Best Practices in Conducting a TECHNICAL Feasibility Study ( TFS ) for a Public-Private Partnership ( PPP ) Infrastructure Project (unabridged version) Panel 3 Discussions on Structuring a PPP Project : Key Success Factors An International Private Sector Workshop on An International Private Sector Workshop on Enhancing Institutional Framework Enhancing Institutional Framework for PPP in Infrastructure Development for PPP in Infrastructure Development 15 January 2010, Makati City 15 January 2010, Makati City Ar Armando N. ALLÍ, apec ar Ar Armando N. ALLÍ, apec ar PRBoA Chairman ( Co-Vice Chair, DPWH Board of Consultants (BoC) (Discussant)

A. Infrastructure Typology A. Infrastructure Typology 1)HARD Infrastructure a) Horizontal - roads, bridges, flood control*, water and power supply and distribution*, transportation and telecommunications*, traffic/ waste/ coastal management systems*, land development, planned unit development (PUD)* b) Vertical – public/ institutional buildings e.g. schools, hospitals/ health centers, national/ regional/ local offices and civic centers, halls of justice, agricultural, industrial, housing and resettlement, cultural, tourism, recreational and parks/ open spaces, national defense, etc. * with vertical components

A. Infrastructure Typology A. Infrastructure Typology 2) SOFT Infrastructure a) Regulation - national and local development controls relating to construction and development, the natural and built environments, procurement and PPP-BoT processes, professional practices and documents, administration/ implementation/ enforcement of law (soft vs. hard State), etc. b) Public Planning, Management and Response - framework and land use planning, natural and human resources, disaster planning and response c) Public/ Institutional Capability Enhancement d) Participation and General Social Concerns

B. The HARD Infrastructure Project Due Diligence Stream B. The HARD Infrastructure Project Due Diligence Stream 1)Pre-Feasibility Study (based on secondary data) 2)Feasibility Study (Technical, Financial and Social), including Concept to Preliminary level Master Development Plans (MDPs) and Architectural and Engineering (A&E) and Allied Plans and Designs (P&D) 3)Detailed MDP and A&E & Allied Plans and Designs 4)Project Management and Implementation including Infrastructure Procurement and Other Consulting Service Procurement Program/s plus Furniture, Fixture & Equipment (FFE) Procurement/ Fit-out 5)Project Evaluation and Monitoring

C. Key Components of an Infrastructure Technical Feasibility Study (TFS) C. Key Components of an Infrastructure Technical Feasibility Study (TFS) 1)Project Site Surveys, Investigations & Reports 2)Compliance Surveys and Reports 3)Traffic and Transport Surveys &Reports 3) Space Planning and Operations/ Process Flow Surveys and Reports (done mainly for Buildings/ Vertical Infrastructure Projects) 4) Environmental Investigations and Reports 5) Social Acceptability Survey/s and Reports 6) Public Consultations and Reports

D. Mandated Philippine Compliances for a HARD Infrastructure TFS D. Mandated Philippine Compliances for a HARD Infrastructure TFS 1)National Development Controls (Building Code and its Referral Codes for Vertical Hard Infra, planning laws, environmental laws, etc.) 2)Local Development Controls (zoning ordinance, development-related ordinances, etc.) 3) Professional Regulatory Laws (PRLs) and their supportive guidelines, standards and manuals of procedure governing professional practices and documents 4) Applicable best practices (non-regulated)

E. Other Best Practices for PPP Infrastructure TFS E. Other Best Practices for PPP Infrastructure TFS 1)The TFS Consulting Firm or Individual must be a Registered and Accredited Member of the Confederation of Filipino Consulting Organizations (COFILCO, the umbrella organization of Philippine Consult- ants as defined under R.A. No. 9184/ 2003 GPRA and its IRR ) 2)Full compliance with Professional Regulatory Laws (PRLs) and their supportive guidelines, standards and manuals of procedure on matters of professional firm registration, ownership, management and operation for TFS firms engaged in State-regulated professions 3)SUSTAINABLE Plans/Designs e.g. “Green” Architecture 4)ISO compliances/ accreditation a distinct advantage 5)Professional Indemnity Insurance (as applicable)

F. Matching Professional Competencies for Infrastructure Projects F. Matching Professional Competencies for Infrastructure Projects 1)HARD Infrastructure a) Horizontal - Professional* Engineers and Environmental Planners b) Vertical - Professional*Architects and Engineers 2) SOFT Infrastructure – Professional* Engineers Architects and Environmental Planners and duly qualified and suitably experienced professionals not regulated by the State. * State-regulated professions i.e. requiring certification thru licensure examinations and renewable licenses, membership in accredited professional organizations (APOs), and full compliance with valid and subsisting professional regulatory laws (PRLs)

G.Consulting Service Procurement Matters [under R.A. No. 9184/ 2003 Government Procurement Reform Act (GPRA) and its 2009 Revised Implementing Rules and Regulations (IRR)] G.Consulting Service Procurement Matters [under R.A. No. 9184/ 2003 Government Procurement Reform Act (GPRA) and its 2009 Revised Implementing Rules and Regulations (IRR)] 1)GIVEN SCOPE OF WORK UNDER THE TOR - must be reflective of current State-regulated professional practices and must be fully compliant with the pertinent professional regulatory laws (PRLs); deviations, particularly if substantial, MUST be separately compensated by the Government 2) REACTION PERIOD BY THE GOVERNMENT - must be fully DEFINED in the Consulting Service Agreement i.e. an open-ended response time translates into huge operating and overhead costs for the Consultant

H. Intellectual Property Rights (IPR) of Planning and Design Consultants H. Intellectual Property Rights (IPR) of Planning and Design Consultants 1)OWNERSHIP * of the generated/ evolved Infrastructure Plans and Designs is SHARED by the Consultant and the Government (Republic Act/ R.A. No. 8293) 2) COPYRIGHT ** over the generated/ evolved Infrastructure Plans and Designs is MAINTAINED by the Consultant; ROYALTIES apply (R.A. No and R.A. No in the case of the Architects) * applies to the original work or the first/ prototype infrastructure ** applies to the second and subsequent infrastructure, even if site adaptation is a requirement

I. ISSUES on Technical Feasibility Study (TFS) Preparation I. ISSUES on Technical Feasibility Study (TFS) Preparation 1)The Government practice of requiring plans and designs to be submitted as part of the TFS proposal constitutes a serious violation of intellectual property rights (IPR)/ R.A No and the Architecture Law/ R.A. No. 9266); 2)REPETITIOUS plan and design preparation and extended Government reaction periods to transmitted Consultant deliverables must be additionally compensated; and 3) REPETITIVE plan and design preparation must be separately compensated through royalties.

J. CONCERNS on Technical Feasibility Study (TFS) Preparation J. CONCERNS on Technical Feasibility Study (TFS) Preparation 1)A Social Acceptability Report (based on primary stakeholder interviews) and/or a Host Community Participation Program must be standard features for TFS of large to very large PPP infrastructure projects 2) At least 3 Project Monitoring Reports by Third Parties i.e. post-design, post construction and post-initial operation need to become standard features for TFS of large to very large PPP infrastructure projects 3)Urban Design inputs must be requirement for TFS of large to very large HORIZONTAL Infrastructure Projects so that the resultant designs shall be more organic, softer, properly proportioned if not human in scale and generally aesthetic. 4)There should be a parallel set of planning, design and construction standards for ALL types of HORIZONTAL HARD Infrastructure i.e. similar to the National Building Code and its Referral Codes (P.D. No and its 2004 Revised IRR) that govern VERTICAL HARD Infrastructure Projects 5) The Government Procurement Policy Board (GPPB) must always consult/ liaise with the Professional Regulation Commission (PRC) and its Professional Regulatory Boards (PRBs) anent matters concerning State- regulated professional practices and documents.

Thank You and a Pleasant Afternoon to All Best Practices in Conducting a TECHNICAL Feasibility Study ( TFS ) for a Public-Private Partnership ( PPP ) Infrastructure Project (unabridged version)