Infrastructure & PPP

An Expert's View about Transportation and Storage in the Philippines

Posted on: 25 Aug 2012

Reliable infrastructure such as roads, ports and airports have been identified by the Philippine government as an imperative for the country to improve its economic standing.

Infrastructure & PPP in the Philippines Reliable infrastructure such as roads, ports and airports have been identified by the Philippine government as an imperative for the country to improve its economic standing. Market overview The current administration is encouraging the private sector to invest in such projects through the Private Public Partnership (PPP) initiatives launched in November of 2010. The Philippines’ PPP programme has been identified by the current administration as the way to tackle much needed infrastructure and development. This will be supported by relevant economic and regulatory reforms, including greater transparency and good governance. The Philippine government is keen to roll out and implement various infrastructure, road, health, education, power and agriculture projects in the coming years. 2011 closed with the successful bidding of the first PPP road project. This was valued at USD35.5 million. The start of 2012 kicked off with the tender for a PPP school buildings project. Under the PPP initiative, key projects are planned for roads, ports, airports, rail, health, education, power and agriculture. The current total value of projects is estimated around of US$15.6 billion – with more projects in the pipeline. Key opportunities Under its PPP initiatives, the government is determined to catch up on much needed investments in transport and infrastructure. The government 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. It has established the PPP Centre with initial funds to support project development and monitoring. Opportunities for UK products, services and expertise 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 including: planning, construction, maintenance and equipment; and the second category being ‘Specialist Expertise’ including: project management, consultancy, finance and insurance. The following PPP projects have been prioritised for rollout in 2012 with an estimated value of at least US$3.2 Billion. These are mostly in mass transport (rail, ports, airports), roads, health, education and agriculture. ξ LRT Line 1 Extension (two separate packages for civil works/O&M and rolling stock) ξ LRT 2 Masinag Extension (for superstructure and for rolling stock) ξ Puerto Princesa Airport (O&M) ξ Laguindingan Airport (O&M) ξ New Bohol (Panglao) Airport (for airside facilities, terminal, contingencies, and consultancy) ξ Mactan/Cebu – Main Airport (for new passenger terminal building) ξ Davao Sasa Port ξ NAIA Expressway Phase II ξ NLEX-SLEX Connector Late in March, the light rail 1–South Extension Project valued at around US$1.3 billion was approved by the NEDA- Investment Coordination Committee. The Department of Transportation and Communication (DOTC) aims to tender the bid before the end of 2012. Getting into the market Doing business in the Philippines is highly relational. A formal and personal introduction or partnerships with an established local firm are preferred ways to enter the market. ξ Appointments are required and should be made at least two weeks in advance. ξ English is the language of business. ξ The Philippine government encourages inbound foreign investment and a wide range of incentives are readily available. Find general information on the Philippine market conditions on UKTI’s website. More about doing business in the Philippines gives an overview of the Philippines’ economy, business culture, potential opportunities and an introduction to other relevant issues. Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research, for general advice about the market or for more information on the PPP projects, get in touch with our specialists in country - or contact your local international trade team. ξ Rachel Gancia, British Embassy Manila. Email: Tel: +63 2 858-2261 ξ Anne Roman, British Embassy Manila Email: Tel. +63 858-8862 Contact your local international trade team Major Events View the events in the Philippines listed on the UKTI site UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events – Construction Useful links More about OMIS and other UKTI services for exporters
Posted: 25 August 2012

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