February 25, 2024

The city council, under the leadership of Vice Mayor Faustino Olowan, commenced on Jan. 4 its legislative work for 2024 in a special session that primarily tackled updates about Republic Act 11966 or the “Public-Private Partnership Code of the Philippines” that was signed into law by President Ferdinand Marcos, Jr. on Dec. 5, 2023 and took effect on Dec. 23, 2023.
Councilors present in the first meeting of the year were Councilors Benny Bomogao, Jose Molintas, Arthur Allad-iw, Betty Lourdes Tabanda, Isabelo Cosalan Jr., Ma. Mylen Victoria Yaranon, Elmer Datuin, Peter Fianza, Vladimir Cayabas, Lilia Fariñas, Fred Bagbagen, Maximo Edwin Jr., John Rhey Mananeng, and Rocky Aliping.
Councilor Leandro Yangot Jr. was on a vacation leave.
Mayor Benjamin Magalong, City Legal Officer Althea Rosanna Alberto, and other concerned department heads attended as resource persons.
The PPP law defines a PPP as a contractual agreement between the government and a private firm targeted toward financing, designing, implementing, and operating infrastructure facilities and services that were traditionally provided by the public sector. It embodies optimal risk allocation between the parties – minimizing cost while realizing project developmental objectives. Thus, the project is to be structured in such a way that the private sector gets a reasonable rate of return on its investment.
“PPP offers monetary and non-monetary advantages for the public sector. It addresses the limited funding resources for local infrastructure or development projects of the public sector thereby allowing the allocation of public funds for other local priorities. It is a mechanism to distribute project risks to both the public and private sectors. PPP is geared for both sectors to gain improved efficiency and project implementation processes in delivering services to the public. Most importantly, PPP emphasizes value for money – focusing on reduced costs, better risk allocation, faster implementation, improved services, and possible additional revenue generation,” the law stated.
Among the proposed PPP projects of the city government presented to multi-sectoral stakeholders in October 2023 are the smart urban mobility project in partnership with Metro Pacific Tollways Corporation; the Baguio transport solutions by Metro Renewable Transport Solutions Inc; the intermodal transport terminal by Megawide Construction Corporation; the Asin hydropower plants development and the improvement project by Repower Energy Development Corporation, Baguio public market modernization by SM Prime Holdings; and Session Road rehabilitation in partnership with the University of the Cordilleras and Saint Louis University.
The implementing rules and regulations of the law will be formulated by the IRR Committee composed of the members of the PPP Governing Board, with the Secretary of National Economic Development Authority as chairperson and the PPP Center as the secretariat.
The committee is tasked to promulgate the IRR within 90 calendar days from the effectivity of the code or within the first quarter of 2024.
The PPP Code shall cover all contractual agreements between implementing agencies and private partners to finance, design, construct, operate, and maintain, or any combination or variation thereof, for infrastructure or development projects and services.
It includes joint ventures, toll operation agreements,lease agreements providing for rehabilitation, operation, and/or maintenance, including the provision of working capital and/or improvements to, by the private partner of an existing land or facility owned by the government for a period of time covering 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 as defined under the code, or as may be approved by the appropriate approving body.
The new law excludes projects implemented under the Government Procurement Reform Act, management contracts, service contracts, divestments or dispositions,corporatization, incorporation of subsidiaries with private sector equity, onerous donations, gratuitous donations, and joint venture agreements involving purely commercial arrangements that neither provide nor include public infrastructure or development services.
All implementing agencies are authorized to identify, develop, assess, evaluate, approve, negotiate, award, and undertake PPP projects with the private sector.
An implementing agency refers to any department, bureau, office, instrumentality, commission, authority of the national government, state universities and colleges (SUC), local universities and colleges, local government units, or government owned orcontrolled corporations (GOCC).
Local PPP projects are those undertaken by LGUs and local utility companies, while those undertaken by the national government, SUCs, and GOCCs, including government instrumentalities with corporate powers, government corporate entities, and government financial institutions, water districts, and economic zone authorities are called national PPP projects.
Under Section 37 (repealing clause) of the Code, ordinances or any part inconsistent with or contrary to the PPP Code are rendered inoperable, repealed, or modified accordingly.
For 2023, the city council has conducted 39 regular sessions, 14 special sessions, and 29 public hearings. The council approved 791 resolutions and passed 113 ordinances.
The city council has approved Resolution 1, s. 2024 granting favorable review of the 2024 annual budget of MRR Queen of Peace – P3,679,860; the 2023 supplement budgets of barangays Victoria Village – P88,810, Dontogan – P309,000, City Camp Proper – P63,800, Mines View – P91,284, Bakakeng Norte/Sur – P526,043, San Roque Village – P131,586, Upper Quezon Hill – P194,121, Santo Tomas Proper – P306,055, Saint Joseph Village – P130,694, Sta. Escolastica Village – P203,400, and Pinsao Proper – P345,037.
In Resolution 2, s. 2024, granted favorable review are the 2023 annual and supplement budgets of barangays Upper Dagsian – P2,461,876, Balsigan – P227,000, East Bayan Park – P55,629.61, Rizal Monument – P41,125, Pinsao Proper – P1,418,258, Cresencia Village – P47,500, Kias – P130,420, Trancoville – P377,400, Scout Barrio – P152,000, and Loakan Proper – P355,450.