Abstract
The main objective of the discussion note is to inform dialogues among Government policy makers and other stakeholders on how to move forward with the critical water supply and sanitation (WSS) sector reforms in the Philippines, focusing on how private sector participation might be harnessed to help achieve the universal access to safe and sustainable water supply and sanitation services. The note aims to provide an initial analysis on: (i) current trends of private participation in the water sector, (ii) the liquidity of the commercial finance markets to support these activities, (iii) any current challenges or bottlenecks in financing the private sector (including issues relating to the enabling environment), and (iv) possible solutions to encourage effective investment into the sector. During the roundtable discussion, both the public and private sector providers confirmed that they would be willing to enter into less commercially viable service areas, provided there was substantial support from the government in the form of capital grants that would make the projects viable, and might even be able to leverage commercial finance. Hence, the discussion note proposed to: a) set up Project Preparation Facility, b) strengthen the government joint venture guidelines and PPP Act, and c) promote Blended Finance.
Highlights
ObjectivesThe main objectives of the scheme are as follows: a
Recent estimates by the World Bank indicate that the present value of the additional investment in WSS alone needed through 2030 will exceed $1.7 trillion
Existing funding falls far short of this amount; countries may have to increase their investment in the water and sanitations sectors up by four times in order to meet the SDGs2
Summary
The main objectives of the scheme are as follows: a. The IIPDF is available to the Sponsoring Authorities for PPP projects for the purpose of meeting the project development costs which may include the expenses incurred by the Sponsoring Authority in respect of feasibility studies, environment impact studies, financial structuring, legal reviews and development of project documentation, including concession agreement, commercial assessment studies (including traffic studies, demand assessment, capacity to pay assessment) etc. The proposals for assistance under the Scheme have to be sponsored by Central Government Ministries/Departments, State Governments, Municipal or Local Bodies or any other statutory authority;. B. To seek financial assistance from the IIPDF, it would be necessary for the Sponsoring Authority to create and empower a PPP Cell to undertake PPP project development activities and address larger policy and regulatory issues to enlarge the number of PPP projects in ‘Sponsoring Authorities’ shelf;
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