(AP3F044-PP016) New Clark City Information and Communications Technology (ICT) PPP Project
Project Preparation
The beneficiaries are

• Residents of New Clark City
• Public, Commercial and Industrial establishments within the city

BCDA is undertaking the redevelopment of the former US Clark military base to be reborn as a new livable city. New Clark City (NCC) is positioned to become the Philippines’ first smart, green and disaster-resilient city. The development of the city is carried out by focusing on two key elements: (i) the area’s natural resources and ecosystems as the defining factors of development; and (ii) smart urban development.

The city is a key priority of the country and part of the “Build Build Build” initiative of the Duterte administration. Development of NCC and improving connectivity with central Luzon would make NCC an alternate to Metro Manila, contribute to traffic decongestion, and lead to more balanced growth in the Luzon area. NCC is also expected to contribute to the Government’s sustainable economic growth vision by developing and strengthening local competitiveness and significantly improving the quality of life of residents in both the Clark region and Metro Manila.

OPPP was selected as transaction advisor by BCDA in July 2019 for the ICT project. In this project, PLDT Inc., the largest telecommunication and digital company in the country, submitted to BCDA an unsolicited proposal in February 2020. PLDT is proposing to set up a joint venture with Marubeni to enable NCC with end-to-end ICT solution for all buildings inside NCC. These solution would enable delivery of “Smart City” services and include: (i) installing fiber optic cables and systems, administering conduits and ducts, and (iii) providing various telecom services.

Key Activities

Phase 1: Feasibility Assessment

  1. Prepare a demand analysis for the relevant services
  2. Produce an options analysis containing a review of different types of technologies to implement the services, a structuring analysis considering PPP/JV options analysis, and a procurement plan for each of the PPP/JV options to identify an optimal structure
  3. If the ICT project proceeds under an unsolicited process, review the unsolicited proposal, assist with the Swiss challenge process, and negotiate with the proponents
  4. Conduct market sounding with Project sponsors and banks
  5. If the ICT project proceeds under a solicited process, draft documents for tender process, including project information memorandum, instruction for bidders, etc.

Phase 2: Tendering and Close

  1. Draft the request for proposals and PPP agreement
  2. Support BCDA to run the tender process, including preparation and management of bid conference, responses to bidder queries, and revising PPP agreement based on bidder feedback
  3. Assist BCDA in the technical and financial evaluation of bids received
  4. Assist BCDA in negotiations with the preferred bidder
  5. Support BCDA in signing the PPP agreement
Expected Outcomes

By Q2 2023, Concession Agreement is signed