Australia builds capability in using PPPs in the Philippines

A team from Australia’s Infrastructure and Commercial Advisory (ICA) Office shared private sector investment expertise during a policy roundtable with the Philippines Public Private-Partnership (PPP) Center on 22 March.

The roundtable was attended by around 20 representatives from Philippine Government agencies involved in infrastructure delivery, with discussions focusing on key challenges and opportunities of private sector involvement in public infrastructure construction and operation.

The three-person ICA delegation was led by Acting CEO Mr Chris Allen, who presented PPP case studies from Australia and discussed potential areas of technical assistance.

“In Australia, ICA provides commercial, financial and risk analysis and advice across the entire infrastructure project lifecycle, from business case development through to procurement and delivery,” he said.

“As the Philippines moves forward with ambitious infrastructure plans, we are keen to share our expertise and experience with the Philippines PPP Center on how private sector investment can be used to best allocate risk on major projects.” 

ICA is a unit within Treasury which provides independent infrastructure investment advice to the Australian Government. The week-long visit to Manila was organised by Australia’s Partnerships for Infrastructure (P4I) to build connections and initiate longer-term engagement with the PPP Center.

P4I began its support to the PPP Center in late 2021 by reviewing amendments to the implementing rules and regulations of the new Build-Operate-Transfer Law. Renewed engagement with the PPP Center builds on a decade of Australian support strengthening PPP capability through the Asian Development Bank.

As the Philippines Administration promotes the Build Better More agenda, a range of sustainable financing options are needed to advance hundreds of planned infrastructure projects across the country. The Philippine Government recently adopted a strategy to reinvigorate private sector participation and the use of PPPs to help achieve the country’s infrastructure ambitions.

The ICA trip also involved site visits to major PPP projects currently underway in the Philippines, including the Cavite Laguna Expressway and the Parañaque Integrated Terminal Exchange. Mr Allen will also take part in a panel discussion on innovative approaches to infrastructure investment during the official launch of P4I in the Philippines on 24 March.

P4I is an initiative of the Australian Government to drive sustainable, inclusive and resilient growth through quality infrastructure through partnerships with Southeast Asian governments and the Association of Southeast Asian Nations (ASEAN).