The Philippines’ PPP programme has been identified as the way to tackle much needed infrastructure development, supported by relevant economic and regulatory reforms, greater transparency and good governance. 2011 closed with the successful bidding of the first PPP road project valued at £ 22.8 Million, and January 2012 kicked off with the tender for PPP school buildings project.

Under its PPP initiative, the Philippines government is determined to catch up on much needed investments in transport infrastructure and is keen on doing things in an honest, clear and transparent manner. It has also set aside budgets for right-of-way acquisitions for several infrastructure projects and established the PPP Centre with initial funds to support project development and monitoring.

These Philippines projects offer opportunities for UK products, services and expertise that can be accessed by participating in the bidding process or tapping supply chain opportunities through direct supply or partnerships. Opportunities can be categorized into two main areas, which are; Infrastructure that includes planning, construction, maintenance and equipment; and, Specialist Expertise in project management, consultancy, financing and insurance.

Specific Opportunities 2012-2013

Several PPP projects have been prioritised for rollout from 2012-2013, with an overall indicative cost of £ 3.3 billion. This involves key transport projects estimated at £ 2 billion (rail, airports, ports and roads), as well as other infrastructure projects estimated at £ 1.3 billion. (Please see below)

Mass Transport Priority Projects for 2012-2013 (estimated value of at least £ 2 billion)

RAIL

1., LRT 1 Cavite Extension, £ 900 Million (P 59.2 Billion – two separate packages for civil works / O&M and Rolling Stock)

2., LRT 2 Masinag Extension, £ 180 Million (P 12 Billion – P9 Billion for the superstructure and P3 Billion for Rolling Stock)

AIRPORTS

3., Puerto Princesa Airport, TBD (for O&M)

4., Laguindingan Airport -, £ 27 Million (P 1.8 Billion – for O&M)

5., New Bohol (Panglao) Airport, £ 122 Million (P 8 Billion – P4B airside facilities; P3B terminal +; P1B contingencies, consultancy)

6., Mactan/Cebu – Main Airport, £ 152 Million (P 10.15 Billion for new passenger terminal building)

PORTS

7., Davao Sasa Port, £ 76 Million (P 5 Billion)

ROADS

8., NAIA Expressway – Phase II, £ 240 Million (P 15.77 Billion)

9., NLEX-SLEX Connector, £ 307 Million (P 20.18 Billion)

Additional Projects 2012-2013 (estimated value of at least £ 1.3 billion)

• Automatic Fare Collection System , £ 27 Million (P 1.8 Billion)
• Balara Water Hub , £ 305 Million (P 20 Billion)
• CALA Expressway (Cavite and Laguna Side) , £ 300 Million (P 19.69 Billion)
• Cebu Bus Rapid Transit Demonstration Project , TBD
• Establishment of Cold Chain Systems Covering Strategic Areas in the Philippines , £ 80 Million (P 5.3 Billion)
• Grains Central Project , £ 19 Million (P 1.25 Billion)
• Integrated Transport System (ITS) Project , TBD
• Modernization of the Philippine Orthopedic Center , £ 76 Million (P 5 Billion)
• New Centennial Water Supply Source Project , £ 381 Million (P 25 Billion)
• Operation & Maintenance of Angat Hydro Electric Power Plant (AHEPP) Auxilliary Turbines 4 & 5 , £ 24 Million (P 1.6 Billion)
• PPP for School Infrastructure Project (Updated 26 April 2012) , £ 152 Million (P 10 Billion)
• Quirino Highway Improvement and Rehabilitation , TBD
• Vaccine Self-Sufficiency Project Phase II, £ 6 Million (P 453 Million)

Opportunities for participation in the Philippines’ PPP programme and infrastructure projects may be through:

– preparation of studies as part of the PPP Centre’s accredited panel of transaction advisers;

– direct participation in tender for project implementation and delivery, either as lead, partner or member of a consortium;

– and, product, service and expertise requirements down the supply chain.

UK – Philippines Partnership

The UK has positioned itself has the Philippines’s partner in its PPP initiative – with UKTI Manila-based staff lending support directly to the Philippine’s PPP Centre through capability building activities, and introducing UK companies to key project proponents and stakeholders. Through UKTI seminars and trade missions, UK capabilities and companies were given the opportunity to introduce themselves to market stakeholders. Among those that have been conducted on 2011 were on PPP professional services and sustainable infrastructure, and green design & technologies in early 2012.

This year, high-level visits to the Philippines (the RtHon the Lord Mayor David Wootton and Rt Hon Jeremy Brown), and counterpart high-level visits to the UK (relevant cabinet level visits to the UK, including that of President Aquino in June) were all leveraged to highlight UK capabilities in infrastructure and PPP.

UK reputation and capability in transport infrastructure and in professional services in PPP is gaining further recognition with more UK companies being engaged in various components of the projects in the pipeline. Several UK companies have won bids for legal as well as transaction advisory services, either directly or as part of a consortium accredited by the PPP Centre. A few other companies are positioned to partner with major local companies that have expressed interest to participate in project tenders.