MANILA, Philippines - The government is eyeing an additional P300 million this year to the so-called Project Development and Monitoring Facility (PDMF) which could mean more infrastructure projects could take off this year and in 2013, Socioeconomic Planning Secretary Cayetano Paderanga Jr. said over the weekend. Paderanga said that aside from the P160-million PDMF fund allocation from the P1.816-trillion budget for 2012, the government is hoping to increase the PDMF fund by another P300 million.
The increase may come from multilateral international funding agencies.
The so-called PDMF is a facility to finance pre-investment activities for PPPs, mainly feasibility studies for projects under the so-called public-private partnership program for infrastructure.
The P550-million fund, approved in October, caught the interest of over 20 government agencies.
Paderanga said the PDMF would help the PPP program gain momentum.
Cayetano said that through the PDMF, implementing agencies and local government units will be able to work closely with technical advisors who will help craft their business cases and feasibility studies to meet the requirements of partners and investors.
Paderanga said the government, through the PPP Center would employ the services of nine international consortiums of consultancy firms for the feasibility studies. The lead firms of the consortiums include, among others, Rebel Group International BV, Deloitte Touche Tohmatsu India Pvt. Ltd., Ernst & Young Australia Infrastructure Advisory, and PricewaterhouseCoopers Services LLP.
The PDMF was set up under Executive Order 8 and was initially provided P300 million by the government. The Australian Agency for International Development, one of the development partner agencies, provided additional $6 million to the fund.
The government’s PPP Center earlier announced that the Aquino administration plans to accelerate the implementation of its PPP program by bidding out eight to 16 projects this year.
The list of 16 projects include the P900-million Vaccine Self-Sufficiency Program of the Department of Health; the P25-billion Metropolitan Waterworks and Sewerage System New Water Supply project; a P20.18-billion North Luzon Expressway-South Luzon Expressway Connector Road; a P10.15-billion Mactan Terminal 2 Airport Development; and the P8-billion New Bohol Airport.
Other projects include the P20-billion Balara Water Hub; P19.69-billion CALA (Cavite and Laguna Side) Expressway; P11.3-billion Light Rail Transit 2 East Extension and the first phase of a P10.4-billion PPP for School Infrastructure Project.
The Aquino administration has admitted PPP projects are taking longer to bid out because feasibility studies are taking longer than expected.