NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 1022
o( tliP ftcirrtaiy
•22 AUG -4 A 9 31
Rl-CEiVtD BY: „
Introduce*?: by Senator Jmggoy Ejercito Estrada
AN ACT
STRENGTHENING PUBLIC-PRIVATE PARTNERSHIPS, APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
During his first State of the Nation Address (SONA), President Ferdinand 
"Bongbong" Marcos Jr., said b at he intends to contin ie the flagship infrastructure 
program of the Duterte administration as the Build, Build, Build (BBB) has proven to 
be an effective program in plugging the infrastructure gaps in the country.
This bill is aimed to further develop and strengthen the frameworl: for public 
and private sector collaborations by improving the "Build-Operate-Transfer" (BOT) 
law, through the expansion of its coverage and providing more incentives to the 
private sector who become partners of the government in implementing infrastructure 
projects.
Under the measure, the Public-Private Partnership (PPP) Center of the 
Philippines shall be institutionalized, the coverage of PPPs will be expanded to Include 
Joint Ventures, and Operation and Maintenance contracts. It also seeks to safeguard 
public interest by guaranteeing reasonable and fair pricing and prompt delivery of 
quality infrastructure, goods and services, as well as Implementing a policy of full 
public disclosure of all PPP transactions.
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This bill was reported out by the Committees on Public Works; Economic 
Affairs; Ways and Means; and Finance in the IS1*1 Congress.
In this light, the immediate passage of this bill is highly recommended.
/^NGGOY EJERCrrO ESTRADA


Btmit
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
F/rst Regular Session
SENATE
s. No. 1022
•22 AUG-4 A9 31
RVXEiVEO BY,
Introducfsd by Senator Jinggoy Ejercito Estradi
AN ACT
STRENGTHENING PUBLIC-PRIVATE PARTNERSHIPS, APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembied:
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Section 1. Short Tide. - This Act shall be known as thePubiic-Private Partnership 
(PPP)Acf.
Sec. 2. Dedaration of Poiicy. - 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 environme it for the private sector to mobilize its resources for the 
purpose of financing, designing, constructing, operating and maintaining development 
programs and projects traditionally undertaken by the government. As provided by law, 
the government shall foster robust private sector participation by providing financial 
incentives and by reducing cos'^s 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 take into account that all PPP Projects yield sufficient value for money, 
value for people, and value for planet.


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The State shall pursue a policy of maintaining a i easonable balance on financing 
of infrastructure and other development projects through all means available 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 sha'I determine the appropriate financing by considering 
budget availability, timelines, stakeholder commitments, and market capacity.
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 d'sclosure of all fc 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. It shall likewise api)ly to and be 
enforceable among all parties to said PPP contracts.
Implementing Agencies are hereby authorized to undertake PPP Projects through 
PPP contracts with a Private Proponent in accordance with this Act.
Sec. 4. Definition of Terms. - As used in this Act:
(a) 
Approving Body refe. s to an entity authorized to approve PPP Projects, In 
accordance with Section 7 of this Act;
(b) 
Construction refers to new construction, rehabilitation, improvement, 
expansion, alteration, and related works and activities including the necessary 
supply and installation of equipment, materials, labor and ^:-ervices, and 
related items;
(c) 
Contractor refers to any entity allowed under Philippine laws, which may or 
may not be the Private Proponent, and which shall undertake the actual 
construction or supply of equipment or services for PPP Projects;
(d) 
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 is uncertain. These events include regulatory risks, force majeure, 
breach of government warranties, and material adverse goverriment action, 
among others;


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(e) 
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 maintaining a facility, including, but not limited 
to, the collection of tolls, fees, rentals or charges from facility users;
(f) 
Government Undertakings refers to any form of contribution and support, 
which the government may extend to a Private Proponent for the 
implementation of PPP Projects, as defined under this Act. The procedures on 
proposing and granting of Government Undertakings shall be prescribed in 
the IRR of this Act;
(g) 
Greenfield Project rerers to a project which entails the creation of an entirely 
new facility or service, which does not depend on the improvement of an 
existing facility;
(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 to assume market risks in a PPP Project;
O') Guarantee on Loan Repayment refers to an agreement whereby the 
Implementing Agenc/ guarantees to assume responsibility for the repayment 
of debt directly incurred by the Private Proponent in implementing the project 
in case of a loan default;
(k) 
Guarantee on Private Sector Return refers to an agreement whereby the 
Implementing Ageno/ guarantees to provide a pre-identified rate of return on 
the investment of the Private Proponent;
(l) 
Implementing Agency refers to a department, bureau, office, instrumentality, 
commission, authority of the national government, state universities and 
colleges (SUCs), local government units (LGUs), or government owned-or- 
controlled corporation (GOCC) as defined in Republic Act No. 10149, including 
government instrumentalities with corporate powers (GICP), government 
corporate entities (GCE), government financial Institutions (GFIs), which is 
authorized to undertake PPP Projects;
(m) Joint Venture (JV) refers to a contractual arrangement whereby both the 
Implementing Agency and the Private Proponent contribute to pool resources


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comprising of capita!, 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, and eventually transfer the activity to either the private sector under 
competitive market conditions or to the government. The JV involves a 
community or pooling of interests In the performance of the investment 
activity, and each party shall have the right to direct and govern the policies 
in connection therewith with the intention to share both profits^ and risks and 
losses subject to agreement by the parties. A JV may be undertaken through 
a contract or by creating a JV entity;
(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 (RA) 
10931;
(o) 
National PPP Project refers to a PPP Project that shall be undertaken by the 
national government, GOCCs including water districts, GICPs, GCEs, GFIs, and 
SUCs as defined In RA 10931;
(P) Operation and Maintenance refers to activities necessary and incidental to 
preserve or restore the operational status of an asset or system based on 
specified performance Indicators;
(q) 
Original Proponent refers to the Private Proponent which submitted an 
unsolicited proposal which has been accepted and pre-qualifled by the 
Implementing Agency, and has been conferred the "Original Proponent" 
status, as mentioned In Section 10 of this Act;
(r) 
PPP Project refers to infrastructure or development programs, projects, 
activities, facilities, and related services normally financed and undertaken by 
the public sector, but which shall now be whoiiy or partly financed, designed, 
built, operated and maintained by the private sector;
(s) 
Private Proponent refers to the private sector entity which shall either have 
submitted an unsolicited proposal, or a bid submission in relation to a solicited 
PPP Project, and/or have a contractual responsibility^ for the PPP Project. The 
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 
requirements and limitations provided under the Philippine Constitution;
(t) 
Project Cost refers to the estimated cost of the PPP Project. The guidelines in 
determining the Project Cost shall be prescribed in the IRR of this Act;
(u) 
Subsidy refers to an agreement whereby the Implementing Agency will: (1) 
defray, pay for, or si lOulder a portion of the Project Cost or the expenses and 
costs in operating or maintaining the project; (2) contribute any property or 
assets to the project; (3) waive or grant special rates on real property taxes 
on the project during the term of the contractual arrangement; and/or (4) 
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 and/or Facility Operator for such payment, 
contribution, or support: Provided, That under no circumstance shall the total 
subsidy exceed fifty percent (50%) of the total Project Cost;
(v) 
Termindtion Peyment 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) 
Viability Gap Fundina (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 Pa tnership. - 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 projects which 
are normally provided by the public sector. PPP Projects may be undertaken through 
contractual arrangements, including joint ventures, autl iorized under the Implementing 
Rules and Regulations (IRR) of this Act, and such other variations thereof as may be 
approved by the appropriate Approving Body.
Sec. 6. Identification of PPP Projects, - Implementing Agencies shall Include in 
their development plans, strategies, and investment- programs those priority PPP 
Projects that they want to undertake. In identifying those projects, the Implementing


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Agencies shall be guided by the following principles: effectiveness in meeting 
government objectives, approp.lateness of the chosen procurement modality and source 
of funding, value for money, accountability and transparency, consumer rights, 
affordability, public access, safety, and security. Priority projects shall be consistent with 
the national and local development and investment plans.
The Implementing Agencies shall submit their list of PPP Projects or any update 
thereto to the PPP Center, referred to in Section 22 of this Act, for information. 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 costing five billion pesos (P5,000,000,000.00) and below, 
shall be submitted to the Investment Coordination Committee of the 
National Economic and Development Authority (ICC-NEDA) for 
approval;
(ii) Projects costing above five billion pesos (P5,000,000,000.00) shall be 
submitted to the NEDA Board for approval, upon favorable 
recommendation by the ICC-NEDA.
The ICC-NED/\ may, from time to time, update the aforementioned 
amounts when the need arises.
(2) Local PPP Projects. Local PPP Projects shall be approved by the local 
Sanggunians, regardless of the Project Cost: Provided, That Local PPP Projects involving 
Government Undertakings using national government funds shall require the approval 
of the ICC-NEDA. National 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.


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Provided, further, That permits, clearances, licenses or endorsements from 
national government agencies required for Local PPP Projects under lav/s, rules, and 
regulations, shall not be considered as Government Undertakings by the national 
government for Local PPP Projects.
(b) 
The Approving Body shall assess all PPP Projects based on Its overall 
feasibility analysis and accord paramount importance on the affordabillb of user fees 
and efficiency in public service. To ensure that all risks associated with PPP Projects 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 Agencv 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 twenb; (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 ImpI ..menting Agency and the Approving Body in reviewing


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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 Prequalification, Bids 
and Awards Committee (PBAC), which shall be responsible for all aspects of pre-bidding 
and bidding process In solicit .jd 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 entitles.
Sec. 9. Solicited Proposals. - (a) 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) General. 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 satisfied all pre-qualification 
and eligibility requirements and has submitted the most favorable financial bid based on 
the parameters defined in the bid documents. In all instances, affordable user fees 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 or fails to 
enter into a contract with the Implementing Agency, the latter may proceed to consider 
the next technically and financi:illy qualified bidder. In case the contract is awarded to 
the next technically and financially qualified bidder, it shall be without prejudice to legal 
remedies available to the Implementing Agency like forfeiture of bid security, withdrawal 
of award, and such other remedies allowed under existing laws, rules, and regulations.


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Any change In control of the Private Proponent or composition of the consortium 
after the submission of a solicited proposal shall be subject to the approval of the 
Implementing Agency.
(c) Failure of Bidding. The Implementing Agency shall declare failure of 
bidding in case of any of the following:
(1) If no bids are received; or
(2) If there are nc complying bids.
The ICC-NEDA or the local Sanggunian may also declare a failure of bid 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 bioding 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 
prequalification 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 ICC- 
NEDA or the local Sanggunian, whichever Is applicable;
(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 b/ the Implementing Agency to be complying.
In any of the four (4) instances described in sub-paragraphs (1) to (4) of the 
preceding paragraph, the Implementing Agency shall not consider negotiating with the 
single complying and responsive bid when there is a reasonable showing of collusion 
between or among prospective bidders or collusion bet.yeen the remaining bidder with 
the officers of the Implementing Agency or any member or officer of the PBAC.
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.


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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 n this Section and the IRR of this Act
(b) Limitations. Unsolicited proposals may be considered for projects that are 
not in the priority list and projects that are in the priority list: Provided, That in case the 
Implementing Agency has already incurred any development cost for the priority project, 
such as the conduct of feasibifiy 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. Reimbursable 
development costs for a specific priority project shall be determined by the 
Implementing Agency.
Provided, further, That any unsolicited proposal shall not contain any of the 
following Government Undertakings:
(i) Viability Gap Funding and other forms of Subsidy;
(li) Payment of Right-of-Way related costs;
(lii) Performance uncertaking;
(iv) 
Exemption from any taxes as required by laws, except local taxes 
imposed by local government units;
(v) 
Guarantee on Demand;
(vi) 
Guarantee on Loan Repayment;
(vii) Guarantee on Private Sector Return;
(vili) Government equity except in JV arrangements; and
(lx) Contribution of assets, properties, and rights except In JV arrangements.
As an exception, items «ii) and (lx) above may be allowed if the government 
receives appropriate compensation, which shall in no way be lower than the value of the 
Right-Of-Way, assets, properties, and rights contributed.
(c) Special Requirements. (1) Within ten (10) 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.
(2) Upon submission of an unsolicited proposal, the Private Proponent shall 
pay an administrative fee to the Implementing Agency for processing of the same, 
subject to the guidelines as may be set in the IRR of this Act.
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(3) 
An unsolicited proposal involving Right-of-Way acquisition of a property, 
whether owned or not owned by the Original Proponent, may only be considered if the 
submission includes proof that the Original Proponent ran acquire the ent re property it 
identified in the unsolicited proposal, and/or a detailed Right-of-Way and resettlement 
plan indicating the specific assistance it needs from the government In acquiring the 
Right-of-Way for the entire property it identified in the unsolicited proposal, as may be 
applicable.
(4) 
Any change in control of the Original Proponent or composition of the 
consortium after the submission of the Unsolicited Proposal shall be subject to the 
approval of the Implementing Agency.
(5) 
In evaluating unsolicited proposals, the Implementing Agency shall use a 
first in time approach. Under this approach, the first complete proposal is evaluated and 
decided upon. The second complete proposal shall only be processed if the first one is 
rejected or if there is a failure in the negotiation of the first proposal. In all instances, 
the Implementing Agency may seek the assistance of the PPP Center in the assessment, 
evaluation, and review of unsoimited proposals.
(d) 
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 sixty (60) working days from receipt thereo", 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.
In cases of automatic rejection and rejection resulting from inaction, the paid 
administrative fee shall be returned to the appropriate Private Proponent, and shall be 
without prejudice to the right o^ the Private Proponents to resubmit their proposals 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
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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 bar’s 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 Cliallenge. 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 '^vithin 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:
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(i) Decisions of the PBAC may be questioned by fiiing a motion for 
reconsideration within fifteen (15) working days from receipt thereof. The PBAC shail 
act on the motion and render a decision within thirty (30) calendar days, otherwise it 
shall be deemed denied.
(il) The decision of the PBAC on the motion for reconsideration in the 
immediately preceding paragraph may be further questioned by filing an appeal to the 
head of the Implementing Agency concerned, and paying a non-refundable appeal fee 
in an amount equivalent to no less than Vi of 1% of the Project Cost within fifteen (15) 
working days from receipt thereof. The head of the Implementing Agency shail act on 
the appeal and render a decision within thirty (30) calendar days, otherwise It shall be 
deemed denied. The PPP Governing Board may adjust the appeal fee as the need arises.
If the head of the Implementing Agency in the immediately preceding 
paragraph is not a Department Secretary, the decision of the head of the Implementing 
Agency may be further questioned by fiiing an appeal to the Secretary of the Department 
to which the Implementing Agency Is attached within fifteen (15) working days from 
receipt thereof. The Department Secretary shall act on the appeal and render a decision 
within thirty (30) calendar days, otherwise It shall be deemed denied.
(iii) The decision of the Department Secretary in the immediately preceding 
paragraph may be questioned by filing an appeal to the Office of the President within 
fifteen (15) working days from receipt thereof. If, within sixty (60) calendar days, the 
Office of the President does not act on the appeal, the .;ame is deemed denied.
(b) In the case of Local PPP Projects:
(i) 
Decisions of the PBAC may be questioned by filing a motion for 
reconsideration within seven (7) calendar days from receipt thereof. The PBAC shall act 
on the motion and render a decision within thirty (30) calendar days, otherwise it shall 
be deemed denied.
(ii) 
The decision of the PBAC on the motion for reconsideration in the 
immediately preceding paragraph may be further questioned by filing an appeal to the 
local chief executive or his authorized representative concerned within seven (7) 
calendar days from receipt thereof, and paying a non-refundable appeal fee in an 
amount equivalent to no less than V2 of 1% of the Project Cost.
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The local chief executive shall resolve the appeal within thirty (30) calendar days 
from receipt thereof, otherwise It shall be deemed denied. The selection process will be 
suspended for a maximum period of thirty (30) calendar days while the appeal is being 
evaluated. The decision of the ocal chief executive or his authorized repi asentative on 
the appeal shall be final and immediately executory.
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 proc<r,ss. No award sha.‘? however be 
made until a decision on any pending appeal is rendered, or deemed denied.
Sec. 12. Adoption of Contract Management and Risk Mitigation Rians in RPR 
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, projects 
undertaken shall require the adoption of a contract management and risk mitigation plan 
(CMRMP). The CMRMP shall contain the agreed project execution plan and risk 
mitigation plans of the contractual parties, which shall ensure that value for money 
derived from undertaking a PPP Project shall not be uiminished and that all risks are 
mitigated, to avoid contingent liabilities from being realized. All CMRMPs shall be 
submitted to the PPP Center for monitoring. The procedures in creating, managing, and 
monitoring the CMRMP shall be prescribed in the IRR.
Sec. 13. Project SupervL ion, Monitoring, and Impact Evaluation. - 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 per'odic monitcring reports, 
executed under oath, to the aporopriate oversight agencies. The approval by any public 
officer of any certificate of compliance or certificate of completion that is submitted by 
the Private Proponent shall also be made under oath. The liability of the public officer
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or former public officer for any criminal act under existing pertinent laws related to the 
actions made on such reports and such approvals shall survive the retirement of the 
public officer, the termination of the project contract, and the lapse of the applicable 
warranty period/s.
(b) 
Monitoring. The PPP Governing Board shall set the framework for 
monitoring of the compliance of the parties to PPP contracts.
The PPP Center shall be responsible for the coordination and monitoring of 
projects Implemented under th»s Act. For this purpose, the Impfementinc 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 former. 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 Chairpersons of the Committee on Public Works - on the 
progress of all projects implemented under this Act.
(c) 
Impact Evaluation. As the primary socio-economic policy think tank of the 
national government, the Philippine Institute for Develooment Studies (PIOS) Is hereby 
mandated to conduct periodic impact evaluation studies of PPP Projects implemented 
under this Act. The results of these studies shall be submitted to the PPP Governing 
Board, the PPP Center, and other relevant oversight agencies.
Sec. 14. Investment Incentives. - PPP Projects undertaken through this Act shall 
be entitled to various incentives under applicable laws and existing policies of the 
government.
Sec. 15. Investment Recovery Scheme. - In undertaking PPP Projects, the Private 
Proponent shall be allowed to recover its investments and earn 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 user fees or tariffs subject to appropriate regulation in 
accordance with Section 16 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
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(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 based on contractually-defined 
performance delivery.
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 shall be prescribed in the IRR of this Act.
Sec. 16. Regulation. - All PPP Projects shall be subject to regulation by the 
appropriate regulatory body or by contract In the absei ce of the former.
Sec. 17. 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 by the Implementing Agency, subject to the rules and procedures as provided 
in the IRR of this Act: Provided, That upon prior approval by the Approving Body, the 
Private Proponent of an existing PPP Project may be allowed to expand or extend the 
same even without further bidding: Provided, further. That the cost thereof shall not 
exceed twenty-five percent (25%) of the price-adjusted original approved Project Cost: 
Provided, finally, 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/Divtstment - 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 Privala 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
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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 def.ned in the PPP contrac. 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 thi5 Act after the transfer of the PPP Project to the 
Implementing Agency or to a successor; and,
(e) In case of JV Projects, the compensation to which the Private Proponent 
may be entitled in case of buy-out and transfer of assets to the 
Implementing Agercy, or to a successor.
Sec. 21. Prohibition on the issuance of Temporary Restraining Orders, Preiiminary 
Injunctions and Preiiminary Mandatory Injunctions. — No temporary restraining order, 
preliminary injunction, or preliminary mandatory injunction shall be Issued by any court, 
except the Supreme Court, against any Implementing Agency or the PV? 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:
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(a) Bidding, rebidding, )r declaration of failure of bidding of any PPP Project;
(b) Qualification or disqualification of bidders;
(c) Awarding of any PPP contract;
(d) Acceptance of any unsolicited PPP project proposal, even if not acted upon 
by the Implementirg Agency concerned under Section 10 of tiiis Act;
(e) Acquisition, clearance, development of the right-of-way, site or location of 
any PPP Project;
(f) Construction, operation and maintenance of any PPP Project;
(g) Commencement, execution, implementation , termination or rescission of any 
PPP contract; and,
(h) Undertaking or authorization of any other lawful activity necessary for such 
PPP Project or contract.
This prohibition shall apply in all cases, disputes or controversies insituted 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.
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 In violation of this Section, shall suffer the penalty of 
suspension of at least sixty (60) days without pay.
Any temporary restraining order, prellminaiy injunction, or prelimlnasy mandatory 
injunction issued in violation of this section is void and of no force and effect.
Sec. 22. 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 adont its current 
organizational structure, absorb its existing employees, and upgrade its human resource 
component, as may be necessary, subject to evaluation and approval by the DBM.
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, developing, prioritizing, and 
maintaining a pipeline of PPP Projects;
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(b) Provide advisory services, technical assistance, trainings, and capacity 
development to Lnplementing 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) Manage and administer the Project Development and Moni oring Facility 
(PDMF) as provided in Section 24 of this Act;
(d) 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;
(e) Ensure sustainability of the implemented PFP program and projects through 
monitoring, documenting, and sharing the lessons learned and best practices 
to Implementing Agencies and appropriate oversight committees or 
agencies;
(f) Provide regular mO'storing and status repeats 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;
(g) Promote and market the Implemented PPP programs and projects. In 
collaboration with other government Investment promotion agencies;
(h) Review PPP contracts and Issue advisory opinions relating to P?^Ps, including 
how the PPP Act and its IRR shall be implemented;
(I) 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 Impiementing 
Agencies;
(j) Act as Secretariat to the PDMF Committee and the PPP Governing Board;
(k) Perform such other functions as may be necessary to achieve the objectives 
and purposes of this Act.
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The PPP Center shall report directly to the PPP Governing Board and shall be 
attached to the National Economic and Development Authority (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;
(b) Recommend to the PPP Governing Board such policies and measures which 
are deemed necessrry for the effective exercise and discharge of the powers 
and functions of the PPP Center;
(c) Sit as a non-voting member of the PPP Governing Board, INFRACOM, and 
ICC-NEDA; resource person/observer in the NEDA Board on PPP matters; 
and as a member of 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. 23. 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 ail 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 Socio-Economic 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 Executive Secretary;
(g) The Secretary of Interior and Local Government;
(h) The Executive Director of the PPP Center, as non-voting member; and
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(i) Any one of the two (2) private sector representatives of the Ease of Doing 
Business and Anti-Red Tape Advisory Council.
The principal members of the Board may designate their respective alternates, who 
shall be the official next-in-rank to them, and whose acts shall be considered the acts 
of their principals.
The presence of the Chai person and four (4) otiier members of the Board shall 
constitute a quorum and a majority vote of the members present shall be necessary for 
the adoption of any issuance, order, resolution, decision or other act of the Board in the 
exercise of Its functions. The Board shall act as a collegial body. In the conduct of 
meetings, the Chairperson shall not vote except to brenk a tie.
The Board shall act on an/ matter for its consideration not later than thirty (30) 
working days from the date of submission thereof.
Sec. 24. Project Development and Monitoring Facility. - (a) The PDMF is hereby 
established and shall be used for the procurement of advisory and support sen/lces 
related to the preparation, structuring, probity management, procurement, financial 
close, project evaluation, and monitoring of implementation of PPP Projects, In 
accordance with the relevant provisions of Republic Act No. 9184 or the Government 
Procurement Reform Act and its Implementing Rules and Regulations.
(b) 
The PDMF referred to under EO No. 8, series of 2010, as amended by 
EO No. 136, series of 2013, shall be transferred to the PDMF under this Act. The PDMF 
may be funded through and such amount as may be needed and included in the general 
appropriations act, official development assistance, or other sources.
(c) 
The PDMF shall Le managed and admintstered by the PPP Center as a 
revolving fund. In order to sustain the PDMF, the PPP Center may collect and receive 
fees and recover costs expended through PDMF 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 fo^ the purposes indicated herein.
A PDMF Committee is hereby created which shall approve applications for 
PDMF support submitted by the Implementing Agencies.
The PDMF Committee shall be composed of: (1) the Secretary of SocioEconomic 
Planning as chairperson; (2) the Secretary of Finance, (3) the Secretary of Budget and
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Management, and (4) the Executive Director of the PPP Center, as members. The PPP 
Center shall serve as the Secretariat for the PDMF Com iiittee.
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. 25. Creation of a R'sk Management Fund. ~ To ensure fisca.’ 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) Interest earnings from the PPP Risk Management Fund; and
(d) National government contributions.
National government cortributlons 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 amoi/nt 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.
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Further, to foster accountability and efficiency in implementing PPP Projects, It is 
mandatory for implementing agencies to enter into a recour'se 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 mav arise from PPP Project;; 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 the 
case of LGUs undertaking PPP Projects, the local chief executive shall organize such PPP 
unit.
The PPP units may include as members, among others, technical and legal 
personnel who are knowledgeable on the technical and legal aspects, respectively, of 
the PPP Projects. The rules on membership and specific functions of which shall be 
identified in the IRR of this Act.
Sec. 27. 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. Except those provisions in the contract which are 
proprietary, or may pose threats to national security or public safety, the procedures for
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the disclosure of such documents shall be consistent with existing policies, laws, decrees, 
orders, rules and regulations, including the IRR of this Act.
The Implementing Agenp^ and the PPP Center shall publicly make available copies 
of PPP contracts through their respective websites, unless otherwise prohibited by 
existing laws, rules and regulations, including national security and public safety 
concerns.
Sec. 28. Miscellaneous Provisions. - (a) Mitigation Intercorinectivity 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 tiie ICCNEDA; wfiik for Local PPP 
Projects, said MOA shall be submitted to the local Sanggunlan.
(b) 
Issuance of Franchise. Subject to 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, fees, rentals, and other charges stipulated under the PPP contract.
(c) 
Standardization of Required Endorsements, Permits, and Licenses for PPP 
Projects. All relevant government and regulatory agencies, bodies, Institutions and LGUs, 
shall, in coordination with the PPP Center, adopt standard timelines and requirements 
for the issuance of relevant endorsements, approvals, and permits for PPP Projects.
(d) 
Real Property Tax for PPPs. The DOF shall Issue the guidelines on real 
property tax valuation of PPP Projects to ensure uniform and consistent implementation 
among ail LGUs. All real properties which are actually, directly, and exclusively used for 
a Greenfield PPP Project shall be exempted from the payment of real property taxes 
during the period of construction and until such time the facility Is used o? operational, 
whether partial or full. The details of the exemption shall be prescribed in the IRR of 
this Act.
(e) 
Exemption from Payment of Transfer Taxes. For ail PPP Projects, the 
transfer of ownership of the PPP Project to the Implementing Agency shell be exempt
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from capital gains tax, documentary stamp tax, donor's tax, and all taxes and fees, 
whether from national or local, related to the transfer thereof.
(0 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.
(g) 
Conflict of Interest. Conflict of interest shall be prohibited at all times In 
the interpretation and implementation of this Act. Conflict of interest, 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: 
Provided, That no national Implementing Agency shall implement a PPP Project that it 
regulates; Provided, further, That any regulatory agency or body which implements a 
PPP Project shall adopt a conflict mitigation and management plan.
(h) 
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 allowed for 
PPP Projects, subject to the approval of relevant regulatory bodies for such instruments 
under existing laws, rules, and regulations.
(i) 
Private Legal and Medical Assistance. All the PPP PBAC members and other 
public officials providing services to the PPP 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 pe formence 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 PPP PBAC members shall also be entitled to medical assistance for Injuries incurred 
in the performance of their functions.
(j) 
Preferential Hiring of Filipino Workers. For the construction stage
of Infrastructure facilities where the Contractor Is a foreigner, Filipino labor shall be 
employed or hired in the different phases of construction where Filipino skills are 
available.
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(k) Safeguard Mechanisms to Protect Public Interest. In order to Improve 
transparency and to promote bankability and social acceptability of PPP 
Projects, the following mecha!"isms shall be observed; (1) Whenever applicable, the 
Implementing Agency shall assess the affordability of fee or tariff, and conduct a 
willingness-to-pay survey among the users of the infrastructure facility; (2) The 
Implementing Agency shall conduct public consultation or dialogue with all potential 
stakeholders, the details of v/hich shall be threshed out in the IRR; and (3) The 
Implementing Agency and the PPP Center shall post in their respective websites the 
approved starting fare or user fee in a PPP Project as well as the approved parametric 
formula on fare increases or adjustments, if applicable.
Sec. 29. Implementing Rules and Regulations. - The IRR Comm;ttee shall be 
composed of representatives from the NEDA, DOF, DBM, DPWH, DOTr, DILG, DOJ, DTI, 
DENR, Office of the President, PPP Center, and Private Sector Representatives and other 
agencies, as may be identified by the PPP Governing Board. Within forty (40) working 
days from the effectivity of this Act, the PPP Center shall formulate and prescribe. In 
consultation with the IRR Committee, after public hearing and publication as required 
by law, the rules and regulations to implement the provisions of this Act. The IRR shall 
be approved by the PPP Governing Board.
From time to time, the PPP Governing Board may instruct the PPP Center, in 
consultation with the IRR Committee, to conduct, formulate and prescribe, after due 
public hearing and publication, amendments to the IRR, consistent with the provisions 
of this Act.
Sec. 30. Administrative, Civii, and Pena! 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:
(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;
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(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;
(d) Any violation of Sect ions 7, 9,10,11,17,18, 28(g) 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 noncompliant 
with existing rules, erroneous, not authentic, or fraudulent.
In addition, such acts committed by the Private Proponent and its concerned 
officers shall cause the rescisi ion 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. 31. Accountability in PPP Projects. - The head of the concerned 
Implementing Agency shall at all times be accountable to PPP Project 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.
To further promote accountability in PPP Projects, the Commission on Audit (COA) 
shall have visitorial power, as defined in the 2009 Revised Rules of Procedure of the 
COA and any amendments thereto, over PPP Projects. This power shall Include 
determining whether the contribution or share of the Implementing Agency in the PPP
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Project is being allocated and utilized according to its Intended purpose, and if the 
Implementing Agency is getting its rightful share from the revenues generated, as may 
be applicable. The COA shall also have visitorial jurisdiction over compliance to 
conditions, requirements, and processes set forth under this Act. To this end, the COA, 
in consultation and coordination with the PPP Center, shall promulgate the necessary 
framework and guidelines on auditing PPP Projects.
Sec. 32. Joint Congressional Oversight Committee. - A Joint Congressional 
Oversight Committee is hereby created to oversee the 'mplementatlon 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 l-fighways, the 
House Committee on Appropriations, the Senate Committee on Public Works, and the 
Senate Committee on Finance.
Sec. 33. Transitory Clause. - The provisions of this Act shall apply to all PPP 
Projects except: (a) all projects wherein a PPP contract between the wi ining Private 
Proponent and the Implementing Agency concerned has been executed prior to 
effectivlty of this Act; and (b) all projects undertaken through competitive selection 
wherein the bid/s have already been opened prior to the effectivlty of this Act. For PPP 
Projects not covered under items (a) and (b) above, this Act shall govern: Provided, 
That this Act shall not, in any manner, operate to Impair vested rights already accruing 
to a party.
All unexpended funds for the calendar year, properties, equipment, contracts and 
records of the PPP Center are hereby retained. The amount necessary to carry out the 
organizational changes of the PF? Center provided in this Act sha! 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. 34. 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.
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Sec. 35. Repealing Clause. - The following are hereby repealed:
(a) 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 pur poses);
(b) 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 tf»e Department of Trade and Industry to the National 
Economic and Development Authority and for other purposes);
(c) Executive Order No. 78, s. 2012 (Mandating the Inclusion of Provisions on the 
Use of Alternative Dispute Resolution Mechanisms in All Contracts Involving 
Public-Private Partnership Projects, Build-Operate and Transfer Projects, Joint 
Venture Agreements Between the Government and Private Entities and those 
Entered into by Local Government Units);
(d) 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");
(e) 2013 Revised Guidelines and Procedures for Entering Into Joint Venture 
Agreements Between Government and Private Entities; and,
(f) PPP Codes and Joint Ve iture Guidelines issued by LGUs and GOCCs.
All other laws, decrees, orders, rules and regulations, and all other related 
national and local issuances or parts thereof inconsistent with this Act are hereby 
repealed or amended accordingly.
Sec. 36. EffectMty. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
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