General Santos CityExperience with PPP Center

in the development of PPP Projects

Engr. Riza Marie T. Paches, EnP, MEng‘gActing City Government Department Head II

City Economic Management and Cooperative Development OfficeCity Government of General Santos

Presentation Flow

Overview of

Integrated Economic Development

Gensan Partners

SOCCSKSARGEN

for Regional Trade (IEDRT)

SOCSKSARGEN Growth Region

General Santos City

3HRS FLY ZONE

Cotabato City

Cotabato Province

Cotabato City

Area

19,157 sq.km

Total Population

4.55 M

Annual Growth Rate

2.46%South Cotabato

GenSan City

Sultan Kudarat

Sarangani Province

Lanao del Norte

Bukidnon

ARMM Maguindanao

Source: PSA - CY 2015 NSO census

Northern Mindanao Development Corridor

South Central Mindanao Development Corridor

Western Mindanao Development Corridor

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Integrated

Economic

Development for

Regional Trade in

General Santos City

• improve farmer access to food markets;

• improve the access to affordable healthy food for residents;

• provide opportunities for the incubation of small businesses;

• create jobs in the local community; and

• revitalize the local business economy.

PURPOSE OF THE PROJECT

• Integrated Food Terminal (IFT)

• Central Public Market (CPM) redevelopment, including the Queen Tuna Park and surrounding areas

• Support Infrastructure

• Capacity Building on technical and managerial skills of the CGGS officers

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INTEGRATED FOOD AND TRANSPORT

TERMINAL (IFT)

The existing City Bagsakan Center is essentially a trading post. It has no washing, packaging and processing facilities.

It is currently managed by the City Food Terminal Multi-purpose Cooperative (CFTEMCO), composed of 476 members occupying stalls in the bagsakan.

They have more members who are waiting for stall spaces, thus the suggestion that the proposed IFT be twice the size of the existing bagsakan.

Current Condition

INTEGRATED FOOD AND TRANSPORT

TERMINAL (IFT)

INTEGRATED FOOD AND TRANSPORT

TERMINAL (IFT)

Project Cost Estimates

Project Components PhP (in million)

Food Terminal (with Food

Processing Center) 448.71

AAA Hog Abattoir 182.21

AA Cattle/Goat/Sheep Abattoir 128.08

TOTAL 759.00

Possible PPP Arrangements

Project Components PPP Modalities

Food Terminal (with

Food Processing

Center)

Design-and-Build

AAA Hog AbattoirBuild-Operate-and-

Transfer

AA Cattle/Goat/Sheep

Abattoir

Build-Operate-and-

Transfer

CENTRAL PUBLIC MARKET CPM

The CPM has become an unattractive place to shop

Another reason is the emergence of new shopping malls, satellite markets, and other private grocery stores.

The CPM’s drainage system and toilets are also in need of major improvements and/or repairs.

The waste water treatment plant to which the CPM’s drainage system is connected has not been operational since April.

A major issue is security which is associated with the informal settlement located across AcharonBoulevard, surrounding the mosque.

Current Condition

CENTRAL PUBLIC MARKETCENTRAL PUBLIC MARKET

A. Total Redevelopment of Central Public Market

Project Cost Estimates

Project Components PhP (in million)

A. Total Redevelopment of Central Public Market

2,125.82

B. Partial Redevelopment of Central Public Market

1,307.72

Possible PPP Arrangements

Project Components PPP Modalities

A. Total Redevelopment of

Central Public MarketBuild-Operate-and-Transfer

B. Partial Redevelopment

of Central Public MarketBuild-Operate-and-Transfer

B. Partial Redevelopment of Central Public Market

PROJECT ASSISTANCE

• BOT Center assisted the City through the SOCSKSARGEN ADPO in the preparation of a Pre-FS

• Financing, Construction and Development of 5-hectare area into an Integrated Transport Terminal with a Commercial Complex in Barangay Sinawal, General Santos City

• Did not push: Unfinished Circumferential Road and the Improvement of the Bulaong Terminal concerns on profitability, minimum performance standards and the rate adjustment formula, among others

BOT Center

2001-2004

PROJECT ASSISTANCE

• Assisted by the Cities Development Initiatives in Asia (CDIA) for the preparation of the Pre-FS for the establishment of an Integrated Economic Regional Trade Development Project (IERTD) and the Re-development of the Central Public Market and Queen Tuna Park

• Availability of Project Site and Funding

for the FS were the identified Constraints

CDIAASSISTANCE

PROJECT ASSISTANCE

Internship Agreement between PPP Center and LGU Gen. Santos City – a capability building program designed for personnel of the city government on

(a) Project Development, (b) Project Bidding/ Competition, and (c) Project Implementation

• Entered into an Internship Agreement with the PPP Center

• Presented the IERTD Project in the Global Infrastructure Bassel in Switzerland

• Enacted the PPP Code and its IRR

PPP CENTERASSISTANCE

CHALLENGES ENCOUNTERED

• Changes in the priorities/scope• Obsolete facilities of economic

enterprises• Limited expertise of LGU

personnel• Insufficient LGU fund to finance

public infrastructure• Lack of PPP institutional

mechanism

LESSON LEARNT

• Local Chief Executive‘s commitment is important

• Innovative approaches are necessary in pursuing development goals

• Strong and active participation of stakeholders is essential in PPP

• Policy reforms are necessary in effective institutional development

• Capacity building is critical to the effective implementation of PPP projects

• Third party providers of technical assistance on PPP are available

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Thank you.