EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
S E N A T E  
S.B. No. 
1 5
H E
019
a
B LLS
Introduced by Senator FRANKLIN M. DRILON
AN ACT INSTITUTIONALIZING AND STRENGTHENING PUBLIC-
PRIVATE PARTNERSHIPS
EXPLANATORY NOTE
The PPP Act seeks not only incorporation of the lessons learned from the 
past and adoption of the best practices in Public-Private Partnerships, but it also 
aims to accelerate infrastructure development in the country.
The proposed measure adopts a policy of full disclosure of PPP projects 
and contracts. Under the proposed measure, the PPP Center is also made directly 
responsible for giving the public and Congress with adequate and timely 
information about PPP projects.
The proposed measure likewise addresses the impact of local taxes to PPP 
projects of national significance. The uncertainty of imposition of local taxes 
particularly real property taxes make the project costly and less attractive to the 
private sector. Hence, the bill provides for an exemption of projects of national 
significance from payment of real property tax.
Another purpose of the bill is to foster competitiveness and transparency 
in unsolicited proposals. The sixty-working-day challenge period under the 
existing BOT Law is too short for interested challengers to submit their counter­
proposals in an unsolicited project. Thus, the PPP Act proposes to extend the


challenge period to a maximum period of six months. Additional option is also 
being proposed under the Act wherein the implementing agencies may be 
allowed to convert unsolicited proposal into a solicited project and offer it as 
basis for competitive bidding, subject to reimbursement of project development 
cost in an amount not to exceed 3% of the project cost. This way, the 
government will realize the full benefits of competitive bidding.
The other salient features are as follows:
sought.
I 
Institutionalization of tested and proven initiatives and governance 
structures such as the Project Development and Monitoring Facility 
(PDMF), PPP Governing Board, and PPP Center;
' 
Expansion of the coverage of PPP by including Joint Venture and 
Operation and Maintenance contracts;
' 
Provision of clearer protests protocol or appeal mechanism in all 
stages of the procurement process;
• 
Prohibition of the issuance by courts, except the Supreme Court, of 
temporary restraining orders, preliminary injunction or preliminary 
mandatory injunction against any implementing agency, its officials 
or employees, or any person or entity, whether public or private 
acting under the government direction.
> 
Prohibition against regulatory bodies from entering into any PPP 
contract that they regulate; and
> 
Mandatory inclusion of Alternative Dispute Resolution (ADR) 
Mechanisms in all PPP Contracts.
In view of the foregoing, the urgent approval of this bill is earnestly
FRANKLIN M. DRILON


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
S E N A T E
S.B. No. 1 5
,</) TIME:
BILLS &
Introduced by Senator FRANKLIN M. DRILON
AN ACT INSTITUTIO NALIZING  AND STRENGTHENING PUBLIC-
PRIVATE PARTNERSHIPS
Be it enacted by the Senate and the House o f Representatives o f the Philippines in 
Congress assembled:
1 
SECTION 1. This Act shall be known as the "Public-Private Partnership
2 
Act".
3 
SEC. 2. D eclaration o f Policy. It is the declared policy of the State to
4 
recognize the indispensable role of the private sector as the main engine for
5 
national growth and development, create an enabling environment for Public-
6 
Private Partnerships (PPP), and provide the most appropriate incentives to
7 
mobilize private resources for the purpose of financing, design, construction,
8 
operation and maintenance of infrastructure projects and services normally
9 
financed and undertaken by the government. Such incentives, aside from financial
10 
incentives as provided by law, shall include provision of liberalized government
11 
regulations and procedures in support of the private proponent.
12 
The State recognizes the long-term nature of private investment in
13 
infrastructure projects and mitigation of risks by ensuring that the validity and
14 
enforceability of contracts are respected through the due process of law.


1 
The State protects the public interest by ensuring fair and reasonable
2 
pricing and timely delivery of quality infrastructure, goods and services through
3 
equitable risk allocation inherent in projects implemented under this Act.
4 
The State affirms open, transparent and competitive selection as the
5 
central tenet of government procurement in securing private investment in public
6 
infrastructure projects. It shall secure private investments through transparent
7 
and competitive selection process and bidding procedures.
8 
SEC. 3. D efinition o f Terms. As used in this Act:
9 
(a) 
Approving Body refers to an entity authorized to approve PPP projects
10 
in accordance with Section 7 of this Act;
11 
(b) 
Availability-based PPP refers to a PPP where the implementing
12 
agency commits to make predetermined payments for contractually-
13 
defined performance delivery;
14 
(c) 
Concession-based PPP refers to a PPP where the implementing
15 
agency grants the project proponent the right to recover its investment,
16 
operating and financing costs by charging the public a user fee or tariff;
17 
(d) 
Construction 
refers 
to 
rehabilitation, 
improvement, 
expansion,
18 
alteration, installation, building of a new infrastructure facility, and
19 
related works and activities, including the necessary supply of
20 
equipment, materials, labor and services and related items;
21 
(e) 
C ontingent Liability refers to obligations of the government arising
22 
from a valid PPP contract whose occurrence, timing, and amount
23 
depend on some uncertain future event or circumstance;


1 
(f) 
Contractonefers to any person, who may or may not be the project
2 
proponent, and who shall undertake the actual construction of an
3 
infrastructure facility of a PPP project;
4 
(g) 
Cooperation Period refers to the period of operation of an
5 
infrastructure facility;
6 
(h) 
Facility O perator refers to a person registered with the Securities and
7 
Exchange Commission or Department of Trade and Industry, who may
8 
or may not be the project proponent, who is responsible for all aspects
9 
of operation and maintenance of an infrastructure facility, including the
10 
collection of tolls, fees, rentals or charges from facility users;
11 
(i) 
G overnm ent 
U ndertakings 
refer 
to 
any 
form 
of 
support,
12 
contribution, assistance. Viability Gap Funding (VGF), among others,
13 
which the government may provide to a solicited PPP project;
14 
(j) 
Grantors refer to an implementing agency and another government
15 
agency that own the project assets or franchise;
16 
(k) 
Im p le m e n tin g  A gency refers to any of the various units of the
17 
Government of the Republic of the Philippines, including a department,
18 
bureau, 
office, 
instrumentality, government owned or controlled
19 
corporation (GOCC) as defined under Republic Act No. 10149, otherwise
20 
known as GOCC Governance Act of 2011, state universities and colleges
21 
(SUCs), or a local government or a distinct unit therein;
22 
(I) 
In fra stru cture  FaciUtyand Related Service refers to any facility
23 
and infrastructure related serviceidentified by the government in


1 
relation to or as necessary for the discharge of its functions, whether
2 
governmental or proprietary:
3 
i) infrastructure facility -  includes power plants, highways, ports,
4 
airports, canals, dams, hydropower projects, water supply, irrigation,
5 
telecommunications facilities, railroads and railways, transport systems,
6 
reclaimed land, industrial estates or townships, housing, government
7 
buildings, 
tourism 
projects, 
markets, 
slaughterhouses,
8 
warehouses, information 
technology 
systems 
and 
infrastructure,
9 
education and health facilities, sewerage, drainage, and
10 
ii) infrastructure related service -  includes dredging, climate change
11 
mitigation and adaptation measures and other related services;
12 
(m) Public-Private Partnership refers to a contractual arrangement
13 
between the implementing agency and the project proponent for the
14 
financing, design, construction, operation, and maintenance, or any
15 
combination thereof, of an infrastructure facility, in which the project
16 
proponent bears significant risk, management responsibility, or both;
17 
(n) 
Person 
refers to an individual, sole proprietorship, partnership,
18 
corporation or any other form of organization, whether domestic or
19 
foreign;
20 
(o) 
P roject Cost refers to total capital cost, financing and other expenses
21 
for the design, construction, operation, and maintenance of an
22 
infrastructure facility of a PPP project;
23 
(p) 
P roject Proponent refers to the private person who shall have
24 
contractual responsibility to undertake a PPP project;


1 
(q) 
Rate o f Return refers to the project proponent's expected return from
2 
the project; Provided, That in case of an unsolicited proposal, the
3 
appropriate rate of return shall be determined by the appropriate
4 
Approving Body prior to the call for proposals based on the prevailing
5 
cost of capital in the domestic and international markets, the risk profile
6 
and the gearing ratio;
7 
(r) 
Services refer to services for or related to infrastructure facilities such
8 
as construction supervision, management, operation and maintenance
9 
and related services, and other technical services, 
which may be
10 
included as part of a PPP project;
11 
(s) 
Solicited PPP Project refers to priority projects identified by the
12 
implementing agency;
13 
(t) 
Unsolicited PPP P roject refers to a project proposal submitted by a
14 
private person,which is not in response to a formal solicitation or
15 
request issued by the implementing agency;
16 
(u) 
Viability Gap Funding (VGF) refers to such financial support the
17 
government may provide to a concession-based PPP project with the
18 
objective 
of making user fees affordable 
while improving 
the
19 
commercial attractiveness of the project, excluding costs of right-of-
20 
way, resettlement and 
real estate taxes.
21 
SEC. 
4. 
Contractual Arrangements. 
PPP 
Projects 
may 
be
22 
undertaken through any of the following contractual arrangements:
23 
(a) 
BuHd-and-Transfer refers to a contractual arrangement whereby the
24 
project proponent undertakes the financing and construction of a given


1 
infrastructure facility and after the completion thereof, turns it over to
2 
the implementing agency concerned, which shall pay the project
3 
proponent on an agreed schedule its total investments expended on the
4 
project, plus a rate of return thereon. 
This arrangement may be
5 
employed in the construction of any infrastructure facility, including
6 
critical facilities which, for security or 
strategic reasons, must be
7 
operated directly by the government;
8 
(b) 
BuHd-Lease-and-Transfer refers to a 
contractual arrangement
9 
whereby a project proponent undertakes to finance and construct an
10 
infrastructure facility and upon its completion turns it over to the
11 
implementing agency concerned on a lease arrangement for a
12 
cooperation period, after which ownership thereof is automatically
13 
transferred to the implementing agency concerned;
14 
(c) 
BuUd-Own-and-Operate 
refers 
to 
a 
contractual arrangement
15 
whereby a project proponent is authorized to undertake a PPP project,
16 
specifically to finance, construct, own, 
operate and maintain an
17 
infrastructure facility from which the project proponent is allowed to
18 
recover its total investment, operating and maintenance costs plus a
19 
return thereon by collecting tolls, fees, rentals or other charges from
20 
facility users;
21 
(d) 
BuUd-Operate-and-Transfer refers to a 
contractual arrangement
22 
whereby the project proponent undertakes a PPP project and transfers
23 
ownership of the infrastructure facility to the implementing agency at
24 
the end of the cooperation period;


1
(e)
BuUd-Transfer-and-Operate refers to a contractual arrangement
2
whereby the implementing agency contracts out the construction of an
3
infrastructure facility to the project proponent. Once the facility is
4
commissioned 
satisfactorily, 
ownership 
is 
transferred 
to 
the
5
implementing agency. The project proponent, however, operates the
6
infrastructure facility on behalf of the implementing agency;
7
(f)
Contract-Add-and-Operate refers to a contractual arrangement
8
whereby, the project proponent adds to an existing infrastructure
9
facility which it is renting from the government. It operates the
10
expanded infrastructure facility over an agreed cooperation period.
11
There may, or may not be, a transfer arrangement in regard to said
12
facility;
13
(g)
Develop-Operate-and-Transfer refers to a contractual arrangement
14
whereby favorable conditions external to a new PPP project which is to
15
be built by a project proponent are integrated into the arrangement by
16
giving that entity the right to develop adjoining property, and thus.
17
enjoy some of the benefits the investment creates such as higher
18
property or rent values;
19
(h)
Jo in t Venture refers to a contractual arrangement whereby a private
20
person or a group of private persons, and an implementing agency.
21
contribute money, services, assets, or a combination of any or all of the
22
foregoing, to undertake a PPP project, with the intention to share
23
profits, 
risks and 
losses. 
Assets may include equipment, 
land.
24
intellectual property or anything of value;
7


1 
(i) 
Operations and Maintenance C ontract refers to a contractual
2 
arrangement whereby the project proponent undertakes the day-to-day
3 
operation and maintenance of an infrastructure facility owned by the
4 
implementing agency. The project proponent shall undertake the
5 
acquisition or provision and upgrading of equipment, systems and other
6 
items related to operation and maintenance. The project proponent
7 
shall be compensated in the form of a performance-based management
8 
or service fee during the cooperation period;
9 
(j) 
RehabiUtate-Operate-and-Transfer 
refers 
to 
a 
contractual
10 
arrangement whereby an existing infrastructure facility is turned over to
11 
the project proponent to refurbish, improve, operate and maintain for a
12 
cooperation period, at the expiry of which the ownership of the facility
13 
is transferred to the implementing agency; and
14 
(k) 
Supply-and-Operate refers to a contractual arrangement whereby
15 
the supplier of equipment and machinery for a given infrastructure
16 
facility, if the interest of the government so requires, operates such
17 
facility. Foreign firms who are allowed to operate the facility shall
18 
provide technology transfer and training to Filipino nationals.
19 
Other variations may be allowed upon prior approval by the Investment
20 
Coordinating Committee (ICC).
21 
SEC. 
5. A u th o rity o f Im plem enting Agencies. 
Implementing
22 
agencies, in accordance with their respective charters, are hereby authorized to
23 
undertake PPP projects with any project proponent in accordance with the
24 
provisions of this Act.


1 
In undertaking a PPP project under this Act, a GOCC or any of its
2 
subsidiaries shall secure the approval of the head of department or agency to
3 
which the GOCC is attached. If the procurement thereof is undertaken by the
4 
department or agency, the governing board of the GOCC shall adhere to the
5 
approval of the Approving Body and shall give its full cooperation in bidding the
6 
project.
7 
SEC. 6. P rio rity Projects. Priority projects that will be implemented
8 
under this Act shall be consistent with the Philippine Development Plan or its
9 
equivalent at the local level.
10 
The implementing agencies shall submit their list of PPP projects or any
11 
update thereto to the PPP Center for information. Each proposed PPP project to
12 
be implemented under this Act shall be subject to the approval of the Approving
13 
Body.
14 
The PPP Center shall ensure that Congress and the general public are
15 
provided with adequate, timely and relevant information pertaining to these
16 
priority projects: Provided, That the release of proprietary information, which shall
17 
be defined in the IRR of this Act, is not contrary to existing laws.
18 
SEC. 7. A pproval o f PPP Projects. The approval of PPP projects under
19 
this Act shall be in accordance with the following:
20 
A. 
National Projects -  National PPP projects shall be approved by the ICC or
21 
by the National Economic Development Authority (NEDA) Board, or both,
22 
depending on the project cost as prescribed in the IRR of this Act. Such
23 
approval shall be followed by the implementing agency or grantor
24 
concerned.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
For national projects that have impact on a particular region, the 
implementing agency shall secure the endorsement of the concerned 
Regional Development Council (RDC) prior to submitting the project for 
approval to the Approving Body. The RDC shall have thirty (30) days 
from receipt of the request of the implementing agency within which to 
issue 
its 
endorsement; 
otherwise, 
the 
same 
shall 
be 
deemed 
automatically endorsed by the RDC.
B. 
Local Projects -  Local PPP projects shall be approved by the local 
sanggunians and, depending on the project cost as may be prescribed in 
the IRR, confirmed by the local development councils, ICC, and the 
NEDA Board.
The confirmation of the project by the local development council 
concerned shall be based on a review of the project documents 
submitted to it by the local government unit concerned, which includes 
the feasibility study and the draft contract on the project, and shall 
ensure that said project documents are in full compliance with the 
requirements set forth under this ^cX.^. ProvidedJUdX., any concerned 
reviewing officer/s found 
in violation of this provision shall 
be 
administratively liable with grave neglect of duty and shall be dealt with 
in accordance with existing laws.
Any act on the part of the local government unit concerned and its 
responsible officials, or concerned officers of the private project 
proponent, which results to or is aimed at downgrading the category of 
the project cost based on its total cost under the IRR of this Act for the
10


1 
purpose of evading the required approval under the appropriate
2 
category shall be dealt with administratively and criminally under this Act
3 
and its IRR, and other existing applicable laws. Such act committed by
4 
the private project proponent and its concerned officers shall cause the
5 
rescission of its contract for the said project without compensation and
6 
shall be perpetually disqualified from participating in any bidding, or
7 
other contractual arrangement, for any government project.
8 
SEC. 8. P roject Developm ent and M onitoring Facility (PDMF). The
9 
PDMF is hereby established and shall be used for the procurement of advisory and
10 
support services related to the preparation, structuring, probity management,
11 
procurement, financial close, and monitoring of implementation of PPP projects.
12 
a. Funding Source. The PDMF Fund referred to under Executive Order
13 
(EO) No. 8, series of 2010, as amended by EO No. 136, series of 2013,
14 
shall be transferred to the PDMF under this Act. The PDMF may be
15 
funded through and such amount as may be needed and included in the
16 
General Appropriations Act, Official Development Assistance or other
17 
sources.
18 
b. In s titu tio n a l Arrangem ent The PDMF shall be managed and
19 
administered by the PPP Center as a revolving fund. In order to sustain
20 
the PDMF, the PPP Center may collect and receive fees and recover
21 
costs expended through PDMF in accordance with the guidelines to be
22 
approved by the PPP Governing Board. Such amount shall be retained
23 
and authorized to be used by the PPP Center for the purposes indicated
24 
herein.
11


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5
6
7
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10
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18
19
20 
21 
22
23
24
1
A PDMF Committee is hereby created which shall approve 
applications for PDMF support submitted by implementing agencies. It 
shall be composed of representatives from the National Economic and 
Development 
Authority 
(NEDA), 
Department 
of 
Finance 
(DOF), 
Department of Budget and Management (DBM) and the PPP Center.
The PPP Center shall serve as Secretariat for the PDMF 
Committee.
c. Procedure. The procurement of consulting services for the PDMF shall 
be conducted through Republic Act (RA) 9184, otherwise known as the 
Government Procurement Reform Act, and its associated implementing 
rules and regulations (IRR), subject to existing laws on the practice of 
professions 
reserved to 
Filipino 
nationals. 
An 
open 
registry of 
consultants may be established for ready availability of consulting 
expertise. Registration is not tantamount to a finding of eligibility, and 
non-registered consultants shall be allowed to bid. The procedures for 
such procurement shall be prescribed in the IRR of this Act, consistent 
with R.A. No. 9184 and its associated IRR.
The PPP Center is not precluded from adopting a set of rules for 
the engagement and consulting services funded by an international 
financing institution or through official development assistance.
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.
12


1 
SEC. 9. Unsolicited Proposals. Unsolicited proposals may be considered
2 
for projects that are not part of the list of priority projects or which involve a new
3 
concept or technology.
4 
When a project proponent submits an unsolicited proposal, the implementing
5 
agency may either:
6 
(1) 
Accept the unsolicited proposal on a negotiated basis, subject to the
7 
following conditions:
8 
(a) 
No direct government guarantee, VGF, government subsidy
9 
or equity, or right-of-way is required; Provided, That the
10 
implementing agency shall facilitate the acquisition of the
11 
right-of-way; and
12 
(b) Guided by the principles of transparency and competitiveness,
13 
the implementing agency has invited the submission of
14 
comparative 
proposals 
by 
publication 
for 
three 
(3)
15 
consecutive weeks in a newspaper of general circulation, as
16 
well as posting in the websites of the PPP Center and of the
17 
implementing agency.- Provided, That, no other proposal is
18 
received within a period not less than three (3) months nor
19 
more than six (6) months from the date of last publication in
20 
a newspaper of general circulation. In the event another
21 
proponent submits a superior counter-proposal 
within 
the
22 
period referred to above and it is accepted by the Approving
23 
Body, the original proponent shall have the right to outbid.
13


1 
(2) 
Use the unsolicited proposal as the basis for public bidding as provided
2 
in Section 10 of this Act. Upon approval by the Approving Body, the
3 
original proponent thereof shall be reimbursed of the cost incurred in
4 
the preparation of the proposal, such as the cost of any feasibility
5 
study undertaken: Provided, That the reimbursement is:
6 
(a) in an amount specified in the IRR of this Act, not to exceed
7 
three (3%) percent of the project cost excluding those which
8 
are borne by the implementing agency, such as, the cost of
9 
right-of-way acquisitions; and
10 
(b)paid in full by the winning project proponent as a requirement
11 
for the award of the contract.
12 
(3) 
Reject the proposal.
13 
If the implementing agency fails to act on the proposal within the period
14 
stated in the IRR of this Act, the project proposal shall be deemed rejected,
15 
without prejudice to any liability that the erring or negligent officials or employees
16 
may incur under existing laws.
17 
Within ten (10) working days from receipt of the unsolicited proposal, the
18 
implementing agency shall inform the PPP Center in writing of such receipt and
19 
furnish it with a copy of the proposal. The PPP Center shall provide assistance to
20 
the implementing agency in the evaluation of unsolicited proposal.
21 
SEC. 10. Public Bidding o f Projects.
22 
(1) Upon approval of PPP projects as mentioned in Section 7 of this Act,
23 
the head of the implementing agency concerned shall immediately cause the
24 
publication of a notice inviting all prospective project proponents to participate in
14


1 
a transparent and competitive public bidding, once every week for three (3)
2 
consecutive weeks, in at least two (2) newspapers of general circulation and in at
3 
least one (1) local newspaper which is circulated in the region, province, city or
4 
municipality where the project is implemented. The notice must also be posted
5 
continuously in the websites of the implementing agency and the PPP Center.
6 
The public bidding shall be conducted under a single or two-stage system,
7 
The pre-qualification documents, technical, and financial proposals shall be
8 
submitted in at least three (3) separate envelopes. The procedures for public
9 
bidding shall be transparent and competitive, including the conduct of one-on-one
10 
meetings with prequalified bidders.
11 
The contract shall be awarded to the bidder who has passed the pre-
12 
qualification stage after having satisfied the minimum financial, organizational,
13 
and legal standards required under this Act; has passed the technical proposal
14 
evaluation; and, has submitted the most favorable financial bid based on the
15 
parameters defined in the bid documents.
16 
In case of a single complying and responsive bidder, the implementing
17 
agency may award the PPP contract to that bidder upon its compliance with the
18 
post-award requirements under the bidding rules of the PPP project.
19 
(2) A bid is considered a single complying and responsive bid submission if
20 
it falls under any of the following circumstances:
21 
(a) 
If, 
after 
advertisement, 
only 
one 
bidder 
applied 
for
22 
prequalification and it meets the prequalification requirements,
23 
after which it is required to submit a bid or proposal which is
15


1 
subsequently found 
by the implementing agency to be
2 
complying;
3 
(b) 
If, after advertisement, more than one bidder applied for
4 
prequalification 
but only one 
meets the 
prequalification
5 
requirements, after which it submits a bid or proposal which is
6 
found by the implementing agency to be complying;
7 
(C) 
If, after prequalification of more than one bidder, only one
8 
submits a bid which is found by the implementing agency to be
9 
complying; or
10 
(d) 
If, after prequalification, more than one bidder submits bids but
11 
only one is found by the implementing agency to be complying.
12 
(3) In all stages of the procurement process, the following protest protocol
13 
shall be strictly followed:
14 
(a) 
Decisions of the Prequalification, Bids and Awards Committee
15 
(PBAC) 
may 
be 
questioned 
by 
filing 
a 
motion 
for
16 
reconsideration within a period prescribed in the IRR of this
17 
Act.
18 
(b) The decision of the PBAC on the motion for reconsideration in
19 
the 
immediately 
preceding 
paragraph 
may be 
further
20 
questioned by the filing of an appeal to the head of the
21 
implementing agency concerned and paying a non-refundable
22 
appeal fee in an amount equivalent to no less than y^ of 1% of
23 
the project cost within a period prescribed in the IRR of this
24 
Act.
16


1 
If the head of the implementing agency in the immediately
2 
preceding paragraph is not 
a Department Secretary, the
3 
decision of the head of the 
implementing agency may be
4 
further questioned by filing an appeal to the Secretary of the
5 
Department to which the implementing agency is attached
6 
within a period prescribed in the IRR of this Act.
7 
(c) 
The decision of the Department Secretary in the immediately
8 
preceding paragraph (b) may be questioned by the filing of an
9 
appeal to the Office of the President.
10 
(4) PPP PBAC -  The head of the implementing agency shall create a PPP
11 
PBAC which shall be responsible for all aspects of the pre-bidding and bidding
12 
process in the case of solicited proposals, and for the comparative bidding process
13 
in the case of unsolicited proposals. The PPP PBAC shall be chaired by at least a
14 
third ranking regular official of the said agency and its composition shall be
15 
specified in the IRR of this Act: Provided, That the PPP PBAC constituted for
16 
national PPP projects shall also include other relevant government agencies as
17 
may be determined in the IRR of this Act.
18 
In no case shall any appeal taken from any decision rendered pursuant to
19 
this Act stay or delay the bidding process. An appeal must first be resolved before
20 
any project is awarded.
21 
If the winning bidder fails to comply with any post-award requirement or
22 
fails to enter into a contract with the implementing agency, the latter may
23 
proceed to negotiate with the next technically and financially qualified bidder,
24 
without prejudice to availment of other legal remedies by the implementing
17


1 
agency such as the forfeiture of bid security, the withdrawal of Notice of Award,
2 
or both.
3 
SEC. 11. Private Legal and M edical Assistance. All the PPP PBAC
4 
members and other public officials providing services to the PPP PBAC shall be
5 
authorized to engage the services of private lawyers, or shall be provided with
6 
free legal assistance, where a civil, criminal, or administrative action is filed
7 
against them by reason of the performance of their official functions or duties,
8 
unless they are finally adjudged in such action or proceeding to be liable for gross
9 
negligence or misconduct or grave abuse of discretion. The PPP PBAC members
10 
shall also be entitled to medical assistance for injuries incurred in the performance
11 
of their functions.
12 
SEC. 12. C ontract Termination. In the event that a contract is revoked,
13 
cancelled or terminated, either contracting party shall compensate the other party
14 
pursuant to terms as defined in the contract.
15 
SEC. 13. Issuance o f A dm inistrative Franchise, License o r Permit.
16 
Once a PPP contract is duly executed, the regulator, licensing authority or LGUs
17 
shall automatically grant in favor of the project proponent an administrative
18 
franchise, license permit, or any other form of authorization required for the
19 
implementation of a PPP project subject to submission by the project proponent
20 
of the requirements by the regulator, licensing authority or LGU.
21 
Any provision of law to the contrary notwithstanding, it shall be mandatory
22 
on the part of the regulator, licensing authority or LGUs to accept and approve
23 
the application for administrative franchise, license or permit. Failure to act on a
18


1 
proper and complete application thereof within thirty (30) working days from
2 
receipt of the same shall be deemed as approval thereof.
3 
SEC. 14. Expansion o r Extension o f an Existing In fra stru cture
4 
Facility. Subject to conditions specified in the IRR of this Act and upon prior
5 
approval by the Approving Body, the project 
proponent of an existing PPP
6 
infrastructure facility may be allowed to expand or extend the same even without
7 
further bidding: Provided, That the cost thereof shall not exceed twenty-five
8 
percent (25%) of the price-adjusted original project cost: Provided, further. That
9 
any subsequent expansion or extension shall no longer be allowed.
10 
SEC. 15. Contracts and Public Disclosure. Copies of all PPP contracts
11 
concluded under this Act shall be considered public documents. However, any
12 
proprietary information 
or information relating to security or national security
13 
matters contained in the PPP contract and its annexes may be kept confidential
14 
for a limited period, as may be determined by the implementing agency but not to
15 
exceed five (5) years.
16 
The determination of whether or not such contracts shall be kept
17 
confidential, as well as the terms and duration of confidentiality, shall be the
18 
responsibility of the implementing agency concerned. The implementing agency
19 
shall transmit to the PPP Center for records and monitoring purposes, a copy of
20 
the duly executed contract, within thirty (30) working days from its complete
21 
execution.
22 
SEC. 16. Prohibition on the Issuance o f Temporary Restraining
23 
Orders o r Injunctions. No temporary restraining order, preliminary injunction
24 
or preliminary mandatory injunction shall be issued by any court, except the
19


1 
Supreme Court, against any implementing agency, its officials or employees, or
2 
any person or entity, whether public or private acting under the government
3 
direction, to restrain, prohibit or compel the following acts:
4 
(a) 
Bidding, rebidding or declaration of failure of bidding of PPP projects,
5 
either national or local;
6 
(b) 
Qualification or disqualification of bidders;
7 
(c) 
Awarding of PPP contract;
8 
(d) 
Acceptance of any unsolicited PPP project proposal, even if not acted
9 
upon by the implementing agency concerned under Section 9 of this
10 
Act;
11 
(e) 
Acquisition, clearance, 
development of the right-of-way, site or
12 
location of any PPP project;
13 
(f) 
Construction, operation and maintenance of any PPP project;
14 
(g) 
Commencement, execution, implementation, termination or rescission
15 
of any PPP contract; and
16 
(h) 
Undertaking or authorization of any other lawful activity necessary for
17 
such PPP project or contract:
18 
Provided, further,J\\dit the temporary restraining order, preliminary injunction or
19 
preliminary mandatory injunction issued by the Supreme Court shall be effective
20 
for a period not to exceed six (6) months.
21 
The applicant for such temporary restraining order, preliminary injunction
22 
or preliminary mandatory injunction shall file a bond, in an amount to be fixed by
23 
the court. The bond shall accrue in favor of the government if the court should
24 
finally decide that the applicant was not entitled to the relief sought.
20


1 
Any temporary restraining order, preliminary injuction or preliminary
2 
mandatory injunction issued in violation of this Section is void and of no force and
3 
effect.
4 
The foregoing prohibition shall apply in all disputes, cases, or controversies
5 
instituted by any and all parties, including cases filed by bidders, implementing
6 
agencies or those claiming to have rights through such bidders or 
implementing
7 
agencies involving a PPP project or contract.
8 
In addition to civil and criminal liabilities as may be incurred under existing
9 
laws, any judge who shall issue a temporary restraining order, preliminary
10 
injunction or preliminary mandatory injunction in violation of this section, shall be
11 
disciplined by the Supreme Court and suffer the penalty of removal from office.
12 
SEC. 17. Assignm ent o f Assets fo r PPP Projects. A regulatory agency
13 
that owns public infrastructure or right-of-way that is intended for a PPP project
14 
shall assign the same to the department exercising administrative supervision over
15 
it, or to the department to which it is attached, in order that such department
16 
may enter into a PPP contract involving such public infrastructure or right-of-way.
17 
SEC. 18. P roject Supervision. Every PPP project undertaken under the
18 
provisions of this Act shall 
be in accordance with the designs, 
plans,
19 
specifications, standards, and costs approved by the implementing agency and
20 
Approving Body, and shall be under the supervision of the implementing agency
21 
concerned.
22 
SEC. 19. Investm ent Incentives. Among other incentives, PPP projects
23 
in excess of One Billion Pesos (PhPl,000,000,000) may be entitled to incentives as
21


1 
provided by the Omnibus Investment Code, upon prior endorsement of the PPP
2 
Center and registration by the project proponent with the Board of Investments.
3 
SEC. 20. Projects o f N ational Significance. Upon certification and
4 
recommendation by the ICC, and prior consultation with the Department of
5 
Interior and Local Government (DILG) and the LGU concerned, the President may
6 
classify certain projects, such as energy, toll road, mass transit, water, sewerage
7 
and such other projects undertaken under this Act as projects of national
8 
significance, which shall be entitled to the following incentives:
9 
(a) 
All real properties which are actually and directly used for the project
10 
shall be exempt from any and all real property taxes levied under
11 
Republic Act No. 7160, otherwise known as the Local Government
12 
Code;
13 
(b) 
All projects of national significance shall likewise be exempt from any
14 
and all local taxes, fees and charges; and
15 
(c) 
Automatic grant or issuance of the necessary business permits,
16 
including renewals thereof, in favor of the winning project proponent.
17 
For a project to qualify as a project of national significance, it shall meet
18 
the following criteria:(i) the total project cost falls within the threshold set by the
19 
ICC; (ii) the project has direct and indirect economic impact which shall not be
20 
less than the threshold set by the ICC; (iii)the project will have direct and indirect
21 
economic impact beyond the LGU where it is located; and (iv) the project can
22 
create new jobs.
23 
SEC. 21. Exem ption from  Paym ent o f Transfer Taxes. For all PPP
24 
projects, the transfer of ownership of infrastructure facility to the implementing
22


1 
agency shall be exempt from capital gains tax, documentary stamp tax and all
2 
taxes and fees, whether from national or local, related to the transfer thereof.
3 
SEC. 22. Institu tio na lizatio n  o f PPP Center. To achieve the goals of
4 
this Act, the PPP Center created under Executive Order No. 8, series of 2010, as
5 
amended by Executive Order No. 136, series of 2013, is hereby institutionalized.
6 
It is hereby authorized to adopt its current organizational structure, absorb its
7 
existing employees, and upgrade its human resource component, as may be
8 
necessary. Towards a more efficient and effective performance of its mandate,
9 
the PPP Center shall have the following powers and functions:
10 
(a) 
Assist implementing agencies in identifying, developing, prioritizing and
11 
maintaining a pipeline of PPP projects;
12 
(b) 
Provide advisory services, technical assistance, trainings, and capacity
13 
development to implementing agencies in all PPP-related matters, and
14 
act as a procurement agent upon the request 
of an implementing
15 
agency;
16 
(c) 
Manage and administer the PDMF as provided in Section 8 of this Act;
17 
(d) 
Work with 
implementing 
agencies 
in 
setting 
procurement and
18 
implementation timelines for approved PPP projects;
19 
(e) 
Recommend plans, policies and implementation guidelines related to
20 
PPP, 
in 
consultation 
with 
appropriate oversight committees or
21 
agencies, implementing agencies, private sector and other relevant
22 
stakeholders;
23 
(f) 
Facilitate, monitor, and evaluate the implementation of PPP programs
24 
and projects developed by the implementing agencies;
23


1 
(g) 
Report to the Office of the President and 
Congress on the
2 
implementation of the PPP programs and projects of the government
3 
at the end of each year;
4 
(h) 
Serve as a link between the government and the private sector;
5 
(i) 
Promote and market PPP programs and projects, in collaboration with
6 
other government promotion agencies;
7 
(j) 
Sit as member of NEDA-Infrastructure Committee (INFRACOM), ICC,
8 
and other inter-agency bodies where a PPP project is a major concern;
9 
(k) 
Issue advisory opinions and interpret the provisions of this Act and its
10 
IRR, relating solely to technical aspects of PPP;
11 
(I) 
Serve as the central repository of all executed PPP contracts and any
12 
subsequent amendment or supplement thereto, including settlement
13 
agreements, entered into by implementing agencies;
14 
(m) 
Review PPP contracts prior to execution, and provide and transmit
15 
copies of duly executed PPP contracts to Congress;
16 
(n) 
Act as Secretariat to the PDMF Committee, PPP Governing Board, and
17 
ICC insofar as PPP projects are concerned;
18 
(o) 
Maintain an integrated projects' bank to serve as an interactive
19 
database of all current and past projects;
20 
(p) 
Perform such other functions as may be necessary to achieve the
21 
objectives and purposes of this Act.
22 
The PPP Center shall report directly to the PPP Governing Board and shall be
23 
attached to the NEDA for purposes of policy and program coordination.
24


1 
SEC. 23. PPP Governing Board. The PPP Governing Board, hereinafter
2 
referred to as the Board, is hereby created. It shall be the overall policy-making
3 
body for all PPP-related matters, including the PDMF. It shall be responsible for
4 
setting the strategic direction of PPP programs and projects and in creating an
5 
enabling policy and institutional environment for PPP.
6 
The Board shall be composed of the following:
7 
(1) 
The Secretary of Socio-Economic Planning as Chairperson;
8 
(2) 
The Secretary of the Department of Finance as Vice-Chairperson;
9 
(3) 
The Secretary of the Department of Budget and Management;
10 
(4) 
The Secretary of the Department of Justice;
11 
(5) 
The Secretary of the Department of Trade and Industry;
12 
(6) 
The Executive Secretary;
13 
(7) 
The Secretary of the Interior and Local 
Government;
14 
(8) 
The Executive Director of PPP Center; and
15 
(9) 
The Private sector as Co-chairperson of the National Competitiveness
16 
Council (NCC), as members.
17 
The principal members of the Board may designate their respective
18 
alternates, who shall be the official next-in-rank to them, and whose acts shall be
19 
considered the acts of their principals.
20 
The presence of the Chairperson and four (4) other members of the Board
21 
shall constitute a quorum and a majority vote of the members present shall be
22 
necessary for the adoption of any issuance, order, resolution, decision or other act
23 
of the Board in the exercise of its functions. The Board shall act as a collegial
25


1 
body. In the conduct of meetings, the Chairperson shall not vote except to break
2 
a tie.
3 
The Board shall act on any matter for its consideration not later than thirty
4 
(30) days from the date of submission thereof.
5 
SEC. 24. Executive Director. The PPP Center shall be headed by an
6 
Executive Director with the rank equivalent to an Undersecretary, who shall be
7 
appointed by the President of the Philippines for a term of six years, upon
8 
recommendation of the PPP Governing Board; Provided, That the term of the first
9 
Executive Director appointed under this Act shall expire at noon of June 30, 2019
10 
and the term of the next Executive Director shall commence on the said hour and
11 
date: Provided further, That in case a vacancy occurs before the expiration of the
12 
term, the person appointed to such vacancy shall serve only the unexpired term
13 
of the predecessor. The Executive Director shall perform the following functions:
14 
(a) 
Undertake the day-to-day management and supervise the operations
15 
of the PPP Center;
16 
(b) 
Recommend to the PPP Governing Board such policies and measures
17 
which he or she deems necessary for the effective exercise and
18 
discharge of the powers and functions of the PPP Center;
19 
(c) 
Sit as an ex-officio member of the PPP Governing Board, INFRACOM,
20 
ICC and other inter-agency bodies where a PPP project is a major
21 
concern; and
22 
(d) 
Perform such other functions as may be assigned by the PPP
23 
Governing Board.
26


1 
SEC. 25. M andatory Inclusion o f A lternative Dispute Resolution
2 
(ADR) Mechanisms in PPP Contracts. All PPP contracts shall stipulate therein
3 
the use of ADR mechanisms. The contracting parties shall be given complete
4 
freedom to choose which ADR mechanisms shall govern their dispute, as well as
5 
the rules or procedures to be followed in resolving the same.
6 
SEC. 26. Creation o f a Public-Private Partnership (PPP) C ontingent
7 
Lia b ility Fund. To ensure fiscal sustainability and negotiate better financing
8 
terms of PPP projects, there is hereby created a PPP Contingent Liability Fund to
9 
be used for the payment of contingent liabilities arising from PPPs in accordance
10 
to its contract terms.
11 
The target amount in the PPP Contingent Liability Fund is to be determined
12 
by the Development Budget Coordination Committee (DBCC) using risk-adjusted
13 
methods or such other means that estimate the exposure of the Government of
14 
the Philippines to PPP contingent liabilities.
15 
The PPP Contingent Liability Fund shall be funded from the following
16 
sources:
17 
a) concession fees;
18 
b) implementing agency reimbursements;
19 
c) interest earnings from the contingent liability fund; and
20 
d) National Government contributions.
21 
National Government contributions shall cover only the difference between
22 
the target amount of the PPP Contingent Liability Fund, and the current value of
23 
the fund. The Department of Finance (DOF) shall regularly monitor and review
24 
the viability of the PPP Contingent Liability Fund in relation to the magnitude of
27


1 
PPP projects undertaken by government, and if necessary, recommend the
2 
increase in the target amount of the PPP Contingent Liability Fund and the reason
3 
therefore. All National Government contributions to the PPP Contingent Liability
4 
Fund shall be included in the proposed DOF budget.
5 
When the value of the PPP Contingent Liability Fund is in excess of the
6 
target amount, the excess funds may, upon the recommendation of the DBCC, be
7 
transferred to the general fund of the National Government.
8 
The implementing agency must seek confirmation from the DOF that the
9 
National Government can bear the additional contingent liabilities associated with
10 
the project, taking into consideration fiscal sustainability.
11 
Further, to foster accountability and efficiency in implementing PPP
12 
projects, it is mandatory for implementing agencies to enter into a recourse
13 
agreement with the DOF before any payment can be drawn from the PPP
14 
Contingent Liability Fund for contingent liabilities that have materialized within
15 
contract terms.
16 
The Bureau of the Treasury shall maintain the PPP Contingent Liability
17 
Fund in the Treasury Single Account. Interest earnings therefrom shall accrue to
18 
the PPP Contingent Liability Fund.
19 
SEC. 27. Pena! Provision. Any person, whether private individual or
20 
public officer or employee, who commits any of the acts hereunder proscribed,
21 
shall be punished by imprisonment from a minimum of three (3) years to a
22 
maximum of six (6) years and one (1) day:
28


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22 
23
(a) 
Representation 
that 
the 
project 
proponent 
has 
the 
necessary 
capitalization to commence, complete and implement the project when 
the same is false in material respects;
(b) 
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.
SEC. 28. Misceflaneous Provisions.
(a) BuHd-and-Transfer and Social Infrastructure PPP Projects. For
PPP projects under the Build-and-Transfer scheme, as well as social 
infrastructure PPP projects, the Congress shall include the necessary 
appropriations to meet the financial obligations arising from such projects 
on the fiscal year when the obligation becomes due and demandable. 
Such appropriations shall be over and above the annual budget of the 
implementing agency.
{b) J o in t Venture Agreements. For joint venture arrangements, the 
ownership of the infrastructure facility may be transferred to either the 
implementing agency or to the project proponent: Provided, That in the 
latter case, the transfer shall be made under competitive market 
conditions: 
Provided, further, That the equity contribution of the 
implementing agency in a joint venture corporation shall in no case 
exceed fifty percent (50%) of the outstanding capital stock of the 
corporation:Provided, finally. That the return on investment of either 
party shall be in proportion to their respective contribution.
29


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22 
23
1
(c) Recovery o f In ve stm e n t As may be agreed in the PPP contract, the 
project proponent may be allowed to collect tolls, fees, rentals, or 
charges, engage in commercial development, receive VGF, and receive 
direct government payments, among others, to recover investment.
(d) W ind-up and Transfer Measures. The PPP contract shall provide, as 
appropriate, for:
(i) 
Mechanisms and procedures for the transfer of assets to the 
implementing agency;
(ii) 
The compensation to which the project proponent may be 
entitled in respect of assets transferred to the implementing 
agency, or to a successor, or purchased by the implementing 
agency;
(iii) 
The transfer of technology required for the operation of the 
infrastructure facility;
(iv) 
The training of the implementing agency's personnel or of a 
successor 
in 
the 
operation 
and 
maintenance 
of the 
infrastructure facility; and
(v) 
The provision, by the project proponent, of a warranty that 
the 
infrastructure 
facility 
meets 
the 
project 
technical 
specifications, agreed system features, and performance 
standards and services for a certain period as may be defined 
in the IRR of this Act after the transfer of the infrastructure 
facility to the implementing agency or to a successor
30


1 
(e) Prescription. No one shall in any proceedings before any court or
2 
tribunal allege the invalidity of any PPP contract on the ground of non-
3 
compliance with the provisions of this Act after a period of one (1) year
4 
has elapsed from the signing of the PPP contract.
5 
(f) P referential H iring o f Filipino Workers. For the construction stage of
6 
infrastructure facilities where the contractor is a foreigner, Filipino labor shall
7 
be employed or hired in the different phases of construction where Filipino
8 
skills are available.
9 
(g) Contracts, Procedures, And A u th o rity N ot A ffected by this Act. -
10 
This Act shall not affect:
11 
(i) PPP contracts entered into, and selection procedures undertaken, by
12 
implementing agencies prior to the effectivity of this Act in accordance with
13 
the relevant laws, regulations, guidelines, and ordinances; and
14 
(ii) The authority of LGUs to enact their own PPP ordinances that are not
15 
inconsistent with this Act and its IRR.
16 
SEC. 
29. 
J o in t C ongressional O versight Com m ittee. 
A Joint
17 
Congressional 
Oversight 
Committee 
is 
hereby 
created 
to 
oversee 
the
18 
implementation of this Act. The Committee shall be composed of five (5)
19 
members each from the Senate and Flouse of Representatives to be designated
20 
by the Senate President and the Speaker of the Flouse of Representatives,
21 
respectively. 
The 
Committee 
shall 
be jointly chaired 
by the 
respective
22 
Chairpersons of the Flouse Committee on Public Works and Flighways, the Flouse
23 
Committee on Appropriations, the Senate Committee on Public Works, and the
24 
Senate Committee on Finance."
31


1 
SEC. 30. Im plem enting Rules and Regulations. The members of the
2 
PPP Governing Board shall designate their respective representatives who shall
3 
constitute the IRR Committee. Within sixty (60) days from the effectivity of this
4 
Act, the PPP Center shall formulate and prescribe, in consultation with the IRR
5 
Committee, after public hearing and publication as required by law, the rules and
6 
regulations to implement the provisions of this Act. The IRR shall be approved by
7 
the PPP Governing Board.
8 
From time to time the PPP Governing Board may instruct the PPP Center, in
9 
consultation with the IRR Committee, to conduct, formulate and prescribe, after
10 
due public hearing and publication, amendments to the IRR, consistent with the
11 
provisions of this Act.
12 
SEC. 31. Transitory Provisions. All unexpended funds for the calendar
13 
year, properties, equipment, contracts and records of the PPP Center are hereby
14 
retained. The amount necessary to carry out the organizational changes of PPP
15 
Center provided in this Act shall be determined by the PPP Governing Board.
16 
Appropriations for succeeding years shall be incorporated in its budget proposals
17 
for Congressional action.
18 
All officials and employees of the PPP Center shall be retained and shall not
19 
suffer any loss of seniority or rank or decrease in emoluments.
20 
SEC. 32. Separability Clause. If any provision of this Act is held invalid,
21 
the other provisions not affected thereby shall continue in operation.
22 
SEC. 33. Repealing Clause. 
Republic Act No. 6957, Republic Act No.
23 
7718, Sec. 3(a) of Presidential Decree (PD) No. 1112, Section 2 of PD No. 1894,
24 
and EO No. 8 (s. 2010) as amended by EO 136 (s. 2013), EO 78 (s. 2012),
32


1 
Section 8 of EO No. 423 (s. 2005), 2013 Revised Guidelines and Procedures for
2 
Entering Into Joint Venture Agreements Between Government and Private
3 
Entities, Joint Venture Guidelines issued by LGUs, and PPP Codes issued by LGUs,
4 
are hereby repealed. All other laws, rules and regulations or parts thereof
5 
inconsistent with the provisions of this Act are hereby repealed or modified
6 
accordingly.
7 
SEC. 34. E ffe c tiv ity  Clause. This Act shall take effect fifteen (15) days
8 
after its publication in the Official Gazette or at least one (1) newspaper of
9 
general circulation.
10 
Approved,
33