Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

5506

HOUSE BILL NO.

Introduced by Representative Manuel Luis T. Lopez

EXPLANATORY NOTE

Recent developments at the House Committees on Transportation and Metro Manila
Development have shown that huge government contracts have been entered into with terms
that are unfavorable and onerous to the government. More specifically the MRT Common Station
Memorandum of Understanding signed on January 18, 2017 is the latest and clearest example of
contracts that are prejudicial and detrimental to the government and the public.

This representation has questioned some terms in the Memorandum of Understanding
during a committee hearing held on February 15, 2017 and pointed out certain provisions, which
clearly place the government at a disadvantageous position. The agreement provided that the
parties would ensure interconnection of the Common Station with SM City North EDSA and
TRINOMA. Italso provided that “the unified station shall forever bear and include in its final name
the phrase SM North EDSA and TRINOMA'". Even minor provisions such as that pertaining to the
operating hours was made in favor of the two aforementioned shopping malls, which provides
that “the operating hours of LRT 1, MRT 3, and/or MRT 7 or LRTA shall take into consideration
the operating hours of SM City North EDSA and TRINOMA.

Also, on February 23, 2017, during the hearing conducted by the Committee on
Transportation, Deputy Speaker Gwendolyn Garcia of the 3" District of Cebu City pointed out the
anomaly regarding the Integrated Terminal more specifically the South Terminal and Southwest
Terminal. She questioned that although the agreed Public-Private Partnership (PPP) Modality
was a Build Transfer and Operate scheme, the government would still pay grantors fees
amounting to 277 Million and 100 Million respectively. The undersigned, together with the other
members of the committee present, manifested their disapproval towards these contracts being
entered into by the DOTr as grossly prejudicial at a disadvantageous position and it is eventually
the general public who will bear the greatest burden in these onerous projects and contracts.

In view of the foregoing, the passage of this bill is earnestly sought.

Lay tl T. LOPEZ

Representative
1* District, City of Manila


COVanewne

BERES

SeUane

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _ 5506

——-. SSS

Introduced by Representative Manuel Luis T. Lopez

AN ACT
AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NO. 6975, 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 PHILIPPINE BOT LAW AND PROVIDING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Republic of the Philippines
in Congress assembled:

SECTION 1. A new section to be numbered as Section 10 is hereby added to read as
follows:

“SECTION 10. Accountability of the PPP Modality. - The Commission on
Audit shall have jurisdiction over the activities and transactions of the PPP
Activity, which shall be limited to the exercise of its visitorial power as defined
in the 2009 Revised Rules of Procedure of the Commission on Audit. Such
power shall be further limited to determining whether the contribution/ share
of the public proponent in the activity is being allocated and utilized according
10 its intended purpose and if the public proponent is getting its rightful share
JSrom the revenues generated.”

SEC. 2. A new section to be numbered as Section 10 is hereby added to read as follows:

SECTION S. Creation of the PPP OVERSIGHT COMMITTEE
1. Congress shall hereby create PPP Oversight Committee
(PPPOCOM) that will oversee and cater to all contracts involving
all modalities of PPP. The PPPOCOM will have a National and a

Local Division.


BSwemvauaunn

yee ae Be BESS EE BREN EEE NNN eee ee
SECESSSSSFESSASSSLSSESSE SERNA LENNSE ESR E EERE

2. The National PPPOCOM shall cater to all projects and activities
entered into by GOCC's, GICP’s, GFI’s, SUC's, GCE's,
department, bureau, office, commission, authority, or agency of the
National Government, while the Local PPPOCOM shall cover the
transactions entered into by LGU’s.

3. The PPPOCOM shall be composed of the following
4. Representative from the Private Sector who must have had
at least 15 years experience in the business, infrastructure or

utilities sector.

ii, A member of the Philippine Bar who has been affiliated and
+has had experience in the business, infrastructure, or utilities
sector.

iii, A representative from both houses of Congress who must be
@ Career Service individual involved in the processing and
recommendation of PPP related activities.

iv. A Certified Public Accountant who must have had at least 10
years experience in the business, infrastructure or utilities
‘sector.

4.The role of the PPPOCOM shall involve, but is not limited to:

@) Ensure that the contracts entered into by the proponents are
not onerous, disadvantageous, and burdensome to the
Government.

4) Providing technical assistance, expertise, and capacity
necessary for a successful partnership program;

©) Creating “an attractive, predictable, prosperous, and
transparent environment that encourages private investment
within the Country and protects the public interest;

@ Assisting in establishing a comprehensive strategy for
meeting the country’s various infrastructure and
development needs;

©) Identifying, cultivating, and sharing best practices that
optimize the value provided to the public and satisfy public
accountability, policy, and transparency objectives;

A Screening and monitoring the use of the PPP arrangements
for the delivery of various Public-Private Partnerships
projects;

8) Creating and adopting guidelines establishing a consistent
framework to identify, procure, and execute PPP's;

1) Providing guidance on PPP laws, policies, and best
practices;

¥) Evaluating and synthesizing the different infrastructure
needs submitted by the government and to determine whether
or not the PPP model will provide the most profitable and
beneficial framework for both sectors;

J) Consulting with persons and other stakeholders affected by
the proposed PPP Project;

4) Submit an annual report to the House of Representatives and
the Senate of the Philippines describing the nature of all
approved PPP undertakings; and

Y Other duties necessary to effectuate the policies and
objectives of this Act.



Cavan sewn

10
Soe
12

SEC. 3. Repealing Clause. - All laws, ordinances, executive orders, administrative orders,
rules, regulations, decrees, and other issuances or parts thereof, which are inconsistent with the

provisions of this Act are hereby revoked, repealed, or modified accordingly.
SEC. 4. Separability Clause. - if any provision of this Act is held unconstitutional or
invalid, the other provisions not affected thereby shall continue in operation and remain in full

force and effect.

SEC. 5. Effectivity Clause. - This Act shall take effect fifteen (15) days after its publication

in a newspaper of general circulation or the Official Gazette.

Approved,