The Public-Private Partnership (PPP) Code was recently signed into law to provide an updated framework for PPP projects and reinforce the country’s investment ecosystem for collaboration in high-impact infrastructure projects.
President Ferdinand Marcos, Jr. on Dec. 5 signed Republic Act 11966, the landmark legislation also known as “An Act Providing for the Public-Private Partnership of the Philippines.”
Finance Sec. Benjamin Diokno said the PPP Code will establish a stable and predictable environment to enhance public-private collaboration, address the gaps in infrastructure financing, and lay the foundation for ensuring the realization of high-quality infrastructure projects and services in the country.
RA 11966 clarifies the ambiguities in the existing Build-Operate-Transfer (BOT) Law, which was last amended in 1994.
In addition to the BOT arrangements under the old BOT law, the new PPP Law now covers joint ventures; toll operation agreements; lease agreements providing for the rehabilitation, operation, and/or maintenance by the private partner of an existing land or facility owned by the government for more than one year; lease agreements when such lease is a component of a PPP project; and all other contractual arrangements which possess characteristics or elements of a PPP.
The Code also streamlines the implementation process, updates the approval threshold for national PPP projects, and promotes autonomy in implementing local PPP projects while ensuring alignment with LGU projects to national development plans.
It enhances the framework for unsolicited proposals and establishes a predictable tariff regime that safeguards public interests.
The PPP Code will strengthen enabling institutions for PPPs. In particular, the Code gives the PPP Center additional powers and functions to work towards a more efficient and effective performance of its mandate. The PPP Governing Board, the Project Development and Monitoring Facility, and the newly created Risk Management Fund are likewise institutionalized further to enhance the sustainability of the Philippine PPP Program.
The National Economic and Development Authority said the PPP Code reinforces the eight-point socioeconomic agenda of enabling high-quality job creation and inclusive growth by promoting investments in critical physical and social infrastructure.
“The PPP Code will enable much-needed development across various sectors and accelerate the delivery of public services necessary for economic growth and socioeconomic transformation,” said NEDA Sec. Arsenio Balisacan.
With the Code’s implementation, the government can harness PPPs to finance infrastructure flagship projects and even social infrastructure in the education and health sectors.
The PPP Governing Board, led by NEDA, is responsible for issuing the implementing rules and regulations within 90 calendar days of the law’s effectivity. – Press release