EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
of the
S.B. No.
SENATE
190
'19 JUL -2 PI 55
RECEIVED B\
INTRODUCED BY: SENATOR EMMANUEL D. PACQUIAO
AN ACT
AUTHORIZING PUBLIC-PRIVATE PARTNERSHIP FOR THE PEOPLE 
(P4), APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The World Bank in its January 2018 Global Economic Prospects reports that the 
Philippines is expected to sustain robust economic growth in the next three years. The 
Washington-based multilateral lender adds that the country will continue to be the fastest- 
growing economy in the Association of Southeast Asian Nations (ASEAN) despite some 
stabilization of investment growth.
Given this scenario, the government still has the duty to find ways to continuously spur 
national economic growth amidst constraints on public resources. Accelerating spending on 
infrastructure is a viable option to achieve this goal. Hence, it must not cease to create 
opportunities that will lead to the country’s infrastructure development with the end in view of 
generating jobs and reducing poverty.
One good alternative is turning to the private sector as source of additional funding. 
With this, there is a need to institutionalize the government’s Public-Private Partnership (PPP) 
program to better serve the public.
For this purpose, we propose this measure to create an enabling environment for PPPs. 
Among others, this measure encourages PPPs in national and local infrastructure projects by 
giving more incentives to the proponents from the private sector that choose to partner with the 
government. At the same time, it upholds transparency by requiring full public disclosure of 
PPP projects and contracts. Ultimately, it seeks to protect the public interest by providing 
affordable and necessary infrastructure projects and services.
In view of the foregoing, approval of this bill is earnestly
EMMANUEL D. PACQUIAO


EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S.B. No
SENATE
190
irr of the ^  • c t  i.ir;’
*19 Jli-2 PI 55
RECEIVED IjV:
:q u ia o  
y
INTRODUCED BY: SENATOR EMMANUEL D. PACQUIAO
AN ACT
AUTHORIZING PUBLIC-PRIVATE PARTNERSHIP FOR THE PEOPLE (P4), 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
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Be it enacted in the Senate and House of Representatives of the Philippines in Congress 
assembled:
Section 1. Short Title. -  This Act shall he known as the Public-Private Partnership for the 
People (P4) Act of the Philippines. ”
Section 2. Declaration of State Policies. -  (a) Pursuant to Section 20, Article II of the 1987 
Philippine Constitution, it is the declared policy of the State to recognize the indispensable role 
of the private sector, encourage private enterprise, and provide incentives for needed 
investments to spur national economic growth and development, provide the most appropriate 
incentives to mobilize private resources for the purpose of financing the construction, operation 
and maintenance of infi-astructure and development projects normally financed and undertaken 
by the government;
(b) In accordance with Sections 24 and 28, Article II of the 1987 Philippine 
Constitution, it is the declared policy of the State to recognize the vital role of communication 
and information in national building and adopt and implement a policy of full disclosure of all 
its transactions involving, and vested with, public interest; and
(c) P4 is a developmental, innovative, change and partnership strategy aimed at 
promoting the general welfare, inclusive growth and better quality of life of Filipinos.


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Section 3. Definition of Terms. -  The following terms used in this Act shall have the meanings 
stated below:
(a) Contractual P4 Variants . -  The following are the various contractual variants that may be 
used in a P4:
(i) 
Build-and-Transfer (BT) -  A contractual arrangement whereby the 
Private Sector Proponent (PSP) undertakes the financing and 
construction of a given infrastructure or development facility, and after 
its completion, turns it over to the implementing agency which shall, in 
turn, pay the PSP, on an agreed schedule, its total investment expended 
on the project, plus a Reasonable Rate of Return thereon.
(ii) 
Build-Lease-and-Transfer (BLT) -  A contractual arrangement whereby 
a PSP is authorized to finance and construct an infrastructure or 
development facility and upon its completion, turns it over to tire 
implementing agency on a lease arrangement for a fixed period, after 
which ownership of the facility is automatically transferred to the latter.
(Hi) 
Build-Operale-and-Transfer (BOT) -  A contractual arrangement 
whereby the PSP undertakes the construction, including financing, of a 
given infrastructure or development facility, and the operation and 
maintenance thereof. The PSP operates the facility over a fixed term, 
during which it is allowed to charge facility users appropriate tolls, fees, 
rentals, and charges not exceeding those proposed in its bid, or as 
negotiated and incorporated in the contract, to enable the PSP to recover 
its investment, and its operating and maintenance expenses in the 
project. The PSP transfers the facility to the implementing agency at the 
end of the fixed term, which shall not exceed fifty (50) years.
(iv) 
Build-Own-and-Operate (BOO) -  A contractual arrangement whereby 
a PSP is authorized to finance, construct, own, operate and maintain an 
infrastructure or development facility from which the PSP is allowed to 
recover its total investment, operating and maintenance costs plus a 
reasonable return thereon by collecting tolls, fees, rentals or other 
charges from facility users. Under this project, the proponent who owns 
the assets of the facility may assign its operation and maintenance to a 
facility operator.
(v) 
Build-Transfer-and-Operate (BTO) -  A contractual arrangement 
whereby the implementing agency contracts out the construction of an 
infrastructure or development facility to a PSP such that the contractor 
builds the facility on a turnkey basis, assuming cost overruns, delays, 
and specified performance risks. Once the facility is commissioned


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satisfactorily, title is transferred to the implementing agency; however, 
the operation thereof is retained by the PSP for a specified period of time 
which shall not exceed fifty (50) years.
(vi) 
Concession -  A contractual arrangement whereby the financing and 
construction of a new infrastructure or development facility and/ or 
rehabilitation of an existing facility is undertaken by the PSP after 
turnover thereof to it, and includes the operation, maintenance, 
management and improvement, if any, of the facility for a fixed term 
during which the PSP generally provides service directly to facility users 
and is allowed to charge and collect the approved tolls, fees, tariffs, 
rentals or charges from them. The implementing agency may receive a 
coneession or franchise fee during the term of the contract and/ or other 
consideration for the transfer, operation or use of any facility. There may 
be a transfer of ownership of the asset or facility after the concession 
period has ended subject to lules of the COA.
(vii) 
Contract-Add-and-Operate (CAO) — A contractual arrangement 
whereby the PSP adds to an existing infrastructure or development 
facility which it is leasing from the implementing agency and operates 
the expanded project over an agreed franchise period. There may or may 
not be a transfer arrangement with regard to the added facility provided 
by the PSP.
(viii) Develop-Operate-and-Tronsfer (DOT) -  A contracUjal arrangement 
whereby favorable conditions external to a new infrastructure or 
development facility to be built by a PSP are integrated into the 
arrangement by giving that entity the right to develop adjoining 
property, and thus, enjoy some of the benefits the investment creates, 
such as higher property or rent values.
(ix) 
Divestment or Disposition -  The transaction which takes away, 
deprives, withdraws the title to a property owned by the implementing 
agency and vesting ownership thereof to a PSP.
(x) 
Joint Venture (JV) -  A contractual arrangement whereby a PSP or a 
group of private sector entities on one hand, and the implementing 
agency on the other hand, contribute money/ capital, services, assets 
(including equipment, land, intellectual property or anything of value), 
or a combination of any or all of the foregoing. The implementing 
agency shall be a majority equity or shareholder while the PSP shall be 
minority equity or shareholder. Each party shall be entitled to dividends, 
income and revenues and will bear the corresponding losses and 
obligations in proportion to its share. Parties to a JV share risks to jointly


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undertake an investment activity in order to accomplish a specific, 
limited or special goal or purpose with the end view of facilitating 
private sector initiative in a particular industry or sector, and eventually 
transferring ownership of the investment activity to the PSP under 
competitive market conditions. It involves a community or pooling of 
interests in the performance of the service, function, business or activity, 
with each party having a right to direct and govern the policy in 
connection therewith, and with a view of sharing both profits and losses, 
subject to agreement by the parties.
(xi) 
Lease or Affermage -  A contractual arrangement providing for 
operation, maintenance, and management services by the PSP, including 
working capital and/ or improvements to an existing infrastructure or 
development facility leased by the PSP from the implementing agency 
for a fixed term. Under a lease, the PSP retains revenue collected from 
customers and makes a specified lease payment to the implernenting 
agency. Under an affermage, the parties share revenue from customers 
wherein the PSP pays the contracting authority an affermage fee, which 
varies according to demand and customer tariffs, and retains the 
remaining revenue. The implementing agency may provide a purchase 
option at the end of the lease period.
(xii) 
Management Contract -  A contractual arrangement involving the 
management or provision by the PSP of operation and maintenance or 
related services to an existing infrastnicture or development facility 
owned or operated by the implementing agency. The project proponent 
may collect tolls/ fees/ rentals and charges which shall be turned over to 
the implementing agency and shall be compensated in the form of a 
fixed fee and/ or performance based management or service fee during 
the contract term.
(xiii) Rehabilitate-Operate-and-Transfer (ROT) -  A contractual arrangement 
whereby an existing facility is turned over to the PSP to refurbish, 
operate and maintain for a franchise period, at the expiry of which the 
legal title to the facility is turned over to the implementing agency.
(xiv) 
Rehabilitate-Own-and-Operate (ROO) — A contractual arrangement 
whereby an existing facility is turned over to the PSP to refurbish and 
operate, with no time limitation imposed on ownership. As long as the 
operator is not in violation of its franchise, it can continue to operate the 
facility in perpetuity.
(xv) 
Service Contract -  A contractual arrangement whereby the PSP shall 
provide a particular service to the implementing agency involving the


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latter’s proprietary authority or to entities or corporation created by the 
implementing agency. The PSP shall be entitled to be paid a fee per unit 
of work done during the term of the contract.
(xvi) 
Supply-and-Operate (SO) -  A contractual arrangement rider in any P4 
Contract whereby the supplier of equipment and machinery for a given 
infrastructure or development facility, if the interest of the implementing 
agency so requires, operates the facility, providing, in the process, 
technology transfer and training to Filipino nationals.
(b) Cost Sharing -  This shall refer to the implementing agency’s portion of capital expenses 
associated with the establishment of an infrastructure or development facility such as the 
provision of access infrastructure, right-of-way, and any partial financing of the project.
(c) Credit Enhancement -  Tliis shall refer to direct and indirect support to an infrastructure or 
development facility by the PSP and/or implementing agency, the provision of which is 
contingent upon the occurrence of certain events and/or risks, as stipulated in the P4 
contract. Credit enhancements are allocated to the party that is best able to manage and 
assume the consequences of the risk involved. Credit enhancements may include, but are 
not limited to, government guarantees on the performance or the obligation of the 
implementing agency under its contract with the PSP, subject to existing laws on indirect 
guarantees. Indirect Guarantees shall refer to an agreement whereby the implementing 
agency assumes full or partial responsibility for, or assists in, maintaining the financial 
standing of the PSP or project company in order that the PSP/ project company avoids 
defaulting on tire project loans, subject to fulfilment of the PSP/ project company of its 
undertakings and obligations under the P4 contract.
(d) Competitive Challenge or Swiss Challenge -  An alternative selection process wherein third 
parties or challengers shall be invited to submit comparative proposals on the financial 
aspect to an unsolicited proposal. Accordingly, the PSP who submitted the unsolieited 
proposal, or the original proponent, is accorded the right to match any superior offers given 
by a comparative PSP.
(e) Competitive Selection or Bidding or Open Competition -  Refers to a method of selection 
or procurement initiated and solicited by the implementing agency based on a transparent 
criteria, which is open to participation by any interested party.
(f) Direct State Equity -  Refers to the subscription by the implementing agency of shares of 
stock or other securities convertible to shares of stock of the special purpose vehicle or 
single-purpose project company, whether such subscription will be paid by money or 
assets.


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(g) Direct State Guarantee -  Refers to an agreement whereby the implementing agency 
guarantees to assume responsibility for the repayment of debt directly incurred by the PSP 
in implementing the project in case of a loan default.
(h) Direct State Subsidy -  Refers to an agreement whereby the implementing agency shall;
(a) defray, pay or shoulder a portion of the P4 project cost or the expenses and costs in 
operating and maintaining the project; (b) condone or postpone any payments due from the 
PSP; (c) contribute any property or assets to the project; (d) waive or grant special rates on 
real property taxes on the project during the term of the contractual arrangement; and/ or 
(e) waive charges or fees relative to the business permits or licenses that are to be obtained 
for the construction of the project, all without receiving payment or value from the PSP or 
operator for such payment, contribution or support.
(i) Franchise, License or Permit -  refers to the right or privilege affected with public interest 
which is conferred upon a PSP, under such terms and conditions as the implementing 
agency and/or regulator, license or permit authority may impose, in tlie interest of public 
welfare, security and safety.
(j) Hybrid P4 
refers to a combination of government procurement under Republic Act No. 
9184 and P4, either simultaneously or sequentially undertaken or implemented with each 
other.
(k) Infrastructure and/or Development Facility -  Projects normally financed and operated, or 
regulated by the implementing agency but which will now be wholly or partly financed, 
constructed and operated by the PSP; projects that will advance and promote the general 
welfare; and other infrastructure and development projects as may be authorized by the 
implementing agency.
These projects include but are not limited to, energy and power, renewable energy, waste- 
to-energy, roads, bridges, causeways, waterways, highways, ports, wharfs, terminals, 
airports, community airports, canals, dams, desilting, dredging, mining and exploration, 
hydropower projects, water supply and distribution, sewerage, irrigation, drainage, water 
conservation such as impoundment areas and rainwater harvesting, telecommunications, 
railroad and railways, short-haul transit services such as monorail, guided bus, bus services 
and trams, intermodal and multi-modal transit systems, transport systems, traffic control 
and management, parking facilities, reclamation projects, platform settlements, industrial 
estates or townships, central business and industrial park development, hotels and resorts, 
socialized housing, non-conventional low-cost housing, settlement/ resettlement and 
relocation facilities, residential subdivisions, parks and open space development/ 
redevelopment, pocket parks, public art, libraries, heritage conservation, government 
buildings, sustainable/ green public buildings, sports facilities, wellness establishments, 
tourism such eco-tourism, wellness tourism and agri/agro-tourism, public markets, 
commercial buildings, slaughterhouses, storage buildings, warehouses, cold storage, solid 
waste management, sanitary landfills, meeting and convention centers, information


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technology networks and database infrastructure, education-related, classrooms, health 
facilities, hospitals, social services-related, prisons, agriculture-related, post-harvest 
facilities, environmental management and protection, climate change adaption, disaster risk 
reduetion, among other developmental projeets. The projects may be undertaken or 
implemented singly or with other related components.
(l) Implemenling Agency -  refers to the department, bureau, office, instrumentality, 
commission, or authority of the national government, including government-owned or 
controlled corporations (GOCCs), state universities and colleges (SUCs), government 
financial institutions (GFIs), government instrumentalities with corporate powers (GICPs), 
government corporate entities (GCEs), and other government corporate entities (OGCEs) 
as defined in Republic Act No. 10149, or local government units (LGUs), which may 
undertake P4 programs and projects in accordance with this Act. P4 can have several 
implementing agencies as co-grantors and/ or beneficiaries of P4.
(m) Negotiated Projects -  Refer to instances where tlie desired project is tlie result of an 
unsolicited proposal from a PSP or, where the implementing agency has failed to identify 
an eligible private sector partner for a desired P4 activity when there is only one qualified 
bidder after subjecting the same to a competitive selection or bidding.
(n) Private Sector Proponent (PSP) -  Refers to the private sector entity which shall have the 
contractual responsibility for the infrastructure or development project and w'hich shall 
have an adequate track record in the concerned industry, as well as technical capability and 
financial base consisting of equity and firm commitments from reputable financial 
institutions, to provide, upon award, sufficient credit lines to cover the total estimated cost 
of tlie project to implement the said project.
(o) Project Study (FS) -  A study, which may be a feasibility study or a pre-feasibility study, 
prepared by the implementing agency in a competitive selection or a PSP when submitting 
an unsolicited proposal, containing a needs analysis, affordability assessment, value for 
money assessment, preliminary risk assessment, stakeholder assessment, human resource 
assessment, bankabilih' assessment, legal viability assessment, P4 mode selection, market 
testing if relevant, indicative transaction implementation plan, and draft P4 contract.
(p) Public-Private Partnership for the People (P4) -  At the policy level, a P4 is a 
developmental, innovative, change and partnership strategy aimed at promoting the general 
welfare, inclusive growth and better quality of life of Filipinos.
P4 is a form of legally enforceable contract between the implementing agency and a PSP, 
requiring new investments from the PSP and transferring key risks to the PSP in which 
payments are made in exchange for performance, for the purpose of delivering a service 
provided or intended to be provided by the implementing agency. P4 shall also include 
dispositions of an asset, facility, project owned, or entity created by the implementing 
agency to a PSP; procurement of a service; assumption by a PSP of a proprietary function


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of the implementing agency; grant of a concession or franchise to a PSP by the 
implementing agency; or usage by the PSP of public property owned or possessed by the 
implementing agency.
(q) P4 Contract -  Refers to the duly executed agreement between an implementing agency and 
PSP over an awarded P4 program or project.
(r) P4 Program or Project -  Refers to an infrastructure or development facility undertaken 
pursuant to this Act.
(s) P4 Regulatory Authority -  refers to the entity authorized, as detailed in Section 11 hereof, 
to approve P4 programs or projects proposed pursuant to this Act.
(t) Reasonable Rate of Return (RROR) -  Refers to the rate of return that a PSP shall be entitled 
to, as detennined by the P4 Regulatory Authority, taking into account, among others, the 
prevailing cost of capital (equity and borrowings) in the domestic and international 
markets, risks being assumed by the PSP and the level of undertakings and contributions 
extended by the implementing agency for the project.
(u) Unsolicited Proposal -  Refers to project proposals submitted by a PSP to the implementing 
agency to undertake an infrastructure or development facility or project, whether priority 
or not, without a formal solicitation issued by the implementing agency.
(v) Value for Money (VfM) -  Refers to the concept that over the duration of a P4 program or 
project, tlie implementing agency’s total expenditures (i.e., its payments to the private 
sector), adjusted for the risks that have been transferred to the private sector, will be less, 
on a Net Present Value (NPV) basis, than if the implementing agency will perform the 
services itself VfM considers monetary and non-monetary factors such as: (i) risk transfer; 
(ii) reduced whole life costs; (iii) speed of implementation; and (iv) quality emd reliability 
of service.
(w) Viability Gap Funding (VGF) -  Refers to an explicit subsidy that is performance-driven 
(i.e., based on private party achieving measurable outputs) and targeted to socio­
economically disadvantaged users or groups of users; or any financial support in the form 
of grants or assistance, one time or deferred, to infrastructure or development facility 
undertaken through P4s with a view to make them commercially viable.
Section 4. P4 Center. -  (a) There is hereby created an agency to be known as the Public- 
Private Sectors Partnership Center (P4 Center), attached to the National Economic and 
Development Authority (NEDA). The P4 Center shall be headed by an Executive Director with 
the rank equivalent to an Undersecretary and shall be appointed by, and co-terminous with, the 
President of the Philippines who appointed him/her.
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(b) 
The PPP Center, created under Executive Order No. 8, s. of 2010, shall henceforth 
be known as the P4 Center.
Section 5. Purposes of the P4 Center. — The P4 Center is hereby created for the following 
purposes:
(a) 
To facilitate the coordination and monitoring of P4 programs and 
projects;
(b) 
To manage and administer the P4 Project Development and Monitoring 
Facility Fund (P4-PDMF Fund) created pursuant to this Act; and,
(c) 
To perform such other functions as may be necessary to effectively and 
efficiently carry out its pmposes and functions.
Section 6. Powers and Functions of the P4 Center. -  The P4 Center shall cover all P4 programs 
and projects and shall have the following powers and functions:
a) 
Render assistance to implementing agencies in identifying, developing, 
prioritizing and maintaining P4 programs and projects;
b) 
Conduct P4 programs and project facilitations to aid implementing 
agencies in addressing impediments or delays in the implementation of 
P4 programs and projects;
c) 
Provide advisory services, technical assistance, trainings and capacity 
development to implementing agencies in P4 project preparation and 
development;
d) 
Manage and administer the P4-PDMF Fund;
e) 
Serve as the Secretariat for the P4 PDMF Fund Committee;
f) 
Assist 
implementing 
agencies 
in 
setting 
procurement 
and 
implementation timelines and guidelines for approved P4 programs and 
projects;
g) 
Recommend plans and policies related to P4 programs and projects in 
consultation with appropriate oversight committees, implementing 
agencies and the private sectors;
h) 
Monitor, facilitate and evaluate the implementation of the P4 programs 
and projects of formulated by implementing agencies;
i) 
Collect, receive fees and recover costs expended in the exercise of its 
powers and functions;
j) 
Establish and manage a central database system of P4 programs and 
projects;
k) 
Recommend improvements to timelines in processing P4 programs and 
project proposals, and monitor compliance of all implementing 
agencies;


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1)
m)
n)
o)
Prepare reports on the implementation of the P4 programs and projects 
of the government for submission to the President at the end of each 
year;
Serve as the central repository of all executed P4 contracts and any 
subsequent amendment or supplement thereto, including compromise 
and/or settlement agreements, entered into by the implementing agency; 
Shall act as the Secretariat of the P4 Governing Board; and,
Perform such other functions which may be critical in expediting and 
effectively implementing the P4 programs and projects of the 
Government or necessary to achieve the objectives and purposes of this 
Act.
Section 7. P4 Governing Board. -  (a) The P4 Center shall be governed by the P4 Governing 
Board which shall serve as the overall policy-making body for all P4 programs and projects 
and related matters, including the P4 PDMF Fund.
(b) The P4 Governing Board shall be composed of the following:
Chairperson : 
Vice-Chairperson: 
Members;
Secretary of Socio-Economic Planning 
Secretary of Finance 
Secretary' of Budget and Management 
Secretary of Justice
Secretary of Interior and Local Government
Secretary of Trade and Industry
Executive Secretary
Executive Director of the P4 Center
Private Sector Co-Chairman of the National
Competitiveness Council
(c) 
The principal members of the P4 Governing Board may designate their 
respective alternates who shall be the officials next in rank to them. The acts of the alternates 
shall be considered as the act of the principal.
(d) 
The Chairperson and five (5) other members of the P4 Governing 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.
(e) 
The P4 Governing Board shall, within thirty (30) days from its date of receipt, 
act upon any matter referred to it for action or consideration.
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Section 8. Duties and Responsibilities of the Executive Director. -  The Executive Director 
shall have the following duties and responsibilities:
(a) 
To act as Chief Executive of the P4 Center;
(b) 
To execute, administer and implement the policies and measures 
approved by the P4 Governing Board;
(c) 
To direct and supervise the day-to-day operations and administration of 
the P4 Center;
(d) 
To represent the P4 Center in all dealings with offices, agencies and 
instrumentalities of the government and with all persons and other 
entities, public or private, domestic or foreign;
(e) 
To prepare the agenda for the meetings of the P4 Governing Board, and 
to submit for the consideration of the P4 Governing Board such policies 
and measures as s/he believes is necessary to carry out the purposes and 
objectives of this Act; and,
(f) 
To exercise such other powers and perform such other duties provided 
in the by-laws and as may be vested in him by the P4 Governing Board.
Section 9. P4 Project Development and Monitoring Facility Fund, -  (a) There is hereby created 
a special and revolving fund to be known as the P4 Project Development and Monitoring 
Facility (P4 PDMF Fund) which shall be managed by the P4 Center. The funds in the existing 
PDMF Fund referred to in Executive Order No. 8, Series of 2010, as amended, shall be 
transferred to the P4 PDMF Fund under this Act.
(b) 
The P4 PDMF Fund shall be used for the procurement of advisory and support 
services related to the preparation, structuring, probity management, procurement, financial 
close, and monitoring of implementation of P4 programs and projects.
Section 9. P4 PDMF Fund Committee. -  (a) A P4 PDMF Fund Committee is hereby created 
which shall approve applications for P4 PDMF Fund support submitted by implementing 
agencies, GOCCs or LGUs.
(b) 
The P4 PDMF Fund Committee shall be composed of representatives fromthe 
National Economic and Development Authority (NEDA), Department of Finance (DOF), 
Department of Budget and Management (DBM) and the P4 Center.
(c) 
The P4 PDMF Fund Committee shall formulate, prescribe and recommend 
policies, procedures and guidelines for the use of the P4 PDMF Fund and recover>' of costs 
charged thereto, to the P4 Governing Board.
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Section 10. Authority of Implementing Agencies. -  Implementing agencies are hereby 
authorized to undertake P4 programs and projects with any PSP provided, however, that the 
same must be in accordance with their respective charters and this Act.
Section 11. Approval of P4 Programs or Projects. -  P4 programs or projects shall be subject 
to the approval of the following P4 Regulatory Authorities:
(a) 
P4 programs or projects, the total cost of which exceed ONE BILLION 
PESOS (Php 1,000,000,000.00), shall be approved by the NEDA -  
Investment Coordination Committee (NEDA -  ICC); and,
(b) 
P4 programs or projects, the total cost of which does not exceed ONE 
BILLION PESOS (Php 1,000,000,000.00), shall be approved by the 
implementing agency's supervising agency, governing board or local 
legislative council, as the case may be.
Section 12. Priority P4 Programs or Projects. -  Implementing agencies shall, within ninety 
(90) days from the effectivity of this Act and every three (3) years thereafter, identify priority 
P4 programs or projects and submit the same to the P4 Center for information, coordination, 
evaluation and monitoring purposes. Identified priority P4 programs or projects should be 
consistent with the Philippine Development Plan.
Section 13. Unsolicited Proposals. -  (a) Unsolicited proposals may be submitted for any 
project, priority or otherwise.
(b) 
The implementing agency may either reject the unsolicited proposal, use the 
same as the basis of a public bidding pursuant to Section 14 hereof, or accept the unsolicited 
proposal on a negotiated basis.
(c) 
In accepting an unsolicited proposal on a negotiated basis, the implementing 
agency shall subject the unsolicited proposal to a competitive challenge or Swiss challenge; 
provided, however, that the unsolicited proposal meets the following conditions:
(i) 
The P4 program or project does not receive VGF or any other form of 
payment, direct state equity, direct state subsidy, or direct state 
guarantee from any government agency, instrumentality, or unit.
(ii) 
The implementing agency shall publish for three (3) consecutive weeks 
in a newspaper of general circulation, as well as in the website of the P4 
Center and the implementing agency, an invitation for the submission of 
comparative proposals.
If no comparative proposal is received within six (6) months from the 
date of last publication in a newspaper of general circulation, and
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provided that the unsolicited proposal is compliant and in accordance 
with all applicable laws, rules and regulations pertinent to the proposed 
infrastructure or development facility, the implementing agency may 
accept the unsolicited proposal and refer the same to the proper P4 
Regulatory Authority for approval.
If the implementing agency receives a comparative proposal within the 
period referred above that is more advantageous to the government, the 
PSP who submitted the unsolicited proposal shall have the right to match 
any superior offers given by a comparative PSP.
Section 14. Competitive Selection or Bidding or Open Competition of Priority P4 Programs 
or Projects. -  (a) Upon approval of the P4 program or project by the appropriate P4 Regulatory 
Authority, the implementing agency shall immediately cause the publication of an Invitation 
to Bid, once every week for three (3) consecutive weeks, in at least two (2) newspapers of 
general circulation and in at least one (1) local newspaper which is circulated in the region, 
province, city or municipality where the P4 program or project will be implemented, inviting 
all prospective project proponents to participate in a transparent and competitive public 
bidding. Said invitation shall also be posted continuously in the websites of the implementing 
agency and the P4 Center.
(b) 
The public bidding shall be conducted under a two-stage-two-envelope system, 
the procedure and details of which shall be outline in the implementing rules and regulations 
(IRR) of this Act.
(c) 
The P4 program or project, and its resulting contract, shall be awarded to the 
bidder who has passed the pre-qualification stage for having satisfied the minimum financial, 
organizational and legal standards as set forth in the IRR of this Act, has passed the technical 
proposal evaluation, and has submitted the most favorable financial bid based on the 
parameters defined in the bid documents.
(d) 
In case of a sole complying and/or responsive bidder, the implementing agency 
may award the P4 program or project, and its resulting contract, to that bidder upon its 
compliance with the post-award requirements as set forth in the IRR of this Act.
Section 15. Direct Negotiations. -  Direct negotiation shall be resorted to when there is only 
one complying bidder left as defined hereunder:
(a) 
If, after advertisement, only one contractor applies for prequalification 
and it meets the prequalification requirements, after which it is required 
to submit a bid/proposal which is subsequently found by the 
implementing agency to be complying.
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(b) 
If, after advertisement, more than one contractor applied for 
prequalification but only one meets the prequalification requirements, 
after which it submits bid/proposal which is found by the implementing 
agency to be complying.
(c) 
If, after prequalification of more than one contractor, only one submits 
a bid which is found by the implementing agency to be complying.
(d) 
If, after prequalification, more than one contractor submit bids but only 
one is found by the implementing agency to be complying: Provided, 
That any of the disqualified prospective bidder may appeal the decision 
of the implementing agency's Pre-qualification Bids and Awards 
Committee within fifteen (15) working days to the head of the agency, 
in case of P4 programs or projects by government agencies or GOCCs; 
to the Department of the Interior and Local Government (DILG), in case 
of P4 programs or projects by LGUs from the date the disqualification 
was made known to the disqualified bidder: Provided, furthermore. That 
the implementing agency concerned or DILG should act on the appeal 
within forty-five (45) working days from receipt thereof
Section 16. Grant of Administrative Franchise, License or Permit. -  (a) If the implementing 
agency is likewise the regulator, licensing or permit authority concerned, it shall, within thirty 
(30) days from the execution of a P4 Contract, issue or grant in favour of the PSP the necessary 
administrative franchise, license or pennit required and necessaiy for the implementation of 
the P4 program or project. If the P4 contract contains a concession provision or if a concession 
is contained in a separate agreement, said contract or agreement constitutes the grant of 
administrative franchise, license or permit.
(b) 
If the regulator, licensing or permit authority is a government agency, 
instrumentality or subdivision other than the implementing agency, the latter shall, within thirty 
(30) days from the execution of the P4 Contract, endorse the P4 program or project to the 
proper regulator, licensing or permit authority for the issuance and/or grant of requisite 
administrative fi-anchise, license or permit.
(c) Ifte regulator, license or permit authority shall, provided that the PSP and/or P4 
program or project is in compliance with all the requirements of the regulator, license or permit 
authority, accept and approve the application for administrative franchise, license or permit 
within sixty (60) days from receipt of all required and necessary documents. The failure of the 
regulator, license or permit authority to act on a proper and complete application upon the lapse 
of the aforementioned period shall be deemed as approval thereof.
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Section 16. Expansion or Extension of an Existing Infrastructure or Development Facility. P4 
Contract Amendment. -  Subject to conditions specified in the IRR of this Act, and upon prior 
approval by the appropriate P4 Regulatory Authority, the PSP of an existing infrastructure or 
development facility may be expand or extend the same even without further bidding; 
Provided, however, that the cost of the expansion or extension shall not exceed twenty-five 
percent (25%) of the price-adjusted original project cost; and, provided, further, that any 
subsequent expansion or extension shall no longer be allowed.
Section 17. Contract Amendment and Termination. -  (a) A PPP contract may be modified or 
amended, in form or in substance, after the contract has been signed by the parties, provided, 
that the terms of reference or tender documents of the competitive selection or challenge, 
including the draft P4 contract, contains the right to amend.
(b) In the event that a P4 Contract is revoked, cancelled or terminated by the 
implementing agency through no fault of the PSP or by mutual agreement, the implementing 
agency shall compensate tlie PSP for actual expenses incurred in the P4 program or project 
plus a reasonable rate of return thereon not exceeding that stated in the contract as of the date 
of such revocation, cancellation or termination: Provided, That the interest of the implementing 
agency in these instances shall be duly insured with the Government Service Insurance System 
(GSIS) or any other insurance entity duly accredited by the Office of lire Insurance 
Commissioner: Provided, finally. That the cost of the insurance coverage shall be included in 
the terms and conditions of the bidding referred to above.
(c) In the event that the implementing agency defaults on certain major obligations in 
the contract and such failure is not remediable or if remediable shall remain unremedied for an 
unreasonable length of time, the PSP may, by prior notice, tenninate the contract. The PSP 
shall be reasonably compensated by the implementing agency of equivalent or proportionate 
contract cost as defined in the contract.
(d) Only the courts can declare a P4 contract and award illegal and unlawful.
Section 18. Prohibition on the Issuance of Temporary Restraining Orders or Injunctions. -  No 
court, except the Supreme Court, shall issue any temporary restraining order, preliminary 
injunction or preliminary mandatory injunction against the implementing agency, officials or 
any person or entity, whether public or private acting under the implementing agency’s 
direction, to restrain, prohibit or compel the following acts:
(a) 
Acquisition, clearance and development of the right-of-way and/or site 
or location of any P4 program or project;
(b) 
Bidding or awarding of P4 program or project and P4 Contract;
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(c) 
Commencement, execution, implementation, operation of any P4 
program or project and P4 Contract;
(d) 
Termination or rescission of any P4 program or project and P4 Contract; 
and,
(e) 
The undertaking or authorization of any other lawful activity necessary 
for P4 program or project and P4 Contract.
This prohibition shall apply in all cases, disputes or controversies instituted by a private 
party, including but not limited to cases filed by bidders or those claiming to have rights 
through such bidders involving such P4 program or project and P4 Contract. This prohibition 
shall not apply when the matter is of extreme urgency involving a constitutional issue, such 
that unless a temporary restraining order is issued, grave injustice and irreparable injury will 
arise. The applicant shall file a bond, in an amount to be fixed by the Supreme Court, which 
bond shall accrue in favor of the government if tire Supreme Court should finally decide tliat 
the applicant was not entitled to the relief sought.
The temporary' restraining order, preliminary' injunction or preliminary' mandatory' 
injunction issued by the Supreme Court, however, shall be effective only for a period not 
exceeding six (6) months
Section 19. P4 Program or Project Supervision. -  Every P4 program or project undertaken 
under the provisions of this Act shall be in accordance with the plans, specifications, standards, 
and costs approved by the concerned implementing agency and shall be under the supervision 
of the said implementing agency.
Section 20. Investment Incentives. -  Among other incentives, P4 programs and projects in 
excess of ONE BILLION PESOS (Phpl,000,000,000) shall be entitled to incentives as 
provided by the Omnibus Investment Code, upon prior endorsement by the P4 Center and 
registration by the PSP with the Board of Investments.
Section 21. Exemption from Payment of Transfer Taxes. -  The transfer of ownership of 
infrastructure and development facility from the PSP to the implementing agency shall be 
exempt fi-om capital gains tax, documentary stamp tax and all taxes and fees, whether from 
national or local, related to the transfer thereof.
Section 22. Recovery of Investment. -  The PSP may, pursuant to the terms and conditions set 
forth in the P4 Contract, be allowed to collect tolls, fees, rentals, or charges, engage in 
commercial development, receive VGF, and receive direct government payments, among 
others, to recover its investment.
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Section 23. Implementing Rules and Regulations; Ordinances. -  (a) The P4 Governing Board 
shall constitute the IRR Committee. Within sixty (60) days from the effectivity of this Act, the 
IRR Committee, after public hearing and publication as required by law, the rules and 
regulations to implement the provisions of this Act. Nothwithstanding the non-issuance of the 
IRR, this Act shall become operative.
(b) 
Local government units may enact their own P4 ordinances not inconsistent 
with this Act. They may provide for other P4 contractual variants other than those listed under 
this Act.
Section 24. Transitory Provisions. -  All unexpended funds for the calendar year, properties, 
equipment, contracts and records of the P4 Center are hereby retained. The amount necessary 
to carry out the organizational changes of P4 Center, if deemed necessary by the P4 Governing 
Board, shall be incorporated in its budget appropriations proposals to Congress for the 
succeedhig years.
All officials and employees of the P4 Center shall be retained and shall not suffer any 
loss of seniority or rank or decrease in emoluments.
Section 25. Repealing Clause. -  (a) All laws, executive orders, presidential decrees, rules, 
regulations, or parts thereof that are inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly.
(b) This Act shall apply prospectively. All P4 contracts, awards and procedures, 
whether completed or commenced under relevant rules, guidelines, and ordinances are deemed 
recognized and shall continue, and shall not be impaired.
Section 26. Separability Clause. -  If any provision of this Act is held invalid, the other 
provisions not affected thereby shall continue in operation.
Section 27. Effectivity Clause. -  This Act shall take effect fifteen (15) days after its publication 
in at least two (2) newspapers of general circulation.
Approved,
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