NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 1251
‘fid
o( tlje
72 AUG 31 P4 59
Rl:.CEIV£D 3V;
Introduced by SENATOR IMEE R. MARCOS
AN ACT
STRENGTHENING PUBLIC-PRIVATE PARTNERSHIPS, APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Article 2, Section 9 of the 1987 Constitution provides that "the State shall 
promote a just and dynamic social order that will ensure the prosperity and 
independence of the nation and free the people from poverty through policies that 
provide adequate social services, promote full employment, a rising standard of living, 
and an improved quality of life for all" Section 20 of the same article further states 
that "the State recognizes the indispensable role of the private sector, encourages 
private enterprise, and provides incentives to needed investments."
Infrastructure, such as roads and railways, is a major premise for economic 
development, as well as improving people's lives and contributing to poverty 
reduction. The pandemic, however, have resulted a tightening of fiscal space available 
for infrastructure development. As of the 2nd quarter of 2022, the debt-to-GDP ratio 
of the country is at 62.1%, which is still above the threshold of 60%. As the 
government works to reduce the debt burden to 52.5% by 2028, there is an urgent 
need for government to access private capital in order to address the infrastructure 
gap, as well as its social protection program.
This proposed measure aims to create an enabling environment for Public-Private 
Partnerships by revising Republic Act No. 6957, as amended by Republic Act No. 7718, 
entitled "An Act Authorizing the Financing, Construction, Operation and Maintenance 
of Infrastructure Projects by the Private Sector, and for Other Purposes" otherwise 
known as the "Build-Operate-Transfer" (BOT) Law. This measure improves the BOT 
Law by expanding its coverage and offering more benefits to private sector partners 
of the government in infrastructure projects. It also provides for the automatic 
endorsement after 40 days of non-action by the Approving Body which have 
satisfactorily complied with the requirements, avoiding arbitrary and unreasonable 
withholding of endorsement of projects. In addition, it also protects PPP projects from


being the subject of judicial delays in the form of temporary restraining orders (TROs), 
preliminary injunctions and preliminary mandatory injunctions issued by any court, 
except the Supreme Court.
This measure also facilitates the process of dealing with unsolicited proposals. 
The sixty (60) -working-day challenge period under the existing BOT Law is too short 
for interested challengers to submit their counterproposals in an unsolicited project. 
As such, the measure gives the Implementing Agency the ability to determine the 
challenge period. The measure also gives the implementing agencies the option to 
convert unsolicited proposals into a solicited project, and thereafter offer it as the 
basis for competitive bidding.
This way, the government will realize the full benefits of competitive bidding. 
This measure also establishes the role of local government units (LGU) in initiating 
and monitoring their own PPP projects, simplifying the processes by which an LGU can 
undertake a PPP Project.
Lastly, the measure seeks to uphold transparency by requiring full public 
disclosure of PPP projects and contracts. The PPP Center is directly responsible for 
giving the public and Congress with adequate and timely information about PPP 
projects.
In light of this, the approval of this bill is earnestly sought.
■ f\. flTfCuGi/^
IMEE R. MARCOS


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 1251
of tlj? ^ccretai-p
72 AUG 31 P 4 59
Rl'CEIV i:D BV.
Introduced by SENATOR IMEE R. MARCOS
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:
1 
SECTION 1. Short Title. - This Act shall be known as the "Public-Private
2 
Partnership (PPP) Act."
3 
SEC. 2. Declaration of Policy. - Section 20, Article II, of the Constitution declares
4 
that the State recognizes the indispensable role of the private sector, encourages
5 
private enterprise, and provides incentives to needed investments. To this end, the
6 
State shall provide an enabling environment for the private sector to mobilize its
7 
resources for the purpose of financing, designing, constructing, operating and
8 
maintaining development programs and projects traditionally undertaken by the
9 
government. As provided by law, the government shall foster robust private sector
10 
participation by providing financial Incentives and by reducing costs of doing business.
11 
It is further declared that the State shall protect the public interest by providing
12 
affordable, accessible, and efficient public services. In order to achieve better quality
13 
of PPP Projects at lower costs, the State shall ensure equitable risk allocation in PPP
14 
Projects, and take into account that all PPP Projects yield sufficient value for money,
15 
value for people, and value for planet.
16 
The State shall pursue a policy of maintaining a reasonable balance on financing
17 
of infrastructure and other development projects through all means available that will
18 
most effectively meet the objectives of the government. These may include
19 
appropriations, official development assistance, and PPPs, as well as combinations
20 
thereof. The government shall determine the appropriate financing by considering
21 
budget availability, timelines, stakeholder commitments, and market capacity.
22 
Finally, It is declared that the State shall affirm open, fair, transparent, and
23 
competitive selection as the central tenet for securing private investment in PPP
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Projects. It shall implement a policy of full public disclosure of all its transactions


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involving public interest, subject to terms and conditions as prescribed by pertinent
2 
laws.
3 
SEC. 3. Scope and Application. - This Act shall apply to all PPP Projects
4 
undertaken by Implementing Agencies, through PPP contracts with a Private
5 
Proponent, including Joint Ventures, as defined under this Act. It shall likewise apply
6 
to and be enforceable among all parties to said PPP contracts.
7 
Implementing Agencies are hereby authorized to undertake PPP Projects through
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PPP contracts with a Private Proponent in accordance with this Act.
9 
SEC. 4. Definition of Terms. - As used in this Act:
10 
{a) Approving Body - refers to an entity authorized to approve PPP Projects, in
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accordance with Section 7 of this Act;
12 
(b) Construction - refers to new construction, rehabilitation, improvement,
13 
expansion, alteration, and related works and activities including the necessary
14 
supply and installation of equipment, materials, labor and services, and 
related
15 
items;
16 
(c) Contractor - refers to any entity allowed under Philippine laws, which may or
17 
nnay not be the Private Proponent, and which shall undertake the actual
18 
construction or supply of equipment or services for PPP Projects;
19 
(d) Contingent Liability - refers to an obligation that may or may not arise from
20 
events specified in a PPP contract, the occurrence, timing, and amount of which
21 
is uncertain. These events include regulatory risks, force majeure, breach of
22 
government warranties, and material adverse government action, among others;
23 
(e) Facility Operator - refers to an entity with legal personality authorized under
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existing laws, which may or may not be the Private Proponent, that shall be
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responsible for operating and maintaining a facility, including, but not limited to,
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the collection of tolls, fees, rentals or charges from facility users;
27 
(f) Government Undertakings - refers to any form of contribution and support,
28 
which the government may extend to a Private Proponent for the implementation
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of PPP Projects, as defined under this Act. The procedures on proposing and
30 
granting of Government Undertakings shall be prescribed in the IRR of this Act;
31 
(g) Greenfield Project - refers to a project which entails the creation of an entirely
32 
new facility or service, which does not depend on the improvement of an existing
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facility;
34 
(h) Green Financing - refers to investments that create environmental benefits in
35 
support of green growth, low-carbon, and sustainable development;
36 
(i) Guarantee on Demand - refers to an agreement whereby the Implementing
37 
Agency guarantees to assume market risks in a PPP Project;


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(j) Guarantee on Loan Repayment - refers to an agreement whereby the
2 
Implementing Agency guarantees to assume responsibility for the repayment of
3 
debt directly incurred by the Private Proponent in implementing the project in
4 
case of a loan default;
5 
(k) Guarantee on Private Sector Return - refers to an agreement whereby the
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Implementing Agency guarantees to provide a pre-identified rate of return on
7 
the investment of the Private Proponent;
8 
(I) Implementing Agency - refers to a department, bureau, office, instrumentality,
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commission, authority of the national government, state universities and colleges
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(SUCs), local government units (LGUs), or government owned-or-controlled
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corporation (GOCC) as defined in Republic Act No. 10149, including government
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instrumentalities with corporate powers (GICP), government corporate entities
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(GCE), government financial institutions (GFIs), which is authorized to undertake
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PPP Projects;
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{m) Joint Venture (JV) - refers to a contractual arrangement whereby both the
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Implementing Agency and the Private Proponent contribute to pool resources
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comprising of capital, services, or assets (including equipment, land or
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intellectual property) to jointly undertake a specific investment activity. The
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investment activity shall be for the purpose of accomplishing a specific goal with
20 
the end view of facilitating private sector initiative in a particular industry or
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sector, and eventually transfer the activity to either the private sector under
22 
competitive market conditions or to the government. The JV involves a
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community or pooling of interests in the performance of the investment activity,
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and each party shall have the right to direct and govern the policies in connection
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therewith with the intention to share both profits* and risks and losses subject
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to agreement by the parties. A JV may be undertaken through a contract or by
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creating a JV entity;
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(n) Local PPP Project - refers to a PPP Project that shall be undertaken by LGUs,
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and local universities and colleges (LUCs) as defined in RA 10931;
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(o) National PPP Project - refers to a PPP Project that shall be undertaken by the
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national government, GOCCs Including water districts, GICPs, GCEs, GFIs, and
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SUCs as defined in RA 10931;
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(p) Operation and Maintenance - refers to activities necessary and incidental to
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preserve or restore the operational status of an asset or system based on
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specified performance indicators;
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(q) Original Proponent - refers to the Private Proponent which submitted an
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unsolicited proposal which has been accepted and pre-qualified by the
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Implementing Agency, and has been conferred the "Original Proponent" status,
39 
as mentioned in Section 10 of this Act;


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(r) PPP Project - refers to Infrastructure or development programs, projects,
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activities, facilities, and related services normally financed and undertaken by
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the public sector, but which shall now be wholly or partly financed, designed,
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built, operated and maintained by the private sector;
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(s) Private Proponent - refers to the private sector entity which shall either have
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submitted an unsolicited proposal, or a bid submission in relation to a solicited
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PPP Project, and/or have a contractual responsibility for the PPP Project. The
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Private Proponent may be Filipino or foreign-owned, and may engage the
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services of a foreign Contractor or foreign Facility Operator, subject to
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requirements and limitations provided under the Philippine Constitution;
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(t) Project Cost- refers to the estimated cost of the PPP Project. The guidelines in
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determining the Project Cost shall be prescribed in the IRR of this Act;
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{u) Subsidy - refers to an agreement whereby the Implementing Agency will: (a)
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defray, pay for, or shoulder a portion of the Project Cost or the expenses and
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costs in operating or maintaining the project; (b) contribute any property or
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assets to the project; (c) waive or grant special rates on real property taxes on
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the project during the term of the contractual arrangement; and/or (d) waive
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charges or fees relative to business permits or licenses that are to be obtained
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for the construction of the project, all without receiving payment or value from
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the Private Proponent and/or Facility Operator for such payment, contribution,
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or support. Provided, That under no circumstance shall the total subsidy exceed
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fifty percent (50%) of the total Project Cost;
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(v) Termination Payment- refers to the amount payable by the government or the
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Private Proponent on the occurrence of an event or series of events provided for
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in the PPP contract that results in the termination of said contract;
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(w) Viability Gap Funding (VGF) - refers to a type of Subsidy in the form of a financial
27 
support that the government may provide to a revenue-based PPP Project with
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the objective of making fees affordable, while improving the commercial
29 
attractiveness of the project, excluding costs of right-ofl2 way, resettlement,
30 
and real estate taxes.
31 
SEC. 5. Public-Private Partnership. - A PPP is a contractual arrangement
32 
between the Implementing Agency and the Private Proponent for the financing,
33 
designing, constructing, operating and maintaining, or any combination thereof, of
34 
projects which are normally provided by the public sector. PPP Projects may be
35 
undertaken through contractual arrangements, including joint ventures, authorized
36 
under the Implementing Rules and Regulations (IRR) of this Act, and such other
37 
variations thereof as may be approved by the appropriate Approving Body.
38 
SEC. 6. Identification of PPP Projects. - Implementing Agencies shall include in
39 
their development plans, strategies, and investment programs those priority PPP


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Projects that they want to undertake. In identifying those projects, the Implementing
2 
Agencies shall be guided by the following principles: effectiveness in meeting
3 
government objectives, appropriateness of the chosen procurement modality and
4 
source of funding, value for money, accountability and transparency, consumer rights,
5 
affordability, public access, safety, and security. Priority projects shall be consistent
6 
with the national and local development and Investment plans.
7 
The Implementing Agencies shall submit their list of PPP Projects or any update
8 
thereto to the PPP Center, referred to in Section 22 of this Act, for information. Each
9 
proposed PPP Project shall be subject to the approval of the appropriate Approving
10 
Body.
11 
The PPP Center shall ensure that the Congress of the Philippines and the public
12 
shall be provided with adequate and timely information on PPP Projects.
13 
SEC. 7. Approval of PPP Projects. - (a) The approval of PPP Projects under this
14 
Act shall be in accordance with the following:
15 
(1) National PPP Projects. National PPP Projects shall be approved as follows:
16 
(i) Projects costing five billion pesos (PhP5,000,000,000.00) and below,
17 
shall be submitted to the Investment Coordination Committee of the
18 
National Economic and Development Authority (ICC-NEDA) for approval;
19 
(ii) Projects costing above five billion pesos (PhP5,000,000,000.00) shall be
20 
submitted to the NEDA Board for approval, upon favorable
21 
recommendation by the ICC-NEDA.
22 
The ICC-NEDA may, from time to time, update the aforementioned amounts
23 
when the need arises.
24 
(2) Local PPP Projects. Local PPP Projects shall be approved by the local
25 
Sanggunians, regardless of the Project Cost, Provided, that Local PPP Projects
26 
involving Government Undertakings using national government funds shall require the
27 
approval of the ICC-NEDA. National Government Undertakings shall include, among
28 
others, the following items to be provided by the national government to a Local PPP
29 
Project: (i) Guarantees on Demand, (ii) Guarantees on Private Sector Return, (iii)
30 
Guarantees on Loan Repayment; (iv) Viability Gap Funding and other forms of
31 
Subsidy; (v) payment of Contingent Liability, including Termination Payments.
32 
Provided, Further, That, permits, clearances, licenses or endorsements from
33 
national government agencies required for Local PPP Projects under laws, rules, and
34 
regulations, shall not be considered as Government Undertakings by the national
35 
government for Local PPP Projects.
36 
(b) The Approving Body shall assess all PPP Projects based on its overall
37 
feasibility analysis and accord paramount importance on the affordability of user fees
38 
and efficiency in public service. To ensure that all risks associated with PPP Projects


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are managed and mitigated accordingly, all PPP contracts to be entered into by the 
Implementing Agency shall 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 proposal. Upon complete submission of the 
requirements by the Implementing Agency, the appropriate Approving Body shall 
render its decision on the project within forty (40) working days therefrom. The 
Implementing Agency shall be duly notified in writing of the decision of the Approving 
Body on or before the end of the 40-day period. 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 concerned Implementing Agency may proceed 
with the procurement of the PPP Project, without prejudice to any liability that the 
erring or negligent officials or employees may incur under existing laws.
In cases of Local PPP Projects requiring national government undertakings, the 
ICC-NEDA shall be given twenty (20) working days from the receipt of the proposal 
for the Local PPP Project to render its decision on the requested government 
undertaking. In the event of disapproval of the requested government undertaking, 
the Implementing Agency has the right to resubmit the request for approval of the 
national government undertaking in accordance with the provisions of the IRR of this 
Act. The disapproval of the requested government undertaking shall not be construed 
as a disapproval of the Local PPP Project.
(d) In order to facilitate a comprehensive and timely review of the PPP Project, 
the PPP Center, in coordination with the ICC-NEDA, shall formulate forms and 
templates that shall be used by the Implementing Agency and the Approving Body In 
reviewing and approving the PPP Project, as well as the national government 
undertaking involved in local PPP Projects.
(e) The decision of the appropriate Approving Body to approve and implement 
the project under any of the contractual arrangements or variations thereof under this 
Act 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 Pre3 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.


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SEC. 9. Solicited Proposals. - (a) Solicited Proposals refer to submissions by the
2 
Private Proponent to bid for PPP Projects through open, fair, transparent, and
3 
competitive public bidding initiated by the Implementing Agency. Government
4 
Undertakings are allowed, subject to the approval of the Approving Body.
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(b) General. The public bidding may be conducted in a single-stage or two-stage
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bidding process, either manuaily or electronically, subject to the rules provided for in
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the IRR of this Act.
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The contract shall be awarded to the bidder who satisfied all pre-qualification
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and eligibility requirements and has submitted the most favorable financial bid based
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on the parameters defined in the bid documents. In all instances, affordable user fees
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and efficient public services shall be of paramount Importance in awarding a PPP
12 
contract.
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If the winning bidder fails to comply with any post-award requirement or fails to
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enter into a contract with the Implementing Agency, the latter may proceed to
15 
consider the next technically and financially qualified bidder. In case the contract Is
16 
awarded to the next technically and financially qualified bidder, it shall be without
17 
prejudice to legal remedies available to the Implementing Agency like forfeiture of bid
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security, withdrawal of award, and such other remedies allowed under existing laws,
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rules, and regulations.
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Any change in control of the Private Proponent or composition of the consortium
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after the submission of a solicited proposal shall be subject to the approval of the
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Implementing Agency.
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(c) Failure of Bidding. The Implementing Agency shall declare failure of bidding
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in case of any of the following:
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(1) If no bids are received; or
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(2) If there are no complying bids.
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The ICC-NEDA or the local Sanggunian may also declare a failure of bid if, after
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advertisement, only one bidder applied for and met the pre-qualification requirements,
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unless otherwise provided in this Act.
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The procedures and mechanisms in dealing with a failure of bidding shall be
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prescribed in the IRR of this Act.
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(d) Single Complying Bid. Without prejudice to paragraph (a) of this Section, the
33 
Implementing Agency may consider, on a negotiated basis, a single complying and
34 
responsive bid in case of any of the following:
35 
(1) If, after advertisement, more than one bidder applied for prel9
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qualification but only one met the pre-qualification requirements;


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(2) If, after advertisement, only one bidder applied for and met the pre-
2 
qualification requirements, provided such was allowed by the ICC-
3 
NEDA or the local Sanggunian, whichever is applicable;
4 
(3) If, after pre-qualification of more than one bidder, only one submitted
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a bid; or
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(4) If, after pre-qualification, more than one bidder submitted bids but only
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one is found by the Implementing Agency to be complying.
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In any of the four (4) instances described in sub-paragraphs (1) to (4) of the
9 
preceding paragraph, the Implementing Agency shall not consider negotiating with
10 
the single complying and responsive bid when there is a reasonable showing of
11 
collusion between or among prospective bidders or collusion between the remaining
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bidder with the officers of the Implementing Agency or any member or officer of the
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PBAC.
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SEC. 10. Unsolicited Proposals. - (a) General. Unsolicited Proposals refer to
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project proposals submitted by a Private Proponent not in response to a formal
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solicitation or request issued by the Implementing Agency.
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The Implementing Agency may accept, reject, or convert an unsolicited proposal
18 
into a solicited proposal, subject to the evaluation of eligibility and merits of the
19 
project, and other conditions set forth in this Section and the IRR of this Act.
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(b) Limitations. Unsolicited proposals may be considered for projects that are not
21 
in the priority list and projects that are in the priority list. Provided, That in case the
22 
Implementing Agency has already incurred any development cost for the priority
23 
project, such as the conduct of feasibility study, business case, and surveys, among
24 
others, for the last five (5) years, the Private Proponent must undertake to reimburse
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the Implementing Agency of such documented development costs. Reimbursable
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development costs for a specific priority project shall be determined by the
27 
Implementing Agency.
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Provided, further. That any unsolicited proposal shall not contain any of the
29 
following Government Undertakings:
30 
(i) Viability Gap Funding and other forms of Subsidy;
31 
(ii) Payment of Right-of-Way related costs;
32 
(iii) Performance undertaking;
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(iv) Exemption from any taxes as required by laws, except local taxes
34 
imposed by local government units;
35 
(v) Guarantee on Demand;
36 
(vi) Guarantee on Loan Repayment;


1 
(vii) Guarantee on Private Sector Return;
2 
(viii) Government equity except in JV arrangements; and
3 
(ix) Contribution of assets, properties, and rights except in JV
4 
arrangements.
5 
As an exception, items (ii) and (ix) above may be allowed if the government
6 
receives appropriate compensation, which shall in no way be lower than the value of
7 
the Right-Of-Way, assets, properties, and rights contributed.
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(c) Special Requirements. (1) Within ten (10) working days from receipt of the
9 
unsolicited proposal, the Implementing Agency shall inform the PPP Center in writing
10 
of such receipt and shall furnish it with a copy of the proposal.
11 
(2) Upon submission of an unsolicited proposal, the Private Proponent shall pay
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an administrative fee to the Implementing Agency for processing of the same, subject
13 
to the guidelines as may be set in the IRR of this Act.
14 
(3) An unsolicited proposal involving Right-of-Way acquisition of a property,
15 
whether owned or not owned by the Original Proponent, may only be considered if
16 
the submission includes proof that the Original Proponent can acquire the entire
17 
property it identified in the unsolicited proposal, and/or a detailed Right-of-Way and
18 
resettlement plan indicating the specific assistance it needs from the government in
19 
acquiring the Right-of-Way for the entire property it identified in the unsolicited
20 
proposal, as may be applicable.
21 
(4) Any change in control of the Original Proponent or composition of the
22 
consortium after the submission of the Unsolicited Proposal shall be subject to the
23 
approval of the Implementing Agency.
24 
(5) In evaluating unsolicited proposals, the Implementing Agency shall use a first
25 
in time approach. Under this approach, the first complete proposal is evaluated and
26 
decided upon. The second complete proposal shall only be processed if the first one
27 
is rejected or if there is a failure in the negotiation of the first proposal. In all instances,
28 
the Implementing Agency may seek the assistance of the PPP Center in the
29 
assessment, evaluation, and review of unsolicited proposals.
30 
(d) Rejection of an Unsolicited Proposal. The Implementing Agency shall have
31 
the right to automatically reject the unsolicited proposal upon receipt thereof, or
32 
formally reject it after evaluation. If the Implementing Agency fails to act on an
33 
unsolicited proposal within sixty (60) working days from receipt thereof, the project
34 
proposal shall be deemed rejected, without prejudice to any liability that the erring or
35 
negligent officials or employees may incur under existing laws.
36 
In cases of automatic rejection and rejection resulting from inaction, the paid
37 
administrative fee shall be returned to the appropriate Private Proponent, and shall be
38 
without prejudice to the right of the Private Proponents to resubmit their proposals


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until such time that the proposal has been formally rejected by the Implementing 
Agency, in which case, the administrative fee shall not be returned. A formal rejection 
is a written rejection notice to the Private Proponent stating the reason/s why the 
submitted proposal was rejected.
(e) Conversion of an Unsolicited Proposal. The Implementing Agency may be 
allowed to convert an unsolicited proposal to a solicited proposal, subject to the 
conditions set forth in the IRR of this Act. If the Implementing Agency converts an 
unsolicited proposal and uses it as basis for public bidding, the Private Proponent shall 
be reimbursed of the cost incurred in the preparation of the proposal, such as the cost 
of any feasibility study undertaken: Provided, That such reimbursement shall be in an 
amount not exceeding six percent (6%) of the total Project Cost, excluding the cost 
of right-of-way acquisition: Provided, further, that reimbursement shall be paid in full 
by the winning bidder as a requirement for the award of the contract, or by the 
Implementing Agency in case of two consecutive failures of bidding. In the event the 
original Private Proponent wins the solicited bid, it shall return to the Implementing 
Agency the reimbursed amount. The PPP Governing Board, as referred to in Section 
23 of this Act, may adjust such reimbursement amount as the need arises.
(f) Acceptance of an Unsolicited Proposal. If the Implementing Agency accepts, 
on a negotiated basis an unsolicited proposal, it shall grant the Private Proponent who 
submitted the unsolicited proposal an "Original Proponent" status, which shall be valid 
for a period not exceeding one (1) year, and may be extended by the head of the 
Implementing Agency; Provided, That such extension shall not exceed a period of one 
(1) year.
(g) 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 start from the date of last publication 
of the invitation for the submission of comparative proposals and shall be reasonable, 
fair, and upholds the competitive nature of public bidding. Comparative proposals shall 
be evaluated based on the best-and-final offer method and the bid bonus system, the 
procedure of which shall be discussed in the IRR.
If no other proposal is received after the challenge period, the PPP contract shall 
be awarded to the Original Proponent.
SEC. 11. Protest Mechanism. - In all stages of the procurement process, the 
following protest protocol shall be strictly followed:
(a) In case of National PPP Projects:
10


1 
(i) Decisions of the PBAC may be questioned by filing a motion for
2 
reconsideration within fifteen (15) working days from receipt thereof. The PBAC shall
3 
act on the motion and render a decision within thirty (30) calendar days, otherwise it
4 
shall be deemed denied.
5 
(ii) The decision of the PBAC on the motion for reconsideration in the
6 
immediately preceding paragraph may be further questioned by filing an appeal to the
7 
head of the Implementing Agency concerned, and paying a non-refundable appeal fee
8 
in an amount equivalent to no less than of 1% of the Project Cost within fifteen
9 
(15) working days from receipt thereof. The head of the Implementing Agency shall
10 
act on the appeal and render a decision within thirty (30) calendar days, otherwise it
11 
shall be deemed denied. The PPP Governing Board may adjust the appeal fee as the
12 
need arises.
13 
If the head of the Implementing Agency in the immediately preceding
14 
paragraph is not a Department Secretary, the decision of the head of the
15 
Implementing Agency may be further questioned by filing an appeal to the Secretary
16 
of the Department to which the Implementing Agency is attached within fifteen (15)
17 
working days from receipt thereof. The Department Secretary shall act on the appeal
18 
and render a decision within thirty (30) calendar days, otherwise it shall be deemed
19 
denied.
20 
(Hi) The decision of the Department Secretary in the immediately
21 
preceding paragraph may be questioned by filing an appeal to the Office of the
22 
President within fifteen (15) working days from receipt thereof. If, within sixty (60)
23 
calendar days, the Office of the President does not act on the appeal, the same is
24 
deemed denied.
25 
(b) In the case of Local PPP Projects:
26 
(i) Decisions of the PBAC may be questioned by filing a motion for
27 
reconsideration within seven (7) calendar days from receipt thereof. The PBAC shall
28 
act on the motion and render a decision within thirty (30) calendar days, otherwise it
29 
shall be deemed denied.
30 
(ii) The decision of the PBAC on the motion for reconsideration in the
31 
immediately preceding paragraph may be further questioned by filing an appeal to the
32 
local chief executive or his authorized representative concerned within seven (7)
33 
calendar days from receipt thereof, and paying a non-refundable appeal fee in an
34 
amount equivalent to no less than Vi of 1% of the Project Cost.
35 
The local chief executive shall resolve the appeal within thirty (30) calendar
36 
days from receipt thereof, otherwise it shall be deemed denied. The selection process
37 
will be suspended for a maximum period of thirty (30) calendar days while the appeal
38 
is being evaluated. The decision of the local chief executive or his authorized
39 
representative on the appeal shall be final and immediately executory.
11


1 
Unless otherwise provided in this Act, in no case shall a motion for
2 
reconsideration or an appeal from any decision by the PBAC, Head of Implementing
3 
Agency, or Department Secretary stay or delay the bidding process. No award shall
4 
however be made until a decision on any pending appeal is rendered, or deemed
5 
denied.
6 
SEC. 12. Adoption of Contract Management and Risk Mitigation Rians in PPP
7 
Projects. - In order to manage the fiscal risks arising from PPP Projects, strengthen
8 
the credibility of the PPP program and projects among the private sector, and to
9 
ensure the timely compliance with the contractual obligations of Implementing
10 
Agencies, projects undertaken shall require the adoption of a contract management
11 
and risk mitigation plan (CMRMP). The CMRMP shall contain the agreed project
12 
execution plan and risk mitigation plans of the contractual parties, which shall ensure
13 
that value for money derived from undertaking a PPP Project shall not be diminished
14 
and that all risks are mitigated, to avoid contingent liabilities from being realized. All
15 
CMRMPs shall be submitted to the PPP Center for monitoring. The procedures in
16 
creating, managing, and monitoring the CMRMP shall be prescribed in the IRR.
17 
SEC. 13. Project Supervision, Monitoring, and Impact Evaluation. - Every PPP
18 
Project shall be implemented in accordance with the project terms as approved by the
19 
appropriate Approving Body, as well as the signed PPP contract. The coverage of the
20 
project terms and the minimum required provisions in a PPP contract shall be set forth
21 
in the IRR of this Act. The Implementing Agency shall be entitled to exercise sufficient
22 
powers of supervision, monitoring, and control over the implementation of each PPP
23 
contract it has entered into.
24 
(a) Supervision. The Implementing Agency shall be responsible for the overall
25 
supervision of the PPP Project and for submission of periodic monitoring reports,
26 
executed under oath, to the appropriate oversight agencies. The approval by any
27 
public officer of any certificate of compliance or certificate of completion that is
28 
submitted by the Private Proponent shall also be made under oath. The liability of the
29 
public officer or former public officer for any criminal act under existing pertinent laws
30 
related to the actions made on such reports and such approvals shall survive the
31 
retirement of the public officer, the termination of the project contract, and the lapse
32 
of the applicable warranty period/s.
33 
(b) Monitoring. The PPP Governing Board shall set the framework for
34 
monitoring of the compliance of the parties to PPP contracts.
35 
The PPP Center shall be responsible for the coordination and monitoring of
36 
projects Implemented under this Act. For this purpose, the Implementing Agency shall
37 
submit to the PPP Center all executed PPP contracts, information on the status of
38 
projects implemented by, as well as copies of all unsolicited proposals and related
39 
documents received by, the former. At the end of every calendar year, the PPP Center
40 
shall submit a report to the President of the Philippines and to the Congress of the
12


1 
Philippines - particularly to the Senate President and the Speaker of the House of
2 
Representatives, and the Chairpersons of the Committee on Public Works - on the
3 
progress of all projects Implemented under this Act.
4 
(c) Impact Evaluation. As the primary socio-economic policy think tank of the
5 
national government, the Philippine Institute for Development Studies (PIDS) is
6 
hereby mandated to conduct periodic impact evaluation studies of PPP Projects
7 
Implemented under this Act. The results of these studies shall be submitted to the PPP
8 
Governing Board, the PPP Center, and other relevant oversight agencies.
9 
SEC. 14. Investment Incentives. - PPP Projects undertaken through this Act
10 
shall be entitled to various incentives under applicable laws and existing policies of the
11 
government.
12 
SEC. 15. Investment Recovery Scheme. - In undertaking PPP Projects, the
13 
Private Proponent shall be allowed to recover its investments and earn profit through
14 
any of the following schemes or a combination thereof:
15 
(a) Revenue-based - refers to a scheme where the Private Proponent is
16 
authorized to charge and collect, in whole or in part, from the public reasonable user
17 
fees or tariffs subject to appropriate regulation in accordance with Section 16 of this
18 
Act. Where applicable, the Private, Proponent may likewise be repaid in the form of a
19 
share in the revenue of the project; and
20 
(b) Availability-based - refers to a scheme where the Implementing Agency
21 
commits to make predetermined payments, which do not take the form of charges
22 
paid by the users of the works or of the service, but of regular payments by the
23 
Implementing Agency based on contractually-defined performance delivery.
24 
Other non-monetary payments, such as commercial development rights, or the
25 
grant of a portion or percentage of the reclaimed land, subject to the constitutional
26 
requirements on land ownership, may also be allowed to supplement the foregoing
27 
schemes.
28 
The framework and mechanism in determining the allowable return of the Private
29 
Proponent on a PPP Project shall be prescribed in the IRR of this Act.
30 
SEC. 16. Regulation. - All PPP Projects shall be subject to regulation by the
31 
appropriate regulatory body or by contract In the absence of the former.
32 
SEC. 17. Variation, Expansion, or Extension of an Existing PPP Project. - A
33 
contract variation or extension, or an expansion or extension of an existing PPP Project
34 
may be allowed by the Implementing Agency, subject to the rules and procedures as
35 
provided in the IRR of this Act: Provided, That upon prior approval by the Approving
36 
Body, the Private Proponent of an existing PPP Project may be allowed to expand or
37 
extend the same even without further bidding: Provided, That the cost thereof shall
38 
not exceed twenty-five percent (25%) of the price-adjusted original approved Project
13


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Cost: Provided, further, That any subsequent expansion or extension shall no longer 
be allowed, and such shall be considered a new project and shall be tendered 
accordingly.
Application for contract variation or extension, or expansion or extension of an 
existing PPP Project shall be governed by existing laws, decrees, orders, rules and 
regulations at the time of application.
SEC. 18. 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. 19. Contract Termination. - 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 in the PPP contract. Depending on the contractual 
stipulations, the grounds for contract termination which would warrant the right of 
compensation may include, but are not limited to, default, insolvency, unlawful 
divestment or divestiture, or other unlawful acts, by the Private Proponent or by the 
government.
SEC. 20. 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;
(b) The transfer, of technology required for the operation of the PPP Project, subject 
to limitations under existing laws, rules and regulations;
(c) The training of the personnel of the Implementing Agency or of a successor In 
the operation and maintenance of the PPP Project;
(d) 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 or to a 
successor; and
14


1 
(e) In case of JV Projects, the compensation to which the Private Proponent may be
2 
entitled in case of buy-out and transfer of assets to the Implementing Agency,
3 
or to a successor.
4 
SEC. 21. Prohibition on the issuance of Temporary Restraining Orders,
5 
Preiiminary Injunctions and Preiiminary Mandatory Injunctions. - No temporary
6 
restraining order, preliminary injunction, or preliminary mandatory injunction shall be
7 
issued by any court, except the Supreme Court, against any Implementing Agency or
8 
the PPP Center, its officials or employees, or any person or entity, whether public or
9 
private acting under the government direction, to restrain, prohibit, or compel the
10 
following acts:
11 
(a) Bidding, rebidding, or declaration of failure of bidding of any PPP Project;
12 
(b) Qualification or disqualification of bidders;
13 
(c) Awarding of any PPP contract;
14 
(d) Acceptance of any unsolicited PPP project proposal, even if not acted upon by
15 
the Implementing Agency concerned under Section 10 of this Act;
16 
(e) Acquisition, clearance, development of the right-of-way, site or location of any
17 
PPP Project;
18 
(f) Construction, operation and maintenance of any PPP Project;
19 
(g) Commencement, execution, implementation, termination or rescission of any
20 
PPP contract; and
21 
(h) Undertaking or authorization of any other lawful activity necessary for such PPP
22 
Project or contract.
23 
This prohibition shall apply in all cases, disputes or controversies instituted by
24 
any person, including, cases filed by bidders or those claiming to have rights through
25 
such bidders. This prohibition shall not apply when the matter Is of extreme urgency
26 
involving a constitutional issue, such that unless a temporary restraining order is
27 
issued, grave injustice and irreparable injury will arise.
28 
In addition to any civil and criminal liabilities a judge may incur under existing
29 
laws, any judge who shall Issue a temporary restraining order, preliminary injunction
30 
or preliminary mandatory injunction in violation of this Section, shall suffer the penalty
31 
of suspension of at least sixty (60) days without pay.
32 
Any temporary restraining order, preliminary injunction, or preliminary
33 
mandatory injunction issued in violation of this section is void and of no force and
34 
effect.
35 
SEC. 22. PPP Center. - To achieve the goals of this Act, the PPP Center created
36 
under Executive Order No. 8, series of 2010, as amended by Executive Order No. 136,
37 
series of 2013, is hereby institutionalized. It is hereby authorized to adopt its current
15


1 
organizational structure, absorb its existing employees, and upgrade its human
2 
resource component, as may be necessary, subject to evaluation and approval by the
3 
DBM.
4 
In order to work towards a more efficient and effective performance of its
5 
mandate, the PPP Center shall have the following powers and functions:
6 
(a) Assist Implementing Agencies in identifying, developing, prioritizing, and
7 
maintaining a pipeline of PPP Projects;
8 
(b) Provide advisory services, technical assistance, trainings, and capacity
9 
development to Implementing Agencies, Approving Bodies, and other oversight
10 
agencies in all PPP-related matters, and act as a procurement agent upon the
11 
request of the Implementing Agency;
12 
(c) Manage and administer the Project Development and Monitoring Facility (PDMF)
13 
as provided in Section 24 of this Act;
14 
(d) Recommend pians, policies, and implementation guidelines related to PPP, in
15 
consultation with appropriate oversight committees or agencies. Implementing
16 
Agencies, private sector and other relevant stakeholders;
17 
(e) Ensure sustainability of the implemented PPP program and projects through
18 
monitoring, documenting, and sharing the lessons learned and best practices to
19 
Implementing Agencies and appropriate oversight committees or agencies;
20 
(f) Provide regular monitoring and status reports on the implementation of all PPP
21 
programs and projects entered into by Implementing Agencies, including
22 
potential public interest concerns and violations of the PPP Act, to the Office of
23 
the President, the Congress of the Philippines, relevant oversight committees
24 
and agencies, and publish the same in the official website of the PPP Center;
25 
(g) Promote and market the implemented PPP programs and projects, in
26 
collaboration with other government investment promotion agencies;
27 
(h) Review PPP contracts and issue advisory opinions relating to PPPs, including how
28 
the PPP Act and its IRR shall be implemented;
29 
(i) Serve as the central repository of all PPP Project documents, including all
30 
executed PPP contracts and any subsequent amendment or supplement thereto,
3! 
including settlement agreements, entered into by Implementing Agencies;
32 
(j) Act as Secretariat to the PDMF Committee and the PPP Governing Board;
33 
(k) Perform such other functions as may be necessary to achieve the objectives and
34 
purposes of this Act.
35 
The PPP Center shall report directly to the PPP Governing Board and shall be
36 
attached to the National Economic and Development Authority (NEDA) for purposes
37 
of policy and program coordination.
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1 
The PPP Center shall be headed by an Executive Director with the rank equivalent
2 
to an Undersecretary, who shall be appointed by and co-terminus with the President
3 
of the Philippines. The Executive Director shall perform the following functions:
4 
(a) Undertake the day-to-day management and supervise the operations of the PPP
5 
Center;
6 
(b) Recommend to the PPP Governing Board such policies and measures which are
7 
deemed necessary for the effective exercise and discharge of the powers and
8 
functions of the PPP Center;
9 
(c) Sit as a non-voting member of the PPP Governing Board, INFRACOM, and ICC-
10 
NEDA; resource person/observer in the NEDA Board on PPP matters; and as a
11 
member of other inter-agency bodies in cases where PPPs are concerned; and
12 
(d) Perform such other functions as may be assigned by the PPP Governing Board.
13 
SEC. 23. PPP Governing Board. - The PPP Governing Board, created under
14 
Executive Order No. 136, series of 2013, and hereinafter referred to as the Board, is
15 
hereby institutionalized. It shall be the overall policy-making body for ail PPP-related
16 
matters, including the PDMF. It shall be responsible for setting the strategic direction
17 
of PPP programs and projects and in creating an enabling policy and institutional
18 
environment for PPP.
19 
The Board shall be composed of the following:
20 
(a) The Secretary of Socio-Economic Planning as Chairperson;
21 
(b) The Secretary of Finance as Vice-Chairperson;
22 
(c) The Secretary of Budget and Management;
23 
(d) The Secretary of Justice;
24 
(e) The Secretary of Trade and Industry;
25 
(f) The Executive Secretary;
26 
(g) The Secretary of Interior and Local Government;
27 
(h) The Executive Director of the PPP Center, as non-voting member; and
28 
(i) Any 
one of the two (2) private sector representatives 
of the Ease of Doing
29 
Business and Anti-Red Tape Advisory Council.
30 
The principal members of the Board may designate their respective alternates,
31 
who shall be the official next-in-rank to them, and whose acts shall be considered the
32 
acts of their principals.
33 
The presence of the Chairperson and four (4) other members of the Board shall
34 
constitute a quorum and a majority vote of the members present shall be necessary
35 
for the adoption of any issuance, order, resolution, decision or other act of the Board
17


1 
in the exercise of its functions. The Board shall act as a collegial body. In the conduct
2 
of meetings, the Chairperson shall not vote except to break a tie.
3 
The Board shall act on any matter for its consideration not later than thirty (30)
4 
working days from the date of submission thereof.
5 
SEC. 24. Project Development and Monitoring Facility, - (a) The PDMF is hereby
6 
established and shall be used for the procurement of advisory and support services
7 
related to the preparation, structuring, probity management, procurement, financial
8 
close, project evaluation, and monitoring of implementation of PPP Projects, in
9 
accordance with the relevant provisions of Republic Act No. 9184 or the Government
10 
Procurement Reform Act and its Implementing Rules and Regulations.
11 
(b) The PDMF referred to under EO No. 8, series of 2010, as amended by EO
12 
No. 136, series of 2013, shall be transferred to the PDMF under this Act. The PDMF
13 
may be funded through and such amount as may be needed and included in the
14 
general appropriations act, official development assistance, or other sources.
15 
(c) The PDMF shall be managed and administered by the PPP Center as a
16 
revolving fund. In order to sustain the PDMF, the PPP Center may collect and receive
17 
fees and recover costs expended through PDMF in accordance with the guidelines to
18 
be approved by the PPP Governing Board. Such amount shall be retained and
19 
authorized to be used by the PPP Center for the purposes indicated herein.
20 
A PDMF Committee is hereby created which shall approve applications for PDMF
21 
support submitted by the Implementing Agencies.
22 
The PDMF Committee shall be composed of: (1) the Secretary of Socio24
23 
Economic Planning as chairperson; (2) the Secretary of Finance, (3) the Secretary of
24 
Budget and Management, and (4) the Executive Director of the PPP Center, as
25 
members. The PPP Center shali serve as the Secretariat for the PDMF Committee.
26 
Subject to approval of the PPP Governing Board, the PDMF Committee shall also
27 
formulate, prescribe, and recommend policies, procedures, and guidelines for the use
28 
of PDMF and recovery of costs charged to the fund.
29 
SEC. 25. Creation of a Risk Management Fund. - To ensure fiscal sustainability
30 
and negotiate better financing terms of PPP Projects, there is hereby created a PPP
31 
Risk Management Fund to be used for the payment of contingent liabilities arising
32 
from PPPs in accordance with its contract terms.
33 
The target amount in the PPP Risk Management Fund is to be determined by the
34 
Development Budget Coordination Committee (DBCC) using risk-adjusted methods or
35 
such other means that estimate the exposure of the Government of the Philippines to
36 
PPP contingent liabilities.
37 
The PPP Risk Management Fund shall be funded from the following sources:
38
(a) Concession fees;
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(b) Implementing Agency reimbursements;
(c) Interest earnings from the PPP Risk Management Fund; and
(d) 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 
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. 26. Establishment of a PPP Unit - Each concerned Implementing Agency 
shall organize a PPP unit headed by a senior official, who shall be responsible for 
planning, overseeing, and monitoring PPP Projects of the Implementing Agency. In
19


1 
the case of LGUs undertaking PPP Projects, the local chief executive shall organize
2 
such PPP unit.
3 
The PPP units may include as members, among others, technical and legal
4 
personnel who are knowledgeable on the technical and legal aspects, respectively, of
5 
the PPP Projects. The rules on membership and specific functions of which shall be
6 
identified in the IRR of this Act.
7 
SEC. 27. Safekeeping and Public Disclosure of Contracts. - Copies of all PPP
8 
contracts executed under this Act shall be considered and appropriately kept safe and
9 
preserved as public documents. Except those provisions in the contract which are
10 
proprietary, or may pose threats to national security or public safety, the procedures
11 
for the disclosure of such documents shall be consistent with existing policies, laws,
12 
decrees, orders, rules and regulations, including the IRR of this Act. The Implementing
13 
Agency and the PPP Center shall publicly make available copies of PPP contracts
14 
through their respective websites, unless otherwise prohibited by existing laws, rules
15 
and regulations, including national security and public safety concerns.
16 
SEC. 28. Miscellaneous Provisions. - (a) Mitigation of Interconnectivity and
17 
Interface Risks. - All PPP Projects which will Interconnect or interface with a local or
18 
national facility, shall be required to submit a Memorandum of Agreement (MOA)
19 
containing an interconnection/interface plan agreed upon by all relevant parties. For
20 
National PPP Projects, said MOA shall be submitted to the ICC3 NEDA; while for Local
21 
PPP Projects, said MOA shall be submitted to the local Sanggunian.
22 
(b) Issuance of Franchise. Subject to the provisions of the Constitution and other
23 
existing laws, rules and regulations, once a PPP contract is executed by the Private
24 
Proponent and the Implementing Agency, a presumption arises that the public interest
25 
will be served by the implementation of the PPP Project covered thereby, and
26 
immediately upon application by the Private Proponent, the regulator shall
27 
automatically grant in favor of the Private Proponent a franchise to operate the facility
28 
and collect the tolls, fees, rentals, and other charges stipulated under the PPP contract.
29 
(c) Standardization of Required Endorsements, Permits, and Licenses for PPP
30 
Projects. All relevant government and regulatory agencies, bodies, institutions and
31 
LGUs, shall, in coordination with the PPP Center, adopt standard timelines and
32 
requirements for the issuance of relevant endorsements, approvals, and permits for
33 
PPP Projects.
34 
(d) Real Property Tax for PPPs. The DOF shall issue the guidelines on real
35 
property tax valuation of PPP Projects to ensure uniform and consistent
36 
implementation among all LGUs. All real properties which are actually, directly, and
37 
exclusively used for a Greenfield PPP Project shall be exempted from the payment of
38 
real property taxes during the period of construction and until such time the facility is
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1 
used or operational, whether partial or full. The details of the exemption shall be
2 
prescribed in the IRR of this Act.
3 
(e) Exemption from Payment of Transfer Taxes. For all PPP Projects, the transfer
4 
of ownership of the PPP Project to the Implementing Agency shall be exempt from
5 
capital gains tax, documentary stamp tax, donor's tax, and all taxes and fees, whether
6 
from national or local, related to the transfer thereof.
7 
(f) Mandatory Inclusion of Dispute A voidance and Alternative Dispute Resolution
8 
Mechanisms in PPP Contracts. All PPP contracts shall include provisions on the use of
9 
dispute avoidance and Alternative Dispute Resolution (ADR) mechanisms. The
10 
contracting parties shall be given complete freedom to choose which ADR mechanisms
11 
and venue shall govern their dispute, as well as the rules or procedures to be followed
12 
Involving the same.
13 
(g) Conflict of Interest. Conflict of interest shall be prohibited at all times in the
14 
interpretation and implementation of this Act. Conflict of interest, which refers to any
15 
act or omission tending to oppose or disrupt the faithful performance of one's duty or
16 
mandate, shall include personal, pecuniary, and regulatory conflicts of Interests:
17 
Provided, That no national Implementing Agency shall implement a PPP Project that
18 
it regulates; Provided further, That any regulatory agency or body which implements
19 
a PPP Project shall adopt a conflict mitigation and management plan.
20 
(h) Alternative Sources of Financing. In addition to Private Proponent equity and
21 
debt, alternative financial instruments such as Green Financing, corporate or project
22 
bonds and securities, and other forms of capital market financing may be allowed for
23 
PPP Projects, subject to the approval of relevant regulatory bodies for such
24 
instruments under existing laws, rules, and regulations.
25 
(i) Private Legal and Medical Assistance. All the PPP PBAC members and other
26 
public officials providing services to the PPP PBAC shall be authorized to engage the
27 
services of private lawyers, or shall be provided with free legal assistance, where a
28 
civil, criminal, or administrative action is filed against them by reason of the
29 
performance of their official functions or duties, unless they are finally adjudged in
30 
such action or proceeding to be liable for gross negligence or misconduct or grave
31 
abuse of discretion. The PPP PBAC members shall also be entitled to medical
32 
assistance for injuries incurred in the performance of their functions.
33 
(j) Preferential Hiring of Filipino Workers. For the construction stage of
34 
infrastructure facilities where the Contractor is a foreigner, Filipino labor shall be
35 
employed or hired in the different phases of construction where Filipino skills are
36 
available.
37 
(k) Safeguard Mechanisms to Protect Public Interest. In order to improve
38 
transparency and to promote bankability and social acceptability of PPP Projects, the
39 
following mechanisms shall be observed: (1) Whenever applicable, the Implementing
21


1 
Agency shall assess the affordability of fee or tariff, and conduct a willingness-to-pay
2 
survey among the users of the infrastructure facility; (2) The Implementing Agency
3 
shall conduct public consultation or dialogue with all potential stakeholders, the details
4 
of which shall be threshed out in the IRR; and (3) The Implementing Agency and the
5 
PPP Center shall post in their respective websites the approved starting fare or user
6 
fee in a PPP Project as well as the approved parametric formula on fare Increases or
7 
adjustments, if applicable.
8 
SEC. 29. Implementing Rules and Regulations. - The IRR Committee shall be
9 
composed of representatives from the NEDA, DOF, DBM, DPWH, DOTr, DILG, DOJ,
10 
DTI, DENR, Office of the President, PPP Center, and Private Sector Representatives
11 
and other agencies, as may be identified by the PPP Governing Board. Within forty
12 
(40) working days from the effectivity of this Act, the PPP Center shall formulate and
13 
prescribe, in consultation with the IRR Committee, after public hearing and publication
14 
as required by law, the rules and regulations to implement the provisions of this Act.
15 
The IRR shall be approved by the PPP Governing Board.
16 
From time to time, the PPP Governing Board may Instruct the PPP Center, in
17 
consultation with the IRR Committee, to conduct, formulate and prescribe, after due
18 
public hearing and publication, amendments to the IRR, consistent with the provisions
19 
of this Act.
20 
SEC. 30. Administrative, Civil, and Pena! Sanction. - Any person, whether
21 
private individual or public officer or employee, who commits any of the prohibited
22 
acts hereunder proscribed, shall be punished by imprisonment from a minimum of
23 
three (3) years to a maximum of six (6) years.
24 
The following acts shall be prohibited:
25 
(a) Downgrading the category of the Project Cost for purposes of evading the
26 
required approvals under this Act;
27 
(b) Representation that the Private Proponent has the necessary capitalization to
28 
commence, complete, and implement the PPP Project when the same is false in
29 
material respects;
30 
(c) Falsification or insertion of certain provisions in the execution copy of the
31 
contract which are materially and substantially different from the approved final
32 
draft contract;
33 
(d) Any violation of Sections 7, 9,10,11,17,18, 28(g) under this Act; and
34 
(e) A public officer or employee, whether in connivance with others or acting alone,
35 
negligently or by fraud commits a failure to ensure compliance with the project
36 
terms as approved by the Approving Body, and the signed PPP contract, by
37 
approving, issuing, or confirming any certification, required documents, or
22


1 
deliverables of the Private Proponent, which are non-compliant with existing
2 
rules, erroneous, not authentic, or fraudulent.
3 
In addition, such acts committed by the Private Proponent and its concerned
4 
officers shall cause the rescission of its contract for the said PPP Project without
5 
compensation and shall be perpetually disqualified from participating in any bidding
6 
or other contractual 
arrangement for any government project. This is without
7 
prejudice to any other civil or administrative liability that erring officials or Private
8 
Proponents may incur.
9 
The liability of the public officer or employee or former public officer or employee
10 
for any violation of the prohibitions under this Act shall survive the retirement of said
11 
public officer or employee, and shall include the prohibition for the erring officer to
12 
hold public office, either as an elected, or an appointed government official on any
13 
local or national position, and to act as a consultant for the Philippine Government,
14 
the termination of the project contract, and the lapse of any applicable warranty
15 
period/s.
16 
SEC. 31. Accountability in PPP Projects. - The head of the concerned
17 
Implementing Agency shall at all times be accountable to PPP Projects undertaken
18 
through this Act. The Private Proponent shall likewise be held accountable for the
19 
works it has delivered and services it has rendered for a PPP Project. All PPP contracts
20 
are hereby required to clearly define the scope of each party's accountability under
21 
the PPP contract.
22 
To further promote accountability in PPP Projects, the Commission on Audit
23 
(COA) shall have visitorial power, as defined in the 2009 Revised Rules of Procedure
24 
of the COA and any amendments thereto, over PPP Projects. This power shall include
25 
determining whether the contribution or share of the Implementing Agency in the PPP
26 
Project is being allocated and utilized according to its intended purpose, and if the
27 
Implementing Agency is getting its rightful share from the revenues generated, as
28 
may be applicable. The COA shall also have visitorial jurisdiction over compliance to
29 
conditions, requirements, and processes set forth under this Act. To this end, the COA,
30 
in consultation and coordination with the PPP Center, shall promulgate the necessary
31 
framework and guidelines on auditing PPP Projects.
32 
SEC. 32. Joint Congressional Oversight Committee. - A Joint Congressional
33 
Oversight Committee is hereby created to oversee the implementation of this Act. The
34 
Committee shall be composed of five (5) members each from the Senate and House
35 
of Representatives to be designated by the Senate President and the Speaker of the
36 
House of Representatives, respectively. The Committee shall be jointly chaired by the
37 
respective Chairpersons of the House Committee on Public Works and Highways, the
38 
House Committee on Appropriations, the Senate Committee on Public Works, and the
39 
Senate Committee on Finance.
23


1 
SEC. 33. Transitory Clause. - The provisions of this Act shall apply to all PPP
2 
Projects except: (a) all projects wherein a PPP contract between the winning Private
3 
Proponent and the Implementing Agency concerned has been executed prior to
4 
effectivity of this Act; and (b) all projects undertaken through competitive selection
5 
wherein the bid/s have already been opened prior to the effectivity of this Act. For
6 
PPP Projects not covered under items (a) and (b) above, this Act shall govern, provided
7 
that this Act shall not, in any manner, operate to impair vested rights already accruing
8 
to a party.
9 
All unexpended funds for the calendar year, properties, equipment, contracts
10 
and records of the PPP Center are hereby retained. The amount necessary to carry
11 
out the organizational changes of the PPP Center provided in this Act shall 
be
12 
determined by the PPP Governing Board. Appropriations for succeeding years shall be
13 
incorporated in its budget proposals, subject to the existing budgeting rules and
14 
regulations.
15 
All officials and employees of the PPP Center shall be retained and shall not suffer
16 
any loss of seniority or rank or decrease in emoluments.
17 
SEC. 34. Separability Clause. - If any portion or provision of this Act is declared
18 
unconstitutional, the remainder of this Act or any provision not affected thereby shall
19 
remain in force and effect.
20 
SEC. 35. Repealing Clause. - The following are hereby repealed:
21 
(a) Republic Act No. 6957, as amended by Republic Act No. 7718 (An Act Authorizing
22 
the Financing, Construction, Operation and Maintenance of Infrastructure
23 
Projects by the Private Sector, and for other purposes);
24 
(b) Executive Order No. 8, s. 2010, as amended by Executive Order No. 136, s. 2013
25 
(Reorganizing and Renaming the Build-Operate And Transfer (BOT) Center to
26 
the Public-Private Partnership (PPP) Center of the Philippines and Transferring
27 
its Attachment from the Department of Trade and Industry to the National
28 
Economic and Development Authority and for other purposes);
29 
(c) Executive Order No. 78, s. 2012 (Mandating the Inclusion of Provisions on the
30 
Use of Alternative Dispute Resolution Mechanisms in All Contracts Involving
31 
Public-Private Partnership Projects, Build-Operate and Transfer Projects, Joint
32 
Venture Agreements Between the Government and Private Entities and those
33 
Entered into by Local Government Units);
34 
(d) Section 8 of Executive Order No. 423, s. 2005 (Repealing Executive Order No.
35 
109-A Dated September 18, 2003 Prescribing the Rules and Procedures on the
36 
Review and Approval of All Government Contracts to Conform with Republic Act
37 
No. 9184, Otherwise Known as "The Government Procurement Reform Act’);
24


1 
(e) 2013 Revised Guidelines and Procedures for Entering Into Joint Venture
2 
Agreements Between Government and Private Entities; and
3 
(f) PPP Codes and Joint Venture Guidelines issued by LGUs and GOCCs.
4 
All other laws, decrees, orders, rules and regulations, and all other related
5 
national and local issuances or parts thereof inconsistent with this Act are hereby
6 
repealed or amended accordingly
7 
SEC. 36. Effectivity. - This Act shall take effect after fifteen (15) days following
8 
the completion of its publication either in the Official Gazette or in a newspaper of
9 
general circulation in the Philippines.
Approved,
25