Standard approach set for PPP in water sector

MANILA, Philippines - The Public Private Partnership (PPP) Center, World Bank and other public sector agencies engaged in the water sector have entered into a memorandum of understanding (MOU) to harmonize processes and requirements for PPP deals in the sector.

In a statement, the PPP Center said the MOU was jointly initiated by the agency and the World Bank’s Water and Sanitation Program in order to have a standard approach when it comes to implementing PPP projects in the water sector.

Other agencies part of the MOU are the Local Water Utilities Administration (LWUA), National Water Resources Board (NWRB), Philippine Association of Water Districts (PAWD), and Department of the Interior and Local Government.

Under the MOU, a PPP Technical Working Group composed of the agencies will work together to have a focused set of training, technical assistance as well as policy or process guidance to water districts (WDs) and local government units pursuing PPPs in the water and sanitation sector.

PPP Center executive director Cosette Canilao said there is a need for a standardized set of guidelines or templates to facilitate consistency in establishing the technical, financial and operational criteria when WDs and LGUs select private partners through legally appropriate PPP procurement options.

“This will ensure a level playing field for prospective private partners,” she said.

The LWUA, NWRB and PAWD see the benefit of the MOU as they acknowledge the help needed in navigating through viable and legally appropriate PPP options for the water and sanitation sector.

Through the MOU, WDs and LGUs would be able to pursue properly structured and competitively procured PPP projects.

The MOU is in line with the PPP Center’s mandate to initiate PPP policy and process reforms as well as provide technical assistance and capacity building to implementing agencies.

At present, the PPP Center is providing assistance in local PPP water projects such as the Baggao Water Supply Project.

A private partner is being procured for the project.

The PPP Center is also involved in other PPP deals such as the Bulacan Bulk Water Supply Project and the New Centennial Water Source (Kaliwa Dam) Project.

Both PPP projects are under procurement.