Project preparation funding for climate resilient PPPs readied

MANILA, Philippines — A facility for funding the preparation of regional Public-Private Partnership (PPP) with climate resilience components is now being readied to build a robust pipeline of such infrastructure projects, the PPP Center announced over the weekend.

The agency said the creation of a regional Project Development and Monitoring Facility (PDMF) for climate-smart projects is now in the works with the help of development partners.

Once established, local government units can tap the facility to finance pre-investment activities for proposed projects.

“The PPP Center is currently in the process of creating a regional PDMF to help strengthen the capacities of local implementing agencies in identifying and analyzing climate change issues like mitigation and adaptation in their PPP project portfolio,” said Lerma Advincula, PPP Center director for Project Development and Monitoring Facility Service.

The center is now in discussion with several donors to secure grants for the establishment of a regional PDMF.

So far, the Urban Financing Partnership Facility of the ADB has approved a grant through its Urban Climate Change Resiliency Trust Fund (UCCRTF) which can be tapped for the preparation of local infrastructure projects serving vulnerable communities.

Specific projects that can be supported by this grant are those in the sectors of renewable energy, water, sanitation, solid waste management, open/green spaces, food security, flood control, disaster risk management and green vertical development.

Agence Francaise de Developpement has also been approached for a grant that will help the PPP Center  enhance its technical capacity in assisting implementing agencies in the preparation and development of climate-smart PPP projects.

This is done alongside with the center’s collaboration with the Climate Change Commission in augmenting its knowledge on how climate change affects the development and implementation of PPP projects.

Under the regional PDMF, local governments, local water districts, economic zones and state universities and colleges (SUCs) can be given assistance in developing the business cases of their proposed PPP projects.

Upon completion of the business case, projects needing more in-depth study may be referred to the PDMF for the conduct of a full feasibility study.

A panel of local PPP experts on climate change resilience will be assembled to provide support in preparing pre-feasibility and feasibility studies, as well as the bid documents and PPP contracts.

They will also provide assistance during project approval, bid management and financial closing. During project implementation, they will also provide an independent review and monitoring.