NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S.B. No.__76 5
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^ JUL 19 P6 :49
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Introduced by Senator SONNY ANG^.RA
AN ACT
PROMOTING AND AUTHORIZING PUBLIC - PRIVATE PARTNERSHIPS FOR 
THE FINANCING, CONSTRUCTION, OPERATION AND MAINTENANCE OF 
INFRASTRUCTURE FACILITIES APPROPRIATING FUNDS THEREFOR, AND 
FOR OTHER PURPOSES
EXPLANATORY NOTE
With the Marcos administration's vow to continue infrastructure spending 
through the "Build, Build, Build" Program, it is appropriate to refile this bill to support 
the implementation of various infrastructure projects throughout the country.
Government has traditionally been in charge of providing and financing 
infrastructure development throughout the country However, investment 
requirements have exceeded the capacities of the government, prompting the public 
sector to enable private participation in infrastructure development and include 
utilities, transportation, property development, and information technology, through 
contractual arrangements such as build-operate-transfer (EOT).
Reforms to the BOT framework are necessary to better address the needs and 
qualms of investors while ensuring the best value-for-money outcomes for the 
government, as; well as the best incerest of the user community. After nearly three 
decades since the passage of the BOT Law, the concept of BOT has evolved into what 
we now know as public-private partnerships (PPP). Moreover, through years of 
experience in project implementation, the government has broadened and deepened 
its understanding of structuring PPP deals and managing PPP contracts. For the 
country to usher in a "Golden Age of Infrastructure" and maximize economic gains.


the private sector must be encouraged to make investments through a modernized 
and enhanced PPP law.
In line with the Philippine Development Plan 2017-2022 and the thrust and 
priorities of the cun ent administration, this bill seeks to enhance and reinforce the 
PPP Program with the goal of accelerating infrastructure development. Specifically, it 
seeks to create an enabling environment for PPPs where rules are fair, clear, and 
equally applied to all. Pertinent government regulations will also be rationalized and 
benchmarked against international standards and best pracJces.
Under the measure, the coverage of PPPs will be expanded to include joint 
ventures, and operation and maintenance contracts. It also aims to protect public 
interest by ensuring fair and reasonable pricing and timely delivery of quality 
infrastructure, goods and sen/ices, as well as by requiring full public disclosure of all 
PPP transactions.
This bill shall also empower Local Government Units (LGUs) by providing them 
the power to approve local PPP projects and requiring them to only elevate the 
projects for Investment Coordination Committee (ICC) approval upon reaching 
threshold amounts or when needing any national government participaiion.
With the framework proposed under this bill, we can attract more PPPs to help 
the government speed up the delivery of public infrastructure and improve the related 
services to boost the growth of the Philippine economy.
In view of the. foregoing, the passage of this bi'l is earnestly sought.
SONNY ANGARA


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHIUPPINES 
First Regular Session
)
SENATE
S.B. No. 765
L</> TIME:
INDEX
Introduced b/ Senator SONNY ANGARA
AN ACT
PROMOTING AND AUTHORIZING PUBLIC - PRIVATE PARTNERSHIPS FOR 
THE FINANCING, CONSTRUCTION, OPERATION AND MAINTENANCE OF 
INFRASTRUCTURE FACILITIES, APPROPRIATING FUNDS THEREFOR, AND 
FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Phiiippines 
in Congress assembled:
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SECTION. 1. Short Title. - This Act shall be known as the "Public-Private
2 
Partnership (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 to 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 costs of doing business.
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It is further declared that the State shall protect the public interest by providing
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affordable, accessible, and efficient public services. In order to achieve better quality
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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 planet.
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The State shall pursue a policy of maintaining a reasonable balance on financing
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of infrastructure and other development projects through all means available that will


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most effectively meet the objectives of the government. These may include
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appropriations, official development assistance, and PPPs, as well as combinations
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thereof. The government shall determine the appropriate financing by considering
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budget availability, timelines, stakeholder commitments, and market 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 shell implement a policy of full public disclosure of all 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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undertaken by Implementing Agencies, through PPP contracts with a Private
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Proponent, includinc Joint Ventures, as defined under this Act. It shall likewise apply
13 
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. - The following terms used in this Act shall have
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the meanings stated below:
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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 Philippine laws, which
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may or may not be the Private Proponent, and which stall undertake
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the actual construction or supply of equipment or services for PPP
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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
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government action, among others;


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(e) Facility Operator- refers to an entity with legal personality authorized 
under existing laws, which may or may not be the Private Proponent, 
tf-at shall be resporisible for operating and maintaining a facilit/, 
including, but not limited to, the collection of tolls, fees, rentals or 
charges from facility 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 environmental 
benefits in support of green growth, low-carbon, and sustainable 
d vvelcpment;
(i) Guarantee on Demand - refers to an agreement whereby the 
Implementing Agency guarantees to assume market risks in a PPP 
Project;
Q) 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 Private Proponent in 
implementing the project in case of a loan default;
(k) Guarantee on Private Sector Return - refers to an agreement whereby 
tt'e In iplementing 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 universities and colleges (SUCs), 'ocal government units (LGUs), 
or government owned-or-controlled corporation (GOCC) as defined in 
Republic Act No. 10149, including government instrumentalities with 
corporate powers (GICP), government corporate entities (GCE),


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government financial institutions (GFIs), which is authorized to 
undertake 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 
invescment activity. Tne investment activity shall be for tne purpose of 
accomplishing a specific goal with the end view of facilitating 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 
connection therewith with the intention to share both profits, and risks 
and losses subject to agreement by the parties. A JV may be 
unde: taken 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 universities and colleges (LUCs) as defined in RA 10931;
(o) National PPP Project- refers to a PPP Project that shall be undertaken 
by the; nationa1 gover;nment, GOCCs Ir.dudir-g 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;
(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


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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 unsolicited proposal, or a bid submission in relation 
to a solicited 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 sen/ices of a foreign Contractor or foreign 
Facility Operator, subject to requirements and limitations provided 
under the Philippine Constitution;
(t) Project Cost - refers to the estimated cost of the PPP Project. The 
guidelines in determining the Project Cost shal be prescribed in the IRR 
of this Act;
{u) Subsidy - refers to an agreement whereby the Implementing Agency 
will; (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 Facility 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;
(w) 
Viability Gap Funding (VGF) - refers to a type of Subsidy in the form 
of a financial support :hat 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.


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Sec. 5. Public-Private Partnership. - A PPP is a contractual arrangement
2 
between the Iinplementing Agency and the Private Proponent for tiie financing,
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designing, constructing, operating and maintaining, or any combination thereof, of
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projects which are normally provided by the public sector. PPP Projects may be
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undertaken through contractual arrangements, including joint ventures, authorized
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under the Implementing Rules and Regulations (IRR) of this Act, and such other
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variations thereof as may be approved by the appropriate Approving Body.
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Sec. 6. Identification of PPP Projects. - Implementing Agencies shall include in
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their development plans, strategies, and investment programs those priority PPP
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Projects that they want to undertake. In identifying those projects, the Implementing
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Agencies shall be guided by the following principles: effectiveness in meeting
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government objectives, appropriateness of the chosen procurement modality and
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source of funding, value for money, accountability and transparency, consumer rights,
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affordability, public access, safety, and security. Priority projects shall be consistent
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with the national and local development and Investment plans.
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The Implementing Agencies shall submit their list of PPP Projects or any update
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thereto to the PPP Center, referred to in Section 22 of this Act, for information. Each
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proposed PPP Project shall be subject to the approval of the appropriate Approving
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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
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Act and its IRR shall be in accordance with the following:
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1. National PPP Projects - National PPP Projects shall be approved as
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follows:
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i. Projects costing five billion pesos (P5,000,000,000.00) and
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below, shall be submitted to the Investment Coordination
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Committee of the National Economic and Development Authority
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(ICC-NEDA) for approval;
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ii. Projects costing above five billion pesos (P5,000,000,000.00)
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shall be submitted to the NEDA Board for approval, upon
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favorable recommendation by the ICC-NEDA.


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The ICC-NEDA may, from time to time, update the aforementioned
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amounts when che need arises.
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2. LocalPPPProjects- Local PPP Projects shall be approved by the local
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Sanggunians, regardless of the Project Cost, Provided, that Local PPP Projects
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involving Government Undertakings using national government funds shall require the
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approval of the ICC NEDA. Nationa Government Unaertakings shall include, among
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others, the following items to be provided by the national government to a Local PPP
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Project: (i) Guarantees on Demand, (ii) Guarantees on Private Sector Return, (iii)
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Guarantees on Loan Repayment; (iv) Viability Gap Funding and other forms of
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Subsidy; (v) pavment of Contingent Liability, including Termination Payments.
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Provided, Further, That, permits, clearances, licenses 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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(a)Tne Approving Body shall assess all PPP Projects based on its overall
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feasibility analysis and accord paramount importance on the
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affordability of user fees and efficiency in public service. To ensure that
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all risks associated with PPP Projects are managed and mitigated
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accordingly, ali PPP contracts to be entered into by the Implementing
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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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(b)The appropriate Approving Body shall notify and advise, in writing, the
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Implementing Agency of its receipt and assessment of the
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completeness, in form and in substance, of the PPP Project proposal.
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Upon complete submission of the requirements by the Implementing
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Agency, the appropriate Approving Body shall render its decision on the
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project within forty (40) working days therefrom. The Implementing
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Aqenc^/ shall bo duly notified in writing of the decision of the Approving
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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
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the specified period shall be deemed an approval thereof and the
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concerned Implementing Agency may proceed with the procurement of


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the PPP Project, without prejudice to any liability that the erring or
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negligent officials or employees may incur under existing laws.
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In cases of Local PPP Projects requiring national government
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undertakings, the ICC-NEDA shall be given twenty (20) working days
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from the receipt of the proposal for the Local PPP Project to render its
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decision on the requested government undertaking. In the event of
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disapproval of the requested government undertaking, the
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Implementing Agency has the right to resubmit the request for approval
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of the national government undertaking in accordance with the
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provisions of tne IRP of this Act. The disa[)proval of the requested
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government undertaking shall not be construed as a disapproval of the
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Local PPP Project.
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(c) In order to facilitate a comprehensive and timely review of the PPP
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Project, the PPP Center, in coordination with the ICC-NEDA, shall
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formulate forms and templates that shall be used by the Implementing
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Agency and the Approving Body In reviewing and approving the PPP
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Project, as well as the national government undertaking involved 
in local
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PPP Projects.
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(d)Tne decision of the appropriate Approving Body to approve and
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implement the project under any of the contractual arrangements or
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variations thereof under this Act shall be final and executory, unless the
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Implementing Agency can provide sufficient justifiable reason to convert
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the PPP Project to another project under 
a different procurement
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modality.
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Sec. 8. PPP Pre-qualification, Bids and Awards Committee. - The head of the
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Implementing Agency undertaking PPP Projects shall create a PPP Pre-qualification,
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Bids and Awards Committee ;TBAC); which shall be responsible for all aspects of pre-
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bidding and bidding process in solicited proposals, or the comparative bidding process
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in unsolicited proposals. The composition and specific functions of the PBAC for
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National PPP Projects and Local PPP Projects shall be specified in the IRR of this Act,
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which may include other relevant government entities.


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Sec. 9. SoHdtadProposals. - (a) Solicited Proposals refer to submissions by the
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Private Proponent to bid for PPP Projects through open, fair, transparent, and
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competitive public bidding initiated by the Implementing Agency. Government
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Undertakings are allowed, subject to the approval of the Approving Body.
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(b) General. The pub'T 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 bio documents. 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 bid
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security, withdrawal of award7 and such other remedies allowed under existing laws,
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rules, and regulatioi is.
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Any change in control of the Private Proponent or composition of the consortium
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after the submission of a solicited proposal shall be subject to the approval of the
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Implementing Agency.
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(c) Failure of bidding. The Implementing Agenc; shat declare failure of bidding
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in case of any of the following: (1) If no bids are received; or (2) If there are no
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complying bids.
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The ICC-NEDA or the local Sanggunian may also declare a failure of bid if, after
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advertisement, only one bidder applied for and met the pre-qualification requirements,
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unless 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 applied for pre-
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qualification but only one met the pre-qualifiL'ation requirements;
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(2) If, after advertisement, only one bidder applied for and met the pre-
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qualification requirements, provided such was allowed by the ICC-
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NEDA or the local Sanggunian, whichever is applicable;
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(3) If, after pre-qualification of more than one bidder, only one submitted
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a bid; or
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(4) If, after pre-qualification, more than one bidder submitted bids but only
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one is found by the Implementing Agency to be complying.
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In any of the four (4) instances described in sub-paragraphs (1) to (4) of the
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preceding paragraph, the Implemei iting Agency shall 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 collusion between the remaining
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bidder with the officers of the Implementing Agency or any member or officer of the
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PBAC.
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Sec. 10. Unsolicited Proposals. - (a) General. Unsolicited Proposals refer to
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project proposals submitted by a Private Proponent not in response to a formal
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solicitation or request issued by the Implementing Agency.
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The Implementing Agency may accept, reject, or convert an unsolicited
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proposal into a solicited proposal, subject to the evaluation of eligibility and merits of
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the project, and other conditions set forth in this Section and the IRR of this Act.
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(b) Limitations. Unsolicited proposals may be considered for projects that are
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not in the priority list and projects that are in the priority list. Provided, That in case
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the Implementing Agency has already incurred any development cost for the priority
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project, such as the conduct of feasibility study, business case, and surveys, among
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others, for the last five (5) years, the Private Proponent must undertake to reimburse
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the Implementing Agency of such documented development costs. Reimbursable
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development costs for a specific priority project shall be determined by the
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Implementing Agency.
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Provided, further, That any unsolicited proposal shall not contain any of the 
following Government Undertakings:
(i) 
Viability Gap Funding and other forms of Subsidy;
[ii] 
Payment of Right-of-Way related costs;
[iii] 
Performance undertaking;
(iv) 
Exemption from any taxes as required by laws, except local taxes imposed 
by local government units;
[v3 
Guarantee on Demand;
[vi] 
Guarantee on Lean Repayment;
[vii) 
Guarantee on Private Sector Return;
[viii] Government equity except in JV arrangements; and
(ix) Contribution of assets, properties, and rights except in JV arrangements.
As an exception, items (ii) and (ix) above mav' be allowed if the government 
receives appropriate compensation, which shall in no way be lower than the value of 
the Right-Of-Way, assets, properties, and rights contributed.
(c) Special Requirements. (1) 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 shall furnish it with a copy of the proposal.
(2) Upon submission of an unsolicited proposal, the Private Proponent shall pay 
an administrative fee to the Implementing Agency for processing of the same, subject 
to the guidelines as may be set in the IRR of this Act.
(3) An unsolicited proposal involving Right-of Way acquisition of a property, 
whether owned or not owned by the Original Proponent, may only be considered if 
the submission includes proof that the Original Proponent can acquire the entire 
property it identified in the unsolicited proposal, and/or a detailed Right-of-Way and 
resettlement plan indicating the specific assistance it needs from the government in 
acquiring the Right-of-Way for the entire property it identified in the unsolicited 
proposal, as may be applicable.
(4) Any change in control of the Original Proponent or composition of the 
consortium after the submission of the Unsolicited Proposal shall be subject to the 
approval of the Implementing Agency.
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(5) In evaluating unsolicited proposals, the Implementing Agency shall use a
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first in time approach. Under this approach, the first complete proposal is evaluated
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and decided upon. The second complete proposal shall only be processed if the first
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one is rejected or if there is a failure in the negotiation of the first proposal. In all
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instances, the Implementing Agency may seek the assistance of the PPP Center in the
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assessment, evaluation, and review of unsolicited proposals.
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(d) Rejection of an Unsolicited Proposal. The Implementing Agency shall have
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the right to automatically reject the unsolicited proposal upon receipt thereof, or
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formally reject it after evaluation. If the Implemenung 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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negligent officials or employees may incur under existing laws. In cases of automatic
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rejection and rejection resulhng from inaction, the paid administrative fee shall be
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returned to the appropriate Private Proponent, and shall be without prejudice to the
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right of the Private Proponents to resubmit their proposals until such time that the
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proposal has been formally rejected by the Implementing Agency, in which case, the
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administrative fee shall not be returned. A formal rejection is a written rejection notice
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to the Private Proponent stating .he reason/s why the submitted proposal was
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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 IflR 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 shall
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be reimbursed of the cost incurred in the preparation of the proposal, such as the cost
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of any feasibility study undertaken: Provided, That such reimbursement shall be in an
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amount not exceeding six percent (6%) of the total Project Cost, excluding the cost
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of right-of-way acquisition: Provided, further, that reimbursement shall be paid in full
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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 amount as the need arises. /:
I
12 .


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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 valid
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for a period net exceeding one (1) year, and may be extended by the head of the
5 
Implementing Agency; Provided, That such extension shall not exceed a period of one
6 
(1) year.
7 
(g) Comparative Challenge. The Implementing Agency shall publish an
8 
invitation for the submission of comparative proposals. The comparative challenge
9 
shall be conducted either manually or electronically, by the Implementing Agency
10 
within the period proposed by it and approved by the appropriate Approving Body,
11 
taking into consideration the nature and complexity of the PPP Project; Provided, that
12 
the period shall start from the date of last publication of the invitation for the
13 
submission of comparative proposals and shall be reasonable, fair, and upholds the
14 
competitive nature of public bidding. Comparative proposals shall be evaluated based
15 
on the best-and-final offer method and the bid bonus system, the procedure of which
16 
shall be discussed in the IRR. If no other proposal is received after the challenge
17 
period, the PPP contract shall be awarded to the Original Proponent.
18 
Sec. 11. Protest Mechanism. - In all stages of tne procurement process, 14 the
19 
following protest protocol shall be strictly followed:
20 
(a] In case of National PPP Projects:
21 
i. 
Decisions of the PBAC may be questioned by filing a motion
22 
for reconsiaeration within firceen (15) working days from
23 
receipt thereof. The PBAC shall act on the motion and render
24 
a decision within thirty (30) calendar days, otherwise it shall
25 
be deemed denied.
26 
ii. 
The decision of the PBAC on the motion for reconsideration in
27 
the immediately preceding paragraph may be further
28 
questioned by filing an appeal to the head of the
29 
Implementing Agency concerned, and paying a non-
30 
refundable appeal fee in an amount equivalent to no less than
31 
Vi of 1% of the Project Cost within fifteen (15) working days
32 
from receipt thereof. The head of the Implementing Agency
13


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
31
shall act on the appeal and render a decision within thirty (30) 
calendar days, otherwise it shall be deemed denied. The PPP 
Governing Board may adjust the appeal fee as the need arises. 
If the head of the Implementing Agency in the immediately 
preceding paragraph is not a Department Secretary, the 
decision of the head of the Implementing Agency may be 
further questioned by filing an appeal to the Secretary of the 
Department to which the Implementing Agency is attached 
within fifteen (15) working days from receipt thereof. The 
Department Secretary shall act on the appeal and render a 
decision within thirty (30) calendar days, otherwise it shall be 
deemed denied.
iii. The aedsior: of the Department Secretary in the immediate'y 
preceding paragraph may be questioned by filing an appeal to 
the Office of the President within fifteen (15) working days 
from receipt thereof. If, within sixty (60) calendar days, the 
Office of the President does rot act on the appeal, the same 
is deemed denied.
(b) In the case of Local PPP Projects:
i. 
Decisions of the PBAC may be questioned by filing a motion 
for reconsideration within seven (7) calendar days from 
receipt thereof. The PBAC shall act on the motion and render 
a decision within thirty (30) calendar days, otherwise it shall 
be deemed denied.
ii. 
The decision of the PBAC on the motion for reconsideration in 
the immediately preceding paragraph may be further 
questioned by filing an appeal to the local chief executive or 
his authorized representative concerned within seven (7) 
calendar days from receipt thereof, and paying a non- 
refundable appeal fee in an amount equivalent to no less than 
1/2 of 1% of the Project Cost.
14


1 
The local chief executive shall resolve the appeal within thirty
2 
(30) calendar days from receipt thereof, otherwise it shall be
3 
deemed denied. The selection process will be suspended for
4 
a maximun. period of thirty (30) calendar days while the
5 
appeal is being evaluated. The decision of the local chief
6 
executive or his authorized representative on the appeal shall
7 
be final and immediately executory.
8 
Unless otherwise provided iii this Act, in nc case shall a
9 
motion for reconsideration or an appeal from any decision by
10 
the PBAC, Head of Implementing Agency, or Department
11 
Secretary stay or delay the bidding process. No award shall
12 
however be made until a decision on any pending appeal is
13 
rendered, or deemed denied.
14 
Sec. 12. Adoption of Contract Management and Risk Mitigation Plans in PPP
15 
Projects- In order to manage the fiscal risks arising from PPP Projects, strengthen
16 
the credibility of the PPP program and projects among the private sector, and to
17 
ensure the timely compliance with the contractual obligations of Implementing
18 
Agencies, projects undertaken shall require the adoption of a contract management
19 
and risk mitigation plan (CMRMP). The CMRMP shall contain the agreed project
20 
execution plan and risk mitigation plans of the contractual parties, which shall ensure
21 
that value for rnone/ derived from undertaking a PPP Project shall not he diminished
22 
and that all risks are mitigated, to avoid contingent liabilities from being realized. All
23 
CMRMPs shall be submitted to the PPP Center for monitoring. The procedures in
24 
creating, managing, and monitoring the CMRMP shall be prescribed in the IRR.
25 
Sec. 13. Project Supervision, Monitoring, and Impact Evaluation. - Every PPP
26 
Project shall be implemented in accordance with the project terms as approved by the
27 
appropriate Approving Body, as well as the signed PPP contract. The coverage of the
28 
project terms and the minimum required provisions in a PPP contract shall be set forth
29 
in the IRR of this Act. The Implementing Agency shall be entitled to exercise sufficient
30 
powers of supervisiun, monitoring, und control over the implementation of each PPP
31 
contract it has entered into.
15


1 
(a) 
Supervision. The Implementing Agency shall be responsible for the
2 
overall supervision of the PPP Project and for submission of periodic monitoring
3 
reports, executed under oath, to the appropriate overnight agencies. The approval by
4 
any public officer of any certificate of compliance or certificate of completion that is
5 
submitted by the Private Proponent shall also be made under oath. The liability of the
6 
public officer or former public officer for any criminal act under existing pertinent laws
7 
related to the actions made on such reports and such approvals shall survive the
8 
retirement of the puDlic officer, the Termination of the project contract, and the lapse
9 
of the applicable warranty period/s.
10 
(b) 
Monitoring. The PPP Governing Board shall set the framework for
11 
monitoring of the compliance of the parties to PPP contracts.
12 
The PPP Center shall be responsible for the coordination and monitoring of
13 
projects implemented under this Act. For this purpose, the Implementing Agency shall
14 
submit to the PPP Center all executed PPP contracts, information on the status of
15 
projects implemented by, as well as copies of all unsolicited proposals and related
16 
documents received by, the former. At the end of every calendar year, the PPP Center
17 
shall submit a leport to the President of the Philippines and to the Congress of the
18 
Philippines- particularly to the Senate President and the Speaker of the House of
19 
Representatives, and the Chairpersons of the Committee on Public Works - on the
20 
progress of ail projects implemented under this Act.
21 
(c) 
Iripac- Evaiuation. As the primary socio-economic policy think tank of
22 
the national government, the Philippine Institute for Development Studies (PIDS) is
23 
hereby mandated to conduct periodic impact evaluation studies of PPP Projects
24 
implemented under this Act. The results of these studies shall be submitted to the PPP
25 
Governing Board, the PPP Center, and other relevant oversight agencies.
26 
Sec. 14. Investment Incentives. - PPP Projects undertaken through this Act
27 
shall be entitled to various incentives under applicable laws and existing policies of
28 
the government.
29 
Sec. 15. Investment Recovery Scheme. - In undertaking PPP Projects, the
30 
Private Proponent snail be allowed to recover its investments and earn profit through
31 
any of the following schemes or a combination thereof:
16


1 
(a) Revenue-based - refers to a scheme where the Private Proponent is
2 
authorized to charge and collect, in whole or In part, from the public
3 
reascnabie user tees cr tariffs subject to appropriate regulation in
4 
accordance with Section 16 of this Act. Where applicable, the Private
5 
Proponent may likewise be repaid in the form of a share in the revenue of
6 
the project; and
7 
(b) Availabilib/-based - refers to a scheme where the Implementing Agency
8 
commits to make predetermined payments, which do not take the form of
9 
charges paid by the users of the works or of the service, but of regular
10 
payments by the Implementing Agency based on contractually-defined
11 
performance delivery.
12 
Other non-monetary payments, such as commercial development rights, or the
13 
grant of a portion or percentage of the reclaimed land, subject to the constitutional
14 
requirements on land ownership, may also be allowed to supplement the foregoing
15 
schemes.
16 
The framework and mechariism in determining the allowable return of the
17 
Private Proponent on a PPP Project shall be prescribed in the IRR of this Act.
18 
Sec. 16. Regulation. - All PPP Projects shall be subject to regulation by the
19 
appropriate regulatory body or by contract In the absence of the former.
20 
Sec. 17. Variation, Expansion, or Extension of an Existing PPP Project. - A
21 
contract variation or extension, or an expansion or extension of an existing PPP Project
22 
may be allowed by the Implementing Agency, subject to the rules and procedures as
23 
provided in the IRR of this Act: Provided, That upon prior approval by the Approving
24 
Body, the Private Proponent of an existing PPP Project may be allowed to expand or
25 
extend the same even without further bidding: Provided, That the cosc thereof shall
26 
not exceed twenty-five percent (25%) of the price-adjusted original approved Project
27 
Cost: Provided, further. That any subsequent expansion or extension shall no longer
28 
be allowed, and such shall be considered a new project and shall be tendered
29 
accordingly.
17


1 
Application for contract variation or extension, or expansion or extension of an
2 
existing PPP Project shall be governed by existing laws, decrees, orders, rules and
3 
regulations at the time of application.
4 
Sec. 18. Divestiture/Divestment - Subject to the approval of the head of the
5 
Implementing Agency, a Private Proponent may divest its ownership, rights, or interest
6 
In a PPP Project: Provided, That the divestiture shall be after a holding or lock-in
7 
period as indicated in the PPP contract: Provided, further. That the new Private
8 
Proponent has equal or better qualifications as with the previous Private Proponent.
9 
The Implementing Agency may divest its ownership, rights, or interest in a
10 
project: Provided, That projects which involve full or partial divestment or transfer of
11 
ownership of government assets or properties shall be subject to approval of the
12 
appropriate Approving Body and applicable laws, decrees, orders, rules and
13 
regulations.
14 
Sec. 19. Contract Termination. - If a PPP contract is revoked, cancelled, or
15 
terminated prior to its completion, either contracting party shall compensate the other
16 
party pursuant to terms as defined n the PPP contract Depending on the contractual
17 
stipulations, the grounds for contract termination which would warrant the right of
18 
compensation may include, but are not limited to, default, insolvency, unlawful
19 
divestment or divestiture, or other unlawful acts, by the Private Proponent or by the
20 
government.
21 
Sec. 20. Wind-up and Transrer Measures. - All PPP contracts shall provide for
22 
wind-up and transfer measures. Such provision shall include, among others, the
23 
following:
24 
(a) Mechanisms and procedures for the transfer of assets to the Implementing
25 
Agency;
26 
(b) The transfer, of technology required for the operation of the PPP Project,
27 
subject to limitations under existing laws, rules and regulations;
28 
(c) The training of the personnel of the Implementing Agency or of a successor
29 
in the operation a^d maintenance of the PPP Project;
30 
(d) The provision, by the Private Proponent, of a warranty that the PPP Project
31 
meets the project technical specifications, agreed system features, and
32 
performance standards and services for a certain period as may be defined
18


1 
in the IRR of this Act after the transfer of the PPP Project to the
2 
Implementing Agency or to a successor; and
3 
(e) In case of JV Projects, the compensation to which the Private Proponent
4 
may be entitled in case of buy-out and transfer of assets to the
5 
Implementing Agency, or to a successor.
6 
Sec. 21. Prohibition on the issuance of Temporary Restraining Orders, 
1 Preliminary Injunctions and Preliminary Mandatory Injunctions. - No temporary
8 
restraining order, preliminary injunction, or preliminary mandatory injunction shall be
9 
issued by any court, except the Supreme Court, against any Implementing Agency or
10 
the PPP Center, its officials or employees, or any person or entity, whether public or
11 
private acting undc: the government direction, to restrain, prohibit, or compel the
12 
following acts:
13 
(a) Bidding, rebidding, or declaration of failure of bidding of any PPP Project;
14 
(b) Qualification or disqualification of bidders;
15 
(c) Awarding of any Pn? contract;
16 
(d) Acceptance of any unsolicited PPP project proposal, even if not acted upon
17 
by the Implementing Agency concerned under Section 10 of this Act;
18 
(e) Acquisition, clearance, development of the right-of-way, site or location of
19 
any PPP Project;
20 
(f) Conslruct:on, operation and maintenance of any PPP Project;
21 
(g) Commencement, execution, implementation, termination or rescission of
22 
any PPP contract; and
23 
(h) Undertaking or authorization of any other lawful activity necessary for such
24 
PPP Project or contract.
25 
This prohibition shall apply in all cases, disputes or controversies instituted by
26 
any person, including, cases filed by bidders or those claiming to have rights through
27 
such bidders. This prohibition shall not apply when the matter is of extreme urgency
28 
involving a constitutional issue, such that unless a temporary restraining order is
29 
issued, grave injustice and irreparable injury will arise.
30 
In addition to any civil and criminal liabilities a judge may incur under existing
31 
laws, any judge who shall issue a temporary restraining order, preliminary injunction
19


1 
or preliminary mandatory injunction in violation of this Section, shall suffer the penalty
2 
of suspension cf at least sixb/ (60) days without pay. Any temporary restraining order,
3 
preliminary injunction, or preliminary mandatory injunction issued in violation of this
4 
section is void and of no force and effect.
5 
Sec. 22. PPP Center. - To achieve the goals of this Act, the PPP Center created
6 
under Executive Order No. 8, series of 2010, as amended by Executive Order 15 No.
7 
136, series of 2013, is hereby insticutionalized. It is hereby authorized to adopt its
8 
current organizational structure, absorb its existing employees, and upgrade its human
9 
resource component, as may be necessary, subject to evaluation and approval by the
10 
DBM. In order to work towards a more efficient and effective performance of its
11 
mandate, the P°P Center shail have the following pov.ers and functions:
12 
(a) Assist implementing agencies in identifying, developing, prioritizing and
13 
maintaining a pipeline of PPP projects;
14 
(b) Provide advisory services, technical assistance, trainings, and capacity
15 
development to Implementing Agencies, Approving Bodies, and other
16 
oversight agencies in all PPP-related marters, and act as a procurement
17 
agent upon the request of the Implementing Agency;
18 
(c) Manage and administer the Project Development and Monitoring Facility
19 
(PDMF) as provided in Section 24 of this Act;
20 
(d) Recommend pians, pc.licies, and implernentadon guidelines related to
21 
PPP, in consultation with appropriate oversight committees or agencies.
22 
Implementing Agencies, private sector and other relevant stakeholders;
23 
(e) Ensure sustainability of the implemented PPP program and projects
24 
through monitcring, documenting, and sharing the lessons learned and
25 
best practices to Implementing Agencies and appropriate oversight
26 
committees or agencies;
27 
(f) Provide regular monitoring and status reports on the implementation of
28 
all PPP programs and projects entered into by Implementing Agencies,
29 
including potendal public interest concerns and violations of the PPP Act,
30 
to the Office of the President, the Congress of the Philippines, relevant
31 
oversight committees and agencies, and publish the same in the official
32 
website of the PPP Center;
20


1 
(g) Promote and market the implemented PPP programs and projects, in
2 
collaboration with other government investment promotion agencies;
3 
(h) Review PPP contracts and issue advisory opinions relating to PPPs,
4 
including how the PPP Act and its IRR shall be implemented;
5 
(i) Serve as the central repository of ail PPP Project documents, including
6 
al< executed PPP contracts and 
any subsequent amendment or
7 
supplement thereto, including settlement agreements, entered into by
8 
Implementing Agencies;
9 
(j) Act as Secretariat to the PDMF Committee and the PPP Governing Board;
10 
(k) Perform such other functions as may be necessary to achieve the
11 
objectves and purposes of this Act.
12 
The PPP Center shall report directly to the PPP Governing Board and shall be
13 
attached to the National Economic and Development Authority (NEDA) for purposes
14 
of policy and program coordination.
15 
The PPP Center shasl be headed by an Executive Director with the rank
16 
equivalent to an Undersecretary, who shall be appointed by and co-terminus with the
17 
President of the Philippines. The Executive Director shall perform the following
18 
functions:
19 
(a) Undertake the day-to-day management and supervise the operations of
20 
the PPP Center;
21 
(b) Recommend to the PPP Governing Board such policies and measures
22 
which he or she deems necessary for the effective exercise and
23 
discharge of the powers and functions of the PPP Center;
24 
(c) Si'- as a non-veting member of the PPF Governing Board, INFRACOM,
25 
and ICC-NEDA; resource person/observer in the NEDA Board on PPP
26 
matters; and as a member of other inter-agency bodies in cases where
27 
PPPs are concerned; and
28 
(d) Perform such c^-her functions as may be assigned by the PPP Governing
29 
Board.
30 
Sec. 23. PPP Governing Board. - The PPP Governing Board, created under
31 
Executive Order No. 136, series of 2013, and hereinafter referred to as the Board, is
32 
hereby institutionalized. It shall be the overall policy-making body for all PPP-related
21


1 
matters, including the PDMF. It shail be responsible for setting the strategic direction
2 
of PPP programs and projects and in creating an enabling policy and institutional
3 
environment for PPP.
4 
The Board shall be composed of the following:
5 
(a) Secretary of Socio-economic Planning as Chairperson;
6 
(b) Secretary of Finance as Vice-Chairperson;
7 
(c) Secretary of Budget and Management;
8 
(d) Secretary of Justice;
9 
(e) Secretary of Trade and Industry;
10 
(f) Executive Secretary;
11 
(g) Secretary of Interior and Local Government
12 
(h) Executive Director of PPP Center, as non-voting member; and
13 
(i) Any one of the two (2) private sector representatives of the Ease of
14 
Doing Business and Anti-Red Tape Advisory Council.
15 
The principal members of the Board may designate their respectve alternates,
16 
who shall be the official next-in-rank to them, and whose acts shall be considered the
17 
acts of their principals.
18 
The presence of the Chairperson and four (4) other members of the Board shall
19 
constitute a quorum and a majority vote of the members present shall be necessary
20 
for the adoption of any issuance, order, resolution, decision or other act of the Board
21 
in the exercise of its functions. The Board shall act as a collegial body. In the conduct
22 
of meetings, the Chairperson shall not vote except to break a tie.
23 
The Board shall act on any matter for its consideration not later than thirty (30)
24 
working days from the date of submission thereof.
25 
Sec. 24. Project Development and Monitoring Facility. - (a) The PDMF is hereby
26 
established and shall be used for the procurement of advisory and support services
27 
related to the preparation, structuring, probity management, procurement, financial
28 
close, project evaluation, and mcnitoring of implernenttition of PPP Projects, in
29 
accordance with the relevant provisions of Republic Act No. 9184 or the Government
30 
Procurement Reform Act and its Implementing Rules and Regulations.
31 
(b) The PDMF referred to under EO No. 8, series of 2010, as amended by EO
32 
No. 136, series of 2013, shall be transferred to the PDMF under this Act. The PDMF
22


1 
may be funded through and such amount as may be needed and included in the
2 
general appropriations act, official development assistance, or other sources.
3 
(c) The PDMF shall be managed and administered by the PPP Center as a
4 
revolving fund. In order to sustain the PDMF, the PPP Center may collect and receive
5 
fees and recover costs expended through PDMF in accordance with the guidelines to
6 
be approved by the PPP Governing Board. Such amount shall be retained and
7 
authorized to be used by the PPP Center for the purposes indicated herein.
8 
A PDMF Committee is hereby created which shall approve applications for PDMF
9 
support submitted by the Implementing Agencies.
10 
The PDMF Committer,- shall be composed o^;: (1) the Secretary of Socio-
11 
Economic Planning as chairperson; (2) the Secretary of Finance, (3) the Secretary of
12 
Budget and Management, and (4) the Executive Director of the PPP Center, as
13 
members. The PPP Center shall serve as the Secretariat for the PDMF Committee.
14 
Subject to approval of the PPP Governing Board, the PDMF Committee shall
15 
also formulate, prescribe, and recommend policies, procedures, and guidelines for the
16 
use of PDMF and recovery of costs charged to the fund.
17 
Sec. 25. Creation of a Risk Management Fund. - To ensure fiscal sustainability
18 
and negotiate better financing terms of PPP Projects, there is hereby created a PPP
19 
Risk Management Fund to be used for the payment of contingent liabilities arising
20 
from PPPs in accordance with its contract terms.
21 
The target amount in the PPP Risk Management Fund is to be determined by
22 
the Development Budget Coordination Committee (DBCC) using risk-adjusted
23 
methods or such other means that estimate the exposure of the Government of the
24 
Philippines to PPP contingent liabilities.
25 
The PPP Risk Management Fund shall be funded from the following sources:
26 
(a) Concession fees;
27 
(b) Implementing Agency reimbursements;
28 
(c) Intercist earnings from the PPP Risk Management Fund; and
29 
(d) National government contributions.
30 
National government contributions shall cover only the difference between the
31 
target amount of the PPP Risk Management Fund, as mentioned above, and the
23


1 
current value of the fund. The DOF shall regularly mcnitor and review the viability of
2 
the PPP Risk Management Fund in relation to the magnitude of PPP Projects
3 
undertaken by Government, and if necessary, recommend the increase in the target
4 
amount of the PPP Risk Management Fund and the reason therefor. All national
5 
government contribi jtions to the PPP Risk Management Fund shall be included in the
6 
proposed DOF budget.
7 
When the value of the PPP Risk Management Fund is in excess of the target
8 
amount, excess funds may be transferred to the general fund of the national
9 
government. The agency implementing PPP Projects must seek confirmation from the
10 
DOF that the national governmer t can bear the additional contingent liabilities
11 
associated with the project taking into consideration fiscal sustainability.
12 
Further, to foster accountability and efficiency in implementing PPP Projects, it
13 
is mandatory for implementing agencies to enter into a recourse agreement with the
14 
DOF before any payment can be drawn from the PPP Risk Management Fund for
15 
contingent liabilities that have materialized within contract terms.
16 
The Bureau of the Treasury shall maintain the PPP Risk Management Fund in
17 
the Treasury Single Account. Interest earnings therefrom shall accrue to the PPP Risk
18 
Management Fund. Notwithstanding the establishment of this fund, the government
19 
may still provide an un-programrr.ed appropriation for unforeseen risks that the
20 
government may incur from PPP Projects.
21 
To monitor such government obligations on liabilities that have materialized
22 
and other unforeseen risks that may arise from PPP Projects; and to develop the
23 
guidelines to access the PPP Risk Management Fund, tfie inter-agency technical
24 
working group created under DBCC Resolution No. 2015-2, is hereby institutionalized.
25 
The procedures and mechanisms in managing the PPP Risk Management Fund
26 
shall be prescribed in the IRR of this Act.
27 
In the case of Local PPP Projects, a similar PPP Risk Management Fund may be
28 
established by the LGU. The details pertaining to maintaining and administering such
29 
fund shall be provided in the IRR of this Act. Sources of the fund may include the
30 
budget of the LGU and the income of the LGU from PPP Projects.
31 
Sec. 26. Establishment of a PPP Unit- Each concerned Implementing Agency
32 
shall organize a PP^^ unit headed by a senior officia:, who shall be responsible for
24


1 
planning, overseeing, and monitoring PPP Projects of the Implementing Agency. In
2 
the case of LGUs undertaking PPP Projects, the local chief executive shall organize
3 
such PPP unit.
4 
The PPP units may include as members, among others, technical and legal
5 
personnel who are knowledgeable cn the technical and legal aspects, respectively, of
6 
the PPP Projects. The rules on membership and specific functions of which shall be
7 
identified in the IRR of this Act.
8 
Sec. 27. Safekeeping and Public Disclosure of Contracts. - Copies of all PPP
9 
contracts executed under this Act shall be considered and appropriately kept safe and
10 
preservea as public documents. Except those provisions in the contract which are
11 
proprietary, or may pose threats to national security or public safety, the procedures
12 
for the disclosure of such documents shall be consistent with existing policies, laws,
13 
decrees, orders, rules and regulations, including the IRR of this Act. The Implementing
14 
Agency and the PPP Center shall publicly make avoilable copies of °PP contracts
15 
through their respective websites, unless otherwise prohibited by existing laws, rules
16 
and regulations, including national security and public safety concerns.
17 
Sec. 28. Miscellaneous Provisions. - (a) Mitigation of Interconnectivity and
18 
Interface Risks. All PPP Projects which will interconnect ot interface with a local or
19 
national facility, shall be required to submit a Memorandum of Agreement (MOA)
20 
containing an interconnection/interface pian agreed upon by all relevant parties. For
21 
National PPP Projects, said MOA shall be submitted to the ICC-NEDA; while for Local
22 
PPP Projects, said MOA shall be submitted to the local Sanggunian.
23 
(b) Issuance of Franchise. Subject to the previsions of the Constitution and
24 
other existing laws, rules and regulations, once a PPP contract is executed by the
25 
Private Proponent and the Implementing Agency, a presumption arises that the public
26 
interest will be served by the implementation of the PPP Project covered thereby, and
27 
immediately uoon application by the Private Proponent, the regulator shall
28 
automatically grant in favor of the Private Proponent a franchise to operate the facility
29 
and collect the tolls, fees, rentals, and other charges stipulated under the PPP contract.
30 
(c) Standardization of Required Endorsements, Permits, and Licenses for PPP
31 
Projects. Ail relevant government and regulatory agencies, bodies, institutions and
32 
LGUs, shall, in coerdination with the PPP Center, adopt: standard Jmelines and
25


1 
requirements for the issuance of relevant endorsements, approvals, and permits for
2 
PPP Projects.
3 
(d) Real Property Tax for PPPs. The DOF shall issue the guidelines on real
4 
property tax valuation of PPP Projects to ensure uniform and consistent
5 
implementation among all LGUs. A!! real properties vvhich are actually, directly, and
6 
exclusively used for a Greenfield PPP Project shall be exempted from the payment of
7 
real property taxes during the period of construction and until such time the facility is
8 
used or operational, whether partial or full. The details of the exemption shall be
9 
prescribed in the IRR of this A.ct.
10 
(e) Exemption from Payment of Transfer Taxes. For all PPP Projects, the
11 
transfer of ownership of the PPP Project to the Implementing Agency shall be exempt
12 
from capital gains tax, documentary stamp tax, donor's tax, and all taxes and fees,
13 
whether from national or local, related to the transfer thereof.
14 
(f) Mandatoi7 Inclusion or Dispute Avoidance and Alternative Dispute
15 
Resolution Mechanisms in PPP Contracts. All PPP contracts shall include provisions on
16 
the use of dispute avoidance and Alternative Dispute Resolution (ADR) mechanisms.
17 
The contracting parties shall be given complete freedom to choose which ADR
10 
mechanisms and venue shall govern their dispute, as well as the rules or procedures
19 
to be followed involving the same.
20 
(g) Conflict of Interest. Conflict of interest shall be prohibited at all times in the
21 
interpretation and implementation of this Act. Conflict of interest, which refers to any
22 
act or omission tending to oppose or disrupt the faithful performance of one's duty or
23 
mandate, shall include personal, pecuniar, and regulate^ conflicts of Interests:
24 
Provided, That no national Implementing Agency shall implement a PPP Project that
25 
it regulates; Provided further. That any regulator agency or body which implements
26 
a PPP Project shall adopt a conflict mitigation and management plan.
27 
(h) Alternative Sources of Financing. In addition to Private Proponent equity
28 
and debt, alternative financial instruments such as Green Financing, corporate or
29 
project bonds and securities, and other forms of capital market financing may be
30 
allowed for PPP Projects, subject to the approval of relevant regulator bodies for such
31 
instruments under existing laws, rules, and regulations.
26


1 
(i) Private Legal and Medical Assistance. All the PPP PBAC members and other
2 
public officials providing services to the PPP PBAC shall be authorized to engage the
3 
services of private lawyers, or shall be provided with free legal assistance, where a
4 
civil, criminal, or administrative action is filed against them by reason of the
5 
performance of the.r official functions or duties, unless they are finally adjudged in
6 
such action or proceeding to be liable for gross negligence or misconduct or grave
7 
abuse of discretion. The PPP PBAC members shall also be entitled to medical
8 
assistance for injuries incurred in the performance of their functions.
9 
(j) Preferential Hiring of Filipino Workers. Lor the construction stage of
10 
infrastructure facilities where the Contractor is a foreigner, Filipino labor shall be
11 
employed or hired in the different phases of construction where Filipino skills are
12 
available.
13 
(k) Safeguard Mechanisms to Protect Public Interest. In order to improve
14 
transparency and to promote bankability and social acceptability of PPP Projects, the
15 
following mechanisms shall be observed: (1) Whenever applicable, the Implementing
16 
Agency shall assess the affordability of fee or tariff, and conduct a willingness-to-pay
17 
survey among the users of the infrastructure facility; (2) The Implementing Agency
18 
shall conduct public consultation or ciialogue with all potential stakeholders, the details
19 
of which shall be threshed out in the IRR; and (3) The Implementing Agency and the
20 
PPP Center shall post in their respective websites the approved starting fare or user
21 
fee in a PPP Project as well as the approved parametric formula on fare increases or
22 
adjustments, if applicable.
23 
Sec. 29. Implementing Rules and Regulations. - The IRR Committee shall be
24 
composed of representatives from the NEDA, DOF, DBM, DPWH, DOTr, DILG, DOJ,
25 
DTI, DENR, Office of the President, PPP Center, and Private Sector Representatives
26 
and other agencies, as may be identified by the PPP Governing Board. Within forty
27 
(40) working days fi om the effectivity of this Act, the PPP Center shall formulate and
28 
prescribe, in consultation with the IRR Committee, after public hearing and publication
29 
as required by law, the rules and regulations to implement the provisions of this Act.
30 
The IRR shall be approved by the PPP Governing Board.
31 
From time to time, the PPP Governing Board nay instruct the PPP Center, in
32 
consultation with the IRR Committee, to conduct, formulate and prescribe, after due
27


1 
public hearing and publication^ amendments to the IRR, consistent with the provisions
2 
of this Act.
3 
Sec. 30. Administrative, Civii, and Penai Sanction. - Any person, whether
4 
private individual or public officer or employee, who commits any of the prohibited
5 
acts hereunder proscribed, shall be punished by imprisonment from a minimum of
6 
three (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 the
9 
required approvals under chis Act;
10 
(b) Representation that the Private Proponent has the necessary capitalization
11 
to commence, complete, and implement the PPP Project when the same is
12 
false in material respects;
13 
(c) Falsification or insertion of certain provisio! is 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) under this Act; and
17 
(e)A public officer or employee, whether in connivance with others or acting
18 
alone, negligently or by fraud commits a failure to ensure compliance with
19 
the 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-
22 
compliant with existing ru;as, erroneous, noc 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
25 
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 liability 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
31 
retiremeni; of said public officer or employee, and shall include the prohibition for the
28


1 
erring officer to hold public office, either as an elected, or an appointed government
2 
official on any local or national position, and to act as a consultant for the Philippine
3 
Government, the termination of the project contract, and the lapse of any applicable
4 
warranty perioc!/s.
5 
Sec. 31. Accountability in PPP Projects. - The head of the concerned
6 
Implementing Agency shall at all times be accountable to PPP Projects undertaken
7 
through this Act. The Private Proponent shall likewise be held accountable for the
8 
works it has delivered and sen/ices it has rendered for a PPP Project. All PPP contracts
9 
are hereby required to clearly define the scope of each party's accountability under
10 
the PPP contract.
11 
To further promote accountability in PPP Projects, the Commission on Audit
12 
(COA) shall have visitorial power, as defined in the 2009 Revised Rules of Procedure
13 
of the COA ana any amendments thereto, over PPP Projects. This power shall include
14 
determining whether the contribution or share of the Implementing Agency in the PPP
15 
Project is being allocated and utilized according to its intended purpose, and if the
16 
Implementing Agency is getting its rightful share from the revenues generated, as
17 
may be applicable. The COA shall also have visitorial jurisdiction over compliance to
18 
conditions, requirements, and processes set forth under this Act. To this end, the COA,
19 
in consultation and coordination with the PPP Center, shall promulgate the necessary
20 
framework and guidelines on auditing PPP Projects.
21 
Sec. 32. Joint Congressional Oversight Committee. - A Joint Congressional
22 
Oversight Committee is hereby created to oversee the implementation of this Act. The
23 
Committee shall be composed of five (5) members each from the Senate and House
24 
of Representatives to be designated by the Senate President and the Speaker of the
25 
House of Representatives, respectively. The Committee shall be jointly chaired by the
26 
respective Chairpersons of the House Committee on Public Works and Highways, the
27 
House Committee on Appropriations, the Senate Committee on Public Works, and the
28 
Senate Committee on Finance.
29 
Sec. 33. Transitory Provisions. - The provisions of this Act shall apply to all PPP
30 
Projects except; (a) all projects wherein a PPP contract between the winning Private
31 
Proponent and the Implementing Agency concerned has been executed prior to
32 
effectivity of this Act; and (b) all projects undertaken through competitive selection
29


1 
wherein the bid/s have already been opened prior to the effectivity of this Act. For
2 
PPP Projects not covered under items (a) and (b) above, this Act shall govern, provided
3 
that this Act shall not, in any manner, operate to impair vested rights already accruing
4 
to a partv'.
5 
All unexpended funds for the calendar year, properties, equipment, contracts
6 
and records of the PPP Center are hereby retained. The amount necessary to carry
7 
out the organizational changes of the PPP Center provided in this Act shall be
8 
determined by the PPP Govei iiing Board. Appropriaticns for succeeding years shall be
9 
incorporated in its budget proposals, subject to the existing budgeting rules and
10 
regulations.
11 
All officials and employees of the PPP Center shall be retained and shall not
12 
suffer any loss of seniority or rank or decrease in emoluments.
13 
Sec. 35. Repealing Clause. - The following are hereby repealed:
14 
(a) Republic Act No. 6957, as amended by Republic Act No. 7718 (An Act
15 
Authorizing the Financing, Construction, Operation and Maintenance of
16 
Infrastructure Projects by the Private Sector, and for other purposes);
17 
(b) Executive Order No. 8, s. 2010, as amendeu by Executive Order No. 136, s.
18 
2013 (Reorganizing and Renaming the Build-Operate And Transfer (BOT)
19 
Center to the Public-Private Partnership (PPP) Center of the Philippines and
20 
Transferring its Attachment from the Department of Trade and Industry to
21 
the National Economic and Development Authorit/ and for other purposes);
22 
(c) Executive Order No. 78, s. 2012 (Mandating the Inclusion of Provisions on
23 
the Use of Alternative Dispute Resolution Mechanisms in All Contracts
24 
Involving Public-Private Partnership Projects, Build-Operate and Transfer
25 
Projects, Joint Venture Agreements Between the Government and Private
26 
Entities and those Enterec; into by Local Government Units);
27 
(d) Section 8 of Executive Order No. 423, s. 2005 (Repealing Executive Order
28 
No. 109-A Dated September 18, 2003 Prescribing the Rules and Procedures
29 
on the Review and Approval of All Government Contracts to Conform with
30 
Republic Act No. 9134, Otherwise Known as "The Government Procurement
31 
Reform Act");
30


1 
(e) 2013 Revised Guidelines and Procedures for Entering Into Joint Venture
2 
Agreements Between Government and Private Entities; and
3 
(f) PPP Codes and Joint Venture Guidelines issued by LGUs and GOCCs.
4 
All other laws, decrees, orders, rules and regulations, and all other related
5 
national and local issuances or parts thereof inconsistent with this Act are hereby
6 
repealed or amended accordingly.
7 
Sec. 36. Sepp^rabiUty r!ause. - If any provision of this Act is held invalid, the
8 
other provisions not affected thereby shall continue in operation.
9 
Sec. 37. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
10 publication in the Official Gazette or in a newspaper of general circulation.
Approved,
31