DBM issues guidelines on PPP budget proposals

MANILA, Philippines - The Department of Budget and Management (DBM) has released guidelines for the submission of agency budget proposals for projects under the government’s Public-Private Partnership program for infrastructure.

The guidelines will set parameters for projects to be funded by the Public-Private Partnership Strategic Support Fund (PPPSSF) and the Project Development and Monitoring Facility (PDMF).

Budget and Management Secretary Florencio Abad said the guidelines would also ensure transparency in the implementation of the projects.

“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 but we also want to ensure the proper use of public funds for our public-private engagements,”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, re-settlement and the government’s counterpart fund in the implementation of a PPP project, among others.

The so-called PPPSSF is a lump-sum appropriation included in an implementing agency’s budget.

This particular allocation would be used to fund the government’s share in executing PPP initiatives.

As a support facility, it would also be used to support the cost of “designing, building and delivering” any part of the PPP project that would fall under the responsibility of the government.

Furthermore, the circular also specified that the PPPSSF shall not be used for expenses related to unsolicited project proposals as well as for credits and loans to PPP private partners.