Comments on Former president NOYNOY AQUINO.

[amingb]

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50 billion palang bro.. wala pa malabot sa uban.... LOL..

Sakitas heart nato ane ue. kani palang daan oh "Private contractors are receiving undue benefits at the expense of the ordinary Filipinos." kalaming ipakaon sa lion sa mga hinampak

Gamay ra lagi na bro sa Malampaya Fund nga gihampak sa atong nawong in just 3 Years ... P130Billion missing ... kanang tax due kay sukad paman nas time ni Cory siguro ning accumulate ... kaning kang Panot kay kawat jud sa atobangan ...

[30121895]

Gamay ra lagi na bro sa Malampaya Fund nga gihampak sa atong nawong in just 3 Years ... P130Billion missing ... kanang tax due kay sukad paman nas time ni Cory siguro ning accumulate ... kaning kang Panot kay kawat jud sa atobangan ...

Dugaya mamatay ane nila ue.

[spartan301]

not familiar how the government is doing such transaction ... but as as what i understand per COA the loan already incurred by the winning bidders, most likely if it failed the government will assume the liabilities .. please correct me if im wrong ....

In the government non-disclosure matter, it wont be that big of an issue since these projects (PPPs/ BOTs/ BLTs) are also disclosed by the winning bidders who are mostly publicly listed. Not sure if this will form part of d official statement but Im sure they'll come-up with some clever BS for this...

On to the topic:
In the PPPS/ BOTS, there will always be 3 parties or more - winning bidder, bidder's bank(s) and the govt.
One of the crucial requirements (among others) are bank guaranty products (depending on the project - BOTS/ PPPs) but normally a DSBLC, Performance Bond and Contractor's risk are required.. These will act as a some sort of "safety net" should the winning bidder fail to finish or perform certain parts of the contract..

On the query - what if they dont finish the project?
- The bank guaranty takes care of that. Govt will just have a re-bid on said project..
What if the bank can't pay? - thats why last year there was a circular wherein Govt. projects will no longer be counted on the SBL (single borrower's limit) so Banks can give the needed muscles. Also, most (if not all) are syndicated (gathering of banks funding/ guaranteeing the project)
Wont the government guarantee payment to the bank(s)? - No.. These are Project Financing which primarily focuses on the payment capacity of the project itself and its principals. The govt. will never pay on the failures of a private entity. Banks also dont give much credit on public officials (as authorized signatories) as their tenure are normally on "borrowed time"

The govt. just guarantees the income part of the project (say toll fee, generation charge, etc.. depending on the project). However, the face amount of the contract is what will be recorded as "Contingent Liability" on their books. You have to remember government accounting is based on the constitution and has its own GAAP, a bit different from the GAAP (generally accepted accounting principles) that we're used to..

Basically in the PPP/ BOT scheme, the risk will be shouldered by the awarded bidder, who in turns pass it on to the banks..
In the worst case scenario, there might be a clause wherein banks assumes the operation of the project via a 3rd party operator..

[rickflag]

In the government non-disclosure matter, it wont be that big of an issue since these projects (PPPs/ BOTs/ BLTs) are also disclosed by the winning bidders who are mostly publicly listed. Not sure if this will form part of d official statement but Im sure they'll come-up with some clever BS for this...

On to the topic:
In the PPPS/ BOTS, there will always be 3 parties or more - winning bidder, bidder's bank(s) and the govt.
One of the crucial requirements (among others) are bank guaranty products (depending on the project - BOTS/ PPPs) but normally a DSBLC, Performance Bond and Contractor's risk are required.. These will act as a some sort of "safety net" should the winning bidder fail to finish or perform certain parts of the contract..

On the query - what if they dont finish the project?
- The bank guaranty takes care of that. Govt will just have a re-bid on said project..
What if the bank can't pay? - thats why last year there was a circular wherein Govt. projects will no longer be counted on the SBL (single borrower's limit) so Banks can give the needed muscles. Also, most (if not all) are syndicated (gathering of banks funding/ guaranteeing the project)
Wont the government guarantee payment to the bank(s)? - No.. These are Project Financing which primarily focuses on the payment capacity of the project itself and its principals. The govt. will never pay on the failures of a private entity. Banks also dont give much credit on public officials (as authorized signatories) as their tenure are normally on "borrowed time"

The govt. just guarantees the income part of the project (say toll fee, generation charge, etc.. depending on the project). However, the face amount of the contract is what will be recorded as "Contingent Liability" on their books. You have to remember government accounting is based on the constitution and has its own GAAP, a bit different from the GAAP (generally accepted accounting principles) that we're used to..

Basically in the PPP/ BOT scheme, the risk will be shouldered by the awarded bidder, who in turns pass it on to the banks..
In the worst case scenario, there might be a clause wherein banks assumes the operation of the project via a 3rd party operator..

Excellent explanation bro. You must be a CPA. Just one question, with regards to the debunked MRT/LRT Central Station which was supposed to be constructed near SM North but was cancelled by this current admin because it was a project of the previous admin, who will pay back to SM, the 200M that they have paid/contributed for the said project?

[Romeojin]

In the government non-disclosure matter, it wont be that big of an issue since these projects (PPPs/ BOTs/ BLTs) are also disclosed by the winning bidders who are mostly publicly listed. Not sure if this will form part of d official statement but Im sure they'll come-up with some clever BS for this...

On to the topic:
In the PPPS/ BOTS, there will always be 3 parties or more - winning bidder, bidder's bank(s) and the govt.
One of the crucial requirements (among others) are bank guaranty products (depending on the project - BOTS/ PPPs) but normally a DSBLC, Performance Bond and Contractor's risk are required.. These will act as a some sort of "safety net" should the winning bidder fail to finish or perform certain parts of the contract..

On the query - what if they dont finish the project?
- The bank guaranty takes care of that. Govt will just have a re-bid on said project..
What if the bank can't pay? - thats why last year there was a circular wherein Govt. projects will no longer be counted on the SBL (single borrower's limit) so Banks can give the needed muscles. Also, most (if not all) are syndicated (gathering of banks funding/ guaranteeing the project)
Wont the government guarantee payment to the bank(s)? - No.. These are Project Financing which primarily focuses on the payment capacity of the project itself and its principals. The govt. will never pay on the failures of a private entity. Banks also dont give much credit on public officials (as authorized signatories) as their tenure are normally on "borrowed time"

The govt. just guarantees the income part of the project (say toll fee, generation charge, etc.. depending on the project). However, the face amount of the contract is what will be recorded as "Contingent Liability" on their books. You have to remember government accounting is based on the constitution and has its own GAAP, a bit different from the GAAP (generally accepted accounting principles) that we're used to..

Basically in the PPP/ BOT scheme, the risk will be shouldered by the awarded bidder, who in turns pass it on to the banks..
In the worst case scenario, there might be a clause wherein banks assumes the operation of the project via a 3rd party operator..

You are just diluting the topic.

When they say "contingent liabilities" in the articles; that is something the government/Filipino MAY have to pay.
cause what is truly been guaranteed are the interest of the PPP investors;
1. guaranteed profits
2. guaranteed and protection of investment returns to loan backed by government
3. regulatory risk insurance (protection from court order or decision by regulating bodies)
4. other pertinent incentives

the bottomline the Private investors will be the winner in every case at the expense of the people.


And you failed to consider, who are these finacial firms/banks who will finance and guarantee the loan of the different PPP projects.
They are:

1. Development Bank of the Philippines (DBP)
2. Land Bank of the Philippines (Landbank)
3. Government Service Insurance System (GSIS)
4. Social Security System (SSS)
5. Home Guaranty Corporation (HGC)
6. Trade and Investment Development Corporation of the Philippines (Tidcorp)

puro na government-owned-or-controlled corporations (GOCCs) and government financial institutions (GFIs)

I dont know whether theres a private banks offering loan services directly but to play safe they will just stick to buying bonds like PIDF bond which are backed by guarantees by world bank and ADB.


Again the Filipino will be footing the bill plus interest of the projects and history taught us that from the time of Cory palang; PPP had created more debt than savings and that is one of the disadvantage of PPP.

[amingb]

Sir @remeojin paksit kaau imong explanation ... thanks sa inyohang mga information ...

[makal34]

asa nman tong minion ni abnoy dri.. hapit nman lng jud mahuman ang termino sa inyohang idol.. kumusta nman ang POWER CRISIS problem?? nka hatag na ug solution si abnoy or blame lng ghpon ni GMA?

[spartan301]

And you failed to consider, who are these finacial firms/banks who will finance and guarantee the loan of the different PPP projects.
They are:

1. Development Bank of the Philippines (DBP)
2. Land Bank of the Philippines (Landbank)
3. Government Service Insurance System (GSIS)
4. Social Security System (SSS)
5. Home Guaranty Corporation (HGC)
6. Trade and Investment Development Corporation of the Philippines (Tidcorp)

puro na government-owned-or-controlled corporations (GOCCs) and government financial institutions (GFIs)

I dont know whether theres a private banks offering loan services directly but to play safe they will just stick to buying bonds like PIDF bond which are backed by guarantees by world bank and ADB.


Again the Filipino will be footing the bill plus interest of the projects and history taught us that from the time of Cory palang; PPP had created more debt than savings and that is one of the disadvantage of PPP.

Im quite sure none of the state owned firms that u mentioned above (any of the 6) are on the top of the list as guarantors for a few reasons:
1. Lack of bank products and lack of tie up with foreign commercial banks
2. Hard to tie up with for syndication
3. Lack of a dedicated team doing project financing

So i'll stand by my statement saying the risk will be with the banks (commercial)

Im just saying the facts here being a part of 2 PPPs... Everyone's entitled to their own opinion...

[Romeojin]

Im quite sure none of the state owned firms that u mentioned above (any of the 6) are on the top of the list as guarantors for a few reasons:
1. Lack of bank products and lack of tie up with foreign commercial banks
2. Hard to tie up with for syndication
3. Lack of a dedicated team doing project financing

So i'll stand by my statement saying the risk will be with the banks (commercial)

Im just saying the facts here being a part of 2 PPPs... Everyone's entitled to their own opinion...

Eh ? why would they tap local commercial banks when the World Bank and Asian Development Bank which are aggressive in PPP funding worldwide, had better rates and flexible payment scheme.

Its best to back up your claims, I'll back mine.

Government warned on debt levels with PPP deals | Business, News, The Philippine Star | philstar.com

In a policy paper, Forensic Solutions warned that Malacañang’s plan may worsen rather than ease the country’s debt trap by creating a Philippine Infrastructure Development Fund (PIDF) to jumpstart this pro-investor project with a start-up amount of P200 billion.

The amount will be sourced from the Development Bank of the Philippines (DBP), Land Bank of the Philippines (Landbank), Government Service Insurance System (GSIS) and the Social Security System (SSS).

The paper also pointed out that in insuring against all forms of regulatory risks, including judicial risk, as a pro-investor incentive, Malacañang “will negate the power of the judiciary to review executive action…and force one branch of government to abdicate its function in favor of another.”

Gov

STATE auditors said the national government (NG) violated at least two provisions of the 1987 Constitution when it failed to disclose contingent liabilities totalling P1.3 trillion as of December 2013.

These include obligations the government has assumed for build-operate-transfer or build-lease-transfer (BOT/BLT) projects under the Public-Private Partnership (PPP) program and pass-on liabilities from government-owned-or-controlled corporations (GOCCs) and government financial institutions (GFIs).

According to a report by the Commission on Audit released last May 22, the undisclosed contingent liabilities reached P1,030,485,094,220.42 broken down as follows:

--from BOT/PPP projects estimated at $20.728 million or P920.284 billion;

--outstanding guarantees issued by ROP (Republic of the Philippines) and DBP (Development Bank of the Philippines totaling P32,3479,670,542.81; and

-- foreign borrowings of the private sector amounting to P77,851,015,797.61 courtesy of Home Guaranty Corporation (HGC) and the Trade and Investment Development Corporation of the Philippines (Tidcorp).

[spartan301]

Eh ? why would they tap local commercial banks when the World Bank and Asian Development Bank which are aggressive in PPP funding worldwide, had better rates and flexible payment scheme.

Its best to back up your claims, I'll back mine.

My statement refers to Bidder's Bank, are you referring to the same party?
You said "why would they tap local..." are you referring to the govt. or the bidder?

Take note: The bidders bank will become the primary obligor in these PPPs/ BOTs in case of default..