SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 2 G 72 
Introduced by SENATOR SONNY ANGARA 
'15 
FEB 26 P5 :00 
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 
The government has traditionally been in charge of providing and financing 
infrastructure in the country. However, investment requirements have exceeded the 
capacities of the government, prompting the public sector to enable private 
participation in infrastructure development. In the past two decades, a number of 
services in utilities, transportation, property development and information technology 
are provided through contractual arrangements such as the build-ope rate-transfer 
(BOT). 
Reforms to the BOT processes, however, are necessary to better address the 
needs and qualms of public-private partnerships (PPP) investors. For the country to 
build on its recent economic gains and to ensure the proper investment environment 
in our country forecasted as the 2nd fastest growing economy in the world in 2015,1 
the private sector must be further encouraged to make investments through a 
modernized and enhanced PPP law. 
Thus, this bill seeks to create an enabling environment for PPPs wherein the 
rules are fair, clear, and equally applied to all, by providing liberalized government 
regulations and procedures incorporating the valuable lessons learned from 
successful and failed projects in the past as well as global best practices in 
PPP, and by expanding the coverage of PPP 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 services, and by requiring full 
public disclosure of all PPP transactions. 
Under the bill, temporary restraining orders, preliminary injunctions or 
preliminary mandatory injunctions against any PPP project cannot be issued by any 
other court except the Supreme Court but with a validity period of only six months. 
With the additional incentives provided under this bill, we can attract more 
1 Bloomberg New Consensus Survey 2015. 


PPPs to help the government hasten and improve the construction of public 
infrastructure and services to boost the growth of the Philippine economy. 
In view of the foregoing, the passage of this bill is earnestly sought. 
/" 
//>. 
Ls6N 
ANGARA 
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SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 2672 
Introduced by SENATOR SONNY ANGARA 
'1:'; 
rEB 26 1'5 :00 
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 Philippines in 
Congress assembled: 
SEC. 1. Short Title. - This Act shall be known as the "Public-Private Partnership 
(PPP) Act" of the Philippines. 
SEC 2. Declaration of Policy. - The State recognizes the role of the private 
sector in national development. It is thus the policy of the State to attract the private 
sector to undertake the financing, design, construction, operation and maintenance 
of infrastructure facilities necessary for public use or public service under the 
following principles:(i) timely delivery of quality infrastructure facilities, (ii) fair pricing 
of user fees for such facilities, (iii) transparent and competitive process for selecting 
the private sector partner, and (iv) full public disclosure of transactions under this 
Act. 
SEC. 3. Definition of Terms. - The following terms used in this Act shall have 
the meanings stated below: 
(a) 
Approving Body -
refers to an entity authorized to approve PPP 
projects proposed under this Act and its IRR, in accordance with Section 6 of this 
Act. 
(b) 
Construction - refers to new construction, rehabilitation, improvement, 
expansion, alteration, installation, and related works and activities in connection with 
an infrastructure facility, including the necessary supply of equipment, materials, 
labor and services and related items. 
(c) 
proponent, 
facility. 
Contractor - refers to any person, who mayor may not be the project 
and who shall undertake the actual construction of an infrastructure 
(d) 
Cooperation Period -
refers to the period of operation of an 
infrastructure facility, provided, that in the case of public utilities requiring a 
franchise, such period shall not exceed the maximum period prescribed by existing 
laws. 
(e) 
GOCC - refers to a government-owned or -controlled corporation, a 
government instrumentality with corporate powers, or a government corporate entity. 
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(f) 
ICC - refers to the Investment Coordination Committee of the NEDA 
Board. 
(g) 
Implementing Agency -
refers to a department, bureau, office, 
instrumentality, commission, authority, GOCC, state university or college, or 
government financial institution of the National Government, or an LGU. 
(h) 
Infrastructure Facility - refers to a facility that has been determined by 
the Governrnent to be necessary for public use or public service or for the discharge 
of governmental or proprietary functions, including but not limited to, power plants, 
highways, ports, airports, canals, dams, hydropower projects, water supply, 
irrigation, telecommunications, railroads and railways, transport systems, land 
reclamation projects, industrial estates or townships, housing, government buildings, 
tourism 
projects, 
markets, 
slaughterhouses, 
warehouses, 
solid 
waste 
management, information technology systems and infrastructure, education and 
health facilities, sewerage, drainage, dredging, climate change mitigation and 
adaptation measures, and other similar facility. 
IRR - refers to the implementing rules and regulations of this Act. 
LGU - refers to a local government unit. 
(i) 
G) 
(k) 
Local PPP Project - refers to a PPP Project that will be undertaken by 
an LGU. 
(I) 
National PPP Project - refers to a PPP Project that will be undertaken 
by an Implementing Agency of the National Government. 
(m) 
NEDA - refers to the National Economic and Development Authority. 
(n) 
PBAC - refers to the Prequalification Bids and Awards Committee of 
the Implementing Agency. 
(0) 
PDMF -
refers to the Project Development and Monitoring Facility 
created under Section 7 of this Act. 
(p) 
PPP - refers to a public-private partnership governed by a contractual 
arrangement between the implementing agency and the project proponent for the 
financing, design, construction, operation, and maintenance, or any combination 
thereof, of an infrastructure facility under this Act. 
(q) 
PPP Center -
refers to the Coordinating Council of the Philippine 
Assistance Program that was created under Republic Act No. 7718 and reorganized 
and renamed the Public-Private Partnership Center of the Philippines under 
Executive Order No.8, series of 201 0, as amended. 
(r) 
PPP Contract -
refers to the contract between the Implementing 
Agency and the Project Proponent for the financing, Construction, operation, or 
maintenance of an Infrastructure Facility under a PPP Project. 
(s) 
PPP Project - refers to a project undertaken under this Act. 
(t) 
Person -
refers to an individual, sole proprietorship, partnership, 
corporation or any other form of organization, whether domestic or foreign. 
(u) 
Project Cost - refers to total capital cost, financing and other expenses 
for the design, construction, operation, and maintenance of an infrastructure facility. 
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(v) 
Project Proponent - refers to any private person who shall undertake a 
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PPP project. 
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(w) 
Rate of Return - refers to the rate of return on the investment of a 
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project proponent as approved by the Approving Body taking into account, among 
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others, the prevailing cost of capital in the domestic and international markets, and 
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risks being assumed by the project proponent; provided, that in case of an 
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unsolicited proposal, such rate of return shall be determined by the appropriate 
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Approving Body prior to the call for proposals. 
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(x) 
Unsolicited Proposal - refers to proposals for a PPP Project that was 
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submitted by a Project Proponent without the implementing agency soliciting such 
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proposal. 
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SEC. 4. Authority of Implementing Agencies. -Any Implementing agency that is 
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authorized by existing laws or its charter, to engage in the financing, construction, 
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operation, and maintenance of an Infrastructure Facility is hereby authorized to 
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undertake PPP Projects in accordance with this Act. 
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SEC. 5. Variations of Contractual Arrangements. -PPP Projects may be 
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undertaken through any of the following contractual arrangements and such other 
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variations as may be described in the IRRand approved by the President of the 
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Philippines: 
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(i) 
Build-and-Transfer - refers to a contractual arrangement whereby the 
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Project Proponent undertakes the financing and Construction of an Infrastructure 
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Facility and transfers ownership to the Implementing Agency upon its completion. 
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The Implementing Agency shall pay the Project Proponent, on an agreed schedule, 
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its total investments expended on the project, plus a return not exceeding the 
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Approved Rate of Return. This arrangement may be employed in the Construction of 
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any Infrastructure Facility, including critical facilities which, for security or strategic 
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reasons, must be operated directly by the Government. 
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(ii) 
Build-Lease-and-Transfer -
refers to a contractual arrangement 
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whereby the Project Proponent undertakes the financing and Construction of an 
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Infrastructure Facility, upon its completion leases it to the Implementing Agency for 
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the duration of the Cooperation Period, and after the Cooperation Period 
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automatically transfers ownership to the Implementing Agency. 
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(iii) 
Build-Own-and-Operate - refers to a contractual arrangement whereby 
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the Project Proponent undertakes the financing, Construction, ownership, operation, 
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and maintenance of an Infrastructure Facility. The Project Proponent is allowed to 
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collect tolls, fees, rentals or other charges from users of the Infrastructure Facility to 
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recover its total investment and operating and maintenance costs plus a return not 
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exceeding the Approved Rate of Return. 
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(iv) 
Build-Operate-and-Transfer -
refers to a contractual arrangement 
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whereby the Project Proponent undertakes the financing and Construction of an 
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Infrastructure Facility, operates and maintains it during the Cooperation Period, and 
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transfers ownership to the Implementing Agency at the end of the Cooperation 
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Period. 
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(v) 
Build-Transfer-and-Operate -
refers to a contractual arrangement 
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whereby the Project Proponent undertakes the financing and Construction of an 
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Infrastructure Facility, transfers ownership to the Implementing Agency once it is 
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commissioned satisfactorily, and operates the Infrastructure Facility for the duration 
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of the Cooperation Period. 
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(vi) 
Contract-Add-and-Operate -
refers to a contractual arrangement 
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whereby the Project Proponent undertakes the financing and Construction of an 
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addition to an Infrastructure Facility that it is leasing from the Implementing Agency 
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and operates and maintains the expanded Infrastructure Facility for the duration of 
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the Cooperation Period. There may, or may not be, a transfer arrangement in regard 
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to the Infrastructure Facility. 
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(vii) 
Develop-Operate-and-Transfer - refers to a contractual arrangement 
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whereby the Project Proponent undertakes the financing, Construction, operation, 
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and maintenance of an Infrastructure Facility as well as its adjoining property in 
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order to enjoy some of the benefits the investment creates such as higher property 
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or rent values. 
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(viii) 
Joint Venture -
refers to a contractual arrangement whereby the 
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Project Proponent and the Implementing Agency, contribute money, services, 
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assets, or a combination of any or all of the foregoing, to undertake a PPP Project, 
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with the intention to share profits, risks and losses. Assets may include equipment, 
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land, intellectual property or anything of value. 
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(ix) 
Operations and Maintenance Contract -
refers to a contractual 
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arrangement whereby the Project Proponent undertakes the operation and 
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maintenance of an Infrastructure Facility owned by the Implementing Agency, 
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including the acquisition or provision and upgrading of equipment, systems and 
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other items related to operation and maintenance. The Project Proponent shall be 
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compensated in the form of a performance-based management or service fee during 
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the Cooperation Period. 
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(x) 
Rehabilitate-Operate-and-Transfer 
refers 
to 
a 
contractual 
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arrangement 
whereby 
the 
Project 
Proponent 
undertakes 
the 
financing, 
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refurbishment, 
improvement, 
operation, 
and 
maintenance 
of an 
existing 
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Infrastructure Facility for the duration of the Cooperation Period, and transfers 
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ownership of the Infrastructure Facility to the Implementing Agency at the end of the 
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Cooperation Period. 
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SEC. 6. Identification of PPP Projects. -
Implementing agencies that are 
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required under existing laws to identify priority development projects shall ensure 
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that such projects are consistent with the Philippine Development Plan or its 
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equivalent at the local level and that such projects include PPP Projects. The 
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implementing agencies shall submit their list of PPP Projects or any update thereto 
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to the PPP Center for information. 
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SEC. 7. Approval of PPP Projects. - 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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A. National PPP Projects - The Approving Body for a National PPP Project 
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shall be the ICC, the NEDA Board, or both, depending on the project cost as 
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prescribed in the IRR; provided, that (i) if the implementing agency is a GOCC, the 
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GOCC shall obtain the approval of the head of the Department to which the GOCC 
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is attached; and (ii) if the Implementing Agency is a Department, the consent of the 
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GOCC attached to such Department and affected by the PPP Project is not required. 
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If a National PPP Project will have an impact on a region, the implementing agency 
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shall provide the concerned Regional Development Council with a copy of the 
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project proposal prior to submitting such project proposal to the Approving Body for 
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approval. The Regional Development Council may, if it so desires, endorse the 
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project to the Approving Body; provided, that the endorsement of the Regional 
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Development Council shall not be necessary for approval of the project unless 
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required by the Approving Body. 
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B. Local PPP Projects - The Approving Body for a Local PPP Project shall be 
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the local development councils, the ICC, the NEDA Board, or some or all of them, 
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depending on the project cost as may be prescribed in the IRR. 
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SEC. 8. Project Development and Monitoring Facility (PDMF). - A special fund 
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is hereby created to be known as the PDMF, which shall be used for the 
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procurement of advisory and support services related to the preparation, structuring, 
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probity management, procurement, financial close, and monitoring of implementation 
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of PPP projects. The PDMF Fund referred to under Executive Order No.8, series of 
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2010, as amended by Executive Order No. 136, series of 2013, shall be transferred 
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to the PDMF under this Act. The PDMF may be funded through and such amount as 
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may be needed and included in the General Appropriations Act, Official 
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Development Assistance or other sources. The management and use of the PDMF 
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shall be in accordance with the following: 
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A. Management. - The PDMF shall be managed and administered by the PPP 
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Center as a revolving fund; thus, in addition to the amounts appropriated herein, and 
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in order to sustain the PDMF, the PPP Center may collect and receive fees and 
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recover costs expended through PDMF in accordance with the guidelines that shall 
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be approved by the PPP Governing Board. Such amount shall be retained and 
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authorized to be used by the PPP Center for the purposes indicated herein. 
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B. Approval of Applications. - A PDMF Committee is hereby created to (i) 
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recommend guidelines on the use of PDMF and recovery of costs, for the approval 
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of the PPP Governing Board, and (ii) approve applications for PDMF support 
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submitted by implementing agencies. It shall be composed of representatives from 
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the National Economic and Development Authority (NEDA), Department of Finance 
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(OaF), Department of Budget and Management (DBM) and the PPP Center. The 
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PPP Center shall serve as Secretariat for the PDMF Committee. 
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C. Procurement. -
To ensure fast procurement of advisory support, the 
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consultants financed through PDMF shall be engaged based on indefinite delivery 
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contracts. Individual advisory contracts shall be drawn from a panel of consultants 
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under indefinite delivery contracts using a fixed budget selection mode or any mode 
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as may be prescribed in the IRR. In order to facilitate access to global best practices 
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in PPP and enhance value for money, the selection of consultants financed through 
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PDMF shall also be open to international firms. 
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SEC. 9. Public Bidding of Projects. - The public bidding of projects shall be in 
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accordance with the following: 
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A. Publication. - Upon approval of PPP projects as mentioned in Section 6 of 
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this Act, the head of the implementing agency concerned shall immediately cause 
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the publication of a notice inviting all prospective project proponents to participate in 
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a transparent and competitive public bidding, once every week for three (3) 
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consecutive weeks, in at least two (2) newspapers of general circulation and in at 
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least one (1) local newspaper which is circulated in the region, province, city or 
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municipality where the project will be implemented. Said notice shall also be posted 
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continuously in the websites of the implementing agency and the PPP Center. 
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B. Public Bidding. - The public bidding shall be conducted under a single or 
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two-stage system. The pre-qualification documents, technical, and financial 
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proposals shall be submitted in at least three (3) separate envelopes or containers. 
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The procedures for public bidding, which shall be transparent and competitive, 
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including the conduct of one-on-one meetings with prequalified bidders, shall be 
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outlined in the IRR. 
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C. Award. - The contract shall be awarded to the bidder who has passed the 
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pre-qualification stage for having satisfied the minimum financial, organizational and 
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legal standards required by this Act and its IRR, has passed the technical proposal 
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evaluation, and has submitted the most favorable financial bid based on the 
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parameters defined in the bid documents. 
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D. Single Complying And Responsive Bid. - In case of a single complying and 
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responsive bid, the implementing agency may award the PPP contract to that bidder 
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that submitted such bid upon its compliance with the post-award requirements under 
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the bidding rules of the PPP project. A bid shall be considered a single complying 
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and responsive bid if it falls under any of the following circumstances: 
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(a) 
If, after advertisement, only one bidder applied for prequalification and 
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it meets the prequalification requirements, after which it is required to submit a bid or 
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proposal which is subsequently found by the implementing agency to be complying; 
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(b) 
If, 
after 
advertisement, 
more 
than 
one 
bidder 
applied 
for 
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prequalification but only one meets the prequalification requirements, after which it 
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submits a bid or proposal which is found by the implementing agency to be 
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complying; 
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(c) 
If, after prequalification of more than one bidder, only one submits a 
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bid which is found by the implementing agency to be complying; or, 
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(d) 
If, after prequalification, more than one bidder submits bids but only 
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one is found by the implementing agency to be complying. 
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E. Protest. - The following protest protocol shall be strictly followed in all stages 
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of the selection process; provided, that no appeal shall stay the selection process; 
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provided further, that a PPP Contract may not be awarded until all appeals have 
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been resolved in accordance with this sUb-section: 
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(a) 
Decisions of the PBAC may be questioned by filing a motion for 
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reconsideration within a period prescribed in the IRR. 
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(b) 
The decision of the PBAC on the motion for reconsideration may be 
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further questioned by filing an appeal to the head of the implementing agency 
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concerned and paying a non-refundable appeal fee in an amount equivalent to no 
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less than Y:z of 1 % of the project cost within a period prescribed in the IRR. 
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(c) 
If the head of the implementing agency in the immediately preceding 
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paragraph is not a Department Secretary, the decision of the head of the 
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implementing agency may be further questioned by filing an appeal to the Secretary 
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of the Department to which the implementing agency is attached within a period 
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prescribed in the IRR. 
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(c) 
The decision of the Department Secretary may be questioned by filing 
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an appeal to the Office of the President. 
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F. Failure to Comply or Execute the Contract. - If the winning bidder fails to 
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comply with any post-award requirement or fails to execute the PPP Contract with 
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the implementing agency, the latter may proceed to negotiation with the next 
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technically and financially qualified bidder. This is without prejudice to other legal 
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remedies available to the implementing agency such as, but not limited to, the 
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forfeiture of bid security, the withdrawal of Notice of Award, or both. 
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SEC. 10. Unsolicited Proposals. - Projects that are not in the list of priority 
projects may be considered for unsolicited proposals. Priority projects shall not be 
considered for unsolicited proposals, except when they involve a new concept or 
technology. 
When a project proponent submits an unsolicited proposal, the implementing 
agency may either: 
(a) 
Reject the proposal; 
(b) 
Use the unsolicited proposal as the basis for public bidding as provided 
in Section 9 of this Act. Upon approval by the appropriate Approving Body, the 
original proponent thereof shall be reimbursed of the cost incurred in the preparation 
of the proposal, such as the cost of any feasibility study undertaken; Provided, such 
reimbursement: 
(i) 
shall be in an amount specified in the IRR of this Act, but not 
exceeding three percent (3%) of the project cost excluding those which will be borne 
by the implementing agency, such as, but not limited to, the cost of right-of-way 
acquisitions; and 
(ii) 
shall be paid in full by the winning project proponent as a requirement 
for the award of the contract. 
If the implementing agency fails to act on the proposal within the period stated 
in the IRR of this Act, the project proposal shall be deemed rejected, without 
prejudice to any liability that the erring or negligent officials or employees may incur 
under existing laws. 
(c) 
Accept the unsolicited proposal on a negotiated basis: Provided, that 
the following conditions are met: 
(i) 
The project does not receive any viability gap funding or direct 
payments from any government agency; provided, that costs of right-of-way, 
resettlement and real estate taxes shall not be considered as part of the viability gap 
funding; and 
(ii) 
Guided by the principles of transparency and competitiveness, the 
implementing agency has invited by publication for three (3) consecutive weeks in a 
newspaper of general circulation, as well as web sites of the PPP Center and of the 
implementing agency, the submission of comparative proposals and no other 
proposal is received for a period stated in the IRR of this Act, which period should 
not be less than three (3) months nor more than six (6) months from the date of last 
publication in a newspaper of general circulation. In the event another proponent 
submits a superior counter-proposal within the period referred to above and it is 
accepted by the appropriate Approving Body, the original proponent shall have the 
right to outbid. 
SEC. 11. Private Legal Assistance. - All the PBAC members and other public 
officials providing services to the PBAC shall be authorized to engage the services 
of private lawyers, or shall be provided with free legal assistance, where a civil, 
criminal, or administrative action is filed against them by reason of the performance 
of their official functions or duties, unless they are finally adjudged in such action or 
proceeding to be liable for gross negligence or misconduct or grave abuse of 
discretion. 
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SEC. 12. Contract Termination. -
In the event that a contract is revoked, 
cancelled or terminated, either contracting party shall compensate the other 
pursuant to terms as defined in the contract. 
SEC. 13. Automatic Grant of Administrative Franchise, License or Permit. -
Upon receipt of notice that that an Implementing Agency and a Project Proponent 
have entered into a PPP contract, the regulator, licensing authority or LGUs shall 
automatically grant in favor of the said project proponent an administrative franchise, 
license permit, or any other form of authorization required for the implementation of 
a PPP project subject to submission by the project proponent of the requirements by 
the regulator, licensing authority or LGU and proof of payment of the appropriate 
taxes and fees. 
Any provision of law to the contrary notwithstanding, it shall be mandatory on 
the part of the regulator, licensing authority or LGUs to accept and approve the 
application for administrative franchise, license or permit. Failure to act on a proper 
and complete application thereof within thirty (30) working days from receipt of the 
same shall be deemed as approval thereof. 
SEC. 14. Expansion or Extension of an Existing Infrastructure Facility. -
Subject to conditions specified in the IRR of this Act and upon prior approval by the 
appropriate Approving Body, the project proponent of an existing PPP infrastructure 
facility may be allowed to expand or extend the same even without further bidding; 
Provided, the cost thereof shall not exceed twenty-five percent (25%) of the price-
adjusted original project cost; Provided, further, that any subsequent expansion or 
extension shall no longer be allowed. 
SEC. 15. Contracts and Public Disclosure. - PPP Contracts entered into under 
this Act shall be considered public documents. However, any proprietary information 
contained in the PPP contract and its annexes may be kept confidential for a limited 
period, as may be determined by the implementing agency but not to exceed five (5) 
years. 
The determination of whether or not such contracts shall be kept confidential, 
as well as the terms and duration of confidentiality, shall be the responsibility of the 
implementing agency concerned. The implementing agency shall transmit to the 
PPP Center for records and monitoring purposes, a copy of the duly executed 
contract, within thirty (30) working days from its complete execution. 
SEC. 16. A. Prohibition on the Issuance of Temporary Restraining Orders or 
Injunctions. - No temporary restraining order, preliminary injunction or preliminary 
mandatory injunction shall be issued by any court, except the Supreme Court, 
against any implementing agency, its officials or employees, or any person or entity, 
whether public or private acting under the government direction, to restrain, prohibit 
or compel the following acts: 
(a) 
Bidding, rebidding or declaration of failure of bidding of PPP projects, 
either national or local; 
(b) 
Qualification or disqualification of bidders; 
(c) 
Awarding of PPP contract; 
(d) 
Acceptance of any unsolicited PPP project proposal, even if not acted 
upon by the implementing agency concerned under Section 8 of this Act; 
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(e) 
Acquisition, clearance, development of the right-of-way, site or location 
of any PPP project; 
(f) 
Construction, operation and maintenance of any PPP project; 
(g) 
Commencement, execution, implementation, termination or rescission 
of any PPP contract; and 
(h) 
Undertaking or authorization of any other lawful activity necessary for 
such PPP project or contract. 
Provided, that effectiveness of the temporary restraining order, preliminary 
injunction or preliminary mandatory injunction issued by the Supreme Court shall not 
exceed six (6) months. 
B. Bond. - The applicant for such temporary restraining order, preliminary 
injunction or preliminary mandatory injunction shall file a bond, in an amount to be 
fixed by the court. The bond shall accrue in favor of the government if the court 
should finally decide that the applicant was not entitled to the relief sought. 
C. Void. - Any temporary restraining order, preliminary injuction or preliminary 
mandatory injunction issued in violation of this section is void and of no force and 
effect. 
D. Application. - The foregoing prohibition shall apply in all disputes, cases, or 
controversies instituted by any and all parties, including but not limited to cases filed 
by bidders, implementing agencies or those claiming to have rights through such 
bidders or implementing agencies involving PPP project or contract. 
E. Liability. - In addition to civil and criminal liabilities as may be incurred under 
existing laws, any judge who shall issue a temporary restraining order, preliminary 
injunction or preliminary mandatory injunction in violation of this section, shall be 
diSCiplined by the Supreme Court and suffer the penalty of removal from office. 
SEC. 17. Regulatory Boards. - No regulatory body shall be allowed to enter 
into any PPP contract for an Infrastructure Facility whose operation will be regulated 
by such regulatory body. 
SEC. 18. Project Supervision. -
Every PPP project undertaken under the 
provisions of this Act and its IRR shall be in accordance with the designs, plans, 
specifications, standards, and costs approved by the implementing agency and 
appropriate Approving Body, and shall be under the supervision of the implementing 
agency concerned. 
SEC. 19. Investment Incentives. - Among other incentives, PPP projects in 
excess of One Billion Pesos (PhP1,000,000,000) shall be entitled to incentives as 
provided by the Omnibus Investment Code, upon prior endorsement of the PPP 
Center and registration by the project proponent with the Board of Investments. 
SEC. 20. Projects of National Significance. - A. Incentives. - Upon certification 
ahd recommendation by the ICC, and prior consultation with the Department of 
Interior and Local Government (DILG), the President may classify certain projects, 
such as energy, toll road, mass transit, water, sewerage and such other projects 
undertaken under this Act and its IRR as projects of national significance, which 
shall be entitled to the following incentives: 
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(a) All real properties which are actually and directly used for the project shall 
be exempt from any and all real property taxes levied under Republic Act No. 7160; 
(b) All local taxes, fees and charges imposed by a province, city or municipality 
on the project proponent shall not exceed fifty percent (50%) of one percent (1 %) of 
gross sales or receipts of the preceding calendar year. 
(c) The necessary business permits, including any renewals thereof, shall be 
deemed to have been automatically granted or issued to the winning project 
proponent upon payment of the required taxes and fees to the appropriate LGU. 
B. Criteria. - For a project to qualify as a project of national significance, it shall 
meet the following criteria: 
(a) 
The total project cost falls within the threshold set by the ICC; 
(b) 
The project has a direct economic impact which should not be less 
than the threshold set by the ICC; 
(c) 
The project has a direct positive impact on at least two (2) cities or 
municipalities; and 
(d) 
The project can create new jobs. 
SEC. 21. Exemption from Payment of Transfer Taxes. - For all PPP projects, 
the transfer of ownership of infrastructure facility to the implementing agency shall 
be exempt from capital gains tax, documentary stamp tax and all taxes and fees, 
whether from national or local, related to the transfer thereof. 
SEC. 22. PPP Center. - A. Functions. - To achieve the goals of this Act, the 
PPP Center is hereby institutionalized. It is hereby authorized to adopt its current 
organizational structure, absorb its existing employees, and upgrade its human 
resource component, as may be necessary, towards a more efficient and effective 
performance of the following functions: 
(a) 
Assist implementing agencies in identifying, developing, prioritizing and 
maintaining a pipeline of PPP projects; 
(b) 
Provide advisory services, technical assistance, trainings, and capacity 
development to implementing agencies in all PPP-related matters; 
(c) 
Manage and administer the PDMF as provided in Section 7 of this Act; 
(d) 
Work with implementing agencies in setting procurement and 
implementation timelines for approved PPP projects; 
(e) 
Recommend plans, policies and implementation guidelines related to 
PPP, 
in 
consultation with 
appropriate oversight committees or agencies, 
implementing agencies, private sector and other relevant stakeholders; 
(f) 
Facilitate, monitor, and evaluate the implementation of PPP programs 
and projects developed by the implementing agencies; 
(g) 
Report to the Office of the President and Congress on the 
implementation of the PPP programs and projects of the government at the end of 
each year; 
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(h) 
Serve as a link between the government and the private sector; 
(i) 
Promote and market PPP programs and projects, in collaboration with 
other government promotion agencies; 
0) 
Sit as member of NEDA-Infrastructure Committee (INFRACOM), ICC, 
and other inter-agency bodies where a PPP project is a major concern; 
(k) 
Issue advisory opinions and interpret the provisions of this Act and its 
IRR, relating solely to technical aspects of PPP; 
(I) 
Serve as the central repository of all executed PPP contracts and any 
subsequent amendment or supplement thereto, including settlement agreements, 
entered into by implementing agencies; 
(m) 
Provide and transmit copies of duly executed PPP contracts to 
Congress; 
(n) 
Act as Secretariat to the PDMF Committee, PPP Governing Board, 
and ICC insofar as PPP projects are concerned; 
(0) 
Maintain an integrated projects' bank to serve as an interactive 
database of all current and past projects; 
(p) 
Such other functions as may be necessary to achieve the objectives 
and purposes of this Act. 
B. Positions and Compensation. - All positions of the PPP Center shall be 
governed by a compensation and position classification system and qualification 
standards consistent with the industry and duly approved by the Governance 
Commission for Government-Owned or -Controlled Corporations (GCG) based on 
comprehensive job analysis and audit of actual institutional duties and personal 
responsibilities. The compensation plan shall be comparable with the prevailing 
compensation plan of Bangko Sentral ng Pilipinas, GFls and other GOCCs, and 
shall be subject to periodic review by the GCG no more than once every two (2) 
years, without prejudice to yearly merit review or increases based on productivity 
and efficiency. 
C. Attachment. - The PPP Center shall report directly to the PPP Governing 
Board. It shall remain an attached agency under the administrative supervision of 
the NEDA. 
D. Head. - The PPP Center shall be headed by an Executive Director with the 
rank equivalent to an Undersecretary, who shall be appointed by the President of the 
Philippines, upon recommendation of the PPP Governing Board. The Executive 
Director shall perform the following functions: 
(a) 
Undertake the day-to-day management and supervise the operations 
of the PPP Center; 
(b) 
Recommend to the PPP Governing Board such policies and measures 
which he or she deems necessary for the effective exercise and discharge of the 
powers and functions of the PPP Center; 
(c) 
Sit as an ex-officio member of the PPP Governing Board, INFRACOM, 
ICC and other inter-agency bodies where a PPP project is a major concern; and 
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(d) 
Perform such other functions as may be assigned by the PPP 
Governing Board. 
SEC. 23. A. PPP Governing Board. - The PPP Governing Board is hereby 
created, referred to as the Board, which shall be the overall policy-making body for 
all PPP-related matters, including the PDMF. It shall be responsible for setting the 
strategic direction of PPP programs and projects and in creating an enabling policy 
and institutional environment for PPP. 
The Board shall be composed of the following: 
(a) 
(b) 
(c) 
(d) 
(e) 
(f) 
(g) 
(h) 
(NCC). 
Secretary of Socio-economic Planning as Chairperson; 
Secretary of Finance as Vice-Chairperson; 
Secretary of Budget and Management; 
Secretary of Justice; 
Secretary of Trade and Industry; 
Executive Secretary; 
Executive Director of PPP Center; and 
Private sector Co-chairman of the National Competitiveness Council 
B. Alternates. -
The principal members of the Board may designate their 
respective alternates, who shall be the officials next-in-rank to them, and whose acts 
shall be considered the acts of their principals. 
C. Quorum. - The presence of the Chairperson with four (4) other members of 
the Board shall constitute a quorum and a majority vote of the members present 
shall be necessary for the adoption of any issuance, order, resolution, decision or 
other act of the Board in the exercise of its functions. The Board shall act as a 
collegial body. In the conduct of meetings, the Chairperson shall not vote except to 
break a tie. 
D. Action. - The Board shall act on any matter for its consideration not later 
than thirty (30) days from the date of submission thereof. 
E. Honoraria. - The members of the Board shall be entitled to honoraria based 
on existing government accounting and auditing rules and regulations. 
SEC. 24. Mandatory Inclusion of Alternative Dispute Resolution Mechanisms in 
PPP Contracts. - All PPP contracts shall include provisions on the use of alternative 
dispute resolution mechanisms. Subject to existing laws, the contracting parties shall 
be given complete freedom to choose which venue and forum shall govern their 
dispute, as well as the rules or procedures to be followed in resolving the same. 
SEC. 25. Funding of Contingent Liabilities Arising from PPP Projects. - To 
ensure fiscal sustainability, enhance ability of the implementing agency to discharge 
its obligations under risks allocated to it, and improve terms of financing of PPP 
projects, there is hereby created a Contingent Liabilities Fund which shall be 
financed through dedicated budgetary appropriations and contributions from the 
budgets of implementing agencies. It may also be sourced from bid premiums. The 
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fund will provide a reliable pool from which disbursements on govemment 
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obligations on liabilities that have materialized can be drawn. As such any 
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appropriations and contributions to the fund are permanently appropriated and will 
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not revert to the general fund if not disbursed during the life of the project. The fund 
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shall be administered by the Department of Finance following fiduciary standards for 
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fund management. The operations of the fund can be enhanced through Official 
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Development Assistance. 
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As part of the budget submission, the Department of Finance shall submit an 
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annual report on the status of this fund to Congress. Proceeds of the fund shall be 
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invested in risk-free highly liquid assets. The governance structure, specific functions 
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and responsibilities related to the operations of the said fund will be specified in the 
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IRR of this Act. 
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SEC. 26. Miscellaneous Provisions. -
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(a) 
Joint Venture Agreements. -
For joint venture arrangements, the 
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ownership of the infrastructure facility may be transferred to either the implementing 
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agency or to the project proponent; provided, that in the latter case, the transfer shall 
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be made under competitive market conditions; provided further, that the equity 
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contribution of the implementing agency in a joint venture corporation shall in no 
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case exceed fifty percent (50%) of the outstanding capital stock of the said 
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corporation; and provided finally, that the return on investment of either party shall 
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be in proportion to their respective contribution. 
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(b) 
Recovery of Investment. - As may be agreed in the PPP contract, the 
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project proponent may be allowed to collect tolls, fees, rentals, or charges, engage 
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in commercial development, receive viability gap funding, and receive direct 
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government payments, among others, to recover investment. 
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(c) 
Wind-up and Transfer Measures. - The PPP contract shall provide, as 
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may be appropriate, for: 
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(i) 
Mechanisms and procedures for the transfer of assets to the 
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implementing agency; 
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(ii) 
The compensation to which the project proponent may be entitled in 
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respect of assets transferred to the implementing agency, or to a successor, or 
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purchased by the implementing agency; 
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(iii) 
The transfer of technology required for the operation of the 
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infrastructure facility; 
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(iv) 
The training of the implementing agency's personnel or of a successor 
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in the operation and maintenance of the infrastructure facility; and 
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(v) 
The provision, by the project proponent, of a warranty that the 
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infrastructure facility meets the project technical specifications, agreed system 
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features, and performance standards and services for a certain period as may be 
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defined in the IRR of this Act after the transfer of the infrastructure facility to the 
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implementing agency or to a successor. 
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(d) 
Prescription. - No one shall in any proceedings before any court or 
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tribunal allege the invalidity of any PPP contract on the ground of non-compliance 
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with the provisions of this Act or its IRR after a period of one (1) year has elapsed 
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from the signing of the PPP contract. 
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(e) 
Construction. - If the Person, whether or not the Project Proponent, 
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that shall actually perform the Construction of the Infrastructure Facility is a 
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foreigner, such Person shall hire Filipino employees, if available, throughout the 
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period of Construction. 
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(f) 
Operation. - The Person, whether or not the Project Proponent, that 
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shall actually operate and maintain the Infrastructure Facility, including but not 
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limited to the collection of tolls, fees, rentals or charges from users of the 
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Infrastructure Facility, must be registered with the Securities and Exchange 
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Commission 
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SEC. 27. Implementing Rules and Regulations. - The NEDA, DOF, DBM, 
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DPWH, DILG, Department of Justice, Department of Trade and Industry, Office of 
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the President, Department of Transportation and Communications, Department of 
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Enviroment and Natural Resources, PPP Center and private sector Co-chairman of 
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the NCC shall constitute the IRR Committee. Within sixty (60) days from the 
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effectivity of this Act, the PPP Center shall formulate and prescribe, in consultation 
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with the IRR Committee, after public hearing and publication as required by law, the 
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rules and regulations to implement the provisions of this Act. The IRR shall be 
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approved by the PPP Governing Board. 
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From time to time the PPP Governing Board may instruct the PPP Center, in 
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consultation with the IRR Committee, to conduct, formulate and prescribe, after due 
24. 
public hearing and publication, amendments to the IRR, consistent with the 
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provisions of this Act. 
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SEC. 28. Transitory Provisions. - All unexpended funds for the calendar year, 
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properties, equipment, contracts and records of the PPP Center are hereby retained. 
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The amount necessary to carry out the organizational changes of PPP Center 
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provided in this Act shall be determined by the PPP Governing Board. 
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Appropriations for succeeding years shall be incorporated in its budget proposals for 
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Congressional action. 
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All officials and employees of the PPP Center shall be retained and shall not 
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suffer any loss of seniority or rank or decrease in emoluments. 
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SEC. 29. Repealing Clause. - Republic Act No. 7718, Republic Act No. 6957, 
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Sec. 3(a) of Presidential Decree (PD) No. 1112, Section 2 of PD No. 1894, and 
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Executive Order (EO) No. 08 (s. 2010) as amended by EO 136 (s. 2013), EO 78 (s. 
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2012), Section 8 of EO No. 423 (s. 2005), 2013 Revised Guidelines and Procedures 
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for Entering Into Joint Venture Agreements Between Government and Private 
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Entities, Joint Venture Guidelines issued by LGUs, and PPP Codes issued by LGUs, 
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are hereby repealed. All other laws, rules and regulations or parts thereof 
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inconsistent with the provisions of this Act are hereby repealed or modified 
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accordingly. 
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SEC. 30. Separability Clause. - If any provision of this Act is heid invalid, the 
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other provisions not affected thereby shall continue in operation. 
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SEC. 31. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
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Approved. 
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