The International Finance Corp. (IFC) will assist the Philippine government in rolling out five big-ticket public-private partnership (PPP) infrastructure projects, worth a total of P62 billion.
The private-sector arm of the World Bank Group recently disclosed it will provide transaction advisory to the Department of Transportation (DOTr) and the PPP Center for the following projects to be financed by private-sector money: P14.7-billion Iloilo International Airport rehabilitation; P12.8-billion Laguindingan International Airport upgrade; P4.5-billion Bohol-Panglao International Airport upgrade; P27-billion Air Traffic Services-Air Navigation Services (ATS-ANS) project; and P3-billion Manila Light Rail Transit (LRT) Line 2 rehabilitation.
The PPP Center confirmed to Manila Bulletin last week that the IFC will be involved in these five projects through the agency's project development and monitoring facility (PDMF), the revolving fund it administers and manages to develop a robust, viable and well-prepared pipeline as well as enhance the investment environment for PPPs.
According to the PPP Center, the IFC's involvement in these projects will span 14 to 18 months, although timelines will vary depending on the specific needs and complexities of each project.
"For the Bohol, Iloilo, and Laguindingan international airports, the IFC will provide transaction advisory support with the goal of awarding the upgrade, expansion, operation and maintenance of these airports either to the original proponent or to a winning challenger via a comparative challenge process," the PPP Center told Manila Bulletin.
The private proponents of these three unsolicited airport PPP projects were the Manuel Paolo Villar-led Prime Asset Ventures Inc. consortium for the Iloilo airport, as well as Aboitiz InfraCapital Inc. for both the Bohol-Panglao and Laguindingan airports.
"For the Air Navigation Services, the IFC is engaged to provide advisory assistance for the preparation of a diagnostics and scoping study to evaluate the potential of the project as a PPP," the PPP Center said.
The ATS-ANS will be a solicited project currently under development or pre-project preparation, according to the websites of the PPP Center and the National Economic and Development Authority (Neda).
Under the ATS-ANS project, the private sector concessionaire will "take over, modernize and upgrade existing facilities of the Civil Aviation Authority of the Philippines (CAAP), including radar, communications facilities and control centers" as well as build new facilities covering the country's airspace and the international airspace it manages, according to the PPP Center's website.
As for LRT-2, "the IFC's work scope covers the development, preparation and implementation of a solicited procurement process to select a private partner to rehabilitate, operate, maintain and expand the Manila LRT Line 2," the PPP Center said.
Similar to the ATS-ANS, the rehabilitation, expansion, operations and maintenance of LRT Line 2 is also undergoing pre-project preparation.
In general, "the IFC's transaction advisory assistance will help ensure the success of these projects by providing expert guidance on project structuring, financing, legal matters, risk management and negotiations," the PPP Center noted.
"They help ensure that projects are financially viable, legally compliant and attractive to private investors, ultimately improving project outcomes and reducing risks for both the government and the private sector," it added.
The PPP Center pointed out that this won't be the IFC's first time to provide transaction advisory services for private-financed public infrastructure projects in the Philippines.
"The IFC had previously been involved in the following projects: Clark International Airport operation and maintenance, NAIA Expressway, Davao Sasa PPP (solicited), UP Philippine General Hospital (PGH) Cancer Center, and LRT-1. The IFC engagements for these projects were directly through the implementing agency, and not facilitated through the PDMF of the PPP Center," it said.