TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE 
S. Nn. 167
LIL -7 A 9 36
Introduced by Senator Loren Legarda
AN ACT
STRENGTHENING THE COMPLEMENTARITY OF PUBLIC AND PRIVATE 
SECTORS IN IMPROVING STUDENT CHOICE AND THE DELIVERY OF 
QUALITY AND ACCESSIBLE EDUCATION ACROSS ALL LEVELS
EXPLANATORY NOTE
The 1987 Philippine Constitution mandates and instructs the State to protect 
and promote the right of all citizens to have access to quality education at all levels 
and to ensure that all the necessary steps are taken for such to be accessible to all. It 
further recognizes the complementary role of both public and private educational 
institutions in attaining that goal, thus requiring the need for policies that strengthen 
both sectors. In spite of this, the mechanisms for ensuring true complementarity 
remain underdeveloped, resulting in inefficiency, limited options for students, and 
highly inequitable access to quality education nationwide.
The Philippine education system has struggled with congestion, a problem that 
worsened during the COVID-19 pandemic. There was a significant shift from private 
to public schools, overwhelming the latter's resources and leading to overcrowded 
classrooms. This influx also left private schools with unused resources, leading to 
financial strain and, in some cases, permanent closures. According to the Department 
of Education (DepEd), up to 425 private schools have closed permanently since 2020, 
affecting over 20,000 students. Addressing this issue requires innovative solutions, 
such as fostering public-private partnerships (PPPs), which can bridge the gap 
between the undersupply of resources in public schools and the oversupply in private
1


schools.
Primarily, this bill seeks to institutionalize and further operationalize the 
complementarity between both public and private educational institutions by 
enhancing student choice, improving access, and elevating the quality of education 
across all levels of education from early childhood to higher education and technical- 
vocational training. It further aims to establish concrete mechanisms that will enable 
students to select from a diverse range of educational institutions based on learning 
outcomes rather than financial constraints. In order to achieve this, financial 
assistance programs such as student vouchers, grants, and loan schemes are further 
strengthened and targeted in order to promote cost-effectiveness, institutional 
diversity, and an increase in public-private partnerships in education.
Second, this bill seeks to develop and implement a fair and transparent 
regulatory framework that upholds the academic freedom of institutions while still 
ensuring a high standard of education delivery. In ensuring that public investments in 
education are directed toward cost-effective and high-quality providers, this bill 
encourages public and private institutions to maximize their strengths while 
concurrently promoting the use of shared facilities, management partnerships, and 
regional development programs.
Alongside these improvements, the bill mandates the creation of an integrated 
educational information system across the DepEd, the Commission on Higher 
Education (CHED), the Technical Education and Skills Development Authority (TESDA), 
and the Early Childhood Care and Development (ECCD) Council to facilitate informed 
decision-making among students, parents, and policymakers. Coordination and 
oversight to ensure the implementation of these initiatives shall be carried out by an 
established Partnership Board for Education Complementarity, composed of 
government agencies, private sector representatives, and education stakeholders. The 
said Board will be tasked with ensuring proper coordination, policy alignment, and 
accountability mechanisms that safeguard the quality and accessibility of education.
By fostering stronger synergy between the public and private sectors, this bill 
aims to enhance the overall quality of Philippine education, reduce classroom 
congestion in public schools by utilizing private sector capacity, encouraging 
competition and innovation amongst educational institutions, and expanding student


mobility through financial assistance programs. More importantly, it ensures that 
education funding is utilized efficiently and equitably to benefit Filipino learners.
In view of the foregoing, the immediate passage of this measure is earnestly 
sought.
N LEGARDA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S. No.
)
SENATE
167
25
-7 A 9 36
Introduced by Senator Loren Legarda
AN ACT
STRENGTHENING THE COMPLEMENTARITY OF PUBLIC AND PRIVATE 
SECTORS IN IMPROVING STUDENT CHOICE AND THE DELIVERY OF 
QUALITY AND ACCESSIBLE EDUCATION ACROSS ALL LEVELS
Be it enacted by the Senate and House of the Representatives of the Philippines 
in Congress assembled:
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SECTION 1. Short Title. — This Act shall be known as the "Complementarity in
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Education Act."
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Sec. 2. Declaration of Policy. — It is the policy of the State to protect and
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promote the right of ali citizens to quality education at all levels. Towards this end,
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the State takes appropriate steps to make such education accessibie to all. With due
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recognition of the importance of the compiementary roles of the public and private
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education sectors in education, the State as a matter of policy undertakes to:
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(a) Improve the opportunities for students to go to quality educational
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institutions by:
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(i) 
enhancing the competitiveness of the whoie education sector;
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(ii) 
improving their capabiiities to access these choices; increasing
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their choices across early childhood centers, public and private
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schools, colleges, universities, technicai-vocationai schools, and
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similar institutions, and
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(b) Implement policies and programs that develop quality education through
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compiementarity to enhance cost-effectiveness, institutionai diversity,
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educational innovation and agility, student choice and increased
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educational access, and improved educational institutional performance,
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among others;
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(c) Empower students and parents' choice of schools by making relevant
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information about educational institutions, degrees, careers and similar
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concerns available through the establishment of integrated information
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and data systems across the Department of Education (DepEd),
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Commission on Higher Education (CHED), Technical Education and Skills
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Development Authority (TESDA), and the Early Childhood Care and
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Development (ECCD) Council;
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(d) Adopt policies and programs for public and private schools that increase
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student choice and access to education, through student vouchers, loans,
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grants and similar instruments, and institutional subsidies;
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(e) Recognize the critical role of private education in providing quality
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education to students and in contributing to national development, and of
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the State's duty to support and develop the sector;
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(f) Encourage and support innovation in schools by recognizing the
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peculiarities of the policy environments affecting public and private
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sectors;
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(g) Encourage and recognize the role of the private sector through Public-
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Private Partnerships (PPPs) in education, utilizing modes as allowed under
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RA 11966, otherwise known as the "PPP Code of the Philippines" and its
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Implementing Rules and Regulations;
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(h) Through all these, increase investments in education by providing
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incentives to both public and private sectors in the delivery of education
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to improve overall student outcomes In the country; and
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(i) 
Establish accountability mechanisms for student outcomes and for
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complementarity.
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Sec. 3. Coverage. — This Act shall cover early childhood education, basic
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education, higher education, and technical-vocational education in both public and
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private sectors.
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Sec. 4. Objectives. — The following are the objectives of this Act:


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(a) To Strengthen and operationalize the constitutional mandate on 
complementarity in education by establishing concrete mechanisms 
through which public and private education institutions can effectively 
work together to advance the constitutional right to quality education, 
ensuring that financial support is directed towards enhancing educational 
outcomes, promoting student choice, and expanding access to quality 
education;
(b) To implement systematic approaches for achieving the State's 
constitutional obligation to make quality education accessible to all 
citizens, in support of the constitutionally-recognized complementary roles 
of public and private institutions in the educational system;
(c) To provide the best quality education for Filipino learners, by empowering 
them with optimal access, student choice and support to a wide range of 
quality private and public educational institutions and programs;
(d) To develop the range of quality private and public educational institutions 
and programs through policies and programs on complementarity;
(e) To provide students and parents with the information needed to properly 
make such choices, and to enable policymakers to discern which 
institutions are of quality;
(f) 
To promote access to quality education and student choice by adopting 
various models of student financing such as subsidies, vouchers and long­
term student loans, teacher subsidies, congestion alleviation programs, 
and public-private partnerships such as private-public school 
management, the contracting of unused and underutilized private school 
sites and facilities of government with payment of just compensation, as 
well as other applicable models;
(g) To ensure that reasonable supervision and regulation of all educational 
institutions and recognition of the academic freedom of all institutions of 
higher learning are operationalized;
(h) To promote equal regard toward the impact of education policies and 
resource allocation decisions on both the public and private sectors;
(i) 
To introduce relevant incentives, in aid of the objectives presented above;


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and
(j) Through such initiatives, to elevate the quality of Philippine education in 
all levels in both public and private sectors.
Sec. 5. Definition of Terms. — As used in this Act:
(a) Alternative Learning System (ALS) refers to a parallel learning system in 
the Philippines that provides a practical option to the existing formal 
instruction, encompassing both the non-formal and informal sources of 
knowledge and skills;
(b) 
Cost-effective funding is the principle that more public funds should be 
allotted to achieving the country's education objectives, regardless of 
whether they are in public or private education. This can be achieved, 
among other things, by directly funding the most cost-effective education 
providers, providing portable subsidies, grants, vouchers, student loans, 
or similar instruments, creating systems that promote cost-effectiveness 
(e.g., competition, portable vouchers), or combining these;
(c) 
Cost-effectiveness is the degree to which a public or private education 
institution can attain a desired learning outcome or educational objective 
in relation to the total cost (including land, physical assets, and direct and 
indirect costs) incurred in providing that education. An institution that can 
deliver a desired learning outcome at a lower total cost (in the case of 
private institutions, as reflected in the price charged) is considered a more 
cost-effective institution, provided: that such analyses are made after 
correcting for differences in cost calculations between and among public 
and private education institutions and for any differences in desired 
learning outcomes, for the purposes of comparability;
(d) Early Childhood Care and Development refers to the full range of health, 
nutrition, early education, and social services programs that provide for 
the basic holistic needs of young children from birth to age 8, to promote 
their optimum growth and development;
(e) 
Grant\s a modality of subsidy which is availed of by qualified learners only 
from a list of accredited educational institutions, subject to the number of 
slots available per institution;


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(f) 
Local universities and colleges (LUCs) refer to public higher education 
institutions established and funded by local government units through 
local ordinances, and governed and administered in accordance with the 
local ordinances that created them;
(g) Non-sectarian or secular schools a re those non-denominational institutions 
that do not adhere to a particular religious belief, practice, or tradition;
(h) Portability refers to the features of the grant, subsidy, voucher, student 
loan or similar instrument (whether in cash or in kind) to be (i) awarded 
directly to the student beneficiary, (ii) used to fully or partially cover the 
educational costs of the same student beneficiary, at the educational 
Institution he or she is enrolled In, and (iii) allows the student beneficiary 
to apply the grant, subsidy, voucher, student loan or similar instrument 
across a wide selection of eligible public and private educational 
institutions;
(i) 
Private education refers to privately-owned and managed educational 
Institutions, duly established in accordance with law and the Revised 
Corporation Code, and authorized by the government to operate certain 
educational programs in accordance with the prescribed policies and rules 
of the DepEd for the K to 12 Program; CHED for higher education and 
post-graduate education courses; and the TESDA for technical skills 
training and development courses;
(j) 
Public colleges and universities refer to educational Institutions established 
either by law passed by Congress or local government ordinances, whose 
operations and personnel resources are funded by the government, and 
whose day to day affairs are managed by government personnel and 
officers. These include SUCs and LUCs;
(k) 
Public education refers to educational institutions established through 
national or local legislation, providing for its funding source, and the 
operation of which is controlled by the government;
(l) 
Public interest is used as a framework that refers to the principle that 
decisions about education funding and support shall be primarily based on 
but not limited to (i) demonstrated contribution to learning outcomes and


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national education priorities, (ii) enhancement of student choice and 
educational access, (iii) cost-effectiveness in achieving educational goals, 
and (iv) service to disadvantaged communities; that such decisions are 
separate and distinct from decisions about public or private ownership, 
control or operation;
(m) Public schools refer to basic education schools established, administered, 
maintained and funded by the government under the DepEd;
(n) Public technical-vocational institutions refer to public technical-vocational 
institutions operated by the TESDA or local government units;
(o) Publicly-funded independently-operated schools refer to public schools, 
colleges and universities owned by the government that are operated by 
private entities through contractual arrangements allowed and awarded 
under RA 11966, otherwise known as the "PPP Code of the Philippines;"
(p) 
Quality-assured institutions refer to public and private educational 
institutions that have been recognized by the DepEd, CHED, or TESDA as 
having achieved quality levels beyond minimum standards, through 
government- or third-party recognitions, including but not limited to 
accreditation, international ratings and rankings, autonomy and 
deregulation, centers of excellence or development, and Professional 
Regulation Commission performance;
(q) Risk-mitigation instruments refer to risk-mitigation and risk-allocation 
measures for public-private partnerships, as allowed under RA 11933, 
otherwise known as the "Sicogon Island Wildlife Sanctuary Act;"
(r) 
Scholarship refers to a modality of subsidy given to eligible students on 
the basis of merit and/or talent, such as laudable academic performance, 
and special technical proficiencies and skills and intellectual pursuits of a 
Scholar that give rise to research and development, and innovations as 
well as other creative works;
(s) 
Sectarian educational institutions are those established to identify and 
conform to a specific religious belief, integrating their curricula with 
teachings of faith in addition to the traditional curricula prescribed by the 
national government;
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(t) 
State universities and coiieges (SUCs) refer to public higher education 
institutions established through a law passed by Congress, financed and 
maintained by the national government, and are governed by their 
respective independent boards of trustees or regents in accordance with 
law, particularly RA 8292, otherwise known as the "Higher Education 
Modernization Act of 1997;"
(u) Student choice is a policy that encourages quality as the main reason 
behind a family or student's decision on which public or private educational 
institution to enroll in and which degree or educational pathway to pursue, 
and aims to reduce the weight of tuition and other schooi fees from the 
student's viewpoint as a reason for enroilment decisions. Student choice 
increases the range of opportunities available for students in pursuit of 
quality education. Student choice is dependent on the government's 
orientation of its educational budget toward empowering such student 
choice, and in the development of education systems that promote 
innovation and diversity in its educational institutions;
(v) Student ban refers to a modality of student financial assistance consisting 
of short-term or long-term loans which shall be extended to students 
facing liquidity problems, regardless of economic status, which shall be 
paid by the student, his/her parents, guardians, or co-makers;
(w) Subsidies refer to publicly-funded monetary and in-kind assistance to 
eligible students to help pay partially or fully the cost of achieving their 
education, the completion of which is deemed beneficial to society. Such 
government financial assistance may be in the form of scholarships, 
grants, and loans. For basic education, this includes education service 
contracting (ESC) and Senior High School Vouchers under RA 8545, 
otherwise known as the "Expanded Government Assistance to Students 
and Teachers in Private Education Act", and in tertiary education, this 
includes the Tertiary Education Subsidy (TES) under RA 10931, otherwise 
known as the "Universal Access to Quality Tertiary Education Act;"
(x) 
Vaiue-for-Money refers to the effective, efficient, and economic use of 
resources, which requires the evaluation of relevant costs and benefits.


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along with an assessment of risks, and of non-price attributes and/or life
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cycie costs, as appropriate. Price aione may not necessariiy represent
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vaiue-for-money;
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(y) Vouchens a modality of subsidy which is primarily focused on eligible and
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qualified students, who as beneficiaries may avail of the amount of subsidy
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covered by such an instrument in any government-recognized pubiic or
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private educationai institution of their choice.
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Sec. 6. Complementarity. — Compiementarity shall refer to the principle that
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both public and private education are structuraliy indispensabie to maximizing the
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opportunities of all Filipinos to get the best education that the country can provide
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given its limited resources: such that the collective, balanced and sustained use of
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pubiic and private education through healthy competition guided by the protection of
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the public interest will lead to better learning outcomes and student choice for
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Filipinos, compared to what either of them working alone can achieve.
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Sec. 7. Quality Education for Filipino Learners Through Complementarity. —
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The DepEd, CHED, TESDA, ECCD Council, local governments and other government
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agencies tasked with overseeing the deiivery of education, shall develop and
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implement complementarity policies and initiatives that improve the Filipino student's
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access to, and choice of, quality public and private educational institutions. Such
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initiatives shall include programs that:
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(a) Empower families and students to be able to compare and select from a
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more diverse range of public and private educational institutions and
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programs on the basis of quality, rather than on the basis of financial
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costs;
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(b) Encourage and support the development of a more diverse set of quality
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educational providers for both public and private institutions;
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(c) Include targeted programs designed to address regional disparities in
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education quality and access to leverage the strengths of both public and
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private institutions;
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(d) Ensure the principles of complementarity are maintained;
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(e) Create mechanisms to ensure that education programs are aligned with
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labor market needs; and
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(f) Establish a system for regular assessment and reporting of the impact of
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complementarity initiatives, that include metrics to show how quality,
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choice, access, and outcomes, taken together, are improving over time.
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Sec. 8. Integrated Educational Information System. — Within three (3) years
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from the effectivity of this Act, the Department of Economy, Planning, and
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Development (DEPDev), along with DepEd, CHED, TESDA, the ECCD Council, and
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other relevant agencies shall together establish an integrated information and data
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system of learners, students, teachers, faculty, trainers, and educational institutions
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to provide students, parents and other key stakeholders with current and relevant
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information on both public and private educational institutions, education quality
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assessments, various degrees and career opportunities, and educational pathways.
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The data system shall provide information that is comparable across
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government agencies, educational institutions, learners, teachers and other
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stakeholders for the purpose of making Informed decisions, and shall be readily
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available and accessible to these stakeholders to enable informed decisions on
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education choices by students and their families, as well as of education advocacy
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groups and educational institutions in the development of policies and strategies. The
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system shall also include labor market information to help students make Informed
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decisions about their educationai and career pathways.
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The data system shall be continuously developed and shall comply with the
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relevant provisions of RA 10173, otherwise known as the "Data Privacy Act of 2012"
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to ensure the protection of personal data against unauthorized access. In developing,
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operating, and/or maintaining the Integrated Educational Information and Data
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System, PPP may be pursued if such shail deliver Value-for-Money on the part of the
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public sector.
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Sec. 9. Separation of Regulatory and Operational Functions in Education
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Governance. — In recognition of the complementary roles of the private and public
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sectors in the education system, the government through the education agencies,
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shall ensure the quality of education through the exercise of reasonable supervision
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and regulation of ali educational institutions by means of standards setting and
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externai governance.


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Reasonable supervision and regulation is an oversight function. Since
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reasonable supervision and reguiation covers both pubiic and private education, the
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regulator or regulators cannot be involved in the operation of education institutions.
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Education agencies, through the Partnership Board as defined in Section 10
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below, shall therefore recommend on how to properly implement this requirement,
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inciuding a timeframe for such an impiementation. Pursuant to this principle, the
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DepEd, CHED, and TESDA shall ensure that:
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(a) The functions of reguiation and of service provision (the operation of
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pubiic schools, public coileges, pubiic universities and public TVET
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institutions; and functions related to the distribution of government
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subsidies for education) are at a minimum kept distinct and separate
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across its offices and officers;
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(b) Appropriate reguiatory poiicies are in place to make certain that student
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choice and the quaiity of iearning outcomes are protected and enhanced,
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and to emphasize quality-assured institutions;
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(c) Educational institutions, regardless of whether in the public or private
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sector, are treated fairly in terms of policy, funding and regulation, as
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determined through periodic evidence-based reviews of policies and
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practices, including but not limited to the conduct of regulatory impact
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assessments in the formuiation, modification, or repeal of existing or new
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regulations pursuant to RA 9485, otherwise known as the "Anti-Red Tape
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Act of 2007," as amended;
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(d) Resource allocation decisions are guided by the principles of student
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choice, cost-effectiveness and value-for-money, among others; and
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(e) Private schools, training institutions, or education programs that
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consistently fail to comply with minimum service standards and quality
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indicators for educational and training institutions shail not be eligible to
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participate in PPPs for education.
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Sec. 10. Quality Assurance Framework. — To ensure the maintenance of high
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standards across all education providers, the following agencies shall implement
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specific quality assurance measures, with DEPDev taking the lead role:
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(a) The DepEd for basic education, the CHED for tertiary education, TESDA
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for technical-vocational education, and the ECCD Council for the early
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years shall:
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(i)
Establish and regularly update common learning standards that
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shall define specific measurable learning outcomes for each grade
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level and subject area, apply uniformly to both public and private
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providers, and align with international benchmarks where
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applicable. These learning outcome standards shall be reviewed
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and updated every three years;
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(ii)
Implement regular assessment of student achievement through
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annual standardized national assessments at key grade levels.
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regular 
classroom-based 
assessments, 
sample-based
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international assessments, and assessment of 21st century skills
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and socio-emotlonal learning;
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(Hi)
Regularly measure, monitor and publish assessments on the level
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of student choice and access available;
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(iv)
Ensure reporting of results while protecting student privacy by
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publishing school-level performance data annually on the
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Integrated Educational Information and Data System, providing
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contextual information about school circumstances, and including
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trend data and comparison metrics;
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(V)
Use the results of student learning outcomes and student choice
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to guide cost-effective funding decisions;
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(Vi)
Conduct regular institutional performance reviews through annual
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self-assessments by schools, external reviews every three years.
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and review of school improvement plans and their
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implementation;
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(vii)
Recognize the existence of alternative quaiity assurance metrics
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or certifications (such as with national and international
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accreditation, ratings and rankings) that if attained by an
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educational institution or program, are deemed sufficient to meet
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the quality assurance measures envisioned under this section.
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thus reducing the demand on public resources needed for
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inspection and review; provided: that such exemptions from 
inspections and reviews are valid only while the quality assurance 
certifications and metrics are unexpired;
(viii) Implement an enhanced inspection system by training and 
deploying qualified school inspectors, using standardized 
evaluation instruments, conducting both announced and 
unannounced visits, monitoring teaching-learning processes, 
assessing school leadership and management, and evaluating 
resource utilization and financial management;
(ix) 
Establish stakeholder feedback mechanisms through regular 
surveys of students, parents, and teachers, community 
consultations, online feedback platforms, public hearings on 
quality issues, and student government participation in quality 
monitoring;
(x) 
Implement clear consequences for underperformance;
(xi) 
Enforce mandatory improvement requirements through 
development of time-bound improvement plans, additional 
professional development for teachers and administrators, 
regular progress monitoring, and resource reallocation to address 
deficiencies; and
(xii) 
Apply support withdrawal measures by establishing clear triggers 
for support withdrawal, providing due process procedures, 
implementing phase-out periods to protect students, facilitating 
student transfers when necessary, and managing school closure 
processes when required.
(b) The DEPDev shall:
(i) 
Take the lead in the implementation of the quality assurance 
framework by coordinating across education agencies, monitoring 
framework effectiveness, recommending improvements to the 
system, and ensuring consistency in implementation; and
(ii) 
Report annually to the Partnership Board on the state of 
educational quality, complementarity and student choice across
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sectors, progress in implementing quality assurance measures,
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recommendations for poiicy or iegislative action, and resource
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requirements for quality improvement.
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(c) Locai Government Units shaii:
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(i) Support quality assurance implementation by participating in
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school monitoring, providing additional resources for
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improvement, supporting community engagement in quaiity
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assurance, and facilitating inter-school cooperation for quality
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improvement; and
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(ii) Include quality metrics in local education planning and budgeting.
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(d) A Quaiity Assurance Fund shaii be estabiished to:
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(i) Fund quality assurance activities including but not limited to
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training of inspectors and evaiuators, implementation of
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assessment systems, support for schooi improvement initiatives,
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and development of quality assurance tools and systems,
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applicable to public and private educational institutions; and
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(ii) Be managed by the DEPDev with specific allocations for quaiity
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assurance in basic education, higher education, technicai-
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vocational education, ECCD, and cross-cutting quaiity
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improvement initiatives.
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DEPDev shall be responsible for requesting annual appropriations
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and ensuring that such funds are utiiized in accordance with the
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objectives set forth in this Act. Furthermore, DEPDev, through the
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Partnership Board, shall submit an annual report to the Office of
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the President through the Cabinet Cluster system, as well as to
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Congress detailing the utilization of the Fund and its impact on
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enhancing educational quality.
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Sec. 11. Creation of the Partnership Board. — To ensure that the objectives of
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this Act are realized, a Partnership Board is hereby estabiished, with the foliowing
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responsibilities:
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(a) The alignment, coordination and oversight of the strategic pians for
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complementarity of each agency, in consultation with various stakeholders
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in education, including private school associations, parent and student
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associations, faculty associations, and industry associations;
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(b) The evaluation and recommendation of solutions to address policies and
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programs found detrimental to complementarity;
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(c) The review of the regulatory functions of each educational agency, with
7 
the purpose of determining regulatory independence between the
8 
regulator and any service provider, whether pubiic or private, and of
9 
making recommendations to resolve conflict if such independence is not
10 
the case;
11 
(d) The development of a framework, through DEPDev, for assessing the
12 
quality and cost-effectiveness of both public and private education
13 
institutions in achieving desired learning outcomes;
14 
(e) The support and funding of research on complementarity and how it can
15 
be developed toward improving learning outcomes and student choice;
16 
(f) The establishment of mechanisms for regular dialogue and collaboration
17 
between public and private education sectors to promote innovation and
18 
best practice sharing; and
19 
(g) The monitoring and reporting on the state of compiementarity and its
20 
contributions to learning outcomes along with an annual report to the
21 
Congress.
22 
Sec. 12. Composition of the Partnership Board. — The Partnership Board shall
23 
be organized within ninety (90) days from the effectivity of this Act, with the foliowing
24 
composition:
Secretary of DEPDev
Chairperson
Members
Secretary of DepEd
Chairperson of CHED
Director-General of TESDA
Chairperson of the ECCD Council
Secretary of the Department of Budget and Management
Chairperson of the Philippine Competition Commission
14


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One (1) representative from a nationwide association of 
administrators of private basic education schools
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One (1) representative from a nationwide association of 
administrators of private higher education institutions
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One (1) representative from a nationwide association of 
private technical-vocational institutions
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One (1) representative from a nationwide association of 
teachers, TVET trainers, or higher education faculty 
employed by private education institutions
- 
One (1) representative from a nationwide association of 
non-teaching personnel employed by private education 
institutions
1 
The private sector representatives shall be appointed by the Partnership Board
2 
from a list of nominees submitted by their respective associations for a term of one
3 
(1) school year subject to reappointment for a maximum term of four (4) school years:
4 
Provided, however. That such appointment may be terminated by the Partnership
5 
Board on the basis of the withdrawal of endorsement or recommendation of the sector
6 
they represent. Appointment to any vacancy shall be only for the unexpired term of
7 
the predecessor.
8 
The public sector members of the Partnership Board may designate permanent
9 
alternates holding positions not lower than third-level ranks, as defined by the Career
10 
Executive Service Board, or its equivalent. Provided, that these alternates are granted
11 
decision-making authority.
12 
The Partnership Board shall convene every first or last Monday of every third
13 
month, or as often as it may deem necessary.
14 
Sec. 13. Expanding complementarity functions in education agencies. —
15 
Pursuant to their existing mandates, the DepEd, CHED, TESDA, and the ECCD Council
16 
shall adopt policies, processes and functions in support of complementarity, including:
17 
(a) Ensure the integration of complementarity as a principle and approach in
18 
the agency's national and subnational plans. The initial plan shall, among
19 
others, include expected outcomes and metrics specific to
20 
complementarity, to be achieved within a three-year period from the date
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of effectivity of this Act;
(b) Prompt processing of students' eligibility for government subsidies. 
Coordination with agencies in charge of processing and managing student 
grants, vouchers, subsidies and similar instruments to ensure prompt and 
timely notifications to student beneficiaries and/or their parents during 
the school or semestral breaks for seamless mobility of students to and 
from public and private education institutions in exercising their choice of 
schools. Provided: that the notice of award of such subsidies to individual 
students are published at least two months prior to the start of the new 
school year;
(c) 
Educational institution mapping. Undertake the regular mapping of all duly 
recognized public and private education and training institutes in every 
locality all over the country, including programs, student and personnel 
population, and approved fees, for purposes of policy interventions and 
public dissemination and guidance;
(d) Monitoring of schools' absorptive capacity. Determine the absorptive 
capacity of existing recognized public and private education and training 
institutions as basis for policy and for public dissemination and guidance;
(e) Ensuring subsidies and vouchers are designed toward targeted levels of 
learning outcomes and/or of improving student choice. This would 
include, in addition to determining the appropriate funding per student 
toward targeted levels of learning outcomes and student choice, 
considerations for targeted vouchers, through the development of a 
reasonable system, formula, algorithm or similar instrument to enable 
increased focus on the disadvantaged in accordance with existing policies; 
and determining how vouchers or slots would be allocated in the event of 
oversubscription;
(f) 
Equal access to training of teachers. Ensure the proportionate access to 
available and appropriate government-funded training of private school 
teachers, faculty, and personnel;
(g) Improving industry participation. Ensure the significant participation of the 
private sector enterprises and industries, where applicable;
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(h) Ease in administrative deaiings. Rationalize and streamline the
2 
requirements for compliances in the establishment and recognition of
3 
institutions and programs for both public and private sectors for the
4 
prompt, efficient, and transparent services to stakeholders without
5 
compromising standards for quality and accountability;
6 
(i) Review of government resources towards compiementarity. Periodically
7 
review the allocation of national resources and funding towards public and
8 
private educational institutions and students, to ensure an appropriate
9 
level of complementarity consistent with this Act, including policies on
10 
investment recovery schemes for PPP projects in the education sector,
11 
pursuant to RA 11966, otherwise known as the "PPP Code of the
12 
Philippines," and its Implementing Rules and Regulations (IRR);
13 
(j) Regionai disparity assessment Regularly assess and report on regional
14 
disparities in education quality and access, and develop targeted
15 
interventions to address these disparities through public-private
16 
partnerships and other complementarity initiatives;
17 
(k) Labor market aiignment Develop mechanisms to ensure that education
18 
programs, particularly in technical and vocational education, are aligned
19 
with current and projected labor market needs; and
20 
(I) Deveiop and adopt performance metrics. Develop a set of performance
21 
metrics to monitor efficiency and effectiveness of complementarity in the
22 
educational system, across all agencies, educational institutions and
23 
learners, and have such available publicly on a timely basis.
24 
Sec. 14. Strengthening compiementarity at the iocai ievei. — For provinces,
25 
cities and first-income-class municipalities, the Local School Board shall integrate
26 
complementarity objectives and strategies in the development of local plans, and
27 
provide the necessary appropriations for the implementation thereof.
28 
Sec. 15. Complementarity, access and choice in the public funding of
29 
education. — Annual increases in educational budgets for public education and the
30 
training of students in DepEd, CHED, and TESDA shall be increasingly administered
31 
over time through portable student-financing instruments such as student grants,
32 
subsidies, vouchers or student loans, which students can use for either pubiic or
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private educational institutions. The Partnership Board shall recommend to the
2 
President a multi-year timetable for the implementation of these allocations, such that
3 
a target of 50% of the annual increase is achieved within a period of five (5) years
4 
from the date of effectivity of this Act.
5 
Sec. 16. Expanding the modes of complementarity. — The following models of
6 
complementarity, among others, shall be allowed:
7 
(a) Provision of instruments that empower students'choices in their selection
8 
of a quality school, college, university and/or technical-vocational
9 
institution. Under this model, portable subsidies, grants, vouchers, student
10 
loans, and other methods of funding educational costs are created and
11 
provided for by the government. Such instruments must be portable to
12 
strengthen the students' ability to choose from a variety of educational
13 
institutions pursuant to their constitutional right to select a profession and
14 
course of study;
15 
(b) Provision of instruments that reduce student congestion in public schools.
16 
Under this model, per-student subsidies are given by the respective
17 
education agency to qualified private institutions to reduce over-
18 
enrollment or congestion in nearby public educational institutions;
19 
(c) Management Contracts and PPP arrangements between public and private
20 
schools, colleges and universities. Under this scheme, a private
21 
educational or training institution may be engaged by a public educational
22 
institution or government agency, as the case may be, for the
23 
management of a public educational institution in full or for any part of its
24 
activities thereof, for a fixed period, subject to the payment of appropriate
25 
management fee. Such management fees and terms of the contract shall
26 
follow the requirements of RA 11966, otherwise known as the "PPP Code
27 
of the Philippines;"
28 
(d) Establishment of publicly-owned, independently-run schools. Under this
29 
scheme, the government funds the operation of a private educational
30 
corporation or non-profit organization subject to the delivery of qualified
31 
graduates for specific academic and training programs;
32 
(e) Lease of school facilities, equipment or campus spaces. Under this
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scheme, the private education or training institution may enter into a iease
2 
agreement with a public institution for lease of its premises, equipment,
3 
or the entire campus;
4 
(f) Program Rationalization Partnerships. Under this scheme, an upcoming or
5 
an existing SUC or LUC enters into a partnership agreement with one or
6 
more private education or training institutions to decide which courses the
7 
public institutions should offer, to minimize unnecessary duplication;
8 
(g) Portable Local Scholarships. Under this scheme, a local government unit
9 
creates, expands or modifies its existing scholarship programs to be
10 
portable, to be used across other 
public and private 
educational
11 
institutions;
12 
(h) Sharing of common facilities and school grounds. Under this scheme, the
13 
public and private educational institutions may agree to use and share
14 
common facilities including sharing of cost of upkeep and maintenance of
15 
the same such as playgrounds, parks, sports facilities, libraries, theaters,
16 
and similar places;
17 
(i) Regional Disparity Reduction Partnerships. Under this scheme, public and
18 
private institutions collaborate to implement targeted interventions 
in
19 
underserved regions with the goal of reducing disparities in education
20 
quality and access;
21 
(j) Industry-Education Alignment Programs. Under this scheme, partnerships
22 
between educational institutions (both public and private) and industry
23 
are formed to ensure that curriculum and training programs are aligned
24 
with current and projected labor market needs.
25 
Sec. 17. Ensuring complementarity in teachers and faculty in all sectors. —
26 
The DepEd, CHEd, and TESDA shall monitor average regional compensation levels of
27 
teachers and faculty in the public and private sectors, to see if differences in levels
28 
would cause a significant imbalance in the development of either sector. In cases that
29 
such imbalances exist or are expected to occur, the DepEd, CHEd, or TESDA, as the
30 
case may be, shall introduce programs or initiatives to address the imbalance, and
31 
include the same in their reports to the Partnership Board.
32 
Sec. 18. Incentives. — To further encourage private sector investment in
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education, the DepEd, CHED, and TESDA shall create grants and support programs
2 
for the private sector, including but not limited to those for:
3 
(a) Educational programs in high need, including ECCD, ALS, educational
4 
measurement, and guidance and counseling;
5 
(b) Education-related initiatives in remote areas;
6 
(c) Degrees, competencies and trainings of educational institutions, prioritized
7 
by industry;
8 
(d) Portable local scholarships in remote areas;
9 
(e) Public-private partnerships, whether at the national or LGU level, including
10 
risk mitigation instruments and innovative models that enhance education
11 
quality and access, particularly in underserved areas, in accordance with
12 
existing laws, rules, and regulations;
13 
(f) Initiatives that demonstrably reduce regional disparities in education
14 
quality and access; and
15 
(g) Programs that show strong alignment with labor market needs particularly
16 
in priority sectors identified by the government
17 
To promote complementarity at the local level, the Department of Interior and
18 
Local Government shall develop incentives for local government units implementing
19 
complementarity plans and programs within their respective jurisdictions.
20 
Emphasis on incentives shall be on those institutions that perform above
21 
minimum standards, as evidenced by accreditation, government quality recognitions
22 
(such as autonomy, deregulation or Centers of Excellence and Development), and
23 
other recognized national and international third-party quality recognitions, as
24 
determined by the DepEd, CHED or TESDA, as the case may be.
25 
Sec. 19. Appropriations. — In the furtherance of the provisions of this Act, no
26 
direct funding of private entities shall be made and all budgets for student subsidies,
27 
loans or similar programs shall be allocated through the DepEd, CHED, and TESDA for
28 
proper distribution. The budget for such financial support per student shall be
29 
computed based on the equivalent government total cost of providing public education
30 
to a student per region and locality, and the prevailing cost of tuition and other school
31 
fees in the private sector in such region and locality.
32 
The Secretary of Education, the Chairman of the Commission on Higher
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Education, and the Director General of the Technical Education and Skills Development 
Authority shall include in their respective programs the operationalization of 
complementarity under this Act, the initial funding of which shall be charged against 
the current appropriations of the DepED, CHED, and TESDA. Thereafter, the amount 
necessary for the continued implementation of complementarity shall be included in 
the annual General Appropriations Act.
In the case of PPPs, government undertakings and investment recovery 
schemes through appropriations from the national government fund shall follow RA 
11966, otherwise known as the "PPP Code of the Philippines," and its IRR, the General 
Appropriations Act, National Budget Circular No. 564, or any amendments thereof, 
and other applicable laws, rules, and regulations.
Sec. 20. Indusivity. — The benefits and incentives as may be provided 
pursuant to this Act shall apply to all public and private educational institutions 
regardless of whether it is secular, religious, or for profit, subject to their compliance 
with the appropriate conditions and criteria.
Sec. 21. Implementing Rules and Regulations. — Within ninety (90) days after 
the effectivity of this Act, the DepED Secretary, the CHED Chairperson and the TESDA 
Director-General, upon consultation with the Coordinating Council of Private 
Educational Associations (COCOPEA), industry associations, and other private 
organizations and associations, shall promulgate the rules and regulations needed for 
the implementation of this Act.
Sec. 22. Separability Clause. — If any provision of this Act is declared 
unconstitutional, the remainder thereof not otherwise affected shall remain in full force 
and effect.
Sec. 23. Repealing Clause. — Any law, presidential decree or issuance, 
executive order, letter of instruction, rule or regulation inconsistent with the provisions 
of this Act is hereby repealed or modified accordingly.
Sec. 24. Effectivity. — This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
21