestmentCoordinationCommittee (ICC)-Secretariat

FinalApproval


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


Acceptance of

Terms andConditions


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Sw iss Challenge P rocessSw iss Challenge Process


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