PPP add-ons

November 7, 2016
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PPP

PPP add-ons

What are the possible add-ons to government projects and existing Public-Private Partnership (PPP) contracts and projects? What are the benefits to add-on arrangements? Will adding-on components and contractual obligations require another round of competition?

There is room for improvement and dynamism. This is the rationale behind add-on schemes. An old and poorly maintained or even existing and kempt government or PPP projects can still benefit from enhancements. There could have been supervening events that were not contemplated at the beginning. Occurrence of risks is another reason. Government may, likewise, be impelled to do more.

The add-ons can take different forms.

(1) Rehabilitating existing facilities. Under the BOT law and concession laws, like the National Water Crisis Act and the Electric Power Industry Reform Act, rehabilitation and improvement of existing facilities may be introduced. High incidence of nonrevenue water or transmission losses, in the case of the water and transmission concessions, respectively, poor management and dilapidated systems may have prompted the add-ons.

October 24, 2016
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PPP

Utilizing the Performance Governance System for PPPs

What is the Performance Governance System (PGS) and how does this enhance public-private partnerships (PPPs)? Can the PGS help “future-proof” PPP policies and projects? What systems must be in place so that PPPs will serve the interests of the people and will be powered by the people themselves?

The PGS, administered by the Institute for Solidarity in Asia, is a strategy management framework for public-sector institutions converting them to islands of good governance. Public-sector institutions, such as national government agencies, governmental instrumentalities and corporations, and local governments, are envisioned to undergo rapid transformation. They shall be guided to move along the four-stage governance pathway of initiation, compliance, proficiency and institutionalization.

October 17, 2016
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PPP

Using plebiscites to strengthen PPPs. Really?!

HOW can a plebiscite strengthen public-private partnerships (PPPs)? Is this even possible and legal? Who will participate in this political exercise? What is the effect if a PPP law, project
or contract is confirmed through a plebiscite?

During the stakeholders’ meeting on P4 (PPP for the People) organized by the Department of the Interior and Local Government on October 7, this columnist raised the matter of holding a plebiscite as one way to strengthen and confirm PPP policies, contracts and projects. The unspoken reaction was: “Really?!”

One of the challenges of far-reaching policies and strategies, and long-term contracts, such as PPPs and P4, is the social risk. Civil-society organizations (CSOs) and ordinary citizens may assail the validity of the PPP arrangement or question the propriety of tariff adjustments. This happens if the parties to a PPP contract—the government and the private sector—do not involve CSOs as early as project identification, in the selection process up to project implementation, including regulation and tariff setting.

October 10, 2016
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PPP

Achieving better quality of life through PPPs

Conclusion

PUBLIC-PRIVATE partner-ships (PPPs) are generally welfare-driven, in terms of content and process. Thus, because of PPPs, people’s lives must become better socially, economically, environmentally and politically. Change must be for the better. Quality of life must be enhanced. People must become happier.

If better quality of life is the goal of public-private partnerships (PPPs), how can this be measured? There are six possible metrics.

October 3, 2016
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PPP

Achieving better quality of life through PPPs

WHAT is the true purpose of publicprivate partnerships (PPPs)? What is the meaning of better quality of life? How can PPPs help achieve this state? How do we determine if better quality of life is, in fact, attained? What are the possible metrics?

PPPs are anchored on several value drivers. The government will enter into collaborative arrangements with the private sector, as against doing projects by themselves, to pursue a policy, address resource scarcity; allow the private sector to introduce innovation; allocate and share risks; and implement projects for better value-for-money. On the part of the private-sector proponents, they need to make revenues for the benefit of their shareholders.

What is not expressly factored in this equation is the true north of PPPs. The real purpose of PPPs is better quality of life for the people. The enumerated reasons for PPPs must not be detached from this true north. The people must be at the heart of this development and change strategy.

September 26, 2016
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PPP

Traversing PPPs is like a ‘Spartan Race’. Aroo!

34 Traversing PPPs HOW similar is the process involved in public-private partnerships (PPPs) with a “Spartan Race”, an obstacle-course run? What are the “obstacles” of a PPP program and project? How easy or how difficult is it to have a successful PPP and to complete an obstacle-ridden race?

Your columnist joined his first (and not the last) “Spartan Race” two weeks ago. It was the shortest distance offered, called the “Sprint”—almost 10 kilometers interspersed with 26 obstacles. Your columnist almost gave up under the soaring heat of close to 100 degrees. He was teary-eyed when he crossed the finish line and claimed his first medal. That was how difficult it was. Aroo! (in some segments,
it was Aray!)

PPPs are also not walks-in-the-park. Like the Spartan Race, PPPs have a mix of easy and difficult obstacles. And like PPPs, there is no Spartan Race with impossible hurdles. All are conquerable. However, Spartans, like PPP proponents, must be prepared and must be committed
with a vision.

September 20, 2016
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PPP

PPPs and ‘Pokémon Go’ as game changers

PPP_PokemonGo WHY should public-private partnerships (PPPs) and the mobile-phone game “Pokémon Go” (PG) be game changers? Will PPPs become as popular as PG? What are the similarities and dissimilarities between them? What can PPP advocates learn from PG players? Yes, your columnist is a PG player.

He searches for the nearest PokéStop; uses his Ultra Balls to catch hard-to-find Pokémons; and brags to his relatives the list of characters in his Pokédex

PPPs and PG call for innovation. For proponents of PPPs and for Niantic and Nintendo, the developers of the PG game, innovation must be the driving force of the programs. While both are built from tradition, they should be envisioned and implemented with innovation in mind. This is the challenge all strategists must embrace. And for innovation to be such, they must be anchored on a core or purpose.

PPPs and PG are purpose-driven. PPP’s ultimate purpose is the public good, the people. Better quality of life is the reason government and the private sector collaborate to build and maintain roads, bridges, airports, seaports, classrooms, hospitals, markets, water-supply systems and power projects. The objective of PG may not be as noble but all gamers are motivated by the same thing. We want to complete the set of Pokémons.