Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2029 
Introduced by REPRESENTATIVE MERCEDES K. ALVAREZ, MNSA 
EXPLANATORY NOTE 
This bill seeks to operationalize the constitutional principle of complementarity 
between public and private education in the Philippines.  
The 1987 Philippine Constitution mandates that education is a right of every 
Filipino and that the State should protect and promote this right by making education 
accessible at all levels. The public sector alone cannot meet the growing and diverse 
educational needs of the population. Thus, private education is recognized as a critical 
partner in ensuring quality, accessibility, and diversity in educational offerings. 
This measure intends to address resource limitations, regional disparities, and 
inefficiencies through collaborative governance and innovative financing models. It 
embodies a whole-of-society approach to education, where public-private cooperation 
is harnessed to meet the constitutional goal of quality education for all. By 
institutionalizing complementarity, this measure aspires to raise the overall standard 
of Philippine education and empower Filipino learners to reach their full potential. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
ATTY. MERCEDES K. ALVAREZ, MNSA
July 16, 2025
4:23 pm


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2029 
Introduced by REPRESENTATIVE MERCEDES K. ALVAREZ, MNSA 
 AN ACT 
STRENGTHENING THE COMPLEMENTARITY OF PUBLIC AND PRIVATE 
SECTORS IN IMPROVING STUDENT CHOICE AND THE DELIVERY OF 
QUALITY AND ACCESSIBLE EDUCATION ACROSS ALL LEVELS 
Be it enacted by the Senate and House of the Representatives of the Philippines 
in Congress assembled:  
SECTION 1. Short Title. — This Act shall be known as the “Complementarity in 
1 
Education Act.”  
2 
3 
Sec. 2. Declaration of Policy. — It is the policy of the State to protect and 
4 
promote the right of all citizens to quality education at all levels. Towards this end, the 
5 
State takes appropriate steps to make such education accessible to all. With due 
6 
recognition of the importance of the complementary roles of the public and private 
7 
education sectors in education, the State as a matter of policy undertakes to:  
8 
a)
Improve the opportunities for students to go to quality educational
9 
institutions by enhancing the competitiveness of the whole education
10 
sector, improving the capabilities of students to access these choices, and
11 
increasing the choices of students across early childhood centers, basic
12 
education institutions, higher education institutions, technical-vocational
13 
schools, and other similar institutions;
14 
b)
Implement policies and programs that develop quality education through
15 
complementarity to enhance cost-effectiveness, institutional diversity,
16 
educational innovation and agility, student choice and increased
17 


 
 
educational access, and improved educational institutional performance, 
1 
among others; 
2 
c) 
Empower the parents and students in choosing schools by making relevant 
3 
information about educational institutions, programs, careers and similar 
4 
concerns available through the establishment of integrated information 
5 
and data systems across the Department of Education (“DepEd”), 
6 
Commission on Higher Education (“CHED”), Technical Education and 
7 
Skills Development Authority (“TESDA”), and the Early Childhood Care 
8 
and Development (“ECCD”) Council; 
9 
d) 
Adopt policies and programs for public and private schools that increase 
10 
student choice and access to education, through student vouchers, loans, 
11 
grants and similar instruments, and institutional subsidies;  
12 
e) 
Recognize the critical role of private education in providing quality 
13 
education to students and in contributing to national development, and of 
14 
the duty of the State to support and develop the sector; 
15 
f) 
Encourage and support innovation in schools by recognizing the 
16 
peculiarities of the policy environments affecting public and private 
17 
sectors; 
18 
g) 
Encourage and recognize the role of the private sector through Public-
19 
Private Partnerships (“PPPs”) in education, utilizing modes as allowed 
20 
under Republic Act No. 11966, otherwise known as the PPP Code of the 
21 
Philippine and its Implementing Rules and Regulations; 
22 
h) 
Increase investments in education by providing incentives to both public 
23 
and private sectors in the delivery of education to improve overall student 
24 
outcomes in the country; and 
25 
i) 
Establish accountability mechanisms for student outcomes and for 
26 
complementarity.  
27 
 
28 
Sec. 3. Coverage. — This Act shall cover early childhood education, basic 
29 
education, higher education, and technical-vocational education in both public and 
30 
private sectors. 
31 
 
32 
Sec. 4. Objectives. — The following are the objectives of this Act:  
33 
a) 
To strengthen and operationalize the constitutional mandate on 
34 


 
 
complementarity in education by establishing concrete mechanisms 
1 
through which public and private education institutions can effectively 
2 
work together to advance the constitutional right to quality education, 
3 
ensuring that financial support is directed towards enhancing educational 
4 
outcomes, promoting student choice, and expanding access to quality 
5 
education; 
6 
b) 
To implement systematic approaches for achieving the constitutional 
7 
obligation of the State to make quality education accessible to all citizens, 
8 
in support of the constitutionally-recognized complementary roles of 
9 
public and private institutions in the educational system; 
10 
c) 
To provide the best quality education for Filipino learners, by empowering 
11 
them with optimal access, student choice and support to a wide range of 
12 
quality private and public educational institutions and programs; 
13 
d) 
To develop the range of quality private and public educational institutions 
14 
and programs through policies and programs on complementarity; 
15 
e) 
To provide students and parents with the information needed to properly 
16 
make such choices, and to enable policymakers to discern which 
17 
institutions are of quality; 
18 
f) 
To promote access to quality education and student choice by adopting 
19 
various models of student financing such as subsidies, vouchers and long-
20 
term student loans, teacher subsidies, congestion alleviation programs, 
21 
and PPP such as private-public school management, the contracting of 
22 
unused and underutilized private school sites and facilities of government 
23 
with payment of just compensation, as well as other applicable models; 
24 
g) 
To ensure that reasonable supervision and regulation of all educational 
25 
institutions and recognition of the academic freedom of all institutions of 
26 
higher learning are operationalized; 
27 
h) 
To promote equal regard toward the impact of education policies and 
28 
resource allocation decisions on both the public and private sectors; 
29 
i) 
To introduce relevant incentives, in aid of the objectives presented above; 
30 
and 
31 
j) 
Through such initiatives, to elevate the quality of Philippine education in 
32 
all levels in both public and private sectors.   
33 
 
34 


 
 
Sec. 5. Definition of Terms. — As used in this Act: 
1 
a) 
Alternative Learning System (“ALS”) refers to a parallel learning system 
2 
in the Philippines that provides a practical option to the existing formal 
3 
instruction, encompassing both the non-formal and informal sources of 
4 
knowledge and skills; 
5 
b) 
Cost-effective funding is the principle that more public funds should be 
6 
allotted to achieving the education objectives of the country, regardless of 
7 
whether they are in public or private education. This can be achieved, 
8 
among other things, by directly funding the most cost-effective education 
9 
providers, providing portable subsidies, grants, vouchers, student loans, 
10 
or similar instruments, creating systems that promote cost-effectiveness 
11 
(e.g., competition and portable vouchers), or combining these; 
12 
c) 
Cost-effectiveness is the degree to which a public or private education 
13 
institution can attain a desired learning outcome or educational objective 
14 
in relation to the total cost (including land, physical assets, and direct and 
15 
indirect costs) incurred in providing that education. An institution that 
16 
can deliver a desired learning outcome at a lower total cost (in the case of 
17 
private institutions, as reflected in the price charged) is considered a more 
18 
cost-effective institution, provided: that such analyses are made after 
19 
correcting for differences in cost calculations between and among public 
20 
and private education institutions and for any differences in desired 
21 
learning outcomes, for the purposes of comparability; 
22 
d) 
Early Childhood Care and Development refers to the full range of health, 
23 
nutrition, early education, and social services programs that provide for 
24 
the basic holistic needs of young children from birth to age  of eight (8), to 
25 
promote their optimum growth and development; 
26 
e) 
Grant is a modality of subsidy which is availed of by qualified learners only 
27 
from a list of accredited educational institutions, subject to the number of 
28 
slots available per institution; 
29 
f) 
Local Universities and Colleges (“LUCs”) refer to public higher education 
30 
institutions established and funded by local government units through 
31 
local ordinances, and governed and administered in accordance with the 
32 
local ordinances that created them; 
33 
g) 
Private education refers to privately-owned and managed educational 
34 


 
 
institutions, duly established in accordance with law and Republic Act No. 
1 
11232, otherwise known as the Revised Corporation Code, and authorized 
2 
by the government to operate certain educational programs in accordance 
3 
with the prescribed policies and rules of the DepEd for the K to 12 Basic 
4 
Education Program, the CHED for higher education and post-graduate 
5 
education programs, and the TESDA for technical skills training and 
6 
development programs; 
7 
h) 
Public colleges and universities refer to educational institutions 
8 
established either by law passed by Congress or local government 
9 
ordinances, whose operations and personnel resources are funded by the 
10 
government, and whose daily affairs are managed by government 
11 
personnel and officers, such as SUCs and LUCs; 
12 
i) 
Public education refers to educational institutions established through 
13 
national or local legislation, providing for its funding source, and the 
14 
operation of which is controlled by the government; 
15 
j) 
Public interest is used as a framework that refers to the principle that 
16 
decisions about education funding and support shall be primarily based 
17 
on but not limited to: (i) demonstrated contribution to learning outcomes 
18 
and national education priorities; (ii) enhancement of student choice and 
19 
educational access; (iii) cost-effectiveness in achieving educational goals, 
20 
and; (iv) service to disadvantaged communities, and that such decisions 
21 
are separate and distinct from decisions about public or private 
22 
ownership, control or operation; 
23 
k) 
Public schools refer to basic education schools established, administered, 
24 
maintained and funded by the government under the DepEd; 
25 
l) 
Quality-assured institutions refer to public and private educational 
26 
institutions that have been recognized by the DepEd, the CHED, or the 
27 
TESDA as having achieved quality levels beyond minimum standards, 
28 
through government- or third-party recognitions, including but not 
29 
limited to accreditation, international ratings and rankings, autonomy and 
30 
deregulation, centers of excellence or development, and Professional 
31 
Regulation Commission performance; 
32 
m) Scholarship refers to a modality of subsidy given to eligible students on 
33 
the basis of merit and/or talent, such as laudable academic performance, 
34 


 
 
and special technical proficiencies and skills and intellectual pursuits of a 
1 
scholar that give rise to research and development, and innovations as well 
2 
as other creative works; 
3 
n) 
State Universities and Colleges (“SUCs”) refer to public higher education 
4 
institutions established through a law passed by Congress, financed and 
5 
maintained by the national government, and are governed by their 
6 
respective independent boards of trustees or regents in accordance with 
7 
law, particularly Republic Act No. 8292, otherwise known as the Higher 
8 
Education Modernization Act of 1997; 
9 
o) 
Student choice is a policy that encourages quality as the main reason 
10 
behind a decision of the family and/or the student on which public or 
11 
private educational institution to enroll in and which program or 
12 
educational pathway to pursue, and aims to reduce the weight of tuition 
13 
and other school fees from the viewpoint of the student as a reason for 
14 
enrollment decisions; 
15 
p) 
Student loan refers to a modality of student financial assistance consisting 
16 
of short-term or long-term loans which shall be extended to students 
17 
facing liquidity problems, regardless of economic status, which shall be 
18 
paid by the student, his/her parents, guardians, or co-makers; 
19 
q) 
Subsidies refer to publicly-funded monetary and in-kind assistance to 
20 
eligible students to help pay partially or fully the cost of achieving their 
21 
education, the completion of which is deemed beneficial to society.  Such 
22 
government financial assistance may be in the form of scholarships, 
23 
grants, and loans; 
24 
r) 
Value-for-Money refers to the effective, efficient, and economic use of 
25 
resources, which requires the evaluation of relevant costs and benefits, 
26 
along with an assessment of risks, and of non-price attributes and/or life 
27 
cycle costs, as appropriate; 
28 
s) 
Voucher is a modality of subsidy which is primarily focused on eligible and 
29 
qualified students, who as beneficiaries may avail of the amount of subsidy 
30 
covered by such an instrument in any government-recognized public or 
31 
private educational institution of their choice. 
32 
 
33 
Sec. 6. Complementarity. — Complementarity shall refer to the principle that 
34 


 
 
both public and private education are structurally indispensable to maximizing the 
1 
opportunities of all Filipinos to get the best education that the country can provide 
2 
given its limited resources: such that the collective, balanced and sustained use of 
3 
public and private education through healthy competition guided by the protection of 
4 
the public interest will lead to better learning outcomes and student choice for 
5 
Filipinos, compared to what either of them working alone can achieve.   
6 
 
7 
Sec. 7. Quality Education for Filipino Learners through Complementarity. —  
8 
The DepEd, the CHED, the TESDA, ECCC, local governments, and other government 
9 
agencies tasked with overseeing the delivery of education, shall develop and 
10 
implement complementarity policies and initiatives that improve the access of Filipino 
11 
students to, and choice of, quality public and private educational institutions.  Such 
12 
initiatives shall include programs that: 
13 
(a) Empower families and students to be able to compare and select from a 
14 
more diverse range of public and private educational institutions and 
15 
programs on the basis of quality, rather than on the basis of financial costs; 
16 
(b) Encourage and support the development of a more diverse set of quality 
17 
educational providers for both public and private institutions; 
18 
(c) Include targeted programs designed to address regional disparities in 
19 
education quality and access to leverage the strengths of both public and 
20 
private institutions; 
21 
(d) Ensure the principles of complementarity are maintained; 
22 
(e) Create mechanisms to ensure that education programs are aligned with 
23 
labor market needs; and 
24 
(f) 
Establish a system for regular assessment and reporting of the impact of 
25 
complementarity initiatives, that include metrics to show how quality, 
26 
choice, access, and outcomes, taken together, are improving over time.  
27 
 
28 
Sec. 8. Integrated Educational Information System. — Within three (3) years 
29 
from the effectivity of this Act, the Department of Economy, Planning, and 
30 
Development (“DEPDev”), along with DepEd, the CHED, the TESDA, the  ECCD 
31 
Council, and other relevant agencies shall together establish an integrated information 
32 
and data system of, students, teachers, faculty, trainers, and educational institutions 
33 
to provide students, parents and other key stakeholders with current and relevant 
34 


 
 
information on both public and private educational institutions, education quality 
1 
assessments, various degrees and career opportunities, and educational pathways.  
2 
 The data system shall provide information that is comparable across 
3 
government agencies, educational institutions, students, teachers and other 
4 
stakeholders for the purpose of making informed decisions, and shall be readily 
5 
available and accessible to these stakeholders to guide them on education choices, as 
6 
well as to education advocacy groups and educational institutions in the development 
7 
of policies and strategies. The system shall also include labor market information to 
8 
help students make informed decisions about their educational and career pathways. 
9 
 The data system shall be continuously developed and shall comply with the 
10 
relevant provisions of Republic Act No. 10173, otherwise known as the Data Privacy 
11 
Act of 2012 to ensure the protection of personal data against unauthorized access. In 
12 
developing, operating, and/or maintaining the Integrated Educational Information 
13 
and Data System, PPP may be pursued if such shall deliver Value-for-Money on the 
14 
part of the public sector.  
15 
 
16 
 Sec. 9. Separation of Regulatory and Operational Functions in Education 
17 
Governance. — In recognition of the complementary roles of the private and public 
18 
sectors in the education system, the government through the education agencies, shall 
19 
ensure the quality of education through the exercise of reasonable supervision and 
20 
regulation of all educational institutions by means of standards setting and external 
21 
governance.  Pursuant to this principle, the DepEd, the CHED, and the TESDA shall 
22 
ensure that:  
23 
a) 
The functions of regulation and of service provision (the operation of 
24 
public schools, public colleges, public universities and public Technical 
25 
and Vocational Education Training (“TVET”) institutions and functions 
26 
related to the distribution of government subsidies for education) are at a 
27 
minimum kept distinct and separate across its offices and officers; 
28 
b) 
Appropriate regulatory policies are in place to ensure that student choice 
29 
and the quality of learning outcomes are protected and enhanced, and to 
30 
emphasize quality-assured institutions; 
31 
c) 
Educational institutions, regardless of whether in the public or private 
32 
sector, are treated fairly in terms of policy, funding and regulation, as 
33 
determined through periodic evidence-based reviews of policies and 
34 


 
 
practices, including but not limited to the conduct of regulatory impact 
1 
assessments in the formulation, modification, or repeal of existing or new 
2 
regulations pursuant to Republic Act No. 9485, otherwise known as the 
3 
Anti-Red Tape Act of 2007”,  as amended; 
4 
d) 
Resource allocation decisions are guided by the principles of student 
5 
choice, cost-effectiveness and value-for-money, among others; and 
6 
e) 
Private schools, training institutions, or education programs that 
7 
consistently fail to comply with minimum service standards and quality 
8 
indicators for educational and training institutions shall not be eligible to 
9 
participate in PPPs for education.  
10 
 
11 
 Sec. 10. Quality Assurance Framework. — To ensure the maintenance of high 
12 
standards across all education providers, the following agencies shall implement 
13 
specific quality assurance measures, with the DEPDev taking the lead role:  
14 
a) 
The DepEd for basic education, the CHED for tertiary education, the 
15 
TESDA for technical-vocational education, and the ECCD Council for the 
16 
early years shall: 
17 
i. 
Establish and regularly update common learning standards that 
18 
shall define specific measurable learning outcomes for each grade 
19 
level and subject area, apply uniformly to both public and private 
20 
providers, and align with international benchmarks where 
21 
applicable. The said learning standards shall be reviewed and 
22 
updated every three (3) years; 
23 
ii. 
Implement regular assessment of student achievement through 
24 
annual standardized national assessments at key grade levels, 
25 
regular 
classroom-based 
assessments, 
sample-based 
26 
international assessments, and assessment of 21st century skills 
27 
and socio-emotional learning; 
28 
iii. 
Regularly measure, monitor and publish assessments on the level 
29 
of student choice and access available; 
30 
iv. 
Ensure reporting of results while protecting student privacy by 
31 
publishing school-level performance data annually on the 
32 
Integrated Educational Information and Data System, providing 
33 
contextual information about school circumstances, and 
34 


 
 
including trend data and comparison metrics; 
1 
v. 
Use the results of student learning outcomes and student choice 
2 
to guide cost-effective funding decisions; 
3 
vi. 
Conduct regular institutional performance reviews through 
4 
annual self-assessments by schools, external reviews every three 
5 
(3) years, and review of school improvement plans and their 
6 
implementation; 
7 
vii. 
Recognize the existence of alternative quality assurance metrics 
8 
or certifications, such as with national and international 
9 
accreditation, ratings and rankings, that if attained by an 
10 
educational institution or program, are deemed sufficient to meet 
11 
the quality assurance measures envisioned under this section, 
12 
thus reducing the demand on public resources needed for 
13 
inspection and review, Provided, that such exemptions from 
14 
inspections and reviews are valid only while the quality assurance 
15 
certifications and metrics are unexpired; 
16 
viii. 
Implement an enhanced inspection system by training and 
17 
deploying qualified school inspectors, using standardized 
18 
evaluation instruments, conducting both announced and 
19 
unannounced visits, monitoring teaching-learning processes, 
20 
assessing school leadership and management, and evaluating 
21 
resource utilization and financial management; 
22 
ix. 
Establish stakeholder feedback mechanisms through regular 
23 
surveys of students, parents, and teachers, community 
24 
consultations, online feedback platforms, public hearings on 
25 
quality issues, and student government participation in quality 
26 
monitoring; 
27 
x. 
Implement clear consequences for underperformance; 
28 
xi. 
Enforce 
mandatory 
improvement 
requirements 
through 
29 
development of time-bound improvement plans, additional 
30 
professional development for teachers and administrators, 
31 
regular progress monitoring, and resource reallocation to address 
32 
deficiencies; and 
33 
xii. 
Apply support withdrawal measures by establishing criteria for 
34 


 
 
support 
withdrawal, 
providing 
due 
process 
procedures, 
1 
implementing phase-out periods to protect students, facilitating 
2 
student transfers when necessary, and managing school closure 
3 
processes when required.  
4 
b) 
The DEPDev shall: 
5 
i. 
Take the lead in the implementation of the quality assurance 
6 
framework 
by 
coordinating 
across 
education 
agencies, 
7 
monitoring 
framework 
effectiveness, 
recommending 
8 
improvements to the system, and ensuring consistency in 
9 
implementation; and 
10 
ii. 
Report annually to the Partnership Board on the state of 
11 
educational quality, complementarity and student choice across 
12 
sectors, progress in implementing quality assurance measures, 
13 
recommendations for policy or legislative action, and resource 
14 
requirements for quality improvement.  
15 
c) 
Local Government Units shall: 
16 
i. 
Support quality assurance implementation by participating in 
17 
school 
monitoring, 
providing 
additional 
resources 
for 
18 
improvement, supporting community engagement in quality 
19 
assurance, and facilitating inter-school cooperation for quality 
20 
improvement; and 
21 
ii. 
Include quality metrics in local education planning and 
22 
budgeting.  
23 
d) 
A Quality Assurance Fund shall be established to: 
24 
i. 
Fund quality assurance activities including but not limited to 
25 
training of inspectors and evaluators, implementation of 
26 
assessment systems, support for school improvement initiatives, 
27 
and development of quality assurance tools and systems, 
28 
applicable to public and private educational institutions; and 
29 
ii. 
Be managed by the DEPDev with specific allocations for quality 
30 
assurance in basic education, higher education, technical-
31 
vocational 
education, 
ECCD, 
and 
cross-cutting 
quality 
32 
improvement initiatives. 
33 
The 
DEPDev 
shall 
be 
responsible 
for 
requesting 
annual 
34 


 
 
appropriations and ensuring that such funds are utilized in accordance 
1 
with the objectives set forth in this Act. Furthermore, DEPDev, through 
2 
the Partnership Board, shall submit an annual report to the Office of the 
3 
President, as well as to Congress detailing the utilization of the fund and 
4 
its impact on enhancing educational quality. 
5 
 
6 
Sec. 11. Creation of the Partnership Board. — To ensure that the objectives of 
7 
this Act are realized, a Partnership Board is hereby established, with the following 
8 
responsibilities:  
9 
a) 
The alignment, coordination and oversight of the strategic plans for 
10 
complementarity of each agency, in consultation with various 
11 
stakeholders in education, including private school associations, parent 
12 
and student associations, faculty associations, and industry associations;  
13 
b) 
The evaluation and recommendation of solutions to address policies and 
14 
programs found detrimental to complementarity; 
15 
c) 
The review of the regulatory functions of each educational agency, with the 
16 
purpose of determining regulatory independence between the regulator 
17 
and any service provider, whether public or private, and of making 
18 
recommendations to resolve conflict if such independence is not the case; 
19 
d) 
The development of a framework, through DEPDev, for assessing the 
20 
quality and cost-effectiveness of both public and private education 
21 
institutions in achieving desired learning outcomes; 
22 
e) 
The support and funding of research on complementarity and how it can 
23 
be developed toward improving learning outcomes and student choice;   
24 
f) 
The establishment of mechanisms for regular dialogue and collaboration 
25 
between public and private education sectors to promote innovation and 
26 
best practice sharing; and 
27 
g) 
The monitoring and reporting on the state of complementarity and its 
28 
contributions to learning outcomes along with an annual report to the 
29 
Congress. 
30 
 
31 
Sec. 12. Composition of the Partnership Board. — The Partnership Board shall 
32 
be organized within ninety (90) days from the effectivity of this Act, with the following 
33 
composition:  
34 


 
 
a) Secretary of the DEPDev, as Chairperson; 
1 
b) Secretary of the DepEd; 
2 
c) Chairperson of the CHED; 
3 
d) Director-General of the TESDA; 
4 
e) Chairperson of the ECCD Council; 
5 
f) Secretary of the Department of Budget and Management (“DBM”); 
6 
g) Chairperson of the Philippine Competition Commission; 
7 
h) One (1) representative from a nationwide association of administrators 
8 
of private basic education schools; 
9 
i) One (1) representative from a nationwide association of administrators 
10 
of private higher education institutions; 
11 
j) One (1) representative from a nationwide association of private 
12 
technical-vocational institutions; 
13 
k) One (1) representative from a nationwide association of teachers, TVET 
14 
trainers, or higher education faculty employed by private education 
15 
institutions; and 
16 
l) One (1) representative from a nationwide association of non-teaching 
17 
personnel employed by private education institutions. 
18 
The private sector representatives shall be appointed by the Partnership Board 
19 
from a list of nominees submitted by their respective associations for a term of one (1) 
20 
school year subject to reappointment for a maximum term of four (4) school years: 
21 
Provided, however, That such appointment may be terminated by the Partnership 
22 
Board on the basis of the withdrawal of endorsement or recommendation of the sector 
23 
they represent. The appointment to any vacancy shall be only for the unexpired term 
24 
of the predecessor.  
25 
The public sector members of the Partnership Board may designate permanent 
26 
alternates holding positions not lower than third-level ranks, as defined by the Career 
27 
Executive Service Board, or its equivalent, Provided, that these alternates are granted 
28 
decision-making authority.  
29 
The Partnership Board shall convene every quarter, or as often as it may deem 
30 
necessary.  
31 
 
32 
Sec. 13. Expanding Complementarity Functions in Education Agencies. —  
33 
Pursuant to their existing mandates, the DepEd, the CHED, the TESDA, and the ECCD 
34 


 
 
Council shall adopt policies, processes and functions in support of complementarity, 
1 
including:  
2 
a) 
Ensuring the integration of complementarity as a principle and approach 
3 
in the national and subnational plans of the government. The initial plan 
4 
shall, among others, include expected outcomes and metrics specific to 
5 
complementarity, to be achieved within a three (3)-year period from the 
6 
date of effectivity of this Act; 
7 
b) 
Prompt processing of eligibility of students to government subsidies 
8 
through coordination with agencies in charge of processing and managing 
9 
student grants, vouchers, subsidies and similar instruments to ensure 
10 
prompt and timely notifications to student beneficiaries and/or their 
11 
parents during the school or semestral breaks for seamless mobility of 
12 
students to and from public and private education institutions in 
13 
exercising their choice of schools, Provided: that the notice of award of 
14 
such subsidies to individual students are published at least two (2) months 
15 
prior to the start of the new school year; 
16 
c) 
Undertaking the regular mapping of all duly recognized public and private 
17 
education and training institutions in every locality all over the country, 
18 
including programs, student and personnel population, and approved 
19 
fees, for purposes of policy interventions and public dissemination and 
20 
guidance; 
21 
d) 
Determining and monitoring the absorptive capacity of existing 
22 
recognized public and private education and training institutions as basis 
23 
for policy and for public dissemination and guidance; 
24 
e) 
Ensuring subsidies and vouchers are designed toward targeted levels of 
25 
learning outcomes and/or of improving student choice.  This would 
26 
include, in addition to determining the appropriate funding per student 
27 
toward targeted levels of learning outcomes and student choice, 
28 
considerations for targeted vouchers, through the development of a 
29 
reasonable system, formula, algorithm or similar instrument to enable 
30 
increased focus on the disadvantaged in accordance with existing policies; 
31 
and determining how vouchers or slots would be allocated in the event of 
32 
oversubscription; 
33 
f) 
Ensuring the proportionate access to available and appropriate 
34 


 
 
government-funded training of private school teachers, faculty, and 
1 
personnel; 
2 
g) 
Ensuring the significant participation of the private sector enterprises and 
3 
industries, where applicable; 
4 
h) 
Rationalizing and streamlining the requirements for compliances in the 
5 
establishment and recognition of institutions and programs for both 
6 
public and private sectors for the prompt, efficient, and transparent 
7 
services to stakeholders without compromising standards for quality and 
8 
accountability; 
9 
i) 
Periodically reviewing the allocation of national resources and funding 
10 
towards public and private educational institutions and students, to 
11 
ensure an appropriate level of complementarity consistent with this Act, 
12 
including policies on investment recovery schemes for PPP projects in the 
13 
education sector, pursuant to Republic Act No. 11966, otherwise known as 
14 
the PPP Code of the Philippines and its Implementing Rules and 
15 
Regulations; 
16 
j) 
Regularly assessing and reporting on regional disparities in education 
17 
quality and access, and develop targeted interventions to address these 
18 
disparities through PPPs and other complementarity initiatives; 
19 
k) 
Developing mechanisms to ensure that education programs, particularly 
20 
in technical and vocational education, are aligned with current and 
21 
projected labor market needs; and 
22 
l) 
Developing a set of performance metrics to monitor efficiency and 
23 
effectiveness of complementarity in the educational system, across all 
24 
agencies, educational institutions and learners, and have such available 
25 
publicly on a timely basis.  
26 
 
27 
 Sec. 14. Strengthening Complementarity at the Local Level. — For provinces, 
28 
cities and first-income-class municipalities, the Local School Board shall integrate 
29 
complementarity objectives and strategies in the development of local plans and 
30 
provide the necessary appropriations for the implementation thereof.  
31 
 
32 
 Sec. 15. Complementarity, Access, and Choice in the Public Funding of 
33 
Education. — Annual increases in educational budgets for public education and the 
34 


 
 
training of students in the DepEd, the CHED, and the TESDA shall be increasingly 
1 
administered over time through portable student-financing instruments such as 
2 
student grants, subsidies, vouchers or student loans, which students can use for either 
3 
public or private educational institutions. The Partnership Board shall recommend to 
4 
the President a multi-year timetable for the implementation of these allocations, such 
5 
that a target of fifty percent (50%) of the annual increase is achieved within a period 
6 
of five (5) years from the date of effectivity of this Act.   
7 
 
8 
 Sec. 16. Modes of Complementarity. — The following models of 
9 
complementarity, among others, shall be allowed:  
10 
a) 
Provision of instruments that empower students in making choices on 
11 
their selection of a quality school, college, university and/or technical-
12 
vocational institution wherein portable subsidies, grants, vouchers, 
13 
student loans, and other methods of funding educational costs are created 
14 
and provided for by the government; 
15 
b) 
Provision of instruments that reduce student congestion in public schools 
16 
wherein per-student subsidies are given by the respective education 
17 
agency to qualified private institutions to reduce over-enrollment or 
18 
congestion in nearby public educational institutions; 
19 
c) 
Management Contracts and PPP arrangements between public and 
20 
private schools, colleges and universities wherein a private educational or 
21 
training institution may be engaged by a public educational institution or 
22 
government agency, as the case may be, for the management of a public 
23 
educational institution in full or for any part of its activities thereof, for a 
24 
fixed period, subject to the payment of appropriate management fee. Such 
25 
management fees and terms of the contract shall follow the requirements 
26 
of the PPP Code of the Philippines; 
27 
d) 
Establishment of publicly-owned, independently-run schools wherein the 
28 
government funds the operation of a private educational corporation or 
29 
non-profit organization subject to the delivery of qualified graduates for 
30 
specific academic and training programs; 
31 
e) 
Lease of school facilities, equipment or campus spaces wherein the private 
32 
education or training institution may enter into a lease agreement with a 
33 
public institution for lease of its premises, equipment, or the entire 
34 


 
 
campus; 
1 
f) 
Program Rationalization Partnerships wherein an upcoming or an existing 
2 
SUC or LUC enters into a partnership agreement with one or more private 
3 
education or training institutions to decide which courses the public 
4 
institutions should offer, to minimize unnecessary duplication; 
5 
g) 
Portable Local Scholarships wherein a local government unit creates, 
6 
expands or modifies its existing scholarship programs to be portable, to be 
7 
used across other public and private educational institutions; 
8 
h) 
Sharing of common facilities and school grounds wherein public and 
9 
private educational institutions may agree to use and share common 
10 
facilities including sharing of cost of upkeep and maintenance of the same 
11 
such as playgrounds, parks, sports facilities, libraries, theaters, and similar 
12 
places; 
13 
i) 
Regional Disparity Reduction Partnerships wherein public and private 
14 
institutions 
collaborate 
to 
implement 
targeted 
interventions in 
15 
underserved regions with the goal of reducing disparities in education 
16 
quality and access; and 
17 
j) 
Industry-Education Alignment Programs wherein partnerships between 
18 
educational institutions, both public and private, and industry are formed 
19 
to ensure that curriculum and training programs are aligned with current 
20 
and projected labor market needs. 
21 
 
22 
 Sec. 17. Ensuring Complementarity in Teachers and Faculty in All Sectors. — 
23 
The DepEd, the CHEd, and the TESDA shall monitor average regional compensation 
24 
levels of teachers and faculty in the public and private sectors, to see if differences in 
25 
levels would cause a significant imbalance in the development of either sector.  Should 
26 
imbalances exist or are expected to occur, the DepEd, the CHEd, or the TESDA, as the 
27 
case may be, shall introduce programs or initiatives to address the imbalance, and 
28 
include the same in their reports to the Partnership Board.  
29 
 
30 
Sec. 18. Incentives. — To further encourage private sector investment in 
31 
education, the DepEd, the CHED, and the TESDA shall create grants and support 
32 
programs for the private sector, including but not limited to those for:  
33 
a) 
Educational programs in high need, including ECCD, ALS, educational 
34 


 
 
measurement, and guidance and counseling; 
1 
b) 
Education-related initiatives in remote areas;  
2 
c) 
Degrees, competencies and trainings of educational institutions, 
3 
prioritized by industry; 
4 
d) 
Portable local scholarships in remote areas; 
5 
e) 
Public-private partnerships, whether at the national or local government 
6 
unit level, including risk mitigation instruments and innovative models 
7 
that enhance education quality and access, particularly in underserved 
8 
areas, in accordance with existing laws, rules, and regulations; 
9 
f) 
Initiatives that demonstrably reduce regional disparities in education 
10 
quality and access; and 
11 
g) 
Programs that show strong alignment with labor market needs 
12 
particularly in priority sectors identified by the government 
13 
To promote complementarity at the local level, the Department of Interior and 
14 
Local Government shall develop incentives for local government units implementing 
15 
complementarity plans and programs within their respective jurisdictions.  
16 
Emphasis on incentives shall be on those institutions that perform above 
17 
minimum standards, as evidenced by accreditation, government quality recognitions, 
18 
and other recognized national and international third-party quality recognitions, as 
19 
determined by the DepEd, the CHED or the TESDA, as the case may be.  
20 
 
21 
Sec. 19. Appropriations. — In the furtherance of the provisions of this Act, no 
22 
direct funding of private entities shall be made and all budgets for student subsidies, 
23 
loans or similar programs shall be allocated through the DepEd, the CHED, and the 
24 
TESDA for proper distribution. The budget for such financial support per student shall 
25 
be computed based on the equivalent government total cost of providing public 
26 
education to a student per region and locality, and the prevailing cost of tuition and 
27 
other school fees in the private sector in such region and locality. 
28 
The Secretary of the DepEd, the Chairman of the CHED, and the Director-
29 
General of the TESDA shall include in their respective programs the operationalization 
30 
of complementarity under this Act, the initial funding of which shall be charged 
31 
against the current appropriations of their respective departments. Thereafter, the 
32 
amount necessary for the continued implementation of complementarity shall be 
33 
included in the annual General Appropriations Act.  
34 


 
 
 In the case of PPPs, government undertakings and investment recovery 
1 
schemes through appropriations from the national government fund shall follow the 
2 
PPP Code of the Philippines, and its Implementing Rules and Regulations, the General 
3 
Appropriations Act, the relevant budget circulars of the DBM, or any amendments 
4 
thereof, and other applicable laws, rules, and regulations.   
5 
 
6 
 Sec. 20. Inclusivity. — The benefits and incentives as may be provided 
7 
pursuant to this Act shall apply to all public and private educational institutions 
8 
regardless of whether it is secular, religious, or for profit, subject to their compliance 
9 
with the appropriate conditions and criteria.  
10 
 
11 
 Sec. 21. Implementing Rules and Regulations. — Within ninety (90) days after 
12 
the effectivity of this Act, the Secretary of the DepEd, the Chairperson of the CHED, 
13 
and the Director-General of the TESDA, upon consultation with the Coordinating 
14 
Council of Private Educational Associations, industry associations,  and other private 
15 
organizations and associations, shall promulgate the rules and regulations needed for 
16 
the implementation of this Act.   
17 
 
18 
Sec. 22. Separability Clause. — If any provision of this Act is declared 
19 
unconstitutional, the remainder thereof not otherwise affected shall remain in full 
20 
force and effect. 
21 
 
22 
Sec. 23. Repealing Clause. — Any law, presidential decree or issuance, executive 
23 
order, letter of instruction, rule or regulation inconsistent with the provisions of this 
24 
Act is hereby repealed or modified accordingly. 
25 
 
26 
Sec. 24. Effectivity. — This Act shall take effect fifteen (15) days after its 
27 
publication in the Official Gazette or in a newspaper of general circulation.  
28 
 
29 
 Approved,