Philippines already Top 10 PPP hosts

With only 1 PPP signed off, the country is already rated in the Top 10 hosts for PPPs. I would feel this is more confidence inspired rather than backed by number of deals done. Let’s hope the confidence is backed by the numbers as the many in the pipeline are implemented.

Phl among top 10 hosts for PPP projects – ADB study  
By Ted P. Torres (The Philippine Star) Updated May 31, 2012


MANILA, Philippines – The Public-Private Partnership (PPP) program of the Philippines, has been ranked at the middle among 16 emerging and developed nations in Asia, a study released by the Economic Intelligence Unit (EIU) showed.

“The Philippines is among the emerging nations that are in the process of updating regulations, and have restructured existing institutional frameworks in the hope of improving the processes around PPP selection and oversight, and to develop specialist capacity in the public sector,” the study said.

The study was commissioned by the Asian Development Bank (ADB) and conducted by the EIU. It uses a benchmark index system to rank the readiness and capacity of a country to carry out sustainable, long-term PPP projects.

It said the Philippines, Vietnam, Mongolia, Papua New Guinea, Pakistan, Bangladesh, Kazakhstan, Thailand and Indonesia are putting in place the necessary laws and structures to attract more private investment.

At the same time, the study noted that while overall prospects for PPP development remain bright, governments need to continue reforms and address capacity gaps for the design and implementation of effective projects.

“It is the capacity of the public sector to be able to react systematically to the complexities associated with PPP projects that will ensure long term success,” it added.

The study stressed that well-designed regulatory and institutional frameworks are necessary conditions for most markets,

“But for all the efforts around regulatory reform and institutional change that have been invested to date, it is the capacity of the public sector to react systematically to the complexities associated with infrastructure PPPs that will ensure long-term success,” it said.

The appropriate allocation of risk, ef?cient dispute-resolution mechanisms, strong project-?nance structuring skills and the robust negotiation of contracts are critical to PPP success, as is effective public-sector oversight. The nascent and emerging PPP markets in the region have yet to develop the institutional capacity and expertise required to bring the frameworks to life.

The Philippines ranked eight overall behind Australia, the United Kingdom, Korea, Gajarat State (Western India), India, Japan, and China. Australia and the UK are classified as benchmark countries.

The ninth to 16th slots are occupied by Indonesia, Thailand, Bangladesh, Pakistan, Kazakhastan, Vietnam, Mongolia and Papua New Guinea.

ADB deputy director general for regional and sustainable development Woochong Um said that in order to leverage the reported $8-trillion required over the next decade for physical infrastructure in Asia, public financiers like ADB must undergo a complete change of mindset and shift their focus from sovereign projects to PPPs.

“Studies such as this one will help our developing member countries address the areas of PPPs that need to be strengthened,” Um added.

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