A Look At BOT-INFRASTRUCTURE PROJECTS

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A Look At BOT-INFRASTRUCTURE PROJECTS

• Build-Operate-and-Transfer (BOT) Center

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Outline of Presentation

• The PPP-BOT Program
• Projects for Investments
• The BOT Center

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THE PPP-BOT PROGRAM
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Republic Act No. 7718

• Title
• An Act Amending Certain Sections of RA 6957,
  Entitled An Act Authorizing the Financing,
  Construction, Operation and Maintenance of
  Infrastructure Projects by the Private Sector,
  and for Other Purposes.
• Declaration of Policy
• Recognition of private sectors role in
  development
• Provision of incentives to mobilize private
  resources
• Climate of minimum government intervention
• Specific GOP undertakings to support private
  sector

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What is PPP (Public-Private Partnership)-Build-Ope
rate-Transfer (BOT)?

• Contractual arrangement between the government
  and the private sector whereby the latter
  finances, constructs and in some cases operates
  and maintains a facility or project
• The private sector is allowed to charge user fees
  to recover its investments
• Both government and private sector share project
  risks

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Procurement Modes

• Public Bidding / Solicited Mode
• Unsolicited Proposals
• Project involves new concept or technology and/or
  not in the list of priority projects
• No direct government guarantee, subsidy, or
  equity
• IA/LGU concerned must solicit comparative or
  competitive proposals

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Private Sector Participation in BOT/PSP Projects

• Bidder/member of consortium for priority
  infrastructure projects of government
• Financier of awarded BOT/PSP project
• Supplier of machinery, equipment, materials
• Sub-contractor to the winning contractor
• Proponent of unsolicited project

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THE PHILIPPINE BOT PROGRAM

• From the early 1990s until December 2008, the
  Philippine BOT Program has generated capital
  investment of more than US19 billion broken down
  as follows

Status No. of Projects Project Cost (USM)
Power 38 8,701.36
Transport 8 2,25.00
Environment 5 7,839.40
IT (National LGU) 8 290.72
Social Infrastructure 1 1.00
Property Development 9 453.86
TOTAL 63 19,511.34
US17,692.92 20 Projects
US17,692.92 6 Projects
US17,692.92 37 Projects
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• PROJECTS FOR INVESTMENTS

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Projects for Investments

• Panguil Bay Bridge Project
• Balog-Balog Multi-Purpose Project
• Batangas to Manila Natural Gas Pipeline (BatMan1)
• Integrated LNG Terminal, Pipeline and Power Plant
  Project
• Isabela Coal Mining and Power Plant Project
• NAIA Expressway
• Metro Manila Skyway Project

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Panguil Bay Bridge Project

• Implementing Agency Department of Public Works
  and Highways (DPWH)
• Project Description
• The Project entails the construction of a bridge
  with approximate length of 2,360 meters and
  approach roads pf 1,240 meters across Panguil Bay
  between Tangub City, Misamis Occidental and
  Tubod, Lanao del Norte.
• Estimated Project Cost P4.425B
• Project Implementation Scheme BTO
  (Build-Transfer-Operate) - Solicited

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Panguil Bay Bridge Project

• Status
• Preparation of the tender documents for
  procurement of BOT proponents is on-going.
• Prequalification of BOT proponents to commence
  upon completion of the specimen design based on
  the geophysical survey and geotechnical
  investigation.
• Contact Person/Details
• Director Bienvenida Firmalino
• BOT Office DPWH
• Bonifacio Drive, Port Area, Manila
• Tel. No. (632) 3043762, Fax No. (632)
  3043824

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Balog-Balog Multipurpose Project Phase II

• Implementing Agency National Irrigation
  Authority (NIA) / Tarlac Provincial Government
• Project Description
• BBMP Phase II (located in Tarlac) involves the
  following components
• (1) construction of the Balog-Balog High Dam and
  reservoir with storage capacity of 625 MCM for
  irrigation, power generation, flood control, and
  inland fish production purposes,
• (2) construction of a hydro-power plant with
  installed capacity of 33 MW.

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Balog-Balog Multipurpose Project Phase II

• Estimated Project Cost P8.8B
• Project Status
• The Project is currently being evaluated if
  viable for implementation under the BOT Law.
• Contact Person / Details
• Mr. Vicente R. Vicmudo, Ph. D.
• Project Manager
• National Irrigation Authority
• Tel. No. [phone]
• [phone]

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Batangas to Manila Natural Gas Pipeline (BatMan1)

• Implementing Agency
• Philippine National Oil Company (PNOC)
• Project Description
• The BatMan1 Project is a high-pressure gas
  transmission pipeline with a total line length of
  approximately 135 km consisting of three distinct
  legs. The input pressure at the Onshore Gas Plant
  in Batangas will range from 60-70 bars.
• It will start from On-Shore Gas Plant in
  Tabangao, Batangas City to Biñan, Laguna via STAR
  Highway. Then, from Biñan station, two spur
  pipelines will be connected which are called
  Biñan to Rosario (RoBin), Cavite Pipeline and
  Biñan to Fort Bonifacio, Taguig Pipeline.

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Batangas to Manila Natural Gas Pipeline (BatMan1)

• Estimated Project Cost
• US131 Million 
• Project Implementation Scheme
• Joint Venture
• BOT scheme
• Project Status
• PNOC Exploration Corporation (EC) had already
  acquired the following
• PNOC EC Board Approval
• NEDA Board Approval
• Environmental Compliance Certificate (ECC)
• 100 Letters of Intent from the industrial estates
  potential gas users
• 9 Endorsements from LGUs
• NEDAs support declaring the project as a project
  of national significance

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Batangas to Manila Natural Gas Pipeline (BatMan1)

• Contact Persons
• Mr. Rafael E. Del Pilar
• President and CEO
• PNOC Exploration Corporation
• Tel. No. 840-2015, Fax No. 840-2348
• Mr. Candido M. Magsombol
• Manager
• Business Development Department
• PNOC Exploration Corporation
• Tel. No. 479-9255, Fax No. 840-2044

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Integrated LNG Terminal, Pipeline and Power Plant
(Integrated Project)

• Implementing Agency
• Philippine National Oil Company
• Project Description
• The Integrated Project (located within the
  municipalities of Limay and Mariveles, Bataan)
  will be composed of the following
• setting up of an LNG Receiving Terminal in Limay,
  Bataan
• the gas-fired conversion of the 600 MW Limay
  Power Plant Blocks AB
• the development of a 600MW Greenfield gas-fired
  power plant inside the PAFC Industrial Park and
  related gas transport pipeline.

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Integrated LNG Terminal, Pipeline and Power Plant
(Integrated Project)

• Project Implementation Scheme
• Joint Venture
• BOT scheme
• Estimated Project Cost
• LNG Terminal US 375.24 million
• Limay A/B PP US 345.50 million
• Limay PAFC PP US 345.50 million
• Limay A/B Pipeline US 3.03 million
• Limay PAFC Pipeline US 0.13 million
• Total Cost US1069.40 million

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Integrated LNG Terminal, Pipeline and Power Plant
(Integrated Project)

• Project Status
• PNOC EC had already acquired the following
• PNOC EC Board Approval
• NEDA Board Approval
• Ongoing coordination with parties interested in
  the integrated LNG terminal and power plant
  projects
• Contact Persons
• Mr. Rafael E. Del Pilar Mr. Candido M. Magsombol
• President and CEO Manager
• PNOC Exploration Corporation Business
  Development Dept.
• Tel. No. 840-2015
  Tel. No. 479-9255

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Isabela Coal Mining and Power Plant Project

• Implementing Agency
• Philippine National Oil Company
• Project Description
• The Isabela Integrated Coal Mine-Mouth Power
  Plant Project is an open pit coal mine project
  with a Mine-Mouth 50MW coal fired power plant
  with fluidized bed combustion.
• The project site is located 290 kms North of
  Manila via Cagayan Valley region. The three
  different coal deposit concentrations are located
  in the municipalities of Naguillian, Benito
  Soliven and portion of the City of Cauayan,
  province of Isabela, Cagayan Valley

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Isabela Coal Mining and Power Plant Project

• Project Implementation Scheme
• Joint Venture
• BOT scheme
• Estimated Total Project Cost
• Mine US 16 million
• Power Plant US 139 million
• Total Cost US 155 million
• Project Status
• PNOC EC had already acquired the following
• PNOC EC Board approval
• NEDA Board approval
• Ongoing review of the project and its economic
  profitability.
• Business plan being finalized
• Estimated IRR of 20 25

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Isabela Coal Mining and Power Plant Project

• Contact Persons
• Mr. Rafael E. Del Pilar
• President and CEO
• PNOC Exploration Corporation
• Tel. No. 840-2015, Fax No. 840-2348
• Mr. Candido M. Magsombol
• Manager
• Business Development Department
• PNOC Exploration Corporation
• Tel. No. 479-9255, Fax No. 840-2044

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NAIA Expressway

• Implementing Agency
• DPWH
• Description
• The project involves the construction of an
  elevated expressway from Skyway up to Roxas
  Boulevard, running mostly along existing roads
  (Sales Street, Andrews Avenue, Domestic Road and
  MIA Road). The project is proposed to be done in
  phases
• Phase I - Skyway to NAIA Terminal III, 4 lanes,
  3.67 Km
• Phase II - NAIA Terminal III to Roxas Boulevard,
  4 lanes, 4.9 km 

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NAIA Expressway

• Project Status
• Phase I - Construction on-going.
• Phase II - Bid Documents preparation
  completed.
• Contact Person/Details
• Director Bienvenida Firmalino
• BOT Office DPWH
• Bonifacio Drive, Port Area, Manila
• Tel. No. (632) 3043762, Fax No. (632)
  3043824

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Metro Manila Skyway Project

• PROPONENT
• Citra Metro Manila Tollways Corporation (CMMTC)
  a joint venture firm of P.T. Citra Lamtoro Gung
  Persada (CITRA) and PNCC.
• DESCRIPTION
• An elevated expressway that will link the South
  Luzon Expressway (SLE) and the North Luzon
  Expressway (NLE) from Alabang, Muntinlupa to
  Balintawak, Caloocan City with a total length of
  33.68 Kms.
• Stage 1 - A six (6) lane elevated expressway from
  Bicutan to Buendia, with the Ayala Central
  Business District Access Ramps (9.3 kms.) and the
  rehabilitation of the South Luzon Expressway from
  Magallanes to Alabang (13.43 kms.)
• Stage 2 Elevated expressway from Bicutan to
  Alabang (6.88 Kms.)
• Stage 3 Elevated expressway from Buendia to NLE
  Balintawak (17.50 Kms.)

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Metro Manila Skyway Project

• ESTIMATED PROJECT COST (in Million Pesos)
• Stage 1 - 11,170
• Stage 2 - 8,000
• Stage 3 - 29,859
• Total - 49,029
•  PROJECT STATUS
• Stage 1 Completed in December 1999. Presently
  operational and maintained by PNCC Skyway
  Corporation.
• Stage 2
• PERTCONSULT is the Independent Consultant.
  Renardet S.A. is the Supervising Consultant.
• Construction of 13 pier heads of the existing
  columns are completed.
• Parcellary plan/ROW acquisition plan approved.
• Stage 3 Updating of feasibility study

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Metro Manila Skyway Project

• Contact Person/Details
• Director Bienvenida Firmalino
• BOT Office DPWH
• Bonifacio Drive, Port Area, Manila
• Tel. No. (632) 3043762, Fax No. (632)
  3043824

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• THE BOT CENTER

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THE BOT Center under DTI

• Presidential Executive Order 144 (2002)
• Presently lodged the BOT Center under DTIs
  Industry and Investments Group (IIG) along with
  the Board of Investments and other infrastructure
  agencies (National Development Company,
  Philippine Economic Zone Authority)

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Mandate

• A. Promotion of the BOT and PPP Program and
  Projects under the National Infrastructure
  Development Plan
• Provision of capacity building and hands on
  training to IAs) and LGUs in developing and
  promoting their BOT/PPP projects
• Provision of technical advisory assistance
  through the Project Development Facility
• Provision of promotional and marketing support to
  variuos BOT/PPP investment opportunities of other
  government corporations and intrumentalities
• Institutionalization and implementation of an
  inter-agency BOT/PPP Strategic Promotion and
  Development Plan through the BOT Center-led
  Inter-Agency Committee and Advisory Board (IACAB)

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Mandate

• B. Policy Advocacy
• Formulation of BOT/PPP policy guidelines to
  ensure transparent, consistent and expeditious
  preparation, review, approval and implementation
  of BOT/PPP projects
• Initiation and/or participation in BOT/PPP policy
  reviews/reform agenda
• Institutionalization of an advocacy program in
  pursuit of an effective and sustainable BOT/PPP
  program implementation

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Services

• Provide capacity building and training programs
  to IAs and LGUs as well as other government
  bodies in various aspects of BOT/PPP project
  development
• Provide technical and financial support to IAs
  and LGUs on BOT/PPP projects eligible under the
  Project Development Facility (PDF) guidelines
• Provide promotion and marketing support to IAs
  and LGUs through marketing campaigns, investment
  matching and other investment facilitation work
  in coordination with the Board of Investments and
  other investment promotion offices
• Advocate policy reforms in BOT/PPP policy
  dialogues, formulation and reviews
• Provide general information on the Philippine
  BOT/PPP program, policies, processes and
  guidelines, as well as specific projects for
  promotion

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SUMMARY

• There is a consistent recognition of the value of
  private sector financing and efficiency.
• The BOT Law has paved the way for PPP Framework
  to evolve.
• The BOT Center (PPP Unit) plays a major role in
  promoting PPP for infrastructure.
• There are a lot of opportunities for the private
  sector in infrastructure development through the
  PPP-BOT.

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THANK YOU

• Build-Operate-and-Transfer Center
• Department of Trade Industry
• 4/F GA Yupangco Bldg.
• 339 Sen.Gil J. Puyat Ave.
• 1200 Makati City, Philippines
• Tel. No (63 2) 899-8821
• Fax No (63 2) 896-8452
• www.botcenter.gov.ph