NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE
S. B. NO. 1613
of ilif •; ftnru
)
j 72. DEC 14 All :23
Introduced by SENATORS JUAN MIGUEL F. ZUBIRI and
JOEL VILLANUEVA
AN ACT
STRENGTHENING PUBLIC-PRIVATE PARTNERSHIPS, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER 
PURPOSES
EXPLANATORY NOTE
In 2019, the World Economic Forum Global Competitiveness Report 
ranked the Philippines 96th out of 141 countries with regard to infrastructure 
competitiveness.1 It is notable that the report indicated that among the factors 
that contributed to the Philippines’ low ranking was road connectivity (125th 
rank), electricity access (103rd rank), and exposure to unsafe drinking water 
(105th).
In 2019, the country’s infrastructure spending was equivalent to 5.4% of 
the country’s Gross Domestic Product. Spending contracted to 4.8% of GDP in 
2020, mainly due to the discontinuance of some capital outlay projects to fund 
the country’s Coronavirus (COVID-19) response.2 With road, airport, and 
railway projects rolled out in 2021, infrastructure spending reached Php1.12
from
1 
The Global Competitiveness Report 2019, World Economic Forum. Retrieved 
https://www3.weforum.orq/docs/WEF TheGlobalCompetitivenessReport2019.pdf, p. 463.
2 Facts and Figures: Public Infrastructure Expenditure, Congressional Policy and Budget Research
Department, 
May 
2021. 
Retrieved 
from
https://cpbrd.conqress.qov.ph/imaqes/PDF%20Attachments/Facts%20in%20Fiqures/FF2021-
30 Pub Infra Expenditure.pdf. p. 1.


trillion, equivalent to 5.8% of the GDP,3 and the government eyes an estimated 
5%-6% spending annually between 2023-2028.4
Given the country’s limited resources, public-private partnership (PPP) is 
one of the options available to be able to deliver on infrastructure gaps, which 
mobilizes private resources for financing the construction, operation, and 
maintenance of infrastructure and development projects normally financed and 
undertaken by the government.5
The law governing PPP undertakings is Republic Act No. 6957, as 
amended by Republic Act No. 7718. It was first enacted into law in 1990 and 
was later amended in 1994 to encompass other PPP variants, such as build- 
operate-and-transfer, build-and-transfer, build-own-and-operate, build-lease- 
and-transfer, build-transfer-and-operate, contract-add-and-operate, develop- 
operate-and-transfer, rehabilitate-operate-and-transfer, and rehabilitate-own- 
and-operate.6
Since the law’s enactment, many infrastructure projects have been 
implemented, which include projects in power, water, toll road, port, airport, 
telecommunications, and many others. Based on the PPP Center’s 2021 
Annual Report, as of December 31,2021, the PPP Program has a total of 183 
awarded projects, amounting to at least Php2.29 trillion.7 This includes key 
project accomplishments, such as the inauguration of the Metro Manila Skyway 
Stage 3 on January 14, 2021, the delivery of the 4th Generation Light Rail 
Vehicles for the Light Rail Transit (LRT) 1 Project on January 26, 2021, and the 
issuance of the Notice to Proceed to the Manila North Tollways Corporation in 
December 2021 for the construction of the NLEX-SLEX Connector Road.8
Infrastructure investments likewise promote job creation, with the 
National Economic and Development Authority estimating that 202Ts 
infrastructure spending may have created 2.3 million indirect and direct jobs.9 
Further, NEDA estimates that such investments will translate to the creation of 
2.5 million jobs in 2022.10
3 March 28, 2022, Infra Spending hit record Php1.12T in 2021, says DBM, Inquirer. Retrieved from 
https://business.inquirer.net/344457/infra-spendinq-hit-record-p-1-12t-in-2021-savs-dbm (date last 
accessed September 18, 2022).
4 July 6, 2022, Gov't eyes spending 5 to 6% of GDP for infra projects annually, Inquirer. Retrieved from 
https://business.inquirer.net/352288/marcos-admin-eves-to-spend-5-to-6-of-qdp-for-build-build-build-
proqram-annuallv (date last accessed September 18, 2022).
5 Section 1 of Republic Act No. 6957, as amended by Republic Act No. 7718.
6 Id.
7 PPP Center 2021 Annual Report, PPP Center. Retrieved from https://ppp.qov.ph/publications/ppp- 
center-2021-annual-report/, p. 24-25.
8 Id., p. 24-25.
9 February 8, 2022, Neda says government infrastructure projects could create 2 million jobs this year. 
Business Mirror. Retrieved from https://businessmirror.com.ph/2022/02/08/neda-savs-qovernment- 
infrastructure-proiects-could-create-2-million-iobs-this-vear/?fbclid=lwAR1mYOmnFOjGRVq3qN-
C7aaoJTo32BZzC-Wk7hPrvl3Vw\A^WSTiqUE7rd2M (date last accessed: September 18, 2022).
10/d.


To bolster and strengthen the country’s PPP program, incentivize the 
private sector through an adequate return on investment, and stimulate job 
generation opportunities for all Filipinos, there is a need to amend the existing 
framework for PPP.
Thus, the immediate passage of this bill is earnestly sought.
IGUEL F.ZUBIRI
JOElCiA/ILLANUEVA


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NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
of til? 'ftarp
'22 DEC 14 All :23
SENATE
iircc'v
S.B. No. 1613
Introduced by SENATORS JUAN MIGUEL F. ZUBIRI and
JOEL VILLANUEVA
AN ACT
STRENGTHENING 
PUBLIC-PRIVATE 
PARTNERSHIPS,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the “Public-Private 
Partnership (PPP) Act."
SEC. 2. Declaration of Policy. - Section 20, Article II, of the Constitution 
declares that the State recognizes the indispensable role of the private sector, 
encourages private enterprise, and provides incentives to needed investments. To this 
end, the State shall provide an enabling environment for the private sector to mobilize 
its resources for the purpose of financing, designing, construction, operations, and 
maintenance of infrastructure and development projects. As provided by law, the 
government shall foster robust private sector participation by providing financial 
incentives and by reducing costs of doing business.
It is further declared that the State shall protect the public interest by providing 
affordable, accessible, and efficient public services. In order to achieve better quality 
of PPP Projects at lower costs, the State shall ensure equitable risk allocation in PPP 
Projects, and that all PPP Projects yield sufficient value for money, value for people, 
and value for planet.
The State, through all means available, shall pursue a policy of maintaining a 
reasonable balance on the financing of infrastructure and other development projects 
that will most effectively meet the objectives of the government. These may include 
appropriations, official development assistance, and PPPs, as well as combinations 
thereof. The government shall determine the appropriate financing by considering 
budget availability, timelines, stakeholder commitments, and market capacity.


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The State shall also ensure the integration of climate resilience, sustainability, 
and gender and development policies and programs in the planning, design, and 
implementation of PPP Projects, in accordance with relevant laws, rules, and 
regulations.
Finally, it is declared that the State shall affirm open, fair, transparent, and 
competitive selection as the central tenet for securing private investment in PPP 
Projects. It shall implement a policy of full public disclosure of all its transactions 
involving public interest, subject to terms and conditions as prescribed by pertinent 
laws.
SEC. 3. Scope and Application. - This Act shall apply to all PPP Projects 
undertaken by Implementing Agencies through PPP contracts with a Private 
Proponent, including Joint Ventures, as defined under this Act. This shall also cover 
lease agreements, when such is a component of a PPP Project, or possess 
characteristics or elements of a PPP as provided in Section 5 of this Act. This Act shall 
also apply to all contractual agreements with a Private Proponent involving the 
construction, operation, and maintenance, or a combination thereof, of toll facilities in 
accordance with Presidential Decree (PD) No. 1112, s. 1977 or the Toll Operation 
Decree, P.D. No. 1113, s. 1977, and PD No. 1894, s. 1983. This Act shall likewise 
apply to and be enforceable among all parties to said PPP contracts.
This Act shall not be applicable to infrastructure projects undertaken through 
the design and build scheme under Republic Act No. 9184, or the Government 
Procurement Reform Act.
Furthermore, this Act shall not cover management contracts, service contracts, 
divestments or dispositions, corporatization, incorporation of subsidiaries with private 
sector equity, onerous donations, gratuitous donations, and other contractual 
arrangements that do not demonstrate the necessary characteristics or elements of a 
PPP as provided in Section 5 of this Act. In such cases, the Implementing Agencies 
shall implement the aforementioned arrangements in accordance with provisions of 
other applicable laws.
SEC. 4. Definition of Terms. - As used in this Act:
(a) 
Approving Body refers to an entity authorized to approve PPP Projects, in 
accordance with Section 7 of this Act;
(b) 
Availability Payments refer to predetermined payments by the Implementing 
Agency to the Private Proponent in exchange of delivering an asset or service in 
accordance with the contract. Availability Payments shall not be construed as 
Government Undertakings, Subsidy, and^r government contribution:
(c) 
Construction refers to new construction, rehabilitation, improvement, 
expansion, alteration, and related works and activities, including the necessary 
design, supply, installation, testing and commissioning of equipment, systems, 
plants, materials, labor and services, and related items needed to build or 
rehabilitate an infrastructure or development facility;


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(d) 
Contractor refers to any entity allowed and duly registered and licensed under 
Philippine laws, which may or may not be the Private Proponent, and which shall 
undertake the Construction and/or supply of equipment or services for PPP 
Projects;
(e) 
Contingent Liability refers to an obligation that may or may not arise from 
events specified in a PPP contract, the occurrence, timing, and amount of which 
are uncertain. These events include, but are not limited to regulatory risks, force 
majeure, breach of government warranties, and material adverse government 
action, among others;
(f) 
Facility Operator refers to an entity with legal personality authorized under 
existing laws, which may or may not be the Private Proponent, that shall be 
responsible for operating and/or maintaining a facility, including, but not limited 
to, the collection of tolls, fares, fees, rentals or charges from facility users;
(g) 
Government Undertakings refers to any form of contribution and/or support, 
which the government may extend to a Private Proponent for the implementation 
of PPP Projects, as provided under this Act. The procedures on proposing and 
granting of Government Undertakings, including applicable caps, shall be 
prescribed in the implementing rules and regulations (IRR) of this Act;
(h) 
Green Financing refers to investments that create environmental benefits in 
support of green growth, low-carbon, and sustainable development;
(i) 
Guarantee on Demand refers to an agreement whereby the Implementing 
Agency guarantees a minimum amount of users, consumers, traffic, or other 
similar assumptions for the PPP Project;
(j) 
Guarantee on Loan Repayment refers to an agreement whereby the 
Implementing Agency guarantees to assume responsibility for the repayment of 
debt directly incurred by the Private Proponent in implementing the PPP Project 
in case of a loan default;
(k) 
Guarantee on Private Sector Return refers to an agreement whereby the 
Implementing Agency guarantees to provide a predetermined rate of return on 
the investment of the Private Proponent. This shall not cover Termination 
Payments arising from government events of default;
(l) 
Implementing Agency refers to a department, bureau, office, instrumentality, 
commission, authority of the national government, state university and college 
(SUC), local government unit (LGU), or government-owned or -controlled 
corporation (GOCC) as defined in Republic Act No. 10149, or the GOCC 
Governance Act of 2011, including government instrumentality with corporate 
powers (GICP), government corporate entity (GCE), and government financial 
institution (GFI), water districts, and economic zone authorities, which is hereby 
authorized to undertake PPP Projects with a Private Proponent in accordance 
with its mandate or charter and the provisions of this Act;


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(m) Joint Venture refers to a contractual arrangement whereby both the 
Implementing Agency performing a proprietary function and the Private 
Proponent contribute to pool resources comprising of capital, services, or assets 
(including equipment, land, or intellectual property) to jointly undertake a specific 
investment activity to deliver an infrastructure or development project typically 
provided by the public sector, subject to Section 11 of this Act;
(n) 
Local PPP Project refers to a PPP Project that shall be undertaken by LGUs 
and local universities and colleges (LUCs) as defined in Republic Act No. 10931 
or the Universal Access to Quality Tertiary Education Act (UAQTE Act);
(o) 
National PPP Project refers to a PPP Project that shall be undertaken by the 
national government, SUCs as defined in the UAQTE Act, GQCCs including 
GICPs, GCEs, and GFIs, water districts, and economic zone authorities;
(p) 
Original Proponent refers to the Private Proponent which submitted an 
unsolicited proposal that has been accepted, has been pre-qualified by the 
Implementing Agency, and has been conferred the “Original Proponent status 
(OPS)”, as mentioned in Section 10 of this Act;
(q) 
PPP Project refers to any infrastructure or development project implemented 
under this Act;
(r) 
Private Proponent refers to the private sector entity which has submitted an 
unsolicited proposal, or a bid submission in relation to a solicited PPP Project, 
and/or has a contractual responsibility for the PPP Project. The Private 
Proponent may be Filipino or foreign-owned, and may engage the services of a 
foreign Contractor or foreign Facility Qperator, subject to requirements and 
limitations provided under existing laws, rules, and regulations;
(s) 
Project Cost refers to the estimated cost of the PPP Project, based on its nature 
and structure, the determination of which shall be prescribed in the IRR of this 
Act;
(t) 
Solicited Proposal refers to a submission by the Private Proponent to bid for a 
PPP Project through open, fair, transparent, and competitive public bidding 
initiated by the Implementing Agency, subject to Section 9 of this Act;
(u) 
Subsidy refers to an agreement whereby the Implementing Agency will: (i) 
defray, pay for, or shoulder a portion of the Project Cost or the expenses and 
costs in operating or maintaining the project; (ii) bear a portion of capital 
expenses associated with the establishment of an infrastructure or development 
project, and/or any partial financing of the project or component thereof; (iii) 
contribute any property or assets to the project; (iv) in the case of LGUs, waive 
or grant special rates on real property taxes on the project during the term of the 
contractual arrangement; and/or (v) waive charges or fees relative to business 
permits or licenses that are to be obtained for the Construction of the project, all 
without receiving payment or value from the Private Proponent, Contractor, 
and/or Facility Qperator for such payment, contribution, or support: Provided,


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That Subsidy falling under items (i) and (ii) shall not exceed fifty percent (50%) 
of the total Project Cost;
(v) 
Termination Payment refers to the amount payable by the government or the 
Private Proponent on the occurrence of an event or series of events provided for 
in the PPP contract that results in the termination of said contract;
(w) 
Unsolicited Proposal refers to a project proposal submitted by a Private 
Proponent not in response to a formal solicitation or request issued by the 
Implementing Agency, subject to Section 10 of this Act; and
(x) 
Viability Gap Funding (VGF) refers to a type of Subsidy in the form of a financial 
support that the government may provide to a revenue-based PPP Project with 
the objective of making fees affordable, while improving the commercial 
attractiveness of the project, excluding costs of right-of-way, resettlement, and 
real estate taxes.
SEC. 5. Public-Private Partnership. - A PPP is a contractual arrangement 
between the Implementing Agency and the Private Proponent for the financing, 
designing, constructing, operating and maintaining, or any combination thereof, of 
infrastructure or development projects which are typically provided by the public 
sector, where each party shares in the associated risks. PPP Projects may also be 
financed partly from direct government appropriations and/or from official development 
assistance (ODA) of foreign governments or institutions.
PPP Projects may be undertaken through contractual arrangements, including 
Joint Ventures, authorized under the Implementing Rules and Regulations (IRR) of 
this Act, and such other variations thereof as may be approved by the appropriate 
Approving Body. PPP also includes lease agreements providing for rehabilitation, 
operation, and/or maintenance, including working capital and/or improvements to, by 
the Private Proponent of an existing land or facility owned by the government for a 
fixed period of time covering more than one (1) year.
Implementing Agencies, in accordance with their respective mandates or 
charters, are hereby authorized to undertake PPP Projects with a Private Proponent 
in accordance with the provisions of this Act.
SEC. 6. Identification of PPP Projects. - Implementing Agencies shall include 
in their development plans, strategies, and investment programs those PPP Projects 
that they are to undertake. In identifying these projects, the Implementing Agencies 
shall be guided by the following principles: effectiveness in meeting government 
objectives, appropriateness of the chosen procurement modality and source of 
funding, value for money, accountability and transparency, consumer rights, 
affordability, and public access, safety, and security. All PPP Projects shall be 
consistent and responsive to national, local, and sectoral development and investment 
plans.
The Implementing Agencies shall submit their list of PPP Projects or any update 
thereto to the appropriate oversight agencies, including the National Economic and 
Development Authority (NEDA), regional development councils (RDCs), and the PPP


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Center, for information and in accordance with existing rules, regulations, and 
guidelines. Each proposed PPP Project shall be subject to the approval of the 
appropriate Approving Body.
The PPP Center shall ensure that the Congress of the Philippines and the 
public shall be provided with adequate and timely information on PPP Projects.
SEC. 7. Approval of PPP Projects. -
(a) The approval of PPP Projects under this Act shall be in accordance with the 
following;
(1) 
National PPP Projects. National PPP Projects shall be approved as 
follows:
(i) 
Projects with Project Cost above five billion pesos 
(PhP5,000,000,000.00) shall be submitted to the NEDA Board for 
approval, upon favorable recommendation of the Investment 
Coordination Committee of the NEDA (ICC-NEDA);
(ii) 
Projects with Project Cost from two billion five hundred million pesos 
(PhP2,500,000,000.00) to five billion pesos (PhP5,000,000,000.00) 
shall be submitted to the ICC-NEDA for approval;
(iii) 
Projects with Project Cost below two billion five hundred million pesos 
(PhP2,500,000,000.00) shall be submitted to the Heads of the 
Implementing Agencies, or their Board, whichever is applicable, for 
approval.
The ICC-NEDA may, from time to time, update the aforementioned 
amounts when the need arises.
(2) 
Local PPP Projects. Regardless of Project Cost, Local PPP Projects shall 
be approved by the local Sanggunians in the case of LCDs, or by the 
Boards in the case of LUCs. Prior to approval. Local PPP Projects 
implemented by LGUs shall be confirmed by the respective local 
development council.
Proposed Government Undertakings using national government funds for 
Local PPP Projects shall be submitted to the ICC-NEDA for approval, upon 
review and endorsement by the respective RDCs. Such Government 
Undertakings shall include, among others, the following items to be 
provided by the national government to a Local PPP Project: (i) Guarantees 
on Demand, (ii) Guarantees on Private Sector Return, (iii) Guarantees on 
Loan Repayment; (iv) Viability Gap Funding and other forms of Subsidy; (v) 
payment of Contingent Liability, including Termination Payments. Permits, 
clearances, licenses or endorsements from national government agencies 
required for Local PPP Projects under laws, rules, and regulations, shall not 
be considered as Government Undertakings by the national government for 
Local PPP Projects;


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The ICC-NEDA shall render its decision on such requested Government 
Undertakings within the prescribed period in the IRR of this Act. The 
disapproval of the requested Government Undertakings shall not be 
construed as a disapproval of the Local PPP Project.
Local PPP Projects affecting national development or master plans and 
national projects shall secure the endorsement of the national government 
through the respective RDCs, prior to approval by the local Sanggunians in 
the case of LGUs, or by the Boards in the case of LUCs. Such endorsement 
of the RDC shall be processed in the most expeditious manner as 
prescribed in the IRR of this Act, and shall not be unreasonably withheld.
A PPP Project covering two or more LGUs may be implemented by the 
national government, subject to the approval process for National PPP 
Project; or by the next higher level of LGU, subject to the approval process 
for Local PPP Projects, or by the LGUs concerned.
In case of a Local PPP Project implemented by two or more LGUs, such 
project shall be approved by the local Sanggunians of the LGUs concerned, 
pursuant to Republic Act No. 7160 or the Local Government Code of 1991. 
The respective RDCs may assist in the coordination of LGUs in the 
development, approval, and implementation of the Local PPP Project 
covering two or more LGUs.
(b) 
The Approving Body shall assess all PPP Projects based on its overali feasibility, 
in accordance with the principie of protecting public interest through the provision 
of affordable, accessible, and efficient pubiic services. All PPP Projects 
submitted to the Approving Body shall include proposed indicators to determine 
their benefits and outcomes, which shail be used in the monitoring and evaluation 
of PPP Projects during implementation. To ensure that ail risks associated with 
PPP Projects are managed and mitigated accordingly, all PPP contracts to be 
entered into by the Implementing Agency shaii adhere to the principles stipulated 
under the Generic Preferred Risk Allocation Matrix (GPRAM) issued by the ICC- 
NEDA.
(c) 
The appropriate Approving Body shall notify and advise, in writing, the 
Implementing Agency of its receipt and assessment of the completeness, in form 
and in substance, of the PPP Project proposai. Upon complete submission of the 
requirements by the Implementing Agency, the appropriate Approving Body shall 
render its decision on the project in the most expeditious manner considering the 
nature and complexity of the PPP Project, as prescribed in the IRR of this Act. 
The Implementing Agency shall be duly notified in writing of the decision of the 
Approving Body on or before the prescribed period in the IRR of this Act. The 
failure of the appropriate Approving Body to render its decision on the project 
within the specified period shall be deemed an approval thereof, and the 
Implementing Agency concerned may proceed with the procurement of the PPP 
Project, without prejudice to any iiability that the erring or negligent officials or 
employees may incur under existing laws.


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(d) 
In order to facilitate a comprehensive and timely review of PPP Projects, the ICC- 
NEDA, in the case of National PPP Projects, and the PPP Governing Board, in 
the case of Local PPP Projects, shall formulate guidelines, forms, and templates 
that shall be used by the Implementing Agency and the Approving Body in 
reviewing and approving the PPP Project. The ICC-NEDA shall also formulate 
guidelines on the approval of Government Undertakings using national 
government funds for Local PPP Projects.
(e) 
The decision of the Approving Body to approve and implement the project under 
any of the contractual arrangements or variations thereof shall be final and 
executory unless the Implementing Agency can provide sufficient justifiable 
reason to convert the PPP Project to another project under a different 
procurement modality.
SEC. 8. PPP Pre-qualification, Bids and Awards Committee. - The Head of 
the Implementing Agency undertaking PPP Projects shall create a PPP Pre­
qualification, Bids and Awards Committee (PBAC), which shall be responsible for all 
aspects of pre-bidding and bidding process in solicited proposals, or the comparative 
bidding process in unsolicited proposals. The composition and specific functions of the 
PBAC for National PPP Projects and Local PPP Projects shall be specified in the IRR 
of this Act, which may include other relevant government entities.
SEC. 9. Solicited Proposals. -
(a) 
General. Solicited Proposals refer to submissions by the Private Proponent to 
bid for PPP Projects through open, fair, transparent, and competitive public 
bidding initiated by the Implementing Agency. Government Undertakings are 
allowed, subject to the approval of the Approving Body.
(b) 
Public Bidding. The public bidding may be conducted in a single-stage or two- 
stage bidding process, either manually or electronically, subject to the rules 
provided for in the IRR of this Act.
The contract shall be awarded to the bidder who has satisfied all pre-qualification 
and eligibility requirements and has submitted the most compliant bid as defined 
in the bid documents. In all instances, the principle of protecting public interest 
through the provision of affordable, accessible, and efficient public services shall 
be of paramount importance in awarding a PPP contract.
If the winning bidder fails to comply with any post-award requirement which shall 
be set as part of the bidding documents, or fails to enter into a contract with the 
Implementing Agency, the latter may proceed to consider the next most 
compliant bidder In case the contract is awarded to the next most compliant 
bidder, it shall be without prejudice to legal remedies available to the 
Implementing Agency such as forfeiture of bid security, withdrawal of award, and 
such other remedies allowed under existing laws, rules, and regulations.
All PPP contracts shall require a period within which financial close shall be 
achieved by the Private Proponent. Failure to achieve financial close within such 
period shall be subject to penalties to be provided for in the signed contract:


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Provided, That such failure to achieve financial close is not due to the fault of the 
government.
Any change in control of the Private Proponent or composition of the consortium 
shall be allowed, subject to rules set forth in the IRR of this Act: Provided, That 
the Private Proponent or consortium has equal or better qualifications.
(c) 
Failure of Bidding. The PBAC shall declare failure of bidding in case of any of 
the following:
(1) 
If no bids are received;
(2) 
If there are no complying bids; or
(3) 
If the winning bidder refuses without justifiable cause to accept the award 
of contract, as the case may be.
The Head of the Implementing Agency, upon the recommendation of the PBAC, 
may also declare a failure of bidding if, after advertisement, only one bidder 
applied for and met the pre-qualification requirements, unless otherwise provided 
in this Act.
The procedures and mechanisms in dealing with a failure of bidding shall be 
prescribed in the IRR of this Act.
(d) 
Single Complying Bid. Without prejudice to paragraph (a) of this Section, the 
Implementing Agency may consider, on a negotiated basis, a single complying 
and responsive bid in case of any of the following:
(1) 
If, after advertisement, more than one bidder applied for pre-qualification 
but only one met the pre-qualification requirements:
(2) 
If, after advertisement, only one bidder applied for and met the pre­
qualification requirements, provided such was allowed by the Head of the 
Implementing Agency, upon recommendation of the PBAC;
(3) 
If, after pre-qualification of more than one bidder, only one submitted a bid; 
or
(4) 
If, after pre-qualification, more than one bidder submitted bids but only one 
is found by the Implementing Agency to be complying.
SEC. 10. Unsolicited Proposals. -
(a) 
General. Unsolicited Proposals refer to project proposals submitted by a Private 
Proponent not in response to a formal solicitation or request issued by the 
Implementing Agency.
The Implementing Agency may accept, reject, or convert an unsolicited proposal 
into a solicited proposal, subject to the evaluation of eligibility and merits of the 
project, and other conditions set forth in this Section and the IRR of this Act.
(b) 
Limitations. Unsolicited proposals may be allowed for projects in the list of PPP 
Projects, subject to the procedures and conditions set forth in this Section and 
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development cost for the PPP Project, such as the conduct of feasibility study, 
business case, and surveys, among others, for the last five (5) years, the Private 
Proponent must undertake to reimburse the Implementing Agency of such 
documented development costs notwithstanding whether it is funded through 
government appropriations, grants, and other sources. Reimbursable 
development costs for such proposal and the procedures for such 
reimbursement shall be determined by the Implementing Agency.
An unsolicited proposal shall not contain any of the following Government 
Undertakings:
(1) 
Viability Gap Funding and other forms of Subsidy:
(2) 
Payment of right-of-way (ROW)-related costs;
(3) 
Performance undertaking:
(4) 
Exemption from any taxes as required by laws, except local taxes imposed
by local government units;
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Guarantee on Demand;
(6) 
Guarantee on Loan Repayment;
(7) 
Guarantee on Private Sector Return;
(8) 
Government equity: and
(9) 
Contribution of assets, properties, and rights.
As an exception, items (2) and (9) above may be allowed if the government 
receives appropriate compensation, which shall in no way be lower than the 
value of the ROW related costs, assets, properties, and rights contributed. 
In the case of JV arrangements, items (8) and (9) may be allowed.
(c) 
Special Requirements.
(1) 
Within three (3) working days from receipt of the unsolicited proposal, the 
Implementing Agency shall inform the PPP Center in writing of such receipt 
and shall furnish it with a copy of the proposal. The Implementing Agency 
and the PPP Center shall likewise publicly disclose such receipt by posting 
information in their respective websites.
(2) 
An unsolicited proposal involving ROW acquisition of a property, whether 
owned or not owned by the Original Proponent, may be considered; 
Provided, That the submission includes a ROW and resettlement plan and 
such other documents that may be required in the IRR of this Act; Provided 
further. That in no case shall the Implementing Agency be obliged to make 
an advance payment for such ROW acquisition and related costs.
(3) 
Any change in control of the Original Proponent or composition of the 
consortium shall be allowed, subject to the rules set forth in the IRR of this 
Act: Provided that, the Private Proponent or consortium has equal or better 
qualifications.
(d) 
Treatment of More than One Unsolicited Proposal for the Same or Similar 
Project. In cases where the Implementing Agency receives more than one 
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the proposal and granting of OPS, the Implementing Agency may choose among 
the submissions the best and most advantageous proposal for the government 
and the public, pursuant to the rules set forth in the IRR of this Act. The chosen 
proposal shall be accepted pursuant to subsection (g) of this Section and shall 
be subject to the approval process in Section 7 of this Act. Otherwise, the 
Implementing Agency may reject all such proposals, and/or bid out the project 
as a solicited proposal.
The Implementing Agency may seek the assistance of the PPP Center in the 
assessment, evaluation, and review of unsolicited proposals.
(e) 
Rejection of an Unsolicited Proposal. The Implementing Agency shall have 
the right to automatically reject the unsolicited proposal upon receipt thereof, or 
formally reject it after evaluation. If the Implementing Agency fails to act on an 
unsolicited proposal within the period prescribed 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.
(f) 
Conversion of an Unsolicited Proposal. The Implementing Agency may be 
allowed to convert an unsolicited proposal to a solicited proposal. If the 
Implementing Agency converts an unsolicited proposal to a solicited proposal, 
the Implementing Agency and the Private Proponent shall agree on the terms 
and conditions of such conversion; Provided, That the Private Proponent holds 
a valid OPS granted by the Implementing Agency and such terms and conditions 
are consistent with applicable laws, rules, and regulations.
Once an unsolicited proposal is converted to a solicited proposal, such proposal 
shall be subject to the approval process in Section 7 and the process for bidding 
as provided in Section 9 of this Act.
(g) 
Acceptance of an Unsolicited Proposal. The Implementing Agency shall have 
the right to set conditions and requirements on the project’s structure, scope, and 
other relevant details, which the Private Proponent must comply with before its 
proposal can be accepted on a negotiated basis. If the Implementing Agency 
accepts such unsolicited proposal, it shall grant the Private Proponent who 
submitted the unsolicited proposal an OPS, which shall be valid for a period not 
exceeding six (6) months from the acceptance of the unsolicited proposal.
(h) 
Comparative Challenge. The Implementing Agency shall publish an invitation 
for the submission of comparative proposals.
The comparative challenge shall be conducted, either manually or electronically, 
by the Implementing Agency within the period proposed by it and approved by 
the appropriate Approving Body, taking into consideration the nature and 
complexity of the PPP Project: Provided, That the period shall be reasonable, 
fair, and upholds competition; Provided further, That the period shall not exceed 
one (1) year.
Comparative proposals shall be evaluated based on the best-and-final offer 
method between the top challenger and the Original Proponent. The rules and
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procedures governing the comparative challenge shall be prescribed in the IRR 
of this Act.
If no other proposal is received after the challenge period, the PPP Project shall 
be awarded to the Original Proponent.
All PPP contracts shall require a period within which financial close shall be 
achieved by the Private Proponent. Failure to achieve financial close within such 
period shall be subject to penalties to be provided for in the signed contract: 
Provided, That such failure to achieve financial close is not due to the fault of the 
government.
SEC. 11. Joint Ventures. - Joint Ventures (JV) refer to a contractual 
arrangement whereby both the Implementing Agency performing a proprietary 
function and the Private Proponent contribute to pool resources comprising of capital, 
services, or assets (including equipment, land, or intellectual property) to jointly 
undertake a specific investment activity. The investment activity shall be for the 
purpose of accomplishing a specific goal with the end view of facilitating private sector 
initiative in a particular industry or sector. Each party shall have the right to direct and 
govern the policies in connection therewith, with the intention to share profits, risks 
and losses, subject to agreement by the parties. A JV may be undertaken through a 
contract or by creating a JV company: Provided, That the following shall be observed:
(a) 
The formation of a JV company shall be in accordance with the legal mandate of 
the Implementing Agency and provisions of the Revised Corporation Code of the 
Philippines and other applicable laws, rules, and regulations: Provided, That the 
equity contribution, which shall include contribution of assets, properties, and 
rights, and other allowable Government Undertakings and/or Subsidy, of the 
government in a JV arrangement shall in no case exceed fifty percent (50%) of 
the Project Cost in the case of a contractual JV, or fifty percent (50%) of the 
outstanding capital stock of the JV company, subject to applicable laws, rules, 
and regulations.
(b) 
The formation of the JV between the Implementing Agency and Private 
Proponent shall not prevent the parties from entering into other JV agreements 
and/or from profitably entering into other business ventures or markets: Provided, 
That such other ventures shall not compete with the JV between the parties.
(c) 
The cost of producing the particular product, conducting the activity, or 
performance of service shall be efficient or potentially efficient towards earning 
potential profits for the Implementing Agency and the Private Proponent.
(d) 
The interests of the Implementing Agency and Private Proponent in and to any 
profits, losses, assets acquired, constructed, and otherwise derived in 
connection with the JV shall be proportionate to their respective contributions to 
the JV: Provided, That the Implementing Agency’s share in any profits shall not 
be less than the proportion of its contribution to the JV.
(e) 
The parties may agree to a higher percentage of profit or lower percentage of 
losses for the government as compared to the actual percentage of government
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contribution in the JV. The Implementing Agency may also accept any other more 
favorable terms as may be agreed upon with the Private Proponent in the JV 
agreement.
(f) 
JV agreements may allow the private sector to take over the undertaking of the 
projects in its entirety in cases where the government deems that divestment 
from the JV is in the best interest of the public. Such takeover shall be subject to 
the approval of the Privatization Council and in accordance with the requirements 
and procedure provided in the IRR of this Act.
(g) 
All JV agreements, whether through a contractual JV or a JV company, shall be 
approved by the appropriate Approving Body pursuant to Section 7 of this Act: 
Provided, That Implementing Agencies contributing a majority of their assets 
would be subject to approval by the ICC-NEDA. Furthermore, the selection 
process for a solicited and an unsolicited JV shall be in accordance with Sections 
9 and 10 of this Act.
All other rules provided under this Act, such as on regulation of tolls, fares, fees, 
rentals and other charges, divestiture/divestment, variation, expansion, or 
extension of a JV, project monitoring and supervision, shall be applicable to all 
JV arrangements.
(h) 
Formation of JV between the Implementing Agency and Private Proponent shall 
not change the nature or alter the mandate of the Implementing Agency entering 
into such JV. The Implementing Agency’s governmental responsibility shall not 
be diminished and shall not be a reason to avoid compliance/coverage of existing 
laws, rules, or regulations. A JV shall not serve as a vehicle to create new 
GOCCs.
SEC. 12. Protest Mechanism. - In all stages of the procurement process, the 
protest mechanism for national and local PPP Projects shall be provided in the IRR of 
this Act: Provided, That such protests shall be resolved in the most expeditious 
manner.
Unless otherwise provided in this Act, in no case shall a motion for 
reconsideration or an appeal from any decision by the PBAC, Head of Implementing 
Agency, or Department Secretary stay or delay the bidding process. No award shall 
however be made until a decision on any pending appeal is rendered, or deemed 
denied.
SEC. 13. issuance of Franchise. - Sub\ec[io the provisions of the Constitution 
and other existing laws, rules and regulations, once a PPP contract is executed by the 
Private Proponent and the Implementing Agency, a presumption arises that the public 
interest will be served by the implementation of the PPP Project covered thereby, and 
immediately upon application by the Private Proponent, the regulator shall 
automatically grant in favor of the Private Proponent a franchise to operate the facility 
and collect the tolls, fares, fees, rentals, and other charges stipulated under the PPP 
contract.
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SEC. 14. Mandatory Inclusion of Dispute Avoidance and Alternative 
Dispute Resolution Mechanisms in PPP Contracts. - All PPP contracts shall 
include provisions on the use of dispute avoidance and Alternative Dispute Resolution 
(ADR) mechanisms. The contracting parties shall be given complete freedom to 
choose which ADR mechanisms and venue shall govern their dispute, as well as the 
rules or procedures to be followed involving the same.
SEC. 15. Adoption of Contract Management and Risk Mitigation Plans in 
PPP Projects. - In order to manage the fiscal risks arising from PPP Projects, 
strengthen the credibility of the PPP program and Projects among the private sector, 
and to ensure the timely compliance with the contractual obligations of Implementing 
Agencies, PPP Projects undertaken through this Act shall require the adoption of 
contract management and risk mitigation plans. Such plans shall include the agreed 
project execution plan, all risks assumed by the government under the contract, risks 
assumed by the Implementing Agency, risk mitigating measures, estimated costs to 
be incurred, target timeline to have each measure in place, and the appropriate action 
plan by the Implementing Agency to manage each type of risk. All plans shall be kept 
up-to-date and be submitted to the PPP Center for monitoring. The procedures in 
creating, managing, and monitoring the contract management and risk mitigation plan 
shall be prescribed in the IRR of this Act.
SEC. 16. Project Supervision and Monitoring. - Every PPP Project shall be 
implemented in accordance with the project terms as approved by the appropriate 
Approving Body, as well as the signed PPP contract. The coverage of the project terms 
and the minimum required provisions in a PPP contract shall be set forth in the IRR of 
this Act. The Implementing Agency shall be entitled to exercise sufficient powers of 
supervision, monitoring, and control over the implementation of each PPP contract it 
has entered into.
(a) 
Supervision. The Implementing Agency shall be responsible for the overall 
supervision of the PPP Project and for submission of periodic monitoring reports, 
executed under oath, to the appropriate oversight agencies. The details and 
procedures shall be set forth in the IRR of this Act.
(b) 
Monitoring. The PPP Governing Board shall set the framework for monitoring 
the compliance of the parties to PPP contracts, report the progress of PPP 
projects and their expected benefits and outcomes, and determine the 
appropriate penalties for the non-compliance of parties to the set reportorial 
requirements.
The PPP Center shall be responsible for the coordination and monitoring of PPP 
Projects. For this purpose, the Implementing Agency shall submit to the PPP 
Center all executed PPP contracts, information on the status of projects 
implemented by, as well as copies of all unsolicited proposals and related 
documents received by, the Implementing Agency, and loan or financing 
documents of the Private Proponent for the PPP Project. At the end of every 
calendar year, the PPP Center shall submit a report to the President of the 
Philippines and to the Congress of the Philippines - particularly to the Senate 
President and the Speaker of the House of Representatives, and the
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Chairpersons of the Committee on Public Works - on the progress of all PPP 
Projects.
SEC. 17. Investment Incentives. - PPP Projects undertaken through this Act 
shall be entitled to various incentives under applicable laws and existing policies of the 
government.
SEC. 18. Investment Recovery Scheme. - In undertaking PPP Projects, the 
Private Proponent shall be allowed to recover its investments and earn reasonable 
profit through any of the following schemes or a combination thereof:
(a) 
Revenue-based refers to a scheme where the Private Proponent is authorized 
to charge and collect, in whole or in part, from the public reasonable tolls, fares, 
fees, rentals, and other charges subject to appropriate regulation in accordance 
with Section 19 of this Act. Where applicable, the Private Proponent may likewise 
be repaid in the form of a share in the revenue of the project; and
(b) 
Availability-based refers to a scheme where the Implementing Agency commits 
to make predetermined payments, which do not take the form of charges paid by 
the users of the works or of the service, but of regular payments by the 
Implementing Agency in exchange of delivering an asset or service in 
accordance with the contract.
Other non-monetary payments, such as commercial development rights, or the 
grant of a portion or percentage of the reclaimed land, subject to the constitutional 
requirements on land ownership, may also be allowed to supplement the foregoing 
schemes.
The framework and mechanism in determining the allowable return of the 
Private Proponent on a PPP Project, as applicable, shall be prescribed in the IRR of 
this Act.
SEC. 19. Regulation of Tolls, Fares, Fees, Rentals and Other Charges. -
The collection of tolls, fares, fees, rentals, and other charges in PPP Projects 
undertaken through this Act shall be regulated in accordance with the principles of 
fairness, transparency, predictability, and protecting public interest. The rules and 
procedures governing such regulation shall be prescribed in the IRR of this Act: 
Provided, That the initial tolls, fares, fees, rentals, and other charges and adjustments 
thereof to be included in the final draft PPP contract shall be subject to the approval 
of the appropriate regulator; Provided further. That if the regulator does not render a 
decision on the initial tolls, fares, fees, rentals, and other charges and adjustments 
thereof within the period prescribed in the IRR of this Act, the initial tolls, fares, fees, 
rentals, and other charges and adjustments thereof shall be deemed approved by the 
regulator.
The regulator shall uphold the approved initial tolls, fares, fees, rentals, and 
other charges and adjustments thereof during the implementation of the PPP Project. 
The regulator may review such adjustments in cases of extraordinary circumstances 
as defined in the PPP contract, or periodically, when stipulated in the PPP contract.
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In cases where the Implementing Agency fails to implement the initial tolls, 
fares, fees, rentals, and other charges and adjustments thereof as stipulated in the 
PPP contract, the Private Proponent shall be allowed to recover the difference through 
measures consistent with the PPP contract and applicable laws, rules, and 
regulations.
In the absence of an appropriate regulator, the initial tolls, fares, fees, rentals, 
and other charges and adjustments thereof shall be approved by the Approving Body.
The Implementing Agency and the PPP Center shall post in their respective 
websites the approved initial tolls, fares, fees, rentals, and other charges and 
adjustments thereof in a PPP Project.
SEC. 20. Variation, Expansion, or Extension of an Existing PPP Project -
A contract variation or extension, or an expansion or extension of an existing PPP 
Project may be allowed, subject to the rules and procedures as provided in the IRR of 
this Act.
Application for contract variation or extension, or expansion or extension of an 
existing PPP Project shall not impair the substantive rights of the Private Proponent, 
and shall be governed by existing laws, decrees, orders, rules and regulations at the 
time of application. No variation shall be implemented before the variation is approved.
SEC. 21. Divestiture/Divestment - Subject to the approval of the Head of the 
Implementing Agency, a Private Proponent may divest its ownership, rights, or interest 
in a PPP Project: Provided, That the divestiture shall be after a holding or lock-in period 
as indicated in the PPP contract; Provided further. That the new Private Proponent 
has equal or better qualifications as with the previous Private Proponent.
The Implementing Agency may divest its ownership, rights, or interest in a 
project: Provided, that projects which involve full or partial divestment or transfer of 
ownership of government assets or properties shall be subject to approval of the 
appropriate Approving Body and applicable laws, decrees, orders, rules and 
regulations.
SEC. 22. Contract Termination.-AW PPP contracts shall define all events that 
may lead to its termination, including but are not limited to, either party event of default, 
force majeure and other no-fault termination events, and other termination events, as 
may be agreed upon by the parties to the PPP contract.
For such events that may lead to contract termination, the contract shall provide 
remedies, curing periods, lender step-in rights, and written notice requirements agreed 
upon by both parties. The contract shall likewise provide that termination shall take 
place only upon failure to remedy or cure the default in accordance with the contract.
For avoidance of doubt, the PPP Project shall not be terminated for an event of 
default without exhausting the corresponding remedy or curing period.
If a PPP contract is revoked, cancelled, or terminated prior to its completion, 
either contracting party shall compensate the other party pursuant to terms as defined
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in the PPP contract. The determination of the amount of compensation shall be in 
accordance with guidelines to be issued by the PPP Governing Board.
SEC. 23. Wind-up and Transfer Measures. - All PPP contracts shall provide 
for wind-up and transfer measures. Such provision shall include, among others, the 
following:
(a) 
Mechanisms and procedures for the transfer of assets to the Implementing 
Agency, as may be applicable;
(b) 
The transfer of technology required for the operation of the PPP Project, subject 
to limitations under existing laws, rules and regulations;
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The training of the personnel of the Implementing Agency or of a successor in 
the operation and maintenance of the PPP Project;
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The provision, by the Private Proponent, of a warranty that the PPP Project 
meets the project technical specifications, agreed system features, and 
performance standards and services for a certain period as may be defined in 
the IRR of this Act after the transfer of the PPP Project to the Implementing 
Agency; and
(e) 
In case of JV arrangements, the compensation to which the Private Proponent 
may be entitled in case of buy-out and transfer of assets to the Implementing 
Agency.
Further rules and procedures on wind-up and transfer measures may be 
provided under the IRR of this Act.
SEC. 24. Prohibition on the Issuance of Temporary Restraining Orders, 
Preliminary injunctions, Preliminary Mandatory Injunctions, and Similar 
Provisional Remedies. - No temporary restraining order, preliminary injunction, 
preliminary mandatory injunction, temporary environmental protection order, or similar 
temporary or provisional reliefs or remedies, shall be issued by any court, except the 
Supreme Court, against any Implementing Agency or the PPP Center, 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 any PPP Project;
(b) 
Awarding of any PPP contract;
(c) 
Acquisition, clearance, development of the right-of-way, site or location of any 
PPP Project;
(d) 
Construction, operation and maintenance of any PPP Project;
(e) 
Commencement, execution, implementation, termination or rescission of any 
PPP contract; and
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(f) Undertaking or authorization of any other lawful activity necessary for such PPP 
Project or contract.
This prohibition shall apply in all cases, disputes or controversies instituted by 
any person, including cases filed by bidders or those claiming to have rights through 
such bidders. 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 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.
In addition to any civil and criminal liabilities a judge may incur under existing 
laws, any judge who shall issue a temporary restraining order, preliminary injunction 
or preliminary mandatory injunction, temporary environmental protection order, or 
similar temporary or provisional reliefs or remedies in violation of this Section, shall 
suffer the penalty of suspension of at least sixty (60) days without pay.
Any temporary restraining order, preliminary injunction, preliminary mandatory 
injunction, temporary environmental protection order, or similar temporary or 
provisional reliefs or remedies issued in violation of this Section is void and of no force 
and effect.
SEC. 25. PPP Center. - To achieve the goals of this Act, the PPP Center 
created under Executive Order No. 8, series of 2010, as amended by Executive Order 
No. 136, series of 2013, 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, subject to applicable laws, rules, and 
regulations.
In order to work towards a more efficient and effective performance of its 
mandate, the PPP Center shall have the following powers and functions:
(a) 
Assist Implementing Agencies in identifying, prioritizing, developing, and 
maintaining a pipeline of PPP Projects;
(b) 
Provide project advisory services and technical assistance to Implementing 
Agencies, Approving Bodies, and other oversight agencies in all PPP-related 
matters, and act as a procurement agent upon the request of the Implementing 
Agency:
(c) 
Facilitate the appraisal and approval of PPP Projects by the ICC-NEDA and the 
NEDA Board;
(d) 
Develop the capacities of Implementing Agencies, Approving Bodies, PPP units 
referred to in Section 29 of this Act, and other relevant stakeholders on PPPs;
(e) 
Manage and administer the Project Development and Monitoring Facility 
(PDMF), as provided in Section 27 of this Act;
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(f) 
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;
(g) 
Ensure sustainability of the implemented PPP program and projects through 
monitoring, documenting, and sharing the lessons learned and best practices to 
Implementing Agencies, Approving Bodies, oversight committees or agencies, 
and other relevant stakeholders;
(h) 
Provide regular monitoring and status reports on the implementation of all PPP 
programs and projects entered into by Implementing Agencies, including 
potential public interest concerns and violations of the PPP Act, to the Office of 
the President, the Congress of the Philippines, relevant oversight committees 
and agencies, and publish the same in the official website of the PPP Center, 
unless otherwise prohibited by existing laws, rules, and regulations;
(i) 
Promote and market PPP programs and projects, in collaboration with other 
government investment promotion agencies;
(j) 
Review PPP contracts pursuant to the IRR of this Act;
(k) 
Issue non-policy matter opinions relating to PPPs;
(l) 
Draft policy matter opinions for approval by the PPP Governing Board in 
response to requests by government agencies and private entities;
(m) Serve as the central repository of all PPP Project documents, including all 
executed PPP contracts and any subsequent amendment or supplement thereto, 
including settlement agreements, entered into by Implementing Agencies;
(n) 
Act as Secretariat to the PDMF Committee and the PPP Governing Board; and
(o) 
Perform such other functions as may be necessary to achieve the objectives and 
purposes of this Act.
The PPP Center may receive contributions, grants, and/or other funds from, 
among others, government agencies and corporations, LGUs, local and foreign 
donors, development partners, and private sector/institutions subject to applicable 
laws, rules and regulations.
The PPP Center shall report directly to the PPP Governing Board and shall be 
attached to the NEDA for purposes of policy and program coordination.
The PPP Center shall be headed by an Executive Director with the rank 
equivalent to an Undersecretary, who shall be appointed by and co-terminus with the 
President of the Philippines. The Executive Director shall perform the following 
functions:
(a)
Undertake the day-to-day management and supervise the operations of the PPP 
Center;
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(b) 
Recommend to the PPP Governing Board such policies and measures which are 
deemed necessary for the effective exercise and discharge of the powers and 
functions of the PPP Center;
(c) 
Sit as a member of the PPP Governing Board, INFRACOM - Technical Board, 
and ICC-NEDA - Technical Board, and other inter-agency bodies in cases where 
PPPs are concerned; and
(d) 
Perform such other functions as may be assigned by the PPP Governing Board.
SEC. 26. PPP Governing Board. - The PPP Governing Board, created under 
Executive Order No. 136, series of 2013, and hereinafter referred to as the Board, is 
hereby institutionalized. It 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) 
The Secretary of Socioeconomic Planning as Chairperson;
(b) 
The Secretary of Finance as Vice-Chairperson;
(c) 
The Secretary of Budget and Management;
(d) 
The Secretary of Justice;
(e) 
The Secretary of Trade and Industry:
(f) 
The Secretary of the Interior and Local Government;
(g) 
The Secretary of Environment and Natural Resources;
(h) 
The Executive Secretary:
(i) 
The Executive Director of the PPP Center; and
(j) 
One (1) private sector representative from the infrastructure sector to be 
appointed by the PPP Governing Board.
The principal members of the Board may designate their respective alternates, 
who shall in no case be lower than Assistant Secretary, and whose acts shall be 
considered the acts of their principals.
The presence of the Chairperson and five (5) 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.
SEC. 27. Project Development and Monitoring Facility. - The PDMF 
referred to under Executive Order No. 8, series of 2010, as amended by Executive 
Order No. 136, series of 2013, is hereby institutionalized. The PDMF shall be used for 
the procurement of advisory and support services related to the preparation, 
structuring, evaluation, procurement, probity management, financial close, and 
monitoring of implementation of PPP Projects.
The PDMF may be funded through the General Appropriations Act, official 
development assistance, or other sources, subject to applicable laws, rules, and
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regulations. Subject to the provisions of the General Appropriations Act and relevant 
accounting and auditing rules and regulations, Implementing Agencies are hereby 
authorized to reallocate their funds for purposes of the PDMF.
The PDMF shall continue to be managed and administered by the PPP Center 
as a revolving fund. In order to sustain the PDMF, the PPP Center may recover 
amounts disbursed and receive fees in accordance with the guidelines to be approved 
by the PPP Governing Board. Such amount shall be retained and authorized to be 
used by the PPP Center for the purposes indicated herein.
The PDMF Committee is hereby institutionalized which shall approve 
applications for PDMF support submitted by the Implementing Agencies.
The PDMF Committee shall be composed of one (1) representative, who shall 
in no case be lower than Assistant Secretary, from the following agencies: NEDA as 
Chairperson, DOF as Vice Chairperson, DBM, and PPP Center. The PPP Center shall 
continue to serve as the Secretariat for the PDMF Committee.
Subject to approval of the PPP Governing Board, the PDMF Committee shall 
also formulate, prescribe, and recommend policies, procedures, and guidelines for the 
use of PDMF, and recovery of costs charged to the fund.
SEC. 28. Creation of a Risk Management Fund. - To ensure fiscal 
sustainability and negotiate better financing terms of PPP Projects, there is hereby 
created a PPP Risk Management Fund to be used for the payment of contingent 
liabilities arising from PPPs in accordance with its contract terms.
The target amount in the PPP Risk Management Fund is to be determined by 
the Development Budget Coordination Committee (DBCC) using risk-adjusted 
methods or such other means that estimate the exposure of the Government of the 
Philippines to PPP contingent liabilities.
The PPP Risk Management Fund shall be funded from the following sources:
(a) 
Concession fees;
(b) 
Implementing Agency reimbursements;
(c) 
Bid premiums:
(d) 
Proceeds from negative bid premiums:
(e) 
Support from multilateral institutions, international finance institutions, among 
others;
(f) 
Interest earnings from the PPP Risk Management Fund; and
(g) 
National government contributions.
National government contributions shall cover only the difference between the 
target amount of the PPP Risk Management Fund, as mentioned above, and the 
current value of the fund. The DOF shall regularly monitor and review the viability of 
the PPP Risk Management Fund in relation to the magnitude of PPP Projects 
undertaken by Government, and if necessary, recommend the increase in the target 
amount of the PPP Risk Management Fund and the reason therefor. All national
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government contributions to the PPP Risk Management Fund shall be included in the 
proposed DOF budget.
When the value of the PPP Risk Management Fund is in excess of the target 
amount, excess funds may be transferred to the general fund of the national 
government. The agency implementing PPP Projects must seek confirmation from the 
DOF that the national government can bear the additional contingent liabilities 
associated with the project taking into consideration fiscal sustainability.
Further, to foster accountability and efficiency in implementing PPP Projects, it 
is mandatory for implementing agencies to enter into a recourse agreement with the 
DOF before any payment can be drawn from the PPP Risk Management Fund for 
contingent liabilities that have materialized within contract terms.
The Bureau of the Treasury shall maintain the PPP Risk Management Fund in 
the Treasury Single Account. Interest earnings therefrom shall accrue to the PPP Risk 
Management Fund. Notwithstanding the establishment of this fund, the government 
may still provide an un-programmed appropriation for unforeseen risks that the 
government may incur from PPP Projects.
To monitor such government obligations on liabilities that have materialized and 
other unforeseen risks that may arise from PPP Projects: and to develop the guidelines 
to access the PPP Risk Management Fund, the inter-agency technical working group 
created under DBCC Resolution No. 2015-2, is hereby institutionalized.
The procedures and mechanisms in managing the PPP Risk Management 
Fund shall be prescribed in the IRR of this Act.
In the case of Local PPP Projects, a similar PPP Risk Management Fund may 
be established by the LGU. The details pertaining to maintaining and administering 
such fund shall be provided in the IRR of this Act. Sources of the fund may include the 
budget of the LGU and the income of the LGU from PPP Projects.
SEC. 29. Establishment of a PPP Unit. - The Head of the Implementing 
Agency may establish a PPP unit, an ad hoc body, or assign responsibility to an 
appropriate unit to act as its PPP unit, which shall plan, oversee, and monitor PPP 
Projects of the Implementing Agency.
Such unit shall be headed by a senior official and include as members, among 
others, technical, finance, and legal personnel who are knowledgeable on PPPs.
Such unit shall provide reports to the Head of the Implementing Agency and the 
PPP Center and shall comply with other reporting and monitoring processes and 
procedures as may be required by the PPP Center, consistent with this Act and its 
IRR. Furthermore, the PPP Center shall provide such unit technical assistance and 
capacity development necessary for the performance of its roles and functions.
SEC. 30. Safekeeping and Public Disclosure of Contracts. - Copies of all 
PPP contracts executed under this Act shall be considered and appropriately kept safe 
and preserved as public documents. The Implementing Agency and the PPP Center
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shall publicly make available copies of PPP contracts through their respective 
websites, unless otherwise prohibited by existing laws, rules and regulations and those 
provisions in the contract which are proprietary or may pose threats to national security 
or public safety, the procedures for the disclosure of such shall be consistent with 
applicable policies, laws, decrees, orders, rules and regulations.
SEC. 31. Miscellaneous Provisions. -
(a) 
Independent Consultants. An independent consultant, either individuals, 
partnerships, or corporations, shall be procured by the Implementing Agency to 
provide independent advice to the Implementing Agency and Private Proponent 
or its Contractor for the design and construction of the PPP Project, and 
monitoring of the performance of the contracting parties during such phases of 
the PPP Project. As may be necessary, an independent consultant may also be 
procured during the operations and maintenance phase of the PPP Project.
Costs of procurement of an independent consultant shall be borne equally by the 
Implementing Agency and the Private Proponent. Such costs borne by the 
Implementing Agency shall not be considered as a Subsidy.
(b) 
Conflict of Interest. All relevant parties shall, at all times, avoid conflicts of 
interest in the interpretation and implementation of this Act. Conflict of interest, 
as defined in Republic Act No. 6713 or the Code of Conduct and Ethical 
Standards for Public Officials and Employees which refers to any act or omission 
tending to oppose or disrupt the faithful performance of one’s duty or mandate, 
shall include personal, pecuniary, and regulatory conflicts of interests.
No Implementing Agency shall implement a PPP Project that it regulates: 
Provided, That any regulatory agency or body which shall implement a PPP 
Project pursuant to its mandate shall adopt a conflict mitigation and management 
plan.
In case a conflict of interest arises for any public officer or employee, the 
concerned parties shall inhibit themselves from the performance of their duties 
in connection to the project. In the case of a PBAC member with a conflict of 
interest, the concerned member shall resign from their position as PBAC member 
within thirty (30) calendar days from the time such conflict arises.
(c) 
Confidentiality of Information. Confidential business information submitted by 
entities, whether public or private, relevant to any activity being conducted 
pursuant to this Act as well as any deliberation in relation thereto, shall not, in 
any manner, be directly or indirectly disclosed, published, transferred, copied, or 
disseminated: Provided, That the confidentiality rule shall not apply if the entity 
consents to the disclosure, or the document or information is mandatorily 
required to be disclosed by law or by a valid order of a court of competent 
jurisdiction or of a government or regulatory agency.
(d) 
Alternative Sources of Financing. In addition to Private Proponent equity and 
debt, alternative financial instruments such as Green Financing, corporate or 
project bonds and securities, and other forms of capital market financing may be
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allowed for PPP Projects, subject to the approval of relevant regulatory bodies 
for such instruments under existing laws, rules, and regulations.
(e) 
Mitigation of Interconnectivity and Interface Risks. All PPP Projects which 
will interconnect or interface with a local or national facility, shall be required to 
submit a Memorandum of Agreement (MOA) containing an 
interconnection/interface plan agreed upon by all relevant parties. For National 
PPP Projects, said MOA shall be submitted to the ICC-NEDA; while for Local 
PPP Projects, said MOA shall be submitted to the appropriate Approving Body.
(f) 
Private Legal and Medical 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. The PBAC members shall also be entitled to medical 
assistance for injuries incurred in the performance of their functions.
(g) 
Preferential Use of Filipino Labor, Domestic Materials, and Locally 
Produced Goods. For the implementation of infrastructure projects under this 
Act, Contractors or Facility Operators shall, as far as practicable, use Filipino 
labor, domestic materials, and locally produced goods in different phases of 
implementation.
(h) 
Land Value Capture Strategies. PPP Project design shall consider adopting 
land value capture strategies to optimize the financial and economic value of the 
PPP Project.
SEC. 32. Accountability in PPP Projects. - The Head of the Implementing 
Agency concerned shall at all times be accountable to PPP Projects undertaken 
through this Act. The Private Proponent shall likewise be held accountable for the 
works it has delivered and services it has rendered for a PPP Project. All PPP 
contracts are hereby required to clearly define the scope of each party's accountability 
under the PPP contract.
PPP Projects awarded under this Act shall be subject to the Government 
Auditing Code of the Philippines and the 2009 Revised Rules of Procedures of the 
Commission on Audit and any amendments thereto. The COA, in consultation and 
coordination with the PPP Center, shall adopt and promulgate the necessary 
framework and guidelines on accounting and auditing PPP Projects, respectively.
SEC. 33. Administrative, Civil, and Penal Sanction. - Any person, whether 
private individual or public officer or employee, who commits any of the prohibited acts 
hereunder proscribed, shall be punished by imprisonment from a minimum of three (3) 
years to a maximum of six (6) years.
The following acts shall be prohibited:
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(a) 
Downgrading the category of the Project Cost for purposes of evading the 
required approvals under this Act;
(b) 
Representation that the Private Proponent has the necessary capitalization to 
commence, complete, and implement the PPP Project when the same is false in 
material respects;
(c) 
Falsification or insertion of certain provisions in the execution copy of the contract 
which are materially and substantially different from the approved final draft 
contract;
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Any violation of Sections 7, 9, 10, 11, 12, 16, 19, 20, 21,31 (b), and 31 (c) under 
this Act; and
(e) 
A public officer or employee, whether in connivance with others or acting alone, 
negligently or by fraud commits a failure to ensure compliance with the project 
terms as approved by the Approving Body, and the signed PPP contract, by 
approving, issuing, or confirming any certification, required documents, or 
deliverables of the Private Proponent, which are non-compliant with existing 
rules, erroneous, not authentic, or fraudulent.
In addition, such acts committed by the Private Proponent and its concerned 
officers shall cause the rescission of its contract for the said PPP Project without 
compensation and shall be perpetually disqualified from participating in any bidding or 
other contractual arrangement for any government project. This is without prejudice to 
any other civil or administrative liability that erring officials or Private Proponents may 
incur.
The liability of the public officer or employee or former public officer or employee 
for any violation of the prohibitions under this Act shall survive the retirement of said 
public officer or employee, and shall include the prohibition for the erring officer to hold 
public office, either as an elected, or an appointed government official on any local or 
national position, and to act as a consultant for the Philippine Government, the 
termination of the project contract, and the lapse of any applicable warranty period/s.
SEC. 34. Joint Congressional Oversight Committee. - A Joint 
Congressional Oversight Committee is hereby created to oversee the implementation 
of this Act. The Committee shall be composed of five (5) members each from the 
Senate and House of Representatives to be designated by the Senate President and 
the Speaker of the House of Representatives, respectively. The Committee shall be 
jointly chaired by the respective Chairpersons of the House Committee on Public 
Works and Highways, the House Committee on Appropriations, the Senate 
Committee on Public Works, and the Senate Committee on Finance.
SEC. 35. Implementing Rules and Regulations. - The IRR Committee shall 
be composed of the members of the PPP Governing Board, except for the private 
sector representative. The Secretary of Socioeconomic Planning shall serve as its 
Chairperson, and the PPP Center shall serve as its Secretariat.
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The principal members of the IRR Committee may designate their respective 
alternates, whose acts shall be considered the acts of their principals.
Within sixty (60) working days from the effectivity of this Act, the IRR Committee 
shall, in consultation with the Department of Public Works and Highways, Department 
of Transportation, and other key Implementing Agencies, LGUs, and relevant 
stakeholders, issue the rules and regulations to implement the provisions of this Act.
From time to time, the IRR Committee may conduct, formulate, and prescribe, 
after due public hearing and publication, amendments to the IRR, consistent with the 
provisions of this Act. Amendments to the IRR shall take effect fifteen (15) calendar 
days after its complete publication in the Official Gazette or in a newspaper of general 
circulation.
SEC. 36. Transitory Clause. - The provisions of this Act shall apply to all PPP 
Projects: Provided, That this Act shall not, in any manner, operate to impair vested 
rights already accruing to a party.
New projects and proposed variations already submitted by the Implementing 
Agency for approval of the appropriate Approving Body, at the time of effectivity of this 
Act, shall be governed by the legal framework in effect at the time the new project or 
proposed variation was submitted to the appropriate approving body.
Upon the effectivity of this Act, JVs and other contractual arrangements for toll 
road projects or toll facilities with a Private Proponent, including Supplemental Toll 
Operation Agreement (STOA) and other similar arrangements, pending final approval 
of the Toll Regulatory Board, shall be subject to the approval process under Section 7 
of this Act.
All unexpended funds of the PPP Center at the end of the fiscal year, as well 
as unreleased appropriations, and undisbursed funds after the end of the validity 
period, shall revert to the National Treasury and shall not thereafter be available for 
expenditure, except by subsequent legislative enactment. The amount necessary to 
carry out the organizational changes of the PPP Center provided in this Act shall be 
determined by the PPP Governing Board. Appropriations for succeeding years shall 
be incorporated in its budget proposals, subject to the existing budgeting rules and 
regulations.
All officials and employees of the PPP Center shall be retained and shall not 
suffer any loss of seniority or rank or decrease in emoluments.
SEC. 37. Separability Clause. - If any provision of this Act is declared 
unconstitutional or invalid, other parts or provisions hereof not affected thereby shall 
continue to be in full force and effect.
SEC. 38. Repealing Clause. - Republic Act No. 6957, as amended by 
Republic Act No. 7718 (An Act Authorizing the Financing, Construction, Operation and 
Maintenance of infrastructure Projects by the Private Sector, and for other purposes) 
and its implementing rules and regulations are hereby repealed.
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All laws, decrees, orders, rules and regulations, and all other related national 
and GOCC issuances, and local PPP or JV codes and ordinances, or parts thereof 
inconsistent with or contrary to this Act, including but not limited to the following, are 
hereby repealed or amended accordingly:
(a) 
Executive Order No. 8, s. 2010, as amended by Executive Order No. 136, s. 
2013 (Reorganizing and Renaming the Build-Operate-and-Transfer (BOT) 
Center to the Public-Private Partnership (PPP) Center of the Philippines and 
Transferring its Attachment from the Department of Trade and Industry to the 
National Economic and Development Authority and for other purposes):
(b) 
Section 8 of Executive Order No. 423, s. 2005 (Repealing Executive Order No. 
109-A dated September 18, 2003, Prescribing the Rules and Procedures on the 
Review and Approval of All Government Contracts to Conform with Republic Act 
No. 9184, otherwise known as “The Government Procurement Reform Act”);
(c) 
Presidential Decree No. 1112, s. 1977 (Authorizing the Establishment of Toll 
Facilities on Public Improvements, Creating a Board for the Regulation thereof 
and for other purposes): and
(d) 
Republic Act No. 7160 (Local Government Code of 1991).
Presidential Decree No. 1113, s. 1977 (Granting the Construction and 
Development Corporation of the Philippines a Franchise to Operate, Construct and 
Maintain Toll Facilities in the North and South Luzon Toll Expressways and for other 
purposes) is hereby repealed and declared to have expired thirty (30) years from May 
1, 1977.
Upon effectivity of this Act, no other JV guidelines, PPP guidelines, codes, or 
ordinances, whatsoever may be used by any government entity in entering into PPPs, 
except those that are issued in accordance with this Act and its IRR.
SEC. 39. Effectivity. - This Act shall take effect fifteen (15) calendar days after 
its complete publication in the Official Gazette or in a newspaper of general circulation.
Approved,
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