Guidelines out for P3-B fund to modernize DoH hospitals

THE GOVERNMENT has issued guidelines for the use of the P3-billion public-private partnership strategic support fund (PPPSSF) under the 2012 national budget for the modernization of hospitals under the Department of Health (DoH).

Joint Circular 2013-1 of the DoH, Department of Finance (DoF), Department of Budget and Management (DBM), and the National Economic and Development Authority (NEDA), dated Sept. 16 and published in a newspaper Friday, outlines the procedural and reporting requirements for the use of the PPPSSF.

According to the circular, the fund shall be used exclusively for 26 regional hospitals authorized to avail from the PPPSSF for the modernization and upgrading of their respective facilities, in support of the DoH’s Universal Health Care or Kalusugan Pangkalahatan (KP) program.

The fund shall be released only for these activities:

• right of way acquisition and related costs (including resettlement)

• government counterpart to be used for the construction and other related costs for potential and actual PPP projects identified by the implementing agency, provided these do not exceed 50% of the project cost

• cost of designing, building, and otherwise delivering any part of a project which government decides to retain responsibility for. This includes public infrastructure such as rural and access roads, utilities, and other support facilities required for a PPP project to be viable.

Subject to the approval of the DBM, the fund may also be used for:

• feasibility studies, business case development, pre investment studies and other activities required to determine the feasibility and viability of potential PPP projects;

• preparation of various project documents as required for approval by the NEDA and other approving bodies for PPP projects; and

• hiring of consultants and advisors to assist the department in various aspects of the project preparation, tendering, and execution process, including for the preparation of feasibility studies, transaction documents and marketing materials.

The circular notes that the PPPSSF cannot be used for expenses related to unsolicited project proposals, meaning those proposed by the private sector without a request for proposals from the government.

Nor can the fund be used for credits and loans to the PPP private partners or for guarantees provided by the government to the lenders of any private entity for any PPP project.

It also cannot be used to augment or support regular programs of the DoH.

To facilitate release of the allotted PPPSSF, the list of hospitals to be funded must be broken down by infrastructure, equipment, and feasibility study, and must include the work program of the project.

The fund will be released by tranche or phase. -- B.F.V. Roc

source:  Businessworld