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2015/FMP/WKSP2/006 Session 1.7

JICA’s Support to Accelerating Quality PPP Infrastructure Development

Submitted by: Japan

Workshop on Infrastructure Financing and Capital Market Development

Iloilo, Philippines23-24 July 2015

1

JICA’s Support to Accelerating

Quality PPP Infrastructure Development

July 23, 2015

Dr. Megumi MUTO

Deputy Director General

Southeast Asia and Pacific Department

Muto.Megumi@jica.go.jp

APEC Workshop on Infrastructure Financing and Capital Market Development

“Fostering APEC’s Infrastructure through

Long-Term Investment & Capital Market Development”

Session 1: The APEC FMP’s Work on Infrastructure PPP: Stock-Take and Way Forward

2

Implementing Agency

Oversight Agencies:DOF, NEDA, DBM (1) A policy discussion is facilitated

related to the GOP support mechanism for PPP financing.

Policy LevelJICA HQ

JICA Philippines Office

JICA Expert Team

•Project Manager

•PPP Experts

•Finance Experts

•Sector Experts

Capacity Development for Project Due DiligenceProviding technical assistance to enhance efficient and sound due diligence of PPP projects through NEDA ICC Process (especially at approval stage)

Policy Level

PPP CentreProject Manager

(capacity development)

(1) The selection of PPP candidate projects will be enhanced with added consistency and strategic consideration.

(2) PPP project formulation capacity of Implementing Agencies will be strengthened.

Japan Fund

Project Level

Technical Assistance Project for Capacity Development of

Public-Private Partnership (PPP) Project Formulation

Implementing Agency

Implementing Agency

Implementing Agency

Comprehensive Support by Japanese ODA Loans for

Promotion of PPP Infrastructure Projects

(1) Viability Gap Funding

(VGF)

(2) Equity to SPCs

(3) Government Guarantee

(1) Viability Gap Funding (VGF)

(2) Equity Back Finance (EBF)

(3) Contingent Credit Enhancement Facility for PPP

Infrastructure Development

Measures of Recipient Governments

to Promote PPP Infrastructure Projects

A variety of options are available, as comprehensive support by Japanese ODA Loans, for the development

and application of effective measures to promote steady formulation and implementation of PPP (Public

Private Partnership) infrastructure projects by recipient governments.

SPC Off-Taker

(State-owned

water companies, etc.)Offtake Contract

State-owned

Development

Banks, etc.

Loan

Equity

(2) Equity

(1) VGF

Government of developing countries

(3) Government

Guarantee

Local

Companies,

etc.

Foreign

Companies, etc.

State-owned

Companies

IFIsCommercial

Banks

ODA Loan

Support Options of

Japanese ODA Loans

3

Contingent Credit Enhancement Facility

for PPP Infrastructure Development (CCEF-PPP)

＜Background＞ To facilitate a sales contract between a project company and an off-taker in PPP infrastructure

projects, government support, such as providing guarantee on the sales contract or supplying

short-term financing to the off-taker for ensuring payments to the project company, is known as

an effective measure to reduce the risk of contractual defaults of the off-taker caused by factors

beyond the control of private entities.

＜Objective＞ The purpose of introducing CCEF-PPP is to enable the government to develop and implement

measures to ensure payments based on a sales-contract, thereby promoting infrastructure

investments through PPP approach with the optimal risk sharing between the public and the

private entities.

4

Metro Manila Transport Infrastructure Development Roadmap (1)

At-grade roads (urban roads)

Missing links: C3, C5, bridges and

others

New roads (137km)

Flyovers

Sidewalks and pedestrian facilities

Secondary roads in periurban areas

Expressways

Intercity expressway (426 km)

Urban expressway (78 km)

Urban/Suburban rails

Main line: 246 km (6 lines)

Secondary line: 72 km (5 lines)

Integrated lines and improved

accessibility

Bus/Jeepneys

Modern fleet and operation

Rationalized route structure

Improved terminals and

interchange facilities

Traffic management

Traffic signals

Traffic safety

Traffic enforcement and education

ITS

Main Roads/Expressways NetworkUrban/Suburban Rails Network

No traffic congestion

No households living in high hazard risk areas

No barrier for seamless mobility

No excessive transport cost burden for low-income

groups

No air pollution

Total investment costs: Php2,610 bil.

Vision and Goals: 5 NOs in Mega Manila

Roadmap Video:

• Long Version ⇒ https://www.youtube.com/watch?v=CJ9F2Fnweuo

• Short Version ⇒ https://www.youtube.com/watch?v=SVFP2JCd8Bs

Metro Manila Transport Infrastructure Development Roadmap (2)

North-South Commuter Rail

1st north-south mass transit

Elevated with modern high capacity train

JICA completed Preparatory Survey for

Malolos-Tutuban section

New Manila International Airport

Convenient access

Minimum Risk of flooding and tsunami

JICA conducting Information Collection Survey

Mega Manila Subway

2nd north-south mass transit

Route length; Approx. 75 km, 23 stations

(tentative)

JICA conducting Information Collection Survey

Flagship Projects:

New Airport

Mega

Manila