EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 
1231
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Introduced by SENATOR IMEE R. MARCOS
AN ACT STRENGTHENING PUBLIC-PRIVATE PARTNERSHIPS
EXPLANATORY NOTE
Article 2, Section 9 of the 1987 Constitution provides that "the State shall 
promote a ju st and dynamic social order that will ensure the prosperity and 
independence o f the nation and free the people from poverty through policies that 
provide adequate social services, promote full employment, a rising standard of living, 
and an improved quality o f life for all'. Section 20 of the same article further states 
that "the State recognizes the indispensable roie o f the private sector, encourages 
private enterprise, and provides incentives to needed investment^'.
Today, government's flagship project seeks to fill the infrastructure gap of the 
country through the "Build Build Build" Program, projected to be an 8.4 trillion peso 
undertaking. The program is to be largely financed by taxes to be raised through a 
series of Comprehensive Tax Reform Packages the Department of Finance is pushing. 
However, the expected expenditure on Republic Act No. 11223 or the "Universal 
Healthcare Act", Republic Act No. 10931 or the " Universal Access to Quality Tertiary 
Education Act' and other social programs of the government takes a heavy toll on 
these new revenue streams and may jeopardize infrastructure spending. The reduced 
access of the Philippines to Official Development Assistance (ODA) loans, as the


country enters upper-middle income status further compromises the "Build Build Build" 
program. Hence, there is an urgent need for government to access private capital in 
order to deliver on its Build Build Build commitments, as well as its social protection 
program.
This proposed measure aims to create an enabling environment for Public- 
Private Partnerships by revising Republic Act No. 6957, as amended by Republic Act 
No. 7718, entitled "An Act Authorizing the Financing, Construction, Operation and 
Maintenance of Infrastructure Projects by the Private Sector, and for Other Purposes" 
otherwise known as the "Build-Operate-Transfer" (BOT) Law. This measure improves 
the BOT Law by expanding its coverage and offering more benefits to private sector 
partners of the government in infrastructure projects. It also provides for the 
automatic endorsement after 30 days of non-action by the Regional Development 
Council of PPP projects which have satisfactorily complied with the requirements, 
avoiding arbitrary and unreasonable withholding of endorsement of projects. In 
addition, it also protects PPP projects from being the subject of judicial delays in the 
form of temporary restraining orders (TROs), preliminary injunctions and preliminary 
mandatory injunctions issued by any court, except the Supreme Court.
This measure also facilitates the process of dealing with unsolicited proposals. 
The sixty (60) -working-day challenge period under the existing BOT Law is too short 
for interested challengers to submit their counterproposals in an unsolicited project. 
As such, the measure proposes to extend the challenge period to a maximum period 
of three (3) months. The measure also gives the implementing agencies the option to 
convert unsolicited proposals into a solicited project, and thereafter offer it as the 
basis for competitive bidding. This way, the government will realize the full benefits 
of competitive bidding.
This measure also establishes the role of local government units (LGU) in 
initiating and monitoring their own PPP projects, simplifying the processes by which 
an LGU can undertake a PPP Project.


Lastly, the measure seeks to uphold transparency by requiring full public 
disclosure of PPP projects and contracts. The PPP Center is directly responsible for 
giving the public and Congress with adequate and timely information about PPP 
projects.
Given the abovementioned circumstances, the immediate passage of this bill is 
necessary.
IMEE R. MARCOS


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EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHIUPPINES ) 
First Regular Session 
)
SENATE
S.B. No.
Introduced by SENATOR IMEE R. MARCOS
AN ACT STRENGTHENING PUBLIC-PRIVATE PARTNERSHIPS
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Be it enacted by the Senate and the House o f Representatives o f the Philippines in 
Congress assembled.
Section 1. Short Title. -  This Act shall be known as the "Public-Private 
Partnership Act".
ARTICLE I
DECLARATION OF STATE POLICY AND OBJECTIVES, AND 
DEFINITION TERMS
Section 2. Declaration o f Policy. -  It shall be the policy of the State to recognize 
the indispensable role of the private sector for national growth and development, to 
promote an environment conducive to Public Private Partnerships (PPPs), and provide 
the incentives to improve access to private capital for financing, designing, 
constructing, operating, and maintaining much-needed infrastructure projects and 
services. In relation, the State shall protect the interest of the public by ensuring fair, 
reasonable, and affordable pricing and timely delivery of infrastructure, goods, and 
services.


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The State further affirms open, transparent, and competitive selection as the
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fundamental principle of government procurement in securing private investment in
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public infrastructure projects.
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Section 3. Definition o f Terms. -The following shall be defined in this Act, as
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follows:
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a.
Approving Body refers to an entity authorized to approve PPP projects in
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accordance with Section 5 and 11 of this Act;
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b.
Availability-based PPP refers to a PPP where the implementing agency or LGU
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commits to make predetermined payments for contractually defined
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performance delivery;
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c.
Concession-based PPP refers to a PPP where the implementing agency or LGU
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grants the project proponent the right to recover its investment, operating.
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and financing costs by charging the public a user fee or tariff;
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d.
Construction refers to rehabilitation, improvement, expansion, alteration.
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installation, building of a new infrastructure facility, and related works and
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activities, including the necessary supply of equipment, materials, labor and
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services and related items;
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e.
Contingent Liability refers to obligations of the government arising from a valid
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PPP contract whose occurrence, timing, and amount depend on some
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uncertain future event or circumstance;
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f.
Contractor refers to any person, who may or may not be the project
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proponent, and who shall undertake the actual construction of an
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infrastructure facility of a PPP project;
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g-
Cooperation Period refers to the period of operation of an infrastructure
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facility;
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h.
Facility Operator refers to a person registered with the Securities and
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Exchange Commission (SEC) or Department of Trade and Industry (DTI), who
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may or may not be the project proponent, who is responsible for all aspects
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of operation and maintenance of an infrastructure facility, including the
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collection of tolls, fees, rentals, or charges from facility users;
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i. 
Government Undertakings refer to any form of support, contribution,
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assistance. Viability Gap Funding (VGF), among others, which the government
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may provide to a solicited PPP project;
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j. 
Grantors refer to an implementing agency or LGU and another government
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agency that own the project assets or franchise;
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k. 
GOCC - refers to a government-owned or -controlled corporation as defined in
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Republic Act No. 10149 otherwise known as the "GOCC Governance Act o f
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2011")
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I. 
ICC- refers to the Investment Coordination Committee of the National
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Economic and Development Authority (NEDA) Board;
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m. Implementing Agency refers to any of the various units of the government,
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including a department, bureau, office, instrumentality, government owned or
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controlled corporation (GOCC), and state universities and colleges (SUCs).
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n. Infrastructure Facility and Related Service refers to any facility and
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infrastructure related service identified by the government, whether
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governmental or proprietary, as follows:
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i. 
Infrastructure Facility - includes power plants, highways, ports, airports,
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canals, 
dams, 
hydropower 
projects, 
water 
supply, 
irrigation,
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telecommunications facilities, railroads and railways, transport systems,
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reclaimed land, industrial estates or townships, housing, government
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buildings, tourism projects, markets, slaughterhouses, warehouses,
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information technology systems and infrastructure, education and
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health facilities, sewerage, and drainage; and
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ii. 
Infrastructure-Related Service - includes dredging, climate change
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mitigation and adaptation measures, and other related services;
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0. Land Value Capture refers to funding tools that leverage the increase in land
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and property values around transportation structures as a source of finance.
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p. LGU refers to Local Government Units as defined in Article X of the Constitution
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and the Local Government Code.
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q. Public-Private Partnership refers to a contractual arrangement between the
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implementing agency or LGU and the project proponent for the financing,
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design, construction, operation, and maintenance, or any combination thereof.


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r.
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w.
X.
of an infrastructure facility, in which the project proponent bears significant 
risk, management responsibility, or both;
Person refers to an individual, sole proprietorship, partnership, corporation or 
any other form of organization, whether domestic or foreign;
Project Cost refers to total capital cost, financing and other expenses for the 
design, construction, operation, and maintenance of an infrastructure facility 
of a PPP project;
Project Proponent refers to the private person who shall have contractual 
responsibility to undertake a PPP project;
Rate of Return refers to the project proponent's expected return from the 
project; Provided that, in case of an unsolicited proposal, the appropriate rate 
of return shall be determined by the appropriate Approving Body prior to the 
call for proposals based on the prevailing cost of capital in the domestic and 
international markets, the risk profile and the gearing ratio;
Services refer to services for or related to infrastructure facilities such as 
construction supervision, management, operation, and maintenance and 
related services, and other technical services, which may be included as part 
of a PPP project;
Solicited PPP Project refers to priority projects identified by the implementing 
agency;
Unsolicited PPP Project refers to a project proposal submitted by a private 
person, which is not in response to a formal solicitation or request issued by 
the implementing agency or LGU; and
Viability Gap Funding (VGF) refers to such financial support the government 
may provide to a concession-based PPP project with the objective of making 
user fees affordable while improving the commercial attractiveness of the 
project, excluding costs of right-of way, resettlement, and real estate taxes.
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Section 4, Contractual Arrangements. -  PPP Projects may be undertaken
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through any of the following arrangements:
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a. 
Build-and-Transfer - A contractual arrangement where the project proponent
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undertakes the financing and construction of a given infrastructure facility and
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after the completion thereof, turns it over to the implementing agency or LGU


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concerned, which shall pay the project proponent on an agreed schedule its
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total investments expended on the project, plus a rate of return thereon. This
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arrangement may be employed in the construction of any infrastructure
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facility, including critical facilities which, for security or strategic reasons, must
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be operated directly by the government;
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b. 
Build-Lease-and-Transfer - A contractual arrangement where a project
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proponent undertakes to finance and construct an infrastructure facility and
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upon its completion turn it over to the implementing agency or LGU concerned
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on a lease arrangement for a cooperation period, after which ownership
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thereof is automatically transferred to the implementing agency or LGU
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concerned;
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c. 
Build-Operate-and-Transfer - A contractual arrangement where the project
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proponent undertakes a PPP project and transfers ownership of the
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infrastructure facility to the implementing agency or LGU at the end of the
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cooperation period.
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d. 
Build-Transfer-and-Operate 
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A 
contractual 
arrangement 
where 
the
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implementing agency or LGU contracts out the construction of an
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infrastructure facility to the project proponent. Once the facility is
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commissioned satisfactorily, ownership is transferred to the implementing
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agency or LGU. The project proponent, however, operates the infrastructure
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facility on behalf of the implementing agency or LGU;
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e. 
Contract-Add-and-Operate - A contractual arrangement where the project
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proponent adds to an existing infrastructure facility which it is renting from the
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government. It operates the expanded infrastructure facility over an agreed
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cooperation period. There may, or may not be, a transfer arrangement
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regarding said facility;
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f. 
Develop-Operate-and-Transfer - A contractual arrangement where favorable
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conditions external to a new PPP project which is to be built by a project
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proponent are integrated into the arrangement by giving that entity the right
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to develop adjoining property, and thus, enjoy some of the benefits the
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investment creates such as higher property or rent values;


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g. 
Joint Venture - A contractual arrangement where a private person or a group
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of private persons, and an implementing agency or LGU contribute money,
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services, assets, or a combination of any or all of the foregoing, to undertake
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a PPP project, with the intention to share profits, risks and losses. Assets may
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include equipment, land, or intellectual property. 
For joint venture
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arrangements, the ownership of the infrastructure facility may be transferred
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to either the implementing agency or to the project proponent: Provided, That
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in the latter case, the transfer shall be made under competitive market
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conditions: Provided, further. That the equity contribution of the implementing
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agency in a joint venture corporation shall in no case exceed fifty percent
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(50%) of the outstanding capital stock of the corporation: Provided, finally.
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That the return on investment of either party shall be in proportion to their
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respective contribution;
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h. 
Operations and Maintenance Contract - A contractual arrangement where the
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project proponent undertakes the day-to-day operation and maintenance of
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an infrastructure facility owned by the implementing agency. The project
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proponent shall undertake the acquisition or provision and upgrading of
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equipment, systems and other items related to operation and maintenance.
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The project proponent shall be compensated in the form of a performance-
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based management or service fee during the cooperation period;
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i. 
Rehabilitate-Operate-and-Transfer - A contractual arrangement where an
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existing infrastructure facility is turned over to the project proponent to
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refurbish, improve, operate and maintain for a cooperation period, at the
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expiry of which the ownership of the facility is transferred to the implementing
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agency; and
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j. 
Supply-and-Operate - A contractual arrangement where the supplier of
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equipment and machinery for a given infrastructure facility, if the interest of
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the government so requires, operates such facility. Foreign firms who are
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allowed to operate the facility shall provide technology transfer and training to
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Filipino nationals. Other variations may be allowed upon prior approval by the
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Investment Coordinating Committee (ICC).


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If the proposed arrangement is not listed above, the proposed arrangement should 
be subject to the approval of the Approving Body.
ARTICLE II.
PPP OF NATIONAL GOVERNMENT AGENCIES
Section 5. Authority o f Implementing Agencies. - Implementing agencies, in 
accordance with their respective charters, are authorized to undertake PPP projects 
with any project proponent in accordance with the provisions of this Act.
Before undertaking a PPP project under this Act, a GOCC or any of its subsidiaries shall 
secure the approval of the head of department or agency to which the GOCC is 
attached.
The implementing agencies shall submit their list of PPP projects or any update 
thereto to the PPP Center for information.
Section 6. Approval o f National PPP Projects. - National PPP projects shall be 
approved by the ICC or by the National Economic Development Authority (NEDA) 
Board, or both, depending on the project cost as prescribed in the IRR of this Act. 
Such approval shall be followed by the implementing agency or grantor concerned. 
For national projects located on a particular region, the implementing agency shall 
secure the endorsement of the concerned Regional Development Council (RDC) prior 
to submitting the project for approval to the Approving Body. The RDC shall have 
thirty (30) days from receipt of the request of the implementing agency within which 
to issue its endorsement; otherwise, the same shall be deemed automatically endorsed 
by the RDC.
Section 7. Unsolicited Proposals for National PPP Projects. -  Unsolicited 
proposals may be considered for national projects. Within ten (10) working days from 
receipt of the unsolicited proposal, the implementing agency shall inform the PPP 
Center in writing of such receipt and furnish it with a copy of the proposal. The PPP 
Center shall provide assistance to the implementing agency in the evaluation of 
unsolicited proposal.


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Upon receipt of an unsolicited proposal, the implementing agency may either:
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1. Accept the unsolicited proposal on a negotiated basis, subject to the following
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conditions:
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a. The implementing agency should invite the submission of comparative
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proposals by publishing for three (3) consecutive weeks in a newspaper of
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general circulation, as well as posting in the websites of the PPP Center and of
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the implementing agency. If no proposal is received within a period of three
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(3) months from the date of last publication in a newspaper of general
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circulation, the implementing agency may accept the proposal. In the event
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another proponent submits a superior counterproposal within the period
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referred to above and it is accepted by the Approving Body, the original
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proponent shall have the right to outbid.
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b. No direct government guarantee, VGF, government subsidy or equity, or
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funding for right-of-way is required; Provided, That the implementing agency
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shall facilitate the acquisition of the right-of-way; and
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2. Upon approval by the Approving Body, the implementing agency can use the
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unsolicited proposal as the basis for public bidding as provided in Section 8 of this
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Act. The original proponent thereof shall be reimbursed of the cost incurred in the
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preparation of the proposal, such as the cost of any feasibility study undertaken:
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Provided, That the reimbursement is:
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a. in an amount specified in the IRR of this Act, not to exceed three (3%) percent
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of the project cost excluding those which are borne by the implementing
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agency; and
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b. paid in full by the winning project proponent as a requirement for the award
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of the contract, or by the implementing agency in the case of failure of bidding.
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3. Reject the proposal.
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If the implementing agency fails to act on the proposal within the period stated
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in the IRR of this Act, the project proposal shall be deemed rejected without prejudice
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to any liability that the erring or negligent officials or employees may incur under
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existing laws.
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Section 8. Public Bidding o f National Projects. -  The public bidding of national
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projects shall be in accordance with the following:
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A. Publication. - Upon approval of National PPP projects as mentioned in Section
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7 of this Act, the head of the impleonenting agency concerned shall immediately cause
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the publication of a notice inviting all prospective project proponents to participate in
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a transparent and competitive public bidding, once every week for three (3)
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consecutive weeks, in at least two (2) newspapers of general circulation and in at
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least one (1) local newspaper which is circulated in the region, province, city or
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municipality where the project will be implemented. Said notice shall also be posted
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continuously in the websites of the implementing agency and the PPP Center.
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B. Public Bidding. - The public bidding shall be conducted under a single or two-
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stage system. The pre-qualification documents, technical, and financial proposals
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shall be submitted in at least three (3) separate envelopes. The procedures for public
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bidding, which shall be transparent and competitive, including the conduct of one-on-
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one meetings with prequalified bidders, shall be outlined in the IRR of this Act.
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C. Award. - The contract shall be awarded to the bidder who has passed the
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pre-qualification stage for having satisfied the minimum financial, organizational and
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legal standards required by this Act, has passed the technical proposal evaluation,
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and has submitted the most favorable financial bid based on the parameters defined
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in the bid documents.
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D. Single Complying and Responsive Bid. - In case of a single complying and
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responsive bidder, the implementing agency may award the PPP contract to that
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bidder upon its compliance with the post-award requirements under the bidding rules
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of the PPP project. A bid shall be considered a single complying and responsive bid
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submission if it falls under any of the following circumstances:
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a) If, after advertisement, only one bidder applied for prequalification and it
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meets the prequalification requirements, after which it is required to submit a
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bid or proposal which is subsequently found by the implementing agency to be
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complying;
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b) If, after advertisement, more than one bidder applied for prequalification but
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only one meets the prequalification requirements, after which it submits a bid
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or proposal which is found by the implementing agency to be complying;


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c) If, after prequalification of more than one bidder, only one submits a bid
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which is found by the implementing agency to be complying; or
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d) If, after prequalification, more than one bidder submits bids but only one is
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found by the implementing agency to be complying.
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E. Protest. - In all stages of the procurement process, the following protest
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protocol shall be strictly followed:
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a) For national PPP projects, decisions of the PPP Prequalification Bids and
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Awards Committee (PPP PBAC) may be questioned by filing a motion for
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reconsideration within fifteen (15) working days from receipt thereof
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b) The decision of the PPP PBAC on the motion for reconsideration in the
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immediately preceding paragraph may be further questioned by filing an appeal
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to the head of the implementing agency concerned and paying a non-
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refundable appeal fee in an amount equivalent to no less than one percent
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(1%) of the project cost within fifteen (15) working days from receipt thereof.
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If the head of the implementing agency in the immediately preceding paragraph
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is not a Department Secretary, the decision of the head of the implementing
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agency may be further questioned by filing an appeal to the Secretary of the
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Department to which the implementing agency is attached within a period
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prescribed in the IRR of this Act.
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c) The decision of the Department Secretary in the immediately preceding
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paragraphs of item (b) may be questioned by filing an appeal to the Office of
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the President within fifteen (15) working days from receipt thereof.
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In no case shall any appeal taken from any decision treated in this Act stay or
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delay the bidding process: Provided, however, that all appeals must first be resolved
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before any award is made.
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F. Failure to Comply or Execute the Contract. - If the winning bidder fails to
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comply with any post-award requirement or fails to enter into a contract with the
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implementing agency, the latter may proceed to a negotiation with the next
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technically and financially qualified bidder. This is without prejudice to other legal
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remedies available to the implementing agency such as, but not limited to, the
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forfeiture of bid security, the withdrawal of Notice of Award, or both.
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Section 9. PPP PBAC. -  For national PPP projects, the head of the implementing 
agency shall create a PPP PBAC which shall be responsible for all aspects of the pre­
bidding and bidding process in the case of solicited proposals, and for the comparative 
bidding process in the case of unsolicited proposals. The PPP PBAC shall be chaired 
by at least a third ranking regular official of the said agency and its composition shall 
be specified in the IRR of this Act: Provided, That the PPP PBAC shall also include 
other relevant government agencies as may be determined in the IRR of this Act.
Section 10. 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 be liable for gross negligence or misconduct or grave 
abuse of discretion. The PPP PBAC members shall also be entitled to medical 
assistance for injuries incurred in the performance of their functions.
ARTICLE II I .
PPP OF LOCAL GOVERNMENT UNITS
Section 11. Authority o f Local Government Units. - Subject to the approval of 
the local Sangunians, LGUs may undertake PPP projects with any project proponent 
in accordance with the provisions of this Act.
The LGUs shall submit their list of PPP projects or any update thereto to the 
PPP Center for information. The PPP Center shall provide assistance to the LGU in the 
evaluation of local PPP projects.
Section 12. LGU Prequalification Bids and Awards Committee. - The LGU shall 
create an LGU Prequalification Bids and Awards Committee (LGU PBAC) which shall 
be responsible for all aspects of the pre-bidding and bidding process in the case of 
solicited proposals, and for the comparative bidding process in the case of unsolicited
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proposals. The LGU PBAC should be chaired by at least a third ranking regular official
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of the LGU and its composition shall be specified in the IRR of this Act.
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Section 13. Unsolicited Proposals to LGUs. -  Unsolicited proposals may be
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considered for LGU PPP projects. Within ten (10) working days from receipt of the
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unsolicited proposal, the LGU shall inform the PPP Center in writing of such receipt
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and furnish it with a copy of the proposal. The PPP Center shall provide assistance to
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the implementing agency in the evaluation of unsolicited proposal.
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Upon receipt of an unsolicited proposal, the LGU may either:
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1. Accept the unsolicited proposal on a negotiated basis, subject to the following
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conditions:
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a. The LGU should invite the submission of comparative proposals by
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publishing for three (3) consecutive weeks in a newspaper of general
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circulation, as well as posting in the websites of the PPP Center and of the
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implementing agency. If no proposal is received within a period of three (3)
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months from the date of last publication in a newspaper of general
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circulation, the LGU may accept the proposal. In the event another
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proponent submits a superior counterproposal within the period referred to
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above and it is accepted by the Approving Body, the original proponent
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shall have the right to outbid.
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b. No direct government guarantee, VGF, government subsidy or equity, or
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funding for right-of-way is required; Provided, That the implementing
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agency shall facilitate the acquisition of the right-of-way; and
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2. Reject the proposal.
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If the LGU fails to act on the proposal within the period stated in the IRR of this
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Act, the project proposal shall be deemed rejected, without prejudice to any liability
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that the erring or negligent officials or employees may incur under existing laws.
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Section 14. Public Bidding o f LGU Projects. -  The public bidding of LGU PPP
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projects shall be in accordance with the following:
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A. Publication. - Upon approval of PPP projects as mentioned in Section 11 of
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this Act, the LGU shall immediately cause the publication of a notice inviting all
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prospective project proponents to participate in a transparent and competitive public
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bidding, once every week for three (3) consecutive weeks, in at least two (2)
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newspapers of general circulation and in at least one (1) local newspaper which is
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circulated in the region, province, city or municipality where the project will be
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implemented. Said notice shall also be posted continuously in the websites of the LGU
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and the PPP Center.
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B. Public Bidding. - The public bidding shall be conducted under a single stage
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system. The pre-qualification documents, technical, and financial proposals shall be
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submitted in at least three (3) separate envelopes. The procedures for public bidding,
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which shall be transparent and competitive, including the conduct of one-on-one
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meetings with prequalified bidders, shall be outlined in the IRR of this Act.
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C. Award. - The contract shall be awarded to the bidder who has passed the
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pre-qualification stage for having satisfied the minimum financial, organizational and
14 
legal standards required by this Act, has passed the technical proposal evaluation,
15 
and has submitted the most favorable financial bid based on the parameters defined
16 
in the bid documents.
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D. Single Complying and Responsive Bid. - In case of a single complying and
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responsive bidder, the implementing agency may award the PPP contract to that
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bidder upon its compliance with the post-award requirements under the bidding rules
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of the PPP project. A bid shall be considered a single complying and responsive bid
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submission if it falls under any of the following circumstances:
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a) If, after advertisement, only one bidder applied for prequalification and it
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meets the prequalification requirements, after which it is required to submit a
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bid or proposal which is subsequently found by the implementing agency to be
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complying;
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b) If, after advertisement, more than one bidder applied for prequalification but
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only one meets the prequalification requirements, after which it submits a bid
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or proposal which is found by the implementing agency to be complying;
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c) If, after prequalification of more than one bidder, only one submits a bid
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which is found by the implementing agency to be complying; or
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d) If, after prequalification, more than one bidder submits bids but only one is
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found by the implementing agency to be complying.
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E. Protest. - In all stages of the procurement process, the following protest 
protocol shall be strictly followed:
a) Decisions of the LGU PBAC may be questioned by filing a motion for 
reconsideration within fifteen (15) working days from receipt thereof
b) The decision of the LGU PBAC on the motion for reconsideration in the 
immediately preceding paragraph may be further questioned by filing an appeal 
to the local chief executive of the LGU concerned and paying a non-refundable 
appeal fee in an amount equivalent to no less than one percent (1%) of the 
project cost within fifteen (15) working days from receipt thereof.
In no case shall any appeal taken from any decision treated in this Act stay or 
delay the bidding process: Provided, however, that all appeals must first be resolved 
before any award is made.
F. Failure to Comply or Execute the Contract. - If the winning bidder fails to 
comply with any post-award requirement or fails to enter into a contract with the 
implementing agency, the latter may proceed to a negotiation with the next 
technically and financially qualified bidder. This is without prejudice to other legal 
remedies available to the implementing agency such as, but not limited to, the 
forfeiture of bid security, the withdrawal of Notice of Award, or both.
ARTICLE IV
CONTRACTUAL PROVISIONS
Section 15. Regulatory Boards. -  No regulatory body shall be allowed to enter 
into any PPP contract that they regulate. A regulatory agency that owns public 
infrastructure or right-of-way that is intended for a PPP project shall assign the same 
to the department exercising administrative supervision over it, or to the department 
to which it is attached, in order that such department may enter into a PPP contract 
involving such public infrastructure or right-of-way.
Section 16. Contract Termination. -  In the event that a contract is revoked, 
cancelled or terminated, either contracting party shall compensate the other party 
pursuant to terms as defined in the contract.


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Section 17. Contracts and Public Disclosure. -  Copies of all PPP contracts 
concluded under this Act shall be considered public documents. Provided that, any 
information relating to national security contained in the PPP contract and its annexes 
shall be kept confidential, as may be determined by the implementing agency, in 
consultation with the Department of National Defense (DND).
The implementing agency shall transmit to the PPP Center for records and 
monitoring purposes, a copy of the duly executed contract, within ten (10) working 
days from its complete execution.
Section 18. Project Supervision. -  Every PPP project undertaken under the 
provisions of this Act shall be in accordance with the designs, plans, specifications, 
standards, and costs approved by the implementing agency and Approving Body and 
shall be under the supervision of the implementing agency concerned.
ARTICLE V
BENEFITS OF PPP CONTRACTS
Section 19. Issuance o f Administrative Franchise, License or Permit -  Once a 
PPP contract is duly executed, the regulator, licensing authority or LGUs shall 
automatically grant in favor of the project proponent an administrative franchise, 
license permit, or any other form of authorization required for the implementation of 
a PPP project subject to submission by the project proponent of the requirements by 
the regulator, licensing authority or LGU.
Any provision of law to the contrary notwithstanding, it shall be mandatory on 
the part of the regulator, licensing authority or LGUs to accept and approve the 
application for administrative franchise, license or permit. Failure to act on a proper 
and complete application thereof within thirty (30) working days from receipt of the 
same shall be deemed as approval thereof.
Section 20. Prohibition on the Issuance o f Temporary Restraining Orders or 
Injunctions. -
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A. No temporary restraining order, preliminary injunction or preliminary
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mandatory injunction shall be issued by any court, except the Supreme Court, against
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any implementing agency or LGU, its officials or employees, or any person or entity,
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whether public or private acting under the government direction, to restrain, prohibit
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or compel the following acts:
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a) Bidding, rebidding or declaration of failure of bidding of PPP projects, either
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national or local;
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c) Awarding of PPP contract;
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d) Acceptance of any unsolicited PPP project proposal, even if not acted upon
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by the implementing agency concerned under Section 9 of this Act;
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e) Acquisition, clearance, development of the right-of-way, site or location of
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any PPP project;
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f) Construction, operation and maintenance of any PPP project;
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g) Commencement, execution, implementation, termination or rescission of any
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PPP contract; and
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h) Undertaking or authorization of any other lawful activity necessary for such
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PPP project or contract.
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B. Bond. - The applicant for such temporary restraining order, preliminary
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injunction or preliminary mandatory injunction shall file a bond, in an amount to be
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fixed by the court. The bond shall accrue in favor of the government if the court
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should finally decide that the applicant was not entitled to the relief sought.
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C. Void. - Any temporary restraining order, preliminary injunction or preliminary
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mandatory injunction issued in violation of this section is void and of no force and
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effect.
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Section 21. Exemption from Payment o f Transfer Taxes. -  For all PPP projects,
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the transfer of ownership of infrastructure facility to the implementing agency shall be
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exempt from capital gains tax, documentary stamp tax and all taxes and fees, whether
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from national or local, related to the transfer thereof.
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Section 22. Investment Incentives. - Among other incentives, PPP projects may 
be entitled to incentives as provided by the Omnibus Investment Code, upon prior 
endorsement of the PPP Center and registration by the project proponent with the 
Board of Investments.
ARTICLE V
INCLUSIONS AND LIMITATIONS IN PPP CONTRACTS
Section 23. Mandatory Inclusion o f Alternative Dispute Resolution (ADR) 
Mechanisms in PPP Contracts. -  All PPP contracts shall stipulate therein the use of 
ADR mechanisms. The contracting parties shall be given complete freedom to choose 
which ADR mechanisms shall govern their dispute, as well as the rules or procedures 
to be followed in resolving the same.
Section 24. Recovery o f Investment - As may be agreed in the PPP contract, 
the project proponent may be allowed to collect tolls, fees, rentals, or charges, engage 
in commercial development, receive VGF, and receive direct government payments, 
among others, to recover investment.
Section 25. Wind-up and Transfer Measures. - The PPP contract shall provide, 
as appropriate, for:
a. Mechanisms and procedures for the transfer of assets to the 
implementing agency;
b. The compensation to which the project proponent may be entitled 
in respect of assets transferred to the implementing agency, or to a 
successor, or purchased by the implementing agency;
c. The transfer of technology required for the operation of the 
infrastructure facility;
d. The training of the implementing agency's personnel or of a 
successor in the operation and maintenance of the infrastructure 
facility; and
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e. The provision, by the project proponent, of a warranty that the
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infrastructure facility meets the project technical specifications,
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agreed system features, and performance standards and services for
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a certain period as may be defined in the IRR of this Act after the
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transfer of the infrastructure facility to the implementing agency or
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to a successor.
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Section 26. Preferential Hiring o f Filipino Workers. - For the construction stage of
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infrastructure facilities where the contractor is a foreigner, Filipino labor shall be
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employed or hired in the different phases of construction where Filipino skills are
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available.
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ARTICLE V.
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THE PPP CENTER
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Section 27. Institutionalization o f PPP Center. -  The PPP Center created under
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Executive Order No. 8, series of 2010, as amended by Executive Order No. 136, series
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of 2013, is hereby institutionalized. It is hereby authorized to adopt its current
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organizational structure, absorb its existing employees, and upgrade its human
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resource component, as may be necessary. Towards a more efficient and effective
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performance of its mandate, the PPP Center shall have the following powers and
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functions;
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a. Assist implementing agencies in identifying, developing, prioritizing and
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maintaining a pipeline of PPP projects;
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b. Explore land value capture opportunities for PPP projects;
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c. Identify optimal schemes in the implementation of PPP Projects;
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d. Provide advisory services, technical assistance, trainings, and capacity
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development to implementing agencies in all PPP-related matters, and act as
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a procurement agent upon the request of an implementing agency;
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e. Manage and administer the PDMF as provided in Section 8 of this Act;
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f. Work with implementing agencies in setting procurement and implementation
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timelines for approved PPP projects;
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g. Recommend plans, policies and implementation guidelines related to PPP, in 
consultation with appropriate oversight committees or agencies, implementing 
agencies, private sector and other relevant stakeholders;
h. Recommend legal and regulatory reforms that would create a more conducive 
environment for PPP Projects;
i. 
Facilitate, monitor, and evaluate the implementation of PPP programs and 
projects developed by the implementing agencies;
Report to the Office of the President and Congress on the implementation of 
the PPP programs and projects of the government at the end of each year;
k. Serve as a link between the government and the private sector;
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Promote and market PPP programs and projects, in collaboration with other 
government promotion agencies;
m. Sit as member of NEDA-Infrastructure Committee (INFRACOM), ICC, and 
other inter-agency bodies where a PPP project is a major concern;
n. Issue advisory opinions and interpret the provisions of this Act and its IRR, 
relating solely to technical aspects of PPP;
0. Serve as the central repository of all executed PPP contracts and any 
subsequent amendment or supplement thereto, including settlement 
agreements, entered into by implementing agencies;
Review PPP contracts prior to execution, and provide and transmit copies of 
duly executed PPP contracts to Congress;
Act as Secretariat to the PDMF Committee, PPP Governing Board, and ICC 
insofar as PPP projects are concerned;
Maintain an integrated projects' bank to serve as an interactive database of 
all current and past projects; and
Perform such other functions, as may be necessary, to achieve the objectives 
and purposes of this Act. The PPP Center shall report directly to the PPP 
Governing Board and shall be attached to the NEDA for purposes of policy and 
program coordination.
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Section 28. PPP Governing Board. -  The PPP Governing Board, hereinafter
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referred to as the Board, is hereby created. It shall be the overall policy making body
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for all PPP-related matters, including the PDMF. It shall be responsible for setting the
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strategic direction of PPP programs and projects and in creating an enabling policy
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and institutional environment for PPP. The Board shall be composed of the following
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members:
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1. Secretary of Socio-Economic Planning as Chairperson;
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2. Secretary of the Department of Finance as Vice-Chairperson;
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3. Secretary of the Department of Budget and Management;
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4. Secretary of the Department of National Defense;
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5. Secretary of the Department of Trade and Industry;
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6. Secretary of the Department of Interior and Local Government; and
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7. Executive Director of PPP Center.
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The members of the Board may designate their respective alternates, who shall
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be the official next-in-rank to them, and whose acts shall be considered the acts of
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their principals. The presence of the Chairperson and three (3) other members of the
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Board or their respective designated alternates shall constitute a quorum and a
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majority vote of the members present shall be necessary for the adoption of any
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issuance, order, resolution, decision, or other act of the Board in the exercise of its
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functions.
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The Board shall act on any matter for its consideration not later than thirty (30)
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days from the date of submission thereof.
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Section 29. Executive Director. -  The PPP Center shall be headed by an
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Executive Director with the rank equivalent to an Undersecretary, who shall be
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appointed by the President of the Philippines, for a term of six years, upon
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recommendation of the PPP Governing Board.
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The Executive Director shall perform the following functions:
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a. Undertake the day-to-day management and supervise the operations of the
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PPP Center;
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b. Recommend to the PPP Governing Board such policies and measures which
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he or she deems necessary for the effective exercise and discharge of the
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powers and functions of the PPP Center;
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c. Sit as an ex-officio member of the PPP Governing Board, INFRACOM, ICC
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and other inter-agency bodies where a PPP project is a major concern; and
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d. Perform such other functions as may be assigned by the PPP Governing 
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ARTICLE IV
SPECIAL FUNDS FOR PPP PROJECTS
Section 30. Project Development and Monitoring Fund. - The Project Development 
and Monitoring Fund (PDMF) is hereby established and shall be used for the hiring of 
advisory and support services related to PPP projects.
a. Funding Source. The PDMF referred to under Executive Order (EO) No. 8, series 
of 2010, as amended by EO No. 136, series of 2013, shall be transferred to the 
PDMF under 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.
b. Institutional Arrangement. 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. The PPP Center shall approve applications submitted by 
implementing agencies or local government units.
ARTICLE VI 
PENAL PROVISION
Section 31. Administrative and Criminal Liability. - Any person, whether private 
individual or public officer or employee, who commits any of the acts hereunder 
proscribed, shall be punished by imprisonment from a minimum of three (3) years to 
six (6) years:
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a. Representation that the project proponent has the necessary capitalization 
to commence, complete, and implement the project when the same is false 
in material respects;
b. Falsification or insertion of certain provisions in the execution copy of the 
contract which are materially and substantially different from the approved 
final draft contract.
Provided that, any concerned reviewing officer/s found liable of abuse in power 
in the performance of his /her duties shall be administratively liable with grave neglect 
of duty and shall be dealt with in accordance with existing laws.
ARTICLE VI
TRANSITORY PROVISIONS
Section 32. Transitory Provisions. - All 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 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 for Congressional 
action. 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.
Section 33. Prescription. - No one shall in any proceedings before any court or 
tribunal allege the invalidity of any PPP contract on the ground of non-compliance with 
the provisions of this Act after a period of one (1) year has elapsed from the signing 
of the PPP contract.
Section 34. Contracts, Procedures, And Authority Not Affected by this Act. - This 
Act shall not affect:
a. PPP contracts entered, and selection procedures undertaken, by implementing 
agencies prior to the effectivity of this Act in accordance with the relevant 
laws, regulations, guidelines, and ordinances; and
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b. The authority of LCDs to enact their own PPP ordinances that are not
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inconsistent with this Act and its IRR.
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ARTICLE V II
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MISCELLANEOUS PROVISIONS
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Section 35. Implementing Rules and Regulations. -  The members of the PPP
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Governing Board shall designate their respective representatives who shall constitute
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the IRR Committee. Within sixty (60) days from the effectivity of this Act, the PPP
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Center shall formulate and prescribe, in consultation with the IRR Committee, after
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public hearing and publication as required by law, the rules and regulations to
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implement the provisions of this Act. The IRR shall be approved by the PPP Governing
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Board. From time to time the PPP Governing Board may instruct the PPP Center, in
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consultation with the IRR Committee, to conduct, formulate and prescribe, after due
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public hearing and publication, amendments to the IRR, consistent with the provisions
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of this Act.
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Section 36. Separability Clause. - If any provision of this Act is held invalid, the
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other provisions not affected thereby shall continue in operation.
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Section 37. Repealing Clause. - All other laws, rules and regulations or parts
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thereof inconsistent with the provisions of this Act are hereby repealed or modified
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accordingly.
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Section 38. Effectivity Clause. - This Act shall take effect fifteen (15) days after
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its publication in the Official Gazette or at least one (1) newspaper of general
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circulation.
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Approved
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