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01 April 2012

DBM released guidelines for Public-Private Partnerships (PPPs) fund use

In line with the Aquino administration’s vision of expanding infrastructure growth and facilitating proper fund management, the Department of Budget and Management (DBM) released guidelines for the submission of agency budget proposals for Public-Private Partnerships (PPPs) funded by the Public-Private Partnership Strategic Support Fund (PPPSSF) and the Project Development and Monitoring Facility (PDMF).
“The guidelines are designed to promote transparency in the agency implementation of nationwide PPP projects. In setting parameters for PPP budgetary support, we aim not only to shed light on the technicalities involved in using the PPPSSF and the PDMF; we also want to ensure the proper use of public funds for our public-private engagements,” Budget and Management Secretary Florencio B. Abad said.
According to the guidelines, which were identified in a National Budget Circular, the PPPSSF can be used to cover costs of right of way, resettlement, and the government’s counterpart fund in the implementation of a PPP project, among others. The PPPSSF is a lump-sum appropriation included in an implementing agency’s budget to fund the government’s share in executing PPP initiatives.
Moreover, the PPPSSF may also support the cost of designing, building and delivering any part of the PPP project that the government will retain responsibility over, including public infrastructure in the form of access roads, utilities, and other support facilities that ensure the viability of a PPP project.
The circular also specified that the PPPSSF shall not be used for expenses related to unsolicited project proposals, credits, and loans to PPP private partners, and support for the regular programs of the implementing agency.
On the other hand, the PDMF can be used only for the preparation of project feasibility studies, required project documents—such as bid documents and draft contracts—and for the hiring of consultants and advisors to assist the implementing agencies.
The PDMF is a revolving fund created under Executive Order No. 8, series of 2010, which shall be used for the preparation of pre-feasibility, feasibility studies and tender documents for PPP projects, as well as assistance in the bidding process.
The budget chief added that agencies can begin using their respective PPPSSF and PDMF allocations pending the submission of key documentary requirements.
“We’re enforcing strict documentary compliance among agencies so that both the government and our private partners can be assured of efficient fund use for all public-private engagements. PPPs will play a crucial role in improving our economic and infrastructure performance this year, and more than ever, we need to ensure that these engagements will result in palpable and substantial benefits for all Filipinos,” Abad said.

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