NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
SENATE
S. No. 1344
•( ttif fercrrta vp
SEP 21 P5 24
RECEIVES lY:
Introduced by Senator Loren B. Legarda
AN ACT
STRENGTHENING PUBLIC-PRIVATE PARTNERSHIPS, APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
In the 2022 State of the Nation Address (SONA), President Ferdinand Marcos, Jr. 
emphasized the need to encourage the participation of the private sector in the development 
of infrastructure development and innovation.
To revive and promote Public-Private Partnerships (PPPs), it is crucial to revisit 
Republic Act No. 6957, as amended by Republic Act No. 7718, otherwise known as the "Built- 
Operate-Transfer" (BOT) law or "An Act Authorizing the Financing, Construction, Operation, 
and Maintenance of Infrastructure Projects by the Private Sector."
To encourage private sector participation, this bill seeks to reinforce the PPP Program 
by creating an enabling environment for PPPs where the ease of doing business is enhanced; 
the cost of doing business is reduced; financial incentives for private partners are augmented; 
the governing rules are set to be straightforward, fair, and systematic; transparent and 
competitive bidding and selection are increased; rules and guidelines on unsohcited 
proposals are established; investments are more secured; and parties are expanded to include 
joint ventures.
In protecting the interests of die consumers imder the proposed measure, fair and 
reasonable pricing is emphasized to ensmre the affordability of user fees; public consultation


or dialogues with potential stakeholders and a willingness-to-pay survey among the users of 
the infrastructure fadhty shall be conducted by implementing agencies; and mechanisms for
the timely delivery of efficient and accessible pubHc services and quality infrastructure are 
outlined.
To accelerate infrastructure development, the biU proposes that PPP projects shaU not 
be subject to judicial reliefs such as Temporary Restraining Order (TRO), Preliminary 
Injunction, and Preliminary Mandatory Injunction, except those issued by the Supreme Court.
The bill also takes into accoimt the full pubhc disclosure of aU PPP transactions; 
transparency in unsohcited proposals; conversion of the unsoUcited proposal into a solicited 
proposal and thereafter use it as a basis for competitive bidding; prohibition on conflict of 
mterest such that no Implementing Agency shall be allowed to implement a PPP Project that 
it regulates; mandatory inclusion of dispute avoidance and alternative dispute resolution 
mechanisms in PPP contracts; provision of protest mechanisms in all stages of procurement 
process of both national and local PPP projects.
Other salient features of the bill include the institutionalization of the Pubhc-Private 
Partnership Center, which shaU be primarily responsible for giving Congress and the pubHc 
pertinent information on PPP projects; the empowerment of local government vmits (LGUs) 
by giving them the power to approve local PPP projects; the creation of a Risk Management 
Fimd (RMF) to be used for the payment of contingent liabilities arising from PPPs.
In view of the foregoing, the passage of this bill is earnestly sought.
LOREN LEGARDA


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
s. No. 1344
iBSiir •( frff
H SEP 21 P5:24
kceiveoiy;.
Introduced by Senator Loren B. Legarda
AN ACT
STRENGTHENING PUBLIC-PRIVATE PARTNERSHIPS, APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Republic of the Philippines 
in Congress assembled:
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Section 1. Title. - This Act shall be known as the "Public-Private Partnership
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(PPP) Act."
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Sec 2. Declaration of Policy. - Section 20, Article II, of the Constitution declares
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that the State recognizes the indispensable role of the private sector, encourages
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private enterprise, and provides incentives for needed investments. To this end, the
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State shall provide an enabling environment for the private sector to mobilize its
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resources for the purpose of financing, designing, constructing, operating, and
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maintaining development programs and projects traditionally undertaken by the
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government. As provided by law, the government shall foster robust private sector
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participation by providing financial incentives and by reducing the costs of doing
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business.
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It is further declared that the State shall protect the pubhc interest by providing
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affordable, accessible, and efficient public services. In order to achieve a better quaUty
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of PPP Projects at lower costs, the State shall ensure equitable risk allocation in PPP
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Projects, and take into account that all PPP Projects yield sufficient value for money,
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value for people, and value for the planet.
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The State shall pursue a pohcy of maintaining a reasonable balance on the


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financing of infrastructure and other development projects through all means
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available that will most effectively meet the objectives of the government. These may
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include appropriations, official development assistance, and PPPs, as well as
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combinations thereof. The government shall determine the appropriate financing by
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considering budget availabifity, timehnes, stakeholder commitments, and market
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capacity.
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Finally, it is declared that the State shall affirm open, fair, transparent, and
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competitive selection as the central tenet for securing private investment in PPP
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Projects. It shall implement a poHcy of full public disclosure of aU its transactions
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involving public interest, subject to terms and conditions as prescribed by pertinent
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laws.
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Sec. 3. Scope and Application. - This Act shall apply to all PPP Projects
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tmdertaken by Implementing Agencies, through PPP contracts with a Private
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Proponent, including Joint Ventures, as defined under this Act. It shall likewise apply
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to and be enforceable among all parties to said PPP contracts.
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Implementing Agencies are hereby authorized to undertake PPP Projects
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through PPP contracts with a Private Proponent in accordance with this Act.
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Sec. 4. Definition of Terms. - As used m this Act:
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a. Approving Body - refers to an entity authorized to approve PPP Projects
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in accordance with Section 7 of this Act;
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b. Construction - refers to new construction, rehabilitation, improvement,
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expansion, alteration, and related works and activities including the
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necessary supply and installation of equipment, materials, labor and
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services, and related items;
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c. Contractor - refers to any entity allowed under Phifippine laws, which
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may or may not be the Private Proponent, and which shall undertake the
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actual construction or supply of equipment or services for PPP Projects;
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d. Contingent Liability - refers to an obligation that may or may not arise
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from events specified in a PPP contract, the occurrence, timing, and
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amount of which is uncertain. These events include regulatory risks.


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force majeure, breach of government warranties, and material adverse 
government action, among others;
e. Facility Operator - refers to an entity with legal personality authorized 
under existing laws, which may or may not be the Private Proponent, 
that shall be responsible for operating and maintaining a facility, 
including, but not Umited to, the collection of toUs, fees, rentals or 
charges from fadhty users;
f. Government Undertakings - refers to any form of contribution and 
support, which the government may extend to a Private Proponent for 
the implementation of PPP Projects, as defined under this Act. The 
procedures on proposing and granting of Government Undertakings 
shall be prescribed in the IRR of this Act;
g. Greenfield Project - refers to a project which entails the creation of an 
entirely new facility or service, which does not depend on the 
improvement of an existing facility:
h. Green Financing - refers to investments that create enviromnental benefits 
in support of green growth, low-carbon, and sustainable development;
i. Guarantee on Demand - refers to an agreement whereby the Implementing 
Agency guarantees to assume market risks in a PPP Project;
j. 
Guarantee on Loan Repayment - refers to an agreement whereby the
Implementing 
Agency guarantees to assume responsibility for
the repayment 
of debt directly incurred by the Privat Proponent
in implementing the project in case of a loan default;
k. Guarantee Private Sector Return - refers to an agreement whereby the 
Implementing Agency guarantees to provide a pre-identified rate of 
return on the investment of the Private Proponent;
l. Implementing Agency - refers to a department, bureau, office, 
instrumentality, commission, authority of the national government, 
state imiversities and colleges (SUCs), local government units (LGUs), 
or government owned-or-controlled corporation (GOCC) as defined in


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Republic Act No. 10149, including government instrumentalities with 
corporate powers (GICP), government corporate entities (GCE), 
government financial institutions (GFls), which is authorized to 
imdertake PPP Projects;
m. - Joint Venture (JV) - refers to a contractual arrangement whereby both 
the Implementing Agency and the Private Proponent contribute to pool 
resources comprising of capital, services, or assets (including 
equipment, land, or intellectual property) to jointly undertake a specific 
investment activity. The investment activity shall be for the purpose of 
accomplishing a specific goal with the end view of facihtating private 
sector initiative in a particular industry or sector, and eventually transfer 
the activity to either the private sector under competitive market 
conditions or to the government. The JV involves a community or 
pooling of interests in the performance of the investment activity, and 
each party shall have the right to direct and govern the policies in 
coimection therewith with the intention to share both profits, and risks 
and losses subject to agreement by the parties. A JV may be undertaken 
through a contract or by creating a JV entity;
n. Local PPP Project - refers to a PPP Project that shall be undertaken by 
LGUs, and local imiversities and colleges (LUCs) as defined in RA10931;
o. National PPP Project - refers to a PPP Project that shall be undertaken by 
the national government, GOCCs including water districts, GICPs, 
GCEs, GFIs, and SUCs as defined in RA 10931;
p. Operation and Maintenance - refers to activities necessary and incidental 
to preserve or restore the operational status of an asset or system based 
on specified performance indicators;
q. Original Proponent - refers to the Private Proponent which submitted an 
unsolicited proposal which has been accepted and pre-qualified by the 
implementing agency, and has been conferred the "Original Proponent" 
status, as mentioned In Section 10 of this Act;


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r. PPP Project - refers to infrastructure or development programs, projects, 
activities, facilities, and related services normally financed and 
undertaken by the public sector, but which shall now be wholly or partly 
financed, designed, built, operated and maintained by the private sector;
s. Private Proponent - refers to the private sector entity which shall either 
have submitted an unsohdted proposal, or a bid submission in relation 
to a sohcited PPP Project, and/ or have a contractual responsibility for 
the PPP Project. The Private Proponent may be Filipino or foreign- 
owned, and may engage the services of a foreign contractor or foreign 
facility operator, subject to requirements and limitations provided under 
the Phihppine Constitution;
t. Project Cost - refers to the estimated cost of the PPP Project. The 
guidelines in determining the Project Cost shall be prescribed in the IRR 
of this Act;
u. Subsidy - refers to an agreement whereby the Implementing Agency wiU:
(a) defray, pay for, or shoulder a portion of the Project Cost or the 
expenses and costs in operating or maintaining the project;
(b) contribute any property or assets to the project;
(c) waive or grant special rates on real property taxes on the project 
during the term of the contractual arrangement; and/or
(d) waive charges or fees relative to business permits or licenses that 
are to be obtained for the construction of the project, all without 
receiving payment or value from the Private Proponent and/or 
Facihty Operator for such payment, contribution, or support. 
Provided, That under no circumstance shall the total subsidy exceed 
fifty percent (50%) of the total Project Cost;
V. Termination Payment - refers to the amount payable by the government 
or the Private Proponent on the occurrence of an event or series of 
events provided for in the PPP contract that results in the termination 
of said contract;


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w. Viability Gap Funding (VGF) - refers to a type of Subsidy in the form of 
financial support that the government may provide to a revenue-based 
PPP Project with the objective of making fees affordable, while 
improving the commercial attractiveness of the project, excluding costs 
of right-of-way, resettlement, and real estate taxes.
Sec. 5. Public-Private Partnership. - A PPP is a contractual arrangement between 
the Implementing Agency and the Private Proponent for the financing, designing, 
constructing, operating, and maintaining, or any combination thereof, of projects 
which are normally provided by the public sector. PPP Projects may be imdertaken 
through contractual arrangements, including joint ventures, authorized under the 
Implementing Rules and Regulations (IRR) of this Act, and such other variations 
thereof as may be approved by the appropriate Approving Body.
Sec. 6. Identification of PPP Projects. - Implementing Agencies shall include in 
their development plans, strategies, and investment programs those priority PPP 
Projects that they want to undertake. In identifying those projects, the Implementing 
Agencies shall be guided by the following principles:
i. 
Effectiveness in meeting government objectives;
ii. 
Appropriateness of the chosen procurement modality and source of 
funding;
ui. Value for money;
iv. Accountability and transparency;
V. Consumer rights;
vi. 
Affordability;
vii. 
PubHc access;
viii. 
Safety; and
ix. Security.
Priority projects shall be consistent with the national and local development 
and investment plans.
The Implementing Agencies shall submit their list of PPP Projects or any 
update thereto to the PPP Center, referred to in Section 22 of this Act, for


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information. Each proposed PPP Project shall be subject to the approval of the
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appropriate Approving Body.
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The PPP Center shall ensure that the Congress of the Philippines and the public
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shall be provided with adequate and timely information on PPP Projects.
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Sec. 7. Approval of PPP Projects, (a) The approval of PPP Projects under this Act
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shall be in accordance with the following:
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(1) National PPP Projects. National PPP Projects shall be approved as follows:
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(i) Projects costing Five biUion pesos (P5/000,000/000.00) and below, shall
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be submitted to the Investment Coordination Committee of the National
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Economic and Development Authority (ICC-NEDA) for approval;
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(ii) Projects costing above Five billion pesos (P5,000,000/000.00) shall be
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submitted to the 
NED Aboard for 
approval, upon favorable
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recommendation by the ICC-NEDA.
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The ICC-NEDA may, from time to time, update the aforementioned amounts
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when the need arises.
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(2) Local PPP Projects. Local PPP Projects shall be approved by the local
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Sanggimians, regardless of the project cost. Provided, that Local PPP Projects involving
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Government Undertakings using national government funds shall require the
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approval of the ICC-NEDA.
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National Government Undertakings shall include, among others, the following
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items to be provided by the national government to a Local PPP Project:
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(i) Guarantees on Demand;
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(ii) Guarantees on Private Sector Return;
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(iii) Guarantees on Loan Repayment;
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(iv) Viability Gap Funding and other forms of Subsidy;
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(v) payment of Contingent Liability, including Termination Payments.
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Provided, Further, That, permits, clearances, hcenses, or endorsements from
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national government agencies required for Local PPP Projects under laws, rules, and
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regulations, shall not be considered as Government Undertakings by the national
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government for Local PPP Projects.


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(b) The Approving Body shall assess all PPP Projects based on its overall
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feasibility analysis and accord paramount importance to the affordability of user fees
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and efficiency in public service. To ensure that aU risks associated with PPP Projects
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are managed and mitigated accordingly, all PPP contracts to be entered into by the
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Implementing Agency shall adhere to the principles stipulated under the Generic
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Preferred Risk Allocation Matrix (GPRAM) issued by the ICC-NEDA.
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(c) The appropriate Approving Body shall notify and advise, in writing, the
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Implementing Agency of its receipt and assessment of the completeness, in form and
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in substance, of the PPP Project proposal. Upon complete submission of the
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requirements by the Implementing Agency, the appropriate Approving Body shall
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render its decision on the project within forty (40) working days therefrom. The
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Implementing Agency shall be duly notified in writing of the decision of the
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Approving Body on or before the end of the 40-day period. The failure of the
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appropriate Approving Body to render its decision on the project within the specified
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period shall be deemed approval thereof and the concerned Implementing Agency
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may proceed with the procurement of the PPP Project, without prejudice to any
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habihty that the erring or negligent officials or employees may incur under existing
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laws.
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In cases of Local PPP Projects requiring national goveriunent undertakings, the
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ICC-NEDA shall be given twenty (20) working days from the receipt of the proposal
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for the Local PPP Project to render its decision on the requested government
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undertaking. In the event of disapproval of the requested government undertaking,
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the Implementing Agency has the right to resubmit the request for approval of the
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national government undertaking in accordance with the provisions of the IRR of this 
2 5 Act. The disapproval of the requested government undertaking shall not be construed
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as a disapproval of the Local PPP Project.
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(d) In order to facilitate a comprehensive and timely review of the PPP Project,
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the PPP Center, in coordination with the ICC-NEDA, shall formulate forms and
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templates that shall be used by the Implementing Agency and the Approving Body in
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reviewing and approving the PPP Project, as well as the national government
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undertaking involved in local PPP Projects.
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(e) The decision of the appropriate Approving Body to approve and implement
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the project imder any of the contractual arrangements or variations thereof under this
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Act shall be final and executory unless the Implementing Agency can provide
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sufficient justifiable reason to convert the PPP Project to another project under a
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different procurement modality.
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Sec. 8. PPP Pre-Qualification, Bids, and Awards Committee. - The head of the
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Implementing Agency, imdertaking PPP Projects shall create a PPP Pre-qualification,
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Bids and Awards Committee (PBAC), which shall be responsible for all aspects of pre-
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bidding and bidding process in solicited proposals, or the comparative bidding
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process in unsolicited proposals. The composition and specific functions of the PBAC
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for National PPP Projects and Local PPP Projects shall be specified in the IRR of this
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Act, which may include other relevant government entities.
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Sec. 9. Solicited Proposals. -
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(a) Solicited Proposals refer to submissions by the Private Proponent to bid for
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PPP Projects through open, fair, transparent, and competitive public bidding initiated
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by the Implementing Agency. Government Undertakings are allowed, subject to the
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approval of the Approving Body.
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(b) General. The public bidding may be conducted in a single-stage or two-
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stage bidding process, either manually or electronically, subject to the rules provided
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for in the IRR of this Act.
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The contract shall be awarded to the bidder who satisfied all pre-qualification
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and eligibility requirements and has submitted the most favorable financial bid based
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on the parameters defined in the bid dociunents. In all instances, affordable user fees
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and efficient public services shall be of paramount importance in awarding a PPP
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contract.
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If the winning bidder fails to comply with any post-award requirement or fails
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to enter into a contract with the Implementing Agency, the latter may proceed to
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consider the next technically and financially qualified bidder. In case the contract is
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awarded to the next technically and financially qualified bidder, it shall be without


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prejudice to legal remedies available to the Implementing Agency like forfeiture of
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bid security, withdrawal of award, and such other remedies allowed under existing
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laws, rules, and regulations.
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Any change in control of the Private Proponent or composition of the
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Consortium after the submission of a sohdted proposal shall be subject to the s
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approval of the Implementing Agency.
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(c)Failure of Bidding. The Implementing Agency shall declare a failure of
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bidding in case of any of the following:
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(1) If no bids are received; or
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(2) If there are no complying bids.
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The ICC-NEDA or the local Sanggunian may also declare a failure of bid if,
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after advertisement, only one bidder apphed for and met the pre-qualification
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requirements, imless otherwise provided in this Act.
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The procedures and mechanisms in dealing with a failure of bidding shall be
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prescribed in the IRR of this Act.
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(d) Single Complying Bid. Without prejudice to paragraph (a) of this Section,
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the Implementing Agency may consider, on a negotiated basis, a single complying
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and responsive bid in case of any of the following:
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(1) If, after advertisement, more than one bidder apphed for pre-quahfication
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but only one met the pre-qualification requirements;
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(2) If, after advertisement, only one bidder apphed for and met the pre-
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qualification requirements, provided such was ahowed by the ICC-NEDA or
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the local Sanggunian, whichever is apphcable;
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(3) If, after pre-qualification of more than one bidder, only one submitted a bid;
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or
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(4) If, after pre-qualification, more than one bidder submitted bids but only one
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is found by the Implementing Agency to be complying.
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In any of the foirr (4) instances described in sub-paragraphs (1) to (4) of the
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preceding paragraph, the Implementing Agency shah not consider negotiating with
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the single complying and responsive bid when there is a reasonable showing of
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collusion between or among prospective bidders or coUusion between the remaining 
bidder with the officers of the Implementing Agency or any member or officer of the 
PBAC.
Sec. 10. Unsolicited Proposals.
(a) General. Unsohcited Proposals refer to project proposals submitted by a 
Private Proponent not in response to a formal solicitation or request issued by the 
Implementing Agency.
The Implementing Agency may accept, reject, or convert an unsohcited 
proposal into a sohdted proposal, subject to the evaluation of ehgibihty and merits of 
the project, and other conditions set forth in this Section and the IRR of this Act.
(b) Limitations. Unsohcited proposals may be considered for projects that are 
not in the priority list and projects that are in the priority hst. Provided, That in case 
the Implementing Agency has already incurred any development cost for the priority 
project, such as the conduct of feasibility study, business case, and surveys, among 
others, for the last five (5) years, the Private Proponent must undertake to reimburse 
the Implementing Agency of such donmiented development costs. Reimbursable 
development costs for a specific priority project shah be determined by the 
Implementing Agency.
Provided, further. That any unsohcited proposal shah not contain any of the 
foUowing Goveriunent Undertakings:
i. Viabihty gap Funding and other forms of Subsidy;
u. Payment of Right-of-Way related costs;
ih. 
Performance undertaking;
iv. Exemption from any taxes as required by laws, except local taxes imposed 
by local government units;
V. 
Guarantee on Demand;
vi. 
Guarantee on Loan Repayment;
vii. 
Guarantee on Private Sector Return;
vih. Government equity except in JV arrangements; and
ix. Contribution of assets, properties, and rights except in JV arrangements.
11


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As an exception, items (ii) and (ix) above may be allowed if the government
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receives appropriate compensation, which shall in no way be lower than the value of
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the Right-of-Way, assets, properties, and rights contributed.
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(c) Special Requirements.
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(1) Within ten (10) working days from receipt of the unsoUcited
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proposal, the Implementing Agency shall inform the PPP Center in writing of
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such receipt and shall furnish it with a copy of the proposal.
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(2) Upon submission of an unsolicited proposal, the Private Proponent
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shall pay an administrative fee to the Implementing Agency for processing of
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the same, subject to the guidelines as may be set in the IRR of this Act.
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(3) An imsolicited proposal involving the Right-of-Way acquisition of a
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property, whether owned or not owned by the Original Proponent may only
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be considered if the submission includes proof that the Original Proponent can
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acquire the entire property it identified in the unsolicited proposal, and/or a
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detailed Right-of-Way and resettlement plan indicating the specific assistance
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it needs from the government in acquiring the Right-of-Way for the entire
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property it identified in the unsohcited proposal, as may be applicable.
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(4) Any change in control of the Original Proponent or composition of
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the consortium after the submission of the Unsohcited Proposal shall be subject
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to the approval of the Implementing Agency.
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(5) In evaluating unsohcited proposals, the Implementing Agency shah
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use a first-in-time approach. Under this approach, the first complete proposal
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is evaluated and decided upon. The second complete proposal shah only be
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processed if the first one is rejected or if there is a fahure in the negotiation of
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the first proposal. In ah instances, the Implementing Agency may seek the
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assistance of the PPP Center in the assessment, evaluation, and review of
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unsohcited proposals.
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(d) Rejection of an Unsohcited Proposal. The Implementing Agency shah have
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the right to automaticahy reject the unsohcited proposal upon receipt thereof, or
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formahy reject it after evaluation. If the Implementing Agency fails to act on an
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unsolicited proposal within sixty (60) working days from receipt thereof, the project
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proposal shall be deemed rejected, without prejudice to any liability that the erring or
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neghgent officials or employees may inau' under existing laws.
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In cases of automatic rejection and rejection resulting from inaction, the paid
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administrative fee shall be returned to the appropriate Private Proponent and shall be
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without prejudice to the right of the Private Proponents to resubmit their proposals
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until such time that the proposal has been formally rejected by the Implementing
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Agency, in which case, the administrative fee shall not be returned. A formal rejection
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is a written rejection notice to the Private Proponent stating the reason/s why the
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submitted proposal was rejected.
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(e) Conversion of an Unsolicited Proposal. The Implementing Agency may be
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allowed to convert an unsolicited proposal to a solicited proposal, subject to the
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conditions set forth In the IRR of this Act. If the Implementing Agency converts an
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unsolicited proposal and uses it as basis for public bidding, the Private Proponent
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shall be reimbursed of the cost incurred in the preparation of the proposal, such as the
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cost of any feasibility study undertaken: Provided, That such reimbursement shall be
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in an amoimt not exceeding six percent (6%) of the total Project Cost, excluding the
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cost of right-of-way acquisition: Provided, further, that reimbursement shall be paid
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m full by the winning bidder as a requirement for the award of the contract, or by the
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Implementing Agency in case of two consecutive failures of bidding. In the event the
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original Private Proponent wins the solicited bid, it shall return to the Implementing
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Agency the reimbursed amount. The PPP Governing Board, as referred to in Section
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23 of this Act, may adjust such reimbursement amoimt as the need arises.
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(f) Acceptance of an Unsolicited Proposal. If the Implementing Agency accepts,
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on a negotiated basis an unsolicited proposal, it shall grant the Private Proponent who
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submitted the unsolicited proposal an "Original Proponent" status, which shall be
27 
valid for a period not exceeding one (1) year, and may be extended by the head of the
28 
Implementing Agency; Provided, That such extension shall not exceed a period of one
29 
(1) year
30 
(g) Comparative Challenge. The Implementing Agency shall publish an
13


1 
invitation for the submission of comparative proposals.
2 
The comparative challenge shall be conducted either manually or
3 
electronically, by the Implementing Agency within the period proposed by it and
4 
approved by the appropriate Approving Body, taking into consideration the natiue
5 
and complexity of the PPP Project; Provided, that the period shall start from the date
6 
of last publication of the invitation for the submission of comparative proposals and
7 
shall be reasonable, fair, and upholds the competitive nature of pubhc bidding.
8 
Comparative proposals shall be evaluated based on the best-and-final offer method
9 
and the bid bonus system, the procedure of which shall be discussed in the IRR.
10 
If no other proposal is received after the challenge period, the PPP contract
11 
shall be awarded to the Original Proponent.
12 
Sec. 11. Protest Mechanism. - In aU stages of the procurement process, the
13 
following protest protocol shall be strictly followed:
14 
(a) In the case of National PPP Projects:
15 
(i) Decisions of the PBAC may be questioned by filing a motion for
16 
reconsideration within fifteen (15) working days from receipt thereof.
17 
The PBAC shall act on the motion and render a decision within thirty
18 
(30) calendar days, otherwise, it shall be deemed denied.
19 
(ii) The decision of the PBAC on the motion for reconsideration in
20 
the immediately preceding paragraph may be further questioned by
21 
fUing an appeal to the head of the Implementing Agency concerned and
22 
paying a non-refimdable appeal in an amount equivalent to no less than
23 
1/2 of 1% of the Project Cost within fifteen (15) working days from
24 
receipt thereof. The head of the Implementing Agency shall act on the
2 5 
appeal and render a decision within thirty (30) calendar days, otherwise,
26 
it shall be deemed denied. The PPP Governing Board may adjust the
27 
appeal fee as the need arises.
28 
If the head of the Implementing Agency in the immediately
29 
preceding paragraph is not a Department Secretary, the decision of the
30 
head of the Implementing Agency may be further questioned by filing
14


1 
an appeal to the Secretary of the Department to which the Implementing
2 
Agency is attached within fifteen (15) working days from receipt thereof.
3 
The Department Secretary shall act on the appeal and render a decision
4 
within thirty (30) calendar days, otherwise, it shall be deemed denied.
5 
(iii) The decision of the Department Secretary in the immediately
6 
preceding paragraph may be questioned by filing an appeal to the Office
7 
of the President within fifteen (15) working days from receipt thereof. If
8 
within sixty (60) calendar days, the Office of the President does not act
9 
on the appeal, the same is deemed denied.
10 
(b) In the case of Local PPP Projects:
11 
(i) Decisions of the PBAC may be questioned by filing a motion for
12 
reconsideration within seven (7) calendar days from receipt thereof. The
13 
PBAC shall act on the motion and render a decision within thirty (30)
14 
calendar days, otherwise, it shall be deemed denied.
15 
(ii) The decision of the PBAC on the motion for reconsideration m
16 
the immediately preceding paragraph may be further questioned by
17 
filing an appeal to the local chief executive or his authorized
18 
representative concerned within seven (7) calendar days from receipt
19 
thereof and paying a non-refundable appeal fee in an amount equivalent
20 
to no less than 1/2 of 1% of the Project Cost.
21 
The local chief executive shall resolve the appeal within thirty
22 
(30) calendar days from receipt thereof, otherwise, it shall be deemed
23 
denied. The selection process will be suspended for a maximum period
24 
of thirty (30) calendar days while the appeal is being evaluated. The
25 
decision of the local chief executive or his authorized representative on
26 
the appeal shall be final and immediately executory.
27 
Unless otherwise provided in this Act, in no case shall a motion for
28 
reconsideration or an appeal from any decision by the PBAC, Head of Implementing
29 
Agency or Department Secretary stay or delay the bidding process. No award shall,
30 
however, be made imtil a decision on any pending appeal is rendered, or deemed
15


1 
denied.
2 
Sec. 12. Adoption of Contract Management and Risk Mitigation Plans in PPP
3 
Projects. - In order to manage the fiscal risks arising from PPP Projects, strengthen the
4 
credibility of the PPP program and projects in the private sector, and to ensure the
5 
timely compliance with the contractual obligations of Implementing Agencies,
6 
projects undertaken shall require the adoption of a contract management and risk
7 
mitigation plan (CNRNP). The CNRNP shall contain the agreed project execution plan
8 
and risk mitigation plans of the contractual parties, which shall ensure that value for
9 
money derived from undertaking a PPP Project shall not be diminished and that aU
10 
risks are mitigated, to avoid contingent liabilities from being realized. All CNRNPs
11 
shall be submitted to the PPP Center for monitoring. The procedures in creating,
12 
managing, and monitoring the CMRMP shall be prescribed in the IRR.
13 
Sec. 13. Project Supervision, Monitoring, and Impact Evaluation. - Every PPP
14 
Project shall be implemented in accordance with the project terms as approved by the
15 
appropriate Approving Body, as well as the signed PPP contract. The coverage of the
16 
project terms and the minimum required provisions in a PPP contract shall be set forth
17 
in the IRR of this Act. The Implementing Agency shall be entitled to exercise sufficient
18 
powers of supervision, monitoring, and control over the implementation of each PPP
19 
contract it has entered into.
20 
(a) 
Supervision. The Implementing Agency shall be responsible for the
21 
overall supervision of the PPP Project and for submission of periodic monitoring
22 
reports, executed imder oath, to the appropriate oversight agencies. The approval by
23 
any public officer of any certificate of compliance or certificate of completion that is
24 
submitted by the Private Proponent shall also be made under oath. The liability of the
25 
public officer or former public officer for any criminal act under existing pertinent
26 
laws related to the actions made on such reports and such approvals shall survive the
27 
retirement of the public officer, the termination of the project contract, and the lapse
28 
of the applicable warranty period/s.
29 
(b) 
Monitoring. The PPP Governing Board shall set the framework for
30 
monitoring of the compliance of the parties to PPP contracts. The PPP Center shall be
16


1 
responsible for the coordination and monitoring of projects implemented under this
2 
Act. For this purpose, the Implementing Agency shall submit to the PPP Center all
3 
executed PPP contracts, information on the status of projects implemented by, as well
4 
as copies of aU unsolicited proposals and related documents received by, the former.
5 
At the end of every calendar year, the PPP Center shall submit a report to the President
6 
of the Philippines and to the Congress of the Philippines, particularly to the Senate
7 
President and the Speaker of the House of Representatives, and the Chairpersons of
8 
the Committee on Public Works on the progress of all projects implemented imder
9 
this Act.
10 
(c) Impact Evaluation. As the primary socio-economic policy think tank of
11 
the national government, the Philippine Institute for Development Studies (PIDS) is
12 
hereby mandated to conduct periodic impact evaluation studies of PPP Projects
13 
implemented under this Act. The results of these studies shall be submitted to the PPP
14 
Governing Board, the PPP Center, and other relevant oversight agencies.
15 
Sec. 14. Investment Incentives. - PPP Projects imdertaken through this Act shall
16 
be entitled to various incentives under applicable laws and existing policies of the
17 
government.
18 
Sec. 15. Investment Recovery Scheme. - In undertaking PPP Projects, the Private
19 
Proponent shall be allowed to recover its investments and earn profit through any of
20 
the following schemes or a combination thereof:
21 
(a) Revenue-based - refers to a scheme where the Private Proponent is authorized
22 
to charge and collect, in whole or in part, from the public reasonable user fees
23 
or tariffs subject to appropriate regulation in accordance with Section 16 of this
24 
Act. Where applicable, the Private Proponent may likewise be repaid in the
25 
form of a share in the revenue of the project; and
26 
(b) Availability-based - refers to a scheme where the Implementing Agency
27 
commits to make predetermined payments, which do not take the form of
28 
charges paid by the users of the works or of the service, but of regular payments
29 
by the Implementing Agency based on contractually-defined performance
30 
delivery.
17


1 
Other non-monetary payments, such as commercial development rights, or the
2 
grant of a portion or percentage of the reclaimed land, subject to the constitutional
3 
requirements on land ownership, may also be allowed to supplement the foregoing
4 
schemes.
5 
The framework and mechanism for determining the allowable return of the
6 
Private Proponent on a PPP Project shall be prescribed in the IRR of this Act.
7 
Sec. 16. Regulation. - All PPP Projects shall be subject to regulation by the
8 
appropriate regulatory body or by contract in the absence of the former.
9 
Sec. 17. Variation, Expansion, or Extension of an Existing PPP Project. - A contract
10 
variation or extension, or an expansion or extension of an existing PPP Project may be
11 
allowed by the Implementing Agency, subject to the rules and procedures as provided
12 
in the IRR of this Act Provided, That upon prior approval by the Approving Body,
13 
the Private Proponent of an existing PPP Project may be allowed to expand or extend
14 
the same even without further bidding: Provided, That the cost thereof shall not
15 
exceed twenty-five percent (25 %) of the price-adjusted original approved Project Cost
16 
Provided, further. That any subsequent expansion or extension shall no longer be
17 
allowed, and such shall be considered a new project and shall be tendered
18 
accordingly.
19 
Application for contract variation or extension, or expansion or extension of an
20 
existing PPP Project shall be governed by existing laws, decrees, orders, rules and
21 
regulations at the time of application.
22 
Sec. 18. Divestiture/Divestment. - Subject to the approval of the head of the
23 
Implementing Agency, a Private Proponent may divest its ownership, rights, or
24 
interest in a PPP Project: Provided, That the divestiture shall be after a holding or lock-
25 
in period as indicated in the PPP contract: Provided further. That the new Private
26 
Proponent has equal or better qualifications as with the previous Private Proponent.
27 
The Implementing Agency may divest its ownership, rights, or interest in a
28 
project: Provided, That projects which involve full or partial divestment or transfer of
29 
ownership of government assets or properties shall be subject to the approval of the
30 
appropriate Approving Body and applicable laws, decrees, orders, niles, and
18


1 
regulations.
2 
Sec. 19. Contract Termination. - If a PPP contract is revoked, canceled, or
3 
terminated prior to its completion, either contracting party shall compensate the other
4 
party pursuant to terms as defined in the PPP contract. Depending on the contractual
5 
stipulations, the grounds for contract termination which would warrant the right of
6 
compensation may include, but are not limited to, default, insolvency, unlawful
7 
divestment or divestiture, or other unlawful acts, by the Private Proponent or by the
8 
government.
9 
Sec. 20. Wind-up and Transfer Measures. - All PPP contracts shall provide for
10 
wind-up and transfer measures. Such provision shall include, among others, the
11 
following;
12 
(a) Mechanisms and procedures for the transfer of assets to the
13 
Implementing Agency;
14 
(b) The transfer of technology required for the operation of the PPP
15 
Project, subject to limitations under existing laws, rules and regulations;
16 
(c) The training of the personnel of the Implementing Agency or of
17 
a successor in the operation and maintenance of the PPP Project;
18 
(d)The provision, by the Private Proponent, of a warranty that the PPP
19 
Project meets the project technical specifications, agreed system features, and
20 
performance standards and services for a certain period as may be defined in
21 
tile IRR of this Act after the transfer of the PPP Project to the Implementing
22 
Agency or to a successor; and
23 
(e) In case of JV Projects, the compensation to which the Private
24 
Proponent may be entitled in case of buy-out and transfer of assets to the
25 
Implementing Agency, or to a successor.
26 
Sec. 21. Prohibition on the Issuance of Temporary Restraining Orders, Preliminary
27 
Injunctions, and Preliminary Mandatory Injunctions. - No temporary restraining order,
28 
preliminary injimction, or preliminary mandatory injunction shall be issued by any
29 
court, except the Supreme Court, against any Implementing Agency or the PPP
30 
Center, its officials or employees, or any person or entity, whether pubhc or private
19


1 
acting under the government direction, to restrain, prohibit, or compel the following
2 
acts:
3 
(a) Bidding, rebidding, or declaration of failure of bidding of any PPP Project;
4 
(b) Qualification or disqualification of bidders;
5 
(c) Awarding of any PPP contract;
6 
(d) Acceptance of any imsolicited PPP project proposal, even if not acted upon
7 
by the Implementing Agency concerned imder Section 10 of this Act;
8 
(e) Acquisition, clearance, development of the right-of-way, site, or location of
9 
any PPP Project
10 
(f) Construction, operation, and maintenance of any PPP Project;
11 
(g) Commencement, execution, implementation, termination, or rescission of
12 
any PPP contract; and
13 
(h) Undertaking or authorization of any other lawful activity necessary for such
14 
PPP Project or contract.
15 
This prohibition shall apply in all cases, disputes, or controversies instituted by
16 
any person, including, cases filed by bidders or those claiming to have rights through
17 
such bidders. This prohibition shall not apply when the matter is of extreme urgency
18 
involving a constitutional issue, such that unless a temporary restraining order is
19 
issued, grave injustice and irreparable injury will arise.
20 
In addition to any civil and criminal liabilities a judge may incur imder existing
21 
laws, any judge who shall issue a temporary restraining order, preliminary injunction,
22 
or preliminary mandatory injunction in violation of this Section, shall suffer the
23 
penalty of suspension of at least sixty (60) days without pay.
24 
Any temporary restraining order, preliminary injimction, or preliminary
25 
mandatory injunction issued m violation of this section is void and of no force and
26 
effect.
27 
Sec. 22. PPP Center - To achieve the goals of this Act, the PPP Center created
28 
under Executive Order No. 8, series of 2010, as amended by Executive Order No. 136,
29 
series of 2013, is hereby institutionalized. It is hereby authorized to adopt its current
30 
organizational structure, absorb its existing employees, and upgrade its human
20


1 
resource component, as may be necessary, subject to evaluation and
2 
approval by the DBM.
3 
In order to work towards the more efficient and effective performance of its
4 
mandate, the PPP Center shall have the following powers and functions:
5 
(a)Assist Implementing Agencies in identifying, developing, prioritizing,
6 
and maintaining a pipeline of PPP Projects;
7 
(b) Provide advisory services, technical assistance, training, and capacity
8 
development to Implementing Agencies, Approving Bodies, and other
9 
oversight agencies in all PPP-related matters, and act as a procurement agent
10 
upon the request of the Implementing Agency;
11 
(c) Manage and administer the Project Development and Monitoring
12 
Facihty
13 
(PDMF) as provided in Section 24 of this Act;
14 
(d) Recommend plans, policies, and implementation guidelines related to
15 
PPP, in consultation with appropriate oversight committees 
or agencies,
16 
Implementing Agencies, private sector, and other relevant stakeholders;
17 
(e) Ensure sustainabUity of the implemented PPP program and projects
18 
through monitoring, documenting, and sharing the lessons learned and best
19 
practices to Implementing Agencies and appropriate oversight committees or
20 
agencies;
21 
(f) Provide regular monitoring and status reports on the implementation of
22 
aU PPP programs and projects entered into by Implementing Agencies,
23 
including potential public interest concerns and violations of the PPP Act, to
24 
the Office of the President, the Congress of the Philippines, relevant oversight
25 
committees and agencies, and publish the same in the official website of the
26 
PPP Center;
27 
(g) Promote and market the Implemented PPP programs and projects, in
28 
collaboration with other government investment promotion agencies;
29 
(h)Review PPP contracts and issue advisory opinions relating to PPPs,
30 
including how the PPP Act and its IRR shall be implemented;
21


1 
(d) Perform such other functions as may be assigned by the PPP Governing
2 
Board.
3 
Sec. 23. PPP Governing Board. - The PPP Governing Board, created under
4 
Executive Order No. 136, series of 2013, and hereinafter referred to as the Board, is
5 
hereby institutionalized. It shall be the overall policy-making body for all PPP-related
6 
matters, including the PDMF. It shall be responsible for setting the strategic direction
7 
of PPP programs and projects and in creating an enabling pohcy and institutional
8 
environment for PPP.
9 
The Board shall be composed of the following:
10 
(a)The secretary of Socio-Economic Planning as Chairperson;
11 
(b) The Secretary of Finance as Vice-Chairperson;
12 
(c) The Secretary of Budget and Management;
13 
(d)The Secretary of Justice;
14 
(e) The Secretary of Trade and Industry;
15 
(f) The Executive Secretary;
16 
(g)The Secretary of Interior and Local Government;
17 
(h) The Executive Director of the PPP Center, as non-voting member; and
18 
(i) Any one of the two (2) private sector representatives of the Ease of Doing
19 
Business and Anti-Red Tape Advisory Council.
20 
The principal members of the Board may designate their respective alternates,
21 
who shall be the official next-in-rank to them, and whose acts shall be considered the
22 
acts of their principals.
23 
The presence of the Chairperson and four (4) other members of the Board shall
24 
constitute a quorum and a majority vote of the members present shall be necessary for
25 
the adoption of any issuance, order, resolution, decision or other act of the Board in
26 
the exercise of its functions. The Board shall act as a collegial body. In the conduct of
27 
meetings, the Chairperson shaU not vote except to break a tie.
28 
The Board shall act on any matter for its consideration not later than thirty (30)
29 
working days from the date of submission thereof.
30 
Sec. 24. Project Development and Monitoring Facility. -
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(a) The PDMF is hereby established and shall be used for the procurement of 
advisory and support services related to the preparation, structuring, probity 
management, procurement, financial close, project evaluation, and monitoring of the 
implementation of PPP Projects, in accordance with the relevant provisions of 
Republic Act No. 9184 or the Government Procurement Reform Act and its 
Implementing Rules and Regulations.
(b) The PDMF referred to imder EO No. 8, series of 2010, as amended by EO 
No. 136, series of 2013, shall be transferred to the PDMF imder this Act. The PDMF 
may be funded through and such amount as may be needed and included in the 
General Appropriations Act, Official Development Assistance, or other sources.
(c) The PDMF shall be managed and administered by the PPP Center as a 
revolving fund. In order to sustain the PDMF, the PPP Center may collect and receive 
fees and recover costs expended through PDMF in accordance with the guidelines to 
be approved by the PPP Governing Board. Such amount shall be retained and 
authorized to be used by the PPP Center for the purposes indicated herein.
A PDMF Committee is hereby created which shall approve applications for 
PDMF support submitted by the Implementing Agencies.
The PDMF Committee shall be composed of: (1) the Secretary of Socio- 
Economic Planning as chairperson; (2) the Secretary of Finance, (3) the Secretary of 
Budget and Management, and (4) the Executive Director of the PPP Center, as 
members. The PPP Center shall serve as the Secretariat for the PDMF Committee.
Subject to the approval of the PPP Govemmg Board, the PDMF Committee 
shall also formulate, prescribe, and recommend policies, procedures, and guidelines 
for the use of PDMF and recovery of costs charged to the fund.
Sec. 25. Creation of a Risk Management Fund - To ensure fiscal sustainability and 
negotiate better financing terms of PPP Projects, there is hereby created a PPP Risk 
Management Fund to be used for the payment of contingent liabilities arising from 
PPPs in accordance with its contract terms.
The target amount in the PPP Risk Management Fimd is to be determined by 
the Development Budget Coordination Committee (DBCC) using risk-adjusted
23


1 
methods or such other means that estimate the exposure of the Government of the
2 
Philippines to PPP contingent liabilities.
3 
The PPP Risk Management Fund shall be funded from the following sources;
4 
(a) Concession fees;
5 
(b) Implementing Agency reimbursements;
6 
(c) Interest earnings from the PPP Risk Management Fund; and
7 
(d) National government contributions.
8 
National government contributions shall cover only the difference between the
9 
target amount of the PPP Risk Management Fund, as mentioned above, and the
10 
current value of the fund. The DOF shall regularly monitor and review the viability
11 
of the PPP Risk Management Fund in relation to the magiutude of PPP Projects
12 
imdertaken by the Government, and if necessary, recommend the increase in the
13 
target amoimt of the PPP Risk Management Fund and the reason therefor. All national
14 
government contributions to the PPP Risk Management Fund shall be included in the
15 
proposed DOF budget
16 
When the value of the PPP Risk Management Fund is in excess of the target
17 
amount, excess funds may be transferred to the general fund of the national
18 
government The agency implementing PPP Projects must seek confirmation from the
19 
DOF that the national government can bear the additional contingent liabilities
20 
associated with the project taking into consideration fiscal sustainability.
21 
Further, to foster accountability and efficiency in implementing PPP Projects, it
22 
is mandatory for implementing agencies to enter mto a recourse agreement with the
23 
DOF before any payment can be drawn from the PPP Risk Management Fund for
24 
contingent liabihties that have materialized within contract terms.
25 
The Bureau of the Treasury shall maintain the PPP Risk Management Fund in
26 
the Treasury Single Accoimt. Interest earnings therefrom shall accrue to the PPP Risk
27 
Management Fund. Notwithstanding the establishment of this fund, the government
28 
may still provide an un-programmed appropriation for unforeseen risks that the
29 
government may incur from PPP Projects.
30 
To monitor such government obtigations on liabihties that have materialized
24


1 
and other unforeseen risks that may arise from PPP Projects; and to develop the
2 
guidelines to access the PPP Risk Management Fund, the inter-agency technical
3 
working group created under DBCC Resolution No. 2015-2, is hereby
4 
mstitutionahzed.
5 
The procedures and mechanisms for managing the PPP Risk Management
6 
Fund shall be prescribed in the ERR of this Act.
7 
In the case of Local PPP Projects, a similar PPP Risk Management Fund may be
8 
established by the LGU. The details pertaining to maintaining and administering such
9 
Fund shall be provided in the IRR of this Act. Sources of the fund may include the
10 
budget of the LGU and the income of the LGU from PPP Projects.
11 
Sec. 26. Establishment of a PPP Unit. - Each concerned Implementing Agency
12 
shall organize a PPP unit headed by a senior official, who shall be responsible for
13 
planning, overseeing, and monitoring PPP Projects of the Implementing Agency. In
14 
the case of LGUs imdertaking PPP Projects, the local chief executive shall organize
15 
such PPP unit.
16 
The PPP units may include as members, among others, technical and legal
17 
personnel who are knowledgeable on the technical and legal aspects, respectively, of
18 
the PPP Projects. The rules on membership and specific functions of which shall be
19 
identified in the IRR of this Act.
20 
Sec. 27. Safekeeping and Public Disclosure of Contracts. - Copies of all PPP
21 
contracts executed under this Act shall be considered and appropriately kept safe and
22 
preserved as pubhc documents. Except for those provisions in the contract which are
23 
proprietary, or may pose threats to national security or public safety, the procedures
24 
for the disclosiue of such documents shall be consistent with existing policies, laws,
25 
decrees, orders, rules, and regulations, including the IRR of this Act. The
26 
Implementing Agency and the PPP Center shall pubhcly make available copies of PPP
27 
contracts through their respective websites unless otherwise prohibited by
28 
existing laws, rules, and regulations, including national security and pubHc safety
29 
concerns.
30 
Sec. 28. Miscellaneous Provisions. -
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(a) Mitigation of Interconnectivity and Interface Risks. All PPP Projects which 
will interconnect or interface with a local or national facility shall be 
required to submit a Memorandum of Agreement (MOA) containing an 
intercoimection/interface plan agreed upon by aU relevant parties. For 
National PPP Projects, said MOA shall be submitted to the ICC-NEDA; 
while for Local PPP Projects, said MOA shall be submitted to the local 
Sanggunian.
(b) Issuance of Franchise. Subject to the provisions of the Constitution and 
other existing laws, rules, and regulations, once a PPP contract is executed 
by the Private Proponent and the Implementing Agency, a presumption 
arises that the public interest will be served by the implementation of the 
PPP Project covered thereby, and immediately upon application by the 
Private Proponent, the regulator shall automatically grant in favor of the 
Private Proponent a franchise to operate the facility and collect the tolls, 
fees, rentals, and other charges stipulated imder the PPP contract.
(c) Standardization of Required Endorsements, Permits, and Licenses for PPP 
Projects. AU relevant government and regulatory agencies, bodies, 
institutions, and LGUs, shaU, in coordination with the PPP Center, adopt 
standard timelines and requirements for the issuance of relevant 
endorsements, approvals, and permits for PPP Projects.
(d) Real Property Tax for PPPs. The DOF shall issue the guidelines on real 
property tax valuation of PPP Projects to ensure uniform and consistent 
implementation among aU LGUs. All real properties which are actually, 
directly, and exclusively used for a Greenfield PPP Project shaU be 
exempted from the payment of real property taxes during the period of 
construction and until such time the fadhty is used or operational, whether 
partial or fuU. The details of the exemption shaU be prescribed in the IRR 
of this Act.
(e) Exemption from Payment of Transfer Taxes. For aU PPP Projects, the 
transfer of ownership of the PPP Project to the Implementing Agency shaU
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be exempt from the capital gains tax, documentary stamp tax, donor's tax, 
and all taxes and fees, whether from national or local, related to the transfer 
thereof.
(f) Mandatory Inclusion of Dispute Avoidance and Alternative Dispute 
Resolution Mechanisms in PPP Contracts. All PPP contracts shall include 
provisions on the use of dispute avoidance and Alternative Dispute 
Resolution (ADR) mechanisms. The contracting parties shall be given 
complete freedom to choose which ADR mechanisms and venue shall 
govern their dispute, as well as the rules or procedures to be followed 
involving the same.
(g) Conflict of Interest. Conflict of interest shall be prohibited at all times in the 
interpretation and implementation of this Act. Conflict of interest, which 
refers to any act or omission tending to oppose or disrupt the faithful 
performance of one's duty or mandate, shall include personal, pecuniary, 
and regulatory conflicts of interests; Provided, That no national 
Implementing Agency shall implement a PPP Project that it regulates; 
Provided further, That any regulatory agency or body which implements a 
PPP Project shall adopt a conflict mitigation and management plan.
(h) Alternative Soiurces of Financing. In addition to Private Proponent equity 
and debt, alternative financial instruments such as Green Financing, 
corporate or project bonds and securities, and other forms of capital market 
financing may be allowed for PPP Projects, subject to the approval of 
relevant regidatory bodies for such instriunents imder existing laws, rules, 
and regulations.
(i) Private Legal and Medical Assistance. All the PPP PBAC members and 
other public officials providing services to the PPP PBAC shall be 
authorized to engage the services of private lawyers or shall be provided 
with free legal assistance, where a civil, criminal, or administrative action 
is filed against them by reason of the performance of their official functions 
or duties unless they are finally adjudged in such action or proceeding to
27


1 
be liable for gross negligence or misconduct or grave abuse of discretion.
2 
The PPP PBAC members shall also be entitled to medical assistance for
3 
injuries incurred in the performance of their functions.
4 
0 Preferential Hiring of Filipino Workers. For the construction stage of
5 
infrastructure facilities where the Contractor is a foreigner, Filipino labor
6 
shall be employed or hired in the different phases of construction where
7 
Filipino skills are available.
8 
(k) Safeguard Mechanisms to Protect Public Interest. In order to improve
9 
transparency and to promote bankability and social acceptability of PPP
10 
Projects, the following mechanisms shall be observed:
11 
(1) Whenever applicable, the Implementing Agency shall assess the
12 
affordability of fees or tariff, and conduct a wiUingness-to-pay
13 
survey among the users of the infrastructure facility;
14 
(2) The Implementing Agency shall conduct public consultation or
15 
dialogue with all potential stakeholders, the details of which shall
16 
be threshed out in the IRR; and
17 
(3) The Implementing Agency and the PPP Center shall post on their
18 
respective websites the approved starting fare or user fee in a PPP
19 
Project as well as the approved parametric formula on fare increases
20 
or adjustments, if appUcable.
21 
Sec. 29. Implementing Rules and Regulations. - The IRR Committee shall be
22 
composed of representatives from the NED A, DOF, DBM, DPWH, DOTr, DILG, DOJ,
23 
DTI, DENR, Office of the President, PPP Center, and Private Sector Representatives
24 
and other agencies, as may be identified by the PPP Governing Board. Within forty
25 
(40) working days from the effectivity of this Act, the PPP Center shall formulate and
26 
prescribe, in consultation with the IRR Committee, after a pubhc hearing and
27 
pubhcation as required by law, the rules and regulations to implement the provisions
28 
of this Act. The IRR shall be approved by the PPP Governing Board.
29 
From time to time, the PPP Governing Board may instruct the PPP Center, in
30 
consultation with the IRR Committee, to conduct, formulate and prescribe, after due
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1 
public hearing and publication, amendments to the IRR, consistent with the
2 
provisions of this Act.
3 
Sec. 30. Administrative, Civil and Penal Sanction. - Any person, whether a private
4 
individual or public officer or employee, who commits any of the prohibited acts
5 
hereunder proscribed, shall be pimished by imprisonment from a minimum of three
6 
(3) years to a maximum of six (6) years.
7 
The following acts shall be prohibited:
8 
(a) Downgrading the category of the Project Cost for purposes of evading
9 
the required approvals imder this Act;
10 
(b) Representation that the Private Proponent has the necessary
11 
capitalization to commence, complete, and implement the PPP Project when
12 
the same is false in material respects;
13 
(c) Falsification or insertion of certain provisions in the execution copy of the
14 
contract which are materially and substantially different from the approved
15 
final draft contract;
16 
(d)Any violation of Sections 7, 9,10,11,17,18,28(g) imder this Act; and
17 
(e) A pubhc officer or employee, whether in connivance with others or acting
18 
alone, negligently, or by fraud commits a failure to ensure compMance with the
19 
project terms as approved by the Approving Body, and the signed PPP
20 
contract, by approving, issuing, or confirming any certification, required
21 
documents, or deliverables of the Private Proponent, which are non-compliant
22 
with existing rules, erroneous, not authentic, or fraudulent.
23 
In addition, such acts committed by the Private Proponent and its concerned
24 
officers shall cause the rescission of its contract for the said PPP Project without 
2 5 Compensation and shall be perpetually disqualified from participating in any bidding
26 
or other contractual arrangement for any government project. This is without
27 
prejudice to any other civil or administrative liability that erring officials or Private
28 
Proponents may incur.
29 
The liabihty of the public officer or employee or former public officer or
30 
employee for any violation of the prohibitions under this Act shall survive the
29


1 
retirement of the said public officer or employee, and shall include the prohibition for
2 
the erring officer to hold public office, either as an elected, or an appointed
3 
government official on any local or national position, and to act as a consultant for the
4 
Philippine Government, the termination of the project contract, and the lapse of any
5 
applicable warranty period/s.
6 
Sec. 31. Accountability in PPP Projects. - The head of the concerned
7 
Implementing Agency shall at aU times be accoimtable to PPP Projects undertaken
8 
through this Act. The Private Proponent shall likewise be held accountable for the
9 
works it has delivered and services it has rendered for a PPP Project. All PPP contracts
10 
are hereby required to clearly define the scope of each party's accountability under
11 
the PPP contract.
12 
To further promote accoimtability in PPP Projects, the Commission on Audit
13 
(COA) shall have visitorial power, as defined in the 2009 Revised Rules of Procedure
14 
of the COA and any amendments thereto, over PPP Projects. This power shall include
15 
determining whether the contribution or share of the Implementing Agency in the
16 
PPP Project is being allocated and utilized according to its intended purpose, and if
17 
the Implementing Agency is getting its rightful share from the revenues generated, as
18 
may be applicable. The COA shall also have visitorial jurisdiction over compliance to
19 
conditions, requirements, and processes set forth imder this Act. To this end, the COA,
20 
in consultation and coordination with the PPP Center, shall promulgate the necessary
21 
framework and guidelines on auditing PPP Projects.
22 
Sec. 32. Joint Congressional Oversight Committee. - A Joint Congressional
23 
Oversight Committee is hereby created to oversee the implementation of this Act. The
24 
Committee shall be composed of five (5) members each from the Senate and House of 
2 5 Representatives to be designated by the Senate President and the Speaker of the House
26 
of Representatives, respectively. The Committee shall be jointly chaired by the
27 
respective Chairpersons of the House Committee on Public Works and Highways, the
28 
House Committee on Appropriations, the Senate Committee on Public Works, and
29 
the Senate Committee on Finance.
30 
Sec. 33. Transitory Clause. - The provisions of this Act shall apply to aU PPP
30


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
Projects except:
(a) all projects wherein a PPP contract between the winning Private 
Proponent and the Implementing Agency concerned has been executed prior 
to the effectivity of this Act; and (b) all projects undertaken through competitive 
selection wherein the bid/s have already been opened prior to the effectivity of 
this Act. For PPP Projects not covered imder items (a) and (b) above, this Act 
shall govern, provided that this Act shall not, in any manner, operate to impair 
vested rights already accruing to a party.
AH unexpended funds for the calendar year, properties, equipment, 
contracts, and records of the PPP Center are hereby retained. The amount 
necessary to carry out the organizational changes of the PPP Center provided 
in this Act shall be determined by the PPP Governing Board. Appropriations 
for succeeding years shall be incorporated in its budget proposals, subject to 
the existing budgeting rules and regulations.
All officials and employees of the PPP Center shall be retained and shall 
not suffer any loss of seniority or rank or decrease in emoluments.
Sec. 34. Separability Clause. - If any provision of this Act is declared 
unconstitutional or invahd, other parts or provisions hereof not affected thereby shall 
continue to be m full force and effect.
Sec. 35. Repealing Clause. - The following are hereby repealed:
(a) Republic Act No. 6957, as amended by Repubhc Act No. 7718 (An 
Act Authorizing the Financing, Construction, Operation, and Maintenance of 
Infrastructure Projects by the Private Sector, and for other purposes);
(b) Executive Order No. 8, s. 2010, as amended by Executive Order No.
136, s. 2013 (Reorganizing and Renaming the Build-Operate And Transfer 
(BOT) Center to the Pubhc-Private Partnership (PPP) Center of the PhiMppmes 
and Transferring its Attachment from the Department of Trade and Industry 
to the National Economic and Development Authority and for 
other
purposes);
(c) Executive Order No. 78, s. 2012 (Mandating the Inclusion of
31


1 
Provisions on the Use of Alternative Dispute Resolution Mechanisms in AH
2 
Contracts Involving Public-Private Partnership Projects, Build-Operate and
3 
Transfer Projects, Joint Venture Agreements Between the Government and
4 
Private Entities and those Entered into by Local Govermnent Units);
5 
(d) Section 8 of Executive Order No. 423, s. 2005 (Repealing Executive
6 
Order No. 109-A Dated September 18, 2003, Prescribing the Rules and
7 
Procedures on the Review and Approval of All Government Contracts to
8 
Conform with Republic Act No. 9184, otherwise known as "The
9 
Government Procurement Reform Act;
10 
(e) 2013 Revised Guidelines and Procediu'es for Entering Into Joint
11 
Venture Agreements Between Government and Private Entities; and
12 
(f) PPP Codes and Joint Venture Guidelines issued by LGUs and
13 
GOCCs.
14 
All other laws, decrees, orders, rules, and regulations, and all other related
15 
national and local issuances or parts thereof inconsistent with this Act are hereby
16 
repealed or amended accordingly.
17 
Sec. 36. Effectivity. - This Act shall take effect fifteen (15) days after its
18 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
32