THE Public-Private Partnership (PPP) Center said is exploring the use of World Bank Group guarantee facilities to keep risks manageable in PPP projects and attract more private-sector investment in infrastructure.
The PPP Center said it held a workshop with the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA) and International Finance Corp. on Oct. 19 to discuss how these instruments could improve the viability of PPP projects in the Philippines.
“The workshop aimed to deepen participants’ understanding of guarantee products and facilities offered by the World Bank, and explore how these instruments could help address project risks and enhance the viability of PPP projects in the Philippines,” it said in a social media post on Tuesday.
Representatives from MIGA discussed the potential benefits of guarantee facilities for the government, investors, and lenders, as well as the processes, costs, contractual arrangements, and timelines involved in structuring these instruments.
The workshop also examined the possible application of guarantee facilities to infrastructure projects, including the PPP for School Infrastructure Project Phase IV.
The project hopes to alleviate classroom shortages through the construction and maintenance of school facilities under a PPP arrangement.
The PPP Center said the discussions also covered international case studies, the implementation, supervision and monitoring of guarantee facilities, and their alignment with current PPP processes.
Participants also discussed the budget cycle for availability payments and the Letter of Commitment process, while an exploratory discussion was held on guarantee booking.
The workshop was attended by representatives from the departments of Economy, Planning, and Development, Finance, Education, and Transportation, ad well as the Bureau of the Treasury. — Justine Irish D. Tabile