Canada and Australia through the Asian Development Bank (ADB) are providing more funding support to strengthen the Philippine Public-Private Partnership (PPP) Center and the project development and monitoring facility (PDMF), which finances project preparation costs to ensure the bankability of PPP projects.
“PDMF is supporting the preparation of 25 PPP projects with the total estimated investments of more than $4.2 billion and the pipeline of projects continues to grow. We are happy to provide additional support to the government to sustain this positive momentum,” said Neeraj Jain, ADB’s Country Director for the Philippines.
The Australian Agency for International Development (AusAID) is providing $12 million to the PDMF and $3 million for capacity building and institutional strengthening.
Canada is adding $3 million to support capacity building and institutional strengthening in PPPs. The government’s counterpart contribution to PDMF will increase to the equivalent of $22.3 million. ADB’s funding to the project is $2 million.
With the additional funds, at least 15 PPP projects are expected to be implemented or ready by 2016, up from the original target of five projects by the end of 2013.
So far, two tollway and one education PPP projects have been successfully bid out, with one supported through PDMF. Costs of preparation of this project have been refunded by the winning bidders back to the facility.
“Australia remains a strong supporter of the Philippines Government’s PPP agenda with our increased funding support totaling $22 million,” said Australian Ambassador to the Philippines Bill Tweddell.
“Working together with our partners, Australia is making a difference by helping to improve transparency as well as regulatory and governance arrangements for preparing and tendering viable infrastructure projects. This generates increased private sector investments to fund infrastructure projects that are essential for socio-economic development in the Philippines.”
“Canada is committed to strengthening PPP project development, implementation and monitoring in the Philippines,” said Canadian Ambassador to the Philippines Christopher Thornley.
“The support to PPP is in line with Canada’s plan to broaden our engagement with the private sector as the driving force behind sustainable economic growth. By working closely with government, development partners, and the private sector through this multi-donor technical assistance initiative on PPP, we can contribute to sustainable economic growth in the Philippines,” said Thornley.
Assistance from ADB, AusAID and Canada will help develop stronger policy, legal and regulatory environment for PPPs in the Philippines.
Canada’s international development program in the Philippines is focused on sustainable economic growth by improving the investment climate and advancing the economic opportunities of poor women and men.
Australia is a long-standing development partner of the Philippines and one of the country’s largest bilateral grant aid donors. In the current financial year, Australia will provide over P5 billion in development assistance to the Philippines.