EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
(filfirr of iljr je-T.-r-Urj*
'19 SEP 30 R2«8
s. No. 1080
Introduced by Senator Ralph G. Recto
AN ACT
IN STITU TIO N ALIZIN G  
PUBLIC-PRIVATE 
PARTNERSHIPS 
(PPP), 
CREATING THE PPP CENTER, APPROPRIATING FUNDS THEREFOR, AND 
FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippines is envisioned as a country that has high sustainable growth, 
generates mass employment and enjoys reduced poverty. Towards this end, 
encouraging public-private partnerships (PPPs) should be a means to develop the 
country's infrastructure in all sectors and secure our economic global ranking. It is 
therefore of utmost importance to revisit Republic Act No. 6957, as amended by 
Republic Act No. 7718, Entitled "An Act Authorizing the Financing, Construction, 
Operation and Maintenance of Infrastructure Projects by the Private Sector, and for 
Other Purposes" or what is otherwise called the "Build-Operate-Transfer" (BOT) law.
This bill is aimed at further improving the "Build-Operate-Transfer" (BOT) law 
by expanding its coverage and providing more incentives to the private sector who 
become partners of the government in implementing infrastructure projects.
This bill limits the projects to be implemented as PPP projects to hard 
infrastructure charging user fee or tariff and excludes social infrastructure projects 
such as prisons, education and health facilities, and other infrastructure projects like 
government buildings, tourism projects, power projects, climate change mitigation 
and adaptation measures.


One salient feature of this bill is the automatic approval by the Regional 
Development Council of PPP projects which have satisfactorily complied with the 
requirements to avoid arbitrary and unreasonable withholding of endorsement of 
projects.
Another salient feature of this bill is the classification of infrastructure projects 
with a direct economic impact which should not be less than the threshold set by the 
Investment Coordination Committee (ICC); with a direct positive impact on at least 
two cities or municipalities; and can create new jobs as "Projects of National 
Significance". When classified as such, these projects will be exempted from real 
property tax.
This bill also protects these projects from being the subject of judicial reliefs 
such as temporary restraining orders (TROs), preliminary injunctions and preliminary 
mandatory injunctions issued by any court, except the Supreme Court.
To ensure consumer protection, the bill gives paramount consideration to the 
affordability of user fees and efficiency of public services when awarding PPP 
projects.
In the interest of transparency and good governance, four (4) private sector 
representatives shall be elected by the private sector associations concerned in the 
PPP Governing Board, which shall be the overall policy-making body for all PPP- 
related matters.
All of these features work to strengthen the BOT law and encourage more 
PPPs in national and local infrastructure projects.
With these in mind, the passage of this bill is earnestly sought.
mjma
ro


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. 1080
4^*)  r 11 % u .
tf iUc fev ifit-.r}1
'19 SEP 30 P12«8
REC.
Introduced by Senator Ralph G. Recto
AN ACT
IN STITU TIO N ALIZIN G  PUBLIC-PRIVATE PARTNERSHIPS (PPP), CREATING 
THE PPP CENTER, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER 
PURPOSES
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 (PPP) Act"
2 
of the Philippines.
3 
Sec. 2. Declaration o f Policy. -  It is the declared policy of the State to recognize
4 
the indispensable role of the private sector as the main engine for national growth
5 
and development, create an enabling environment for PPP, and provide the most
6 
appropriate incentives to mobilize private resources for the purpose of financing,
7 
designing, constructing, operating and maintaining infrastructure projects and services
8 
normally financed and undertaken by the government.
9 
The State recognizes the long-term nature of private investment in infrastructure
10 
projects.
11 
The State shall protect the public interest by providing affordable, accessible,
12 
and efficient public infrastructure facilities. Subject to reasonable rules and under the
13 
guiding principle of full public disclosure of all transactions, the State shall ensure fair
14 
and reasonable pricing and timely delivery of quality infrastructure through equitable
15 
risk allocation inherent in projects implemented under this Act and its implementing
16 
rules and regulations (IRR).
17 
The State affirms open, transparent and competitive selection as the central
18 
tenet of government procurement in securing private investment in 
public
19 
infrastructure projects.
1


1 
Sec. 3. Definition o f Terms. -  The following terms used in this Act shall have the
2 
meanings stated below:
3 
a) Approving B ody- refers to an entity authorized to approve PPP projects
4 
proposed under this Act and its IRR, in accordance with Section 7 of this Act.
5 
b) Avaiiabiiity-based PPP -  refers to a PPP where the implementing agency
6 
commits 
to 
make 
predetermined 
payments 
for contractually-defined
7 
performance delivery.
8 
c) Concession-based PPP- refers to a PPP where the implementing agency
9 
grants the project proponent the right to recover its investment, operating and
10 
financing costs by charging the public a user fee or tariff.
11 
d) Construction -  refers to new construction, rehabilitation, improvement,
12 
expansion, alteration, installation, and related works and activities in connection
13 
with an infrastructure facility, including the necessary 
supply of equipment,
14 
materials, labor and services and related items.
15 
e) Contractor -  refers to any person, who may or may not be the project
16 
proponent, and who shall undertake the actual construction of an infrastructure
17 
facility.
18 
f) Cooperation Period 
-  refers to the period of operation of an
19 
infrastructure facility, which period, in the case of public utilities requiring a
20 
franchise, shall be in accordance with law.
21 
g) Faciiity O perator- refers to a person registered with the Securities and
22 
Exchange Commission, who may or may not be the project proponent, and who
23 
is responsible for all aspects of operation and maintenance of an infrastructure
24 
facility, including but not limited to the collection of tolls, fees, rentals or charges
25 
from facility users.
26 
h) Grantor -  refers to an implementing agency and other government
27 
agencies that own the project assets or franchise.
28 
i) GOCC -  refers to a government-owned or -controlled corporation as
29 
defined in Republic Act No. 10149.
30 
j) IC C - refers to the Investment Coordination Committee of the National
31 
Economic and Development Authority (NEDA) Board.


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
1
k) Implementing Agency -  refers to the Department of Public Works and 
Highways (DPWH), Department of Transportation (DOTr), Department of 
Information 
and 
Communications Technology 
(DICT), 
National 
Irrigation 
Administration (NIA), National Housing Authority (NHA), Philippine Reclamation 
Authority (PRA), local government units (LGUs), and government-owned and 
controlled corporations (GOCCs) attached to these respective departments and 
agencies such as: Light Rail Transit Authority (LRTA), North Luzon Railways 
Corporation (NLRC), Philippine Ports Authority (PPA), Manila International Airport 
Authority (MIAA), and Mactan Cebu International Airport Authority (MCIAA).
l) Infrastructure Facility -  refers to such facility as are established by the 
government in relation to or as may be necessary for the discharge of its 
functions, whether governmental or proprietary, including highways, railroads 
and railways, transport systems, ports, airports, telecommunications, information 
technology systems and infrastructure, dams, water supply, irrigation, sewerage, 
drainage, 
dredging, 
land 
reclamation 
projects, 
housing, 
markets, 
slaughterhouses, warehouses and solid waste management facilities.
For the construction stage of these infrastructure facilities where the contractor 
is a foreigner, Filipino labor shall be employed or hired in the different phases of 
construction.
m) IR R - refers to the implementing rules and regulations of this Act.
n) LG U - refers to a local government unit.
o) Local PPP Project -  refers to a PPP Project that will be undertaken by an
LGU.
p) National PPP P roject- refers to a PPP Project that will be undertaken by 
the national government and shall be approved by the NEDA Board upon 
recommendation by the ICC and endorsement by the PPP Governing Board. 
Such approval shall be carried by the implementing agency or grantor 
concerned.
q) PDMF -  refers to the Project Development and Monitoring Facility 
created under Section 8 of this Act.
r) PPP BAG- refers to the PPP Bids and Awards Committee.


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
1
s) PPP or Public-Private Partnership -  refers to a contractual arrangement 
between the implementing agency and the project proponent for the financing, 
design, construction, operation, and maintenance, or any combination thereof, 
of an infrastructure facility under this Act.
t) PPP Center -  refers to the Public-Private Partnership Center of the 
Philippines created under Executive Order No. 8, series of 2010, as amended.
u) PPP Contract- refers to the contract between the implementing agency 
and the project proponent for the design, financing, construction, operation, or 
maintenance of an infrastructure faciiity under a PPP Project.
v) PPP Project- refers to a project undertaken under this Act.
\n ) Person -  refers to an individual, sole proprietorship, partnership, 
corporation or any other form of organization, whether domestic or foreign.
x) Priority project -  refers to a project identified by an implementing 
agency that may be undertaken under this Act as a PPP project and is consistent 
with the Philippine Development Plan (PDP) or its equivalent at the local level.
y) Project Cost -  refers to total capital cost, financing and other expenses 
for the design, construction, operation, and maintenance of an infrastructure 
facility, depending on the PPP contractual arrangement as provided for in Section 
4 of this Act.
z) Project Proponent -  refers to any private person, as defined in item rvof 
this section, who proposes to undertake a PPP project.
aa) Rate o f Return -  refers to the maximum rate of return that a project 
proponent shall be entitled to, as determined by the Approving Body, taking into 
account, among others, the prevailing cost of capital in the domestic and 
international markets, the risks being assumed by the project proponent, and 
prevailing tariff on similar projects: Provided, That in case of an unsolicited or 
solicited proposal, such rate of return shall be determined by the appropriate 
Approving Body prior to the call for proposals.
bb) Services -  refers to technical services and other services related to 
infrastructure facilities such as, but not limited to, construction supervision, 
management, operation and maintenance and related services, which may be 
included as part of a PPP project.


1 
cc) Solicited PPP Project -  refers to priority projects identified by the
2 
implementing agency.
3 
dd) Unsolicited PPP Project -  refers to project proposals submitted by a
4 
private person which are not in response to a formal solicitation or request
5 
issued by the implementing agency.
6 
ee) Viability Gap Funding (VGF) -  refers to such financial support the
7 
government may provide to a concession-based PPP project with the objective of
8 
making user fees affordable while improving the commercial attractiveness of
9 
the project.
10 
Sec. 4. 
Variations o f Contractual Arrangements. -  PPP Projects may be
11 
undertaken through any of the following contractual arrangements and such other
12 
variations as may be approved by the ICC:
13 
i) Buiid-and-Transfer -  refers to a contractual arrangement whereby the
14 
project proponent undertakes the financing and construction of a given
15 
infrastructure facility and after the completion thereof, turns it over to the
16 
implementing agency concerned, which shall pay the project proponent on an
17 
agreed schedule its total investments expended on the project, plus a rate of
18 
return thereon. This arrangement may be employed in the construction of any
19 
infrastructure facility, including critical facilities which, for security or strategic
20 
reasons, must be operated directly by the government.
21 
ii) Buiid-Lease-and-Transfer-  refers to a contractual arrangement whereby
22 
a project proponent undertakes to finance and construct an infrastructure facility
23 
and upon its completion turns it over to the implementing agency concerned on
24 
a lease arrangement for a cooperation period, after which ownership thereof is
25 
automatically transferred to the implementing agency concerned.
26 
iii) Buiid-Own-and-Operate -  refers to a contractual arrangement whereby a
27 
project proponent is authorized to undertake a PPP project, specifically to
28 
finance, construct, own, operate and maintain an infrastructure facility from
29 
which the project proponent is allowed to recover its total investment, operating
30 
and maintenance costs plus a return thereon by collecting tolls, fees, rentals or
31 
other charges from facility users.


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
1
iv) BuHd-Operate-and-Transfer -  refers to 
a contractual 
arrangement
whereby the project proponent undertakes a PPP project and transfers 
ownership of the infrastructure facility to the implementing agency at the end of 
the cooperation period.
v) BuHd-Transfer-and-Operate -  refers to 
a contractual 
arrangement
whereby the implementing agency 
contracts out 
the construction of an
infrastructure facility to the project proponent. Once the facility is commissioned 
satisfactorily, ownership is transferred to the implementing agency. The project 
proponent, however, operates the infrastructure facility on behalf of the 
implementing agency.
vi) Contract-Add-and-Operate -  
refers to 
a contractual 
arrangement
whereby, the project proponent adds to an existing infrastructure facility which it 
is renting from the government. It operates the expanded infrastructure facility 
over an agreed cooperation period. There may, or may not be, a transfer 
arrangement in regard to said facility.
vii) Develop-Operate-and-Transfer -  refers to a contractual arrangement 
whereby favorable conditions external to a new PPP project which is to be built 
by a project proponent are integrated into the arrangement by giving that entity 
the right to develop adjoining property, and thus, enjoy some of the benefits the 
investment creates such as higher property or rent values.
viii) Joint Venture -  refers to a contractual arrangement whereby a private 
person or a group of private persons, and an implementing agency, contribute 
money, services, assets, or a combination of any or all of the foregoing, to 
undertake a PPP project, with the intention to share profits, risks and losses. 
Assets may include equipment, land, intellectual property or anything of value.
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 said corporation:


1 
Provided, finally, That the return on investment of either party shall be in
2 
proportion to their respective contribution.
3 
ix) Operations and Maintenance Contract 
-  refers to a contractual
4 
arrangement whereby the project proponent undertakes the day-to-day
5 
operation and 
maintenance of an infrastructure facility owned 
by the
6 
implementing agency. The project proponent shall undertake the acquisition or
7 
provision and upgrading of equipment, systems and other items related to
8 
operation and maintenance. The project proponent shall be compensated in the
9 
form of a performance-based management or service fee during the cooperation
10 
period.
11 
x) Rehabiiitate-Operate-and-Transfer- refers to a contractual arrangement
12 
whereby an existing infrastructure facility is turned over to the project proponent
13 
to refurbish, improve, operate and maintain for a cooperation period, at the
14 
expiry of which the ownership of the facility is transferred to the implementing
15 
agency.
16 
xi) Supply-and-Operate -  refers to a contractual arrangement whereby the
17 
supplier of equipment and machinery for a given infrastructure facility, if the
18 
interest of the government so requires, operates such facility. Foreign firms who
19 
are allowed to operate the facility shall provide technology transfer and training
20 
to Filipino nationals.
21 
Sec. 5. Authority o f Implementing Agencies. -  Implementing agencies, in
22 
accordance with their respective charters, are hereby authorized to undertake PPP
23 
projects with any project proponent in accordance with the provisions of this Act.
24 
In undertaking a PPP project under this Act, every GOCC and its subsidiaries
25 
shall secure the approval of the head of the implementing agency to which the GOCC
26 
is attached.
27 
Sec. 6. Identification o f Priority Projects. -  Implementing agencies shall include
28 
in their development plans, strategies and investment programs those priority projects
29 
that may be undertaken as PPP Projects under this Act. In identifying those projects,
30 
the implementing agencies shall be guided by the following principles: effectiveness in
31 
meeting government objectives, accountability and transparency, consumer rights.


1 
affordability, public access, safety, and security. Priority projects shall be consistent
2 
with the Philippine Development Plan or its equivalent at the local level.
3 
The implementing agencies shall submit their list of PPP projects or any update
4 
thereto to the PPP Center for information. Each proposed PPP project to be
5 
implemented under this Act shall be subject to the approval of the appropriate
6 
Approving Body.
7 
The PPP Center must ensure that the Congress and the public shall be provided
8 
with adequate and timely information on PPP projects.
9 
Sec 7. Unsolicited Proposals. -  Projects that are not in the list of priority projects
10 
may be considered for unsolicited proposals. Priority projects shall not be considered
11 
for unsolicited proposals, except when they involve a new concept or technology or do
12 
not have feasibility studies.
13 
When a project proponent submits an unsolicited proposal, the implementing
14 
agency may either:
15 
a) Accept the unsolicited proposal on a negotiated basis: Provided, That the
16 
following conditions are met:
17 
i) 
The project does not receive VGF or direct payments from any
18 
government agency; and
19 
ii) 
Guided by the principles of transparency and competitiveness, the
20 
implementing agency has invited by publication for three (3) consecutive
21 
weeks in a newspaper of general circulation, as well as websites of the PPP
22 
Center and of the implementing agency, the submission of comparative
23 
proposals and no other proposal is received for a period stated in the IRR
24 
of this Act, which period should not be less than three (3) months nor more
25 
than six (6) months from the date of last publication in a newspaper of
26 
general circulation. In the event another proponent submits a superior
27 
counter-proposal within the period referred to above and it is accepted by
28 
the appropriate Approving Body, the original proponent shall have the right
29 
to outbid.
30 
b) Use the unsolicited proposal as the basis for public bidding as provided
31 
in Section 10 of this Act. Upon approval by the appropriate Approving Body, the
32 
original proponent thereof shall be reimbursed of the cost incurred in the


1 
preparation of the proposal, such as the cost of any feasibility study undertaken:
2 
Provided, That such reimbursement:
3 
i) 
shall be in an amount specified in the IRR of this Act, but not
4 
exceeding three percent (3%) of the project cost excluding those which will
5 
be borne by the implementing agency; and
6 
ii) 
shall be paid in full by the winning project proponent as a
7 
requirement for the award of the contract.
8 
c) Reject the proposal;
9 
If the implementing agency fails to act on the proposal within the period stated
10 
in the IRR of this Act, the project proposal shall be deemed rejected, without
11 
prejudice to any liability that the erring or negligent officials or employees may incur
12 
under existing laws.
13 
Within ten (10) working days from receipt of the unsolicited proposal, the
14 
implementing agency shall inform the PPP Center in writing of such receipt and
15 
furnish it with a copy of the proposal. The PPP Center shall provide assistance to the
16 
implementing agency in the evaluation of the unsolicited proposal.
17 
Sec. 8. Approval o f PPP Projects. -  The approval of PPP projects under this Act
18 
shall be in accordance with the following:
19 
a) National PPP Projects -  National PPP projects shall be approved by the
20 
NEDA Board depending on the project cost as prescribed by the PPP Governing
21 
Board. Such approval shall be carried by the implementing agency or grantor
22 
concerned.
23 
For national projects that have impact on the region, the implementing
24 
agency shall secure the endorsement of the Regional Development Council
25 
(RDC) prior to submitting the project for approval to the Approving Body. The
26 
RDC shall have thirty (30) days from receipt of the request of the implementing
27 
agency within which to issue its endorsement; otherwise, the same shall be
28 
deemed automatically endorsed by the RDC.
29 
b) Local Projects -  Local PPP projects shall be confirmed by the local
30 
development councils concerned and approved by the local Sanggunians.


1 
The Approving Body shall assess all PPP projects based on its overall
2 
feasibility analysis and accord paramount importance on the affordability of user
3 
fees and efficiency in public service.
4 
Sec. 9. Project Development and Monitoring Facility (PDMF). -  The Project
5 
Development and Monitoring Facility is hereby created to be known as the PDMF,
6 
which shall be used for the procurement of advisory and support services related to
7 
the preparation, structuring, probity management, procurement, financial close, and
8 
monitoring of implementation of PPP projects. The PDMF Fund referred to under
9 
Executive Order No. 8, series of 2010, as amended by Executive Order No. 136, series
10 
of 2013, shall be transferred to the PDMF herein created. The funding requirements of
11 
the PDMF may be included in the General Appropriations Act, Official Development
12 
Assistance or other sources of funding.
13 
The PDMF shall be managed and administered by the PPP Center as a revolving
14 
fund; thus, in addition to the amounts appropriated herein, and in order to sustain the
15 
PDMF, the PPP Center may collect and receive fees and recover costs expended
16 
through PDMF in accordance with the guidelines that shall be approved by the PPP
17 
Governing Board. Such amount shall be retained and authorized to be used by the
18 
PPP Center for the purposes indicated herein.
19 
A PDMF Committee is hereby created which shall approve applications for PDMF
20 
support submitted by implementing agencies. It shall be composed of representatives
21 
from the NEDA, Department of Finance (DOF), Department of Budget and
22 
Management (DBM) and the PPP Center.
23 
To facilitate access to global best practices in PPP and enhance value for money,
24 
the selection of consultants for project preparation and transaction support, and
25 
probity advisors, all with PPP expertise, as well as independent consultants, and such
26 
other consultancy services that may be financed through PDMF shall be open to
27 
qualified consultancy firms, subject to existing laws on the practice of profession
28 
reserved to Filipino nationals.
29 
Subject to approval of the PPP Governing Board, the PDMF Committee shall also
30 
formulate, prescribe and recommend policies, procedures and guidelines for the use
31 
of PDMF and recovery of costs charged to the fund.
32 
The PPP Center shall serve as Secretariat for the PDMF Committee.
10


1 
Sec. 10. Public Bidding o f Projects. -  The public bidding of projects shall be in
2 
accordance with the following:
3 
A. Publication. -  Upon approval of PPP projects as mentioned in Section 8
4 
of this Act, the head of the implementing agency concerned shall immediately
5 
cause the publication of a notice inviting all prospective project proponents to
6 
participate in a transparent and competitive public bidding, once every week for
7 
three (3) consecutive weeks, in at least two (2) newspapers of general
8 
circulation and in at least one (1) local newspaper which is circulated in the
9 
region, province, city or municipality where the project will be implemented. Said
10 
notice shall also be posted continuously in the websites of the implementing
11 
agency and the PPP Center.
12 
B. Public Bidding. -  The public bidding shall be conducted under a single or
13 
two-stage system. The pre-qualification documents, technical, and financial
14 
proposals shall be submitted in at least three (3) separate envelopes. The
15 
procedures for public bidding, which shall be transparent and competitive,
16 
including the conduct of one-on-one meetings with prequalified bidders, shall be
17 
outlined in the IRR of this Act.
18 
C. Award. -  The contract shall be awarded to the bidder who has passed
19 
the 
pre-qualification 
stage 
for 
having 
satisfied 
the 
minimum 
financial,
20 
organizational and legal standards required by this Act, has passed the technical
21 
proposal evaluation, and has submitted the most favorable financial bid based on
22 
the parameters defined in the bid documents. Affordable user fees and efficient
23 
pubiic services shall be of paramount importance in awarding PPP projects.
24 
D. Single Complying and Responsive Bid. -  In case of a single complying
25 
and responsive bidder, the implementing agency may award the PPP contract to
26 
that bidder upon its compliance with the post-award requirements under the
27 
bidding rules of the PPP project.
28 
A bid shall be considered a single complying and responsive bid submission
29 
if it falls under any of the following circumstances:
30 
a) 
If, 
after 
advertisement, 
only 
one 
bidder 
applied 
for
31 
prequalification and it meets the prequalification requirements, after which
11


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
1
it is required to submit a bid or proposal which is subsequently found by 
the implementing agency to be complying;
b) 
If, after advertisement, more than one bidder applied for 
prequalification but only one meets the prequalification requirements, after 
which it submits a bid or proposal which is found by the implementing 
agency to be complying;
c) 
If, after prequalification of more than one bidder, only one 
submits a bid which is found by the implementing agency to be complying; 
or
d) 
If, after prequalification, more than one bidder submits bids but 
only one is found by the implementing agency to be complying.
E. Protest. -  In all stages of the procurement process, the following protest 
protocol shall be strictly followed:
a) 
Decisions of the PPP Prequalification Bids and Awards Committee 
(PPP PBAC) may be questioned by filing a motion for reconsideration within 
fifteen (15) working days from receipt thereof
b) 
The decision of the PBAC on the motion for reconsideration in the 
immediately preceding paragraph may be further questioned by filing an 
appeal to the head of the implementing agency concerned and paying a 
non-refundable appeal fee in an amount equivalent to no less than one half 
(V2) of one percent (1%) of the project cost within fifteen (15) working 
days from receipt thereof.
If the head of the implementing agency in the immediately preceding 
paragraph is not a Department Secretary, the decision of the head of the 
implementing agency may be further questioned by filing an appeal to the 
Secretary of the Department to which the implementing agency is attached 
within a period prescribed in the IRR of this Act.
c) 
The decision of the Department Secretary in the immediately 
preceding paragraphs of item (b) may be questioned by filing an appeal to 
the Office of the President within fifteen (15) working days from receipt 
thereof.
12


1 
In no case shall any appeal taken from any decision treated in this Act stay
2 
or delay the bidding process: Provided, however, That all appeals must first be
3 
resolved before any award is made.
4 
F. Failure to Comply or Execute the Contract. -  If the winning bidder fails
5 
to comply with any post-award requirement or fails to enter into a contract with
6 
the implementing agency, the latter may proceed to a negotiation with the next
7 
technically and financially qualified bidder. This is without prejudice to other
8 
legal remedies available to the implementing agency such as, but not limited to,
9 
the forfeiture of bid security, the withdrawal of Notice of Award, or both.
10 
Sec. 11. PPP BAG -  The head of the implementing agency shall create a PPP
11 
BAC which shall be responsible for all aspects of the pre-bidding and bidding process
12 
in the case of solicited proposals, and for the comparative bidding process in the case
13 
of unsolicited proposals. The PPP BAC shall be chaired by at least a third ranking
14 
regular official of the said agency and its composition shall be specified in the IRR of
15 
this Act: Provided, That the PPP BAC constituted for National PPP Projects shall also
16 
include other relevant government agencies as may be determined in the IRR of this
17 
Act.
18 
Sec. 12. Contract Termination. -  In the event that a contract is revoked,
19 
cancelled or terminated, either contracting party shall compensate the other pursuant
20 
to terms as defined in the contract.
21 
Sec. 13. Issuance o f Administrative Franchise, License or Permit -  Upon receipt
22 
of notice that an implementing agency and a project proponent have entered in a PPP
23 
contract, the regulator or licensing authority shall automatically grant in favor of the
24 
said project proponent an administrative franchise, license, permit, or any other form
25 
of authorization required for the implementation of a PPP project 
subject to
26 
submission by the project proponent of the requirements by the regulator or licensing
27 
authority.
28 
Any provision of law to the contrary notwithstanding, it shall be mandatory on
29 
the part of the regulator or licensing authority to accept and approve the application
30 
for administrative franchise, license or permit subject to submission by the project
31 
proponent of the requirements by the regulator or licensing authority. Failure to act
13


1 
on a 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 or Extension o f an Existing Infrastructure Facility. -  Subject
4 
to prior approval by the appropriate Approving Body, the project proponent of an
5 
existing PPP infrastructure facility may be allowed to expand or extend the same even
6 
without further bidding: Provided, That the cost thereof shall not exceed twenty-five
7 
percent (25%) of the price-adjusted original project cost: Provided, further, that any
8 
subsequent expansion or extension shall no longer be allowed.
9 
Sec. 15. Contracts and Public Disclosure. -  Copies of all PPP contracts concluded
10 
under this Act shall be considered public documents.
11 
The implementing agency shall transmit to the PPP Center for recording and
12 
monitoring purposes, a copy of the duly executed contract, within thirty (30) working
13 
days from its complete execution.
14 
Sec. 16. Prohibition on the Issuance o f Temporary Restraining Orders or
15 
Injunctions. -
16 
A. 
No temporary restraining order, preliminary injunction or preliminary
17 
mandatory injunction shall be issued by any court, except the Supreme Court,
18 
against any implementing agency, its officials or employees, or any person or
19 
entity, whether public or private acting under the government direction, to
20 
restrain, prohibit or compel the following acts:
21 
a) 
Bidding, rebidding or declaration of failure of bidding of PPP
22 
projects, either national or local;
23 
b) 
Qualification or disqualification of bidders;
24 
c) 
Awarding of PPP contract;
25 
d) 
Acceptance of any unsolicited PPP project proposal, even if not
26 
acted upon by the implementing agency concerned under Section 9 of this
27 
Act;
28 
e) 
Acquisition, clearance, development of the right-of-way, site or
29 
location of any PPP project;
30 
f) 
Construction, operation and maintenance of any PPP project;
31 
g) 
Commencement, 
execution, 
implementation, 
termination 
or
32 
rescission of any PPP contract; and
14


1 
h) 
Undertaking or authorization of any other lawful activity
2 
necessary for such PPP project or contract.
3 
B. Bond. -  The applicant for such temporary restraining order, preliminary
4 
injunction or preliminary mandatory injunction shall file a bond, in an amount to
5 
be fixed by the court. The bond shall accrue in favor of the government if the
6 
court should finally decide that the applicant was not entitled to the relief
7 
sought.
8 
C. Void. -  Any temporary restraining order, preliminary injuction or
9 
preliminary mandatory injunction issued in violation of this section is void and of
10 
no force and effect.
11 
D. Application. -  The foregoing prohibition shall apply in all disputes, cases,
12 
or controversies instituted by any and all parties, including but not limited to
13 
cases filed by bidders, implementing agencies or those claiming to have rights
14 
through such bidders or implementing agencies involving PPP project or
15 
contract.
16 
E. Liability. -  In addition to civil and criminal liabilities as may be incurred
17 
under existing laws, any judge who shall issue a temporary restraining order,
18 
preliminary injunction or preliminary mandatory injunction in violation of this
19 
section, shall be disciplined by the Supreme Court and suffer the penalty of
20 
removal from office.
21 
Sec. 17. Regulatory Boards. -  No regulatory body shall be allowed to enter into
22 
any PPP contract that they regulate: Provided, That a regulatory agency that owns
23 
public infrastructure or right-of-way that is intended for a PPP project shall assign the
24 
same to the department exercising administrative supervision over it, or to the
25 
department to which it is attached, in order that such department may enter into a
26 
PPP contract involving such public infrastructure or right-of-way.
27 
Sec. 18. Project Supervision and Monitoring. 
-  Every PPP project undertaken
28 
under the provisions of this Act shall be in accordance with the designs, plans,
29 
specifications, and standards as approved by the implementing agency, and the cost
30 
as approved by the appropriate Approving Body. Such project shall be under the
31 
supervision of the implementing agency concerned.
15


1 
Sec. 
19. 
Projects 
o f National Significance. 
-  
Upon 
certification 
and
2 
recommendation by the ICC, and prior consultation with the Department of Interior
3 
and Local Government (DILG), the President may classify certain projects, such as toll
4 
road, mass transit, water, sewerage and such other projects undertaken under this
5 
Act as projects of national significance. All real properties which are actually, directly
6 
and exclusively used for the projects shall be exempt from any and all real property
7 
taxes levied under Republic Act No. 7160.
8 
For a project to qualify as a project of national significance, it shall meet the
9 
following criteria:
10 
(a) 
The 
project has a direct economic impact which should not be
11 
less than the threshold set by the ICC;
12 
(b) 
The 
project has a direct positive impact on at least two (2) cities
13 
or municipalities; and
14 
(c) 
The project can create new jobs.
15 
Sec. 20. Exemption from Payment o f Transfer Taxes. -  For all PPP projects, the
16 
transfer of ownership of infrastructure facility to the implementing agency shall be
17 
exempt from capital gains tax, documentary stamp tax, donor's tax, and all national
18 
taxes and fees related to the transfer thereof.
19 
Sec. 21. Institutionalization o f PPP Center. -  To achieve the goals of this Act, the
20 
PPP Center created under Executive Order No. 8, series of 2010, as amended by
21 
Executive Order No. 136, series of 2013, is hereby institutionalized. It is hereby
22 
authorized to adopt its current organizational structure, absorb its existing employees,
23 
and upgrade its human resource component, as may be necessary, towards a more
24 
efficient and effective performance of the following functions:
25 
(a) 
Assist 
implementing 
agencies 
in 
identifying, 
developing,
26 
prioritizing and maintaining a pipeline of PPP projects;
27 
(b) 
Provide 
advisory services, technical assistance, trainings, and
28 
capacity development to implementing agencies in all PPP-related matters;
29 
(c) 
Manage and administer the PDMF as provided in Section 8 of this
30 
Act;
31 
(d) 
Work with implementing agencies in setting procurement and
32 
implementation timelines for approved PPP projects;
16


1 
(e) 
Recommend plans, policies and implementation guidelines related
2 
to PPP, in consultation with appropriate oversight committees or agencies,
3 
implementing agencies, private sector and other relevant stakeholders;
4 
(f) 
Facilitate, monitor, and evaluate the implementation of PPP
5 
programs and projects developed by the implementing agencies;
6 
(g) 
Report to the Office of the President and Congress on the
7 
implementation of the PPP programs and projects of the government at the end
8 
of each year;
9 
(h) 
Serve as a link between the government and the private sector;
10 
(i) 
Promote and market PPP programs and projects, in collaboration
11 
with other government promotion agencies;
12 
(j) 
Issue advisory opinions relating solely to technical aspects of PPP;
13 
(k) 
Serve as the central repository of all executed PPP contracts and
14 
any subsequent amendment or supplement thereto, including settlement
15 
agreements, entered into by implementing agencies;
16 
(I) 
Provide and transmit copies of duly executed PPP contracts to
17 
Congress;
18 
(m) 
Act as Secretariat to the PDMF Committee, PPP Governing Board,
19 
and ICC insofar as PPP projects are concerned;
20 
(n) 
Maintain an integrated projects' bank to serve as an interactive
21 
database of all current and past projects; and
22 
(o) 
Such other functions as may be necessary to achieve the
23 
objectives and purposes of this Act.
24 
The PPP Center shall report directly to the PPP Governing Board and under the
25 
administrative supervision of the NEDA.
26 
The PPP Center shall be headed by an Executive Director with the rank
27 
equivalent to an Undersecretary, who shall be appointed by the President of the
28 
Philippines, upon recommendation of the PPP Governing Board. The Executive
29 
Director shall perform the following functions:
30 
(a) 
Undertake the day-to-day management and 
supervise the
31 
operations of the PPP Center;
17


1 
(b) 
Recommend to the PPP Governing Board such policies and
2 
measures which are deemed necessary for the effective exercise and discharge
3 
of the powers and functions of the PPP Center;
4 
(c) 
Sit as an ex-officio, non-voting member of the PPP Governing
5 
Board, Infrastructure Committee (INFRACOM), ICC and other inter-agency
6 
bodies, except for regulatory boards, where a PPP project is a major concern;
7 
and
8 
(d) 
Perform such other functions as may be assigned by the PPP
9 
Governing Board.
10 
Sec. 22. PPP Governing Board. -  The PPP Governing Board 
is hereby created and
11 
referred to as the Board, which shall be the overall policy-making body for all PPP-
12 
related matters, including the PDMF. It shall be responsible for setting the strategic
13 
direction of PPP programs and projects and in creating an enabling policy and
14 
institutional environment for PPP.
15 
The Board shall be composed of the following:
16 
(a) 
Secretary of Socio-economic Planning as Chairperson;
17 
(b) 
Secretary of Finance as Vice-Chairperson;
18 
(c) 
Secretary of Budget and Management;
19 
(d) 
Secretary of Public Works and Flighways;
20 
(e) 
Secretary of Transportation;
21 
(f) 
Secretary of Information and Communications Technology;
22 
(f) 
One 
(1) 
private 
sector 
representative 
from 
the 
field 
of
23 
architecture or urban planning, recommended by the Philippine Institute of
24 
Architects/United 
Architects 
of 
the 
Philippines/Philippine 
Institute 
of
25 
Environmental Planners/Intelligent Community Forum Philippines;
26 
(g) 
One (1) private sector representative from the construction
27 
industry, recommended by the Philippine Constructors Association (PCA);
28 
(h) 
One (1) private sector representative from the business sector,
29 
recommended by the Management Association of the Philippines (MAP); and
30 
(i) 
One (1) private sector representative from the finance industry,
31 
recommended by the Bankers Association of the Philippines (BAP).
18


1 
The ex-officio members of the Board may designate their respective alternates,
2 
with a rank not lower than assistant secretary or its equivalent, and whose acts shall
3 
be considered as the acts of their principals.
4 
The presence of the Chairperson with four (4) other members of the Board shall
5 
constitute a quorum and a majority vote of the members present shall be necessary
6 
for the adoption of any issuance, order, resolution, decision or other act of the Board
7 
in the exercise of its functions. The Board shall act as a collegial body. In the conduct
8 
of meetings, the Chairperson shall not vote except to break a tie.
9 
The Board shall act on any matter for its consideration not later than thirty (30)
10 
days from the date of submission thereof.
11 
Sec. 
23. 
Mandatory Inclusion o f Alternative Dispute Resolution 
(ADR)
12 
Mechanisms in PPP Contracts. -  All PPP contracts shall include provisions on the use
13 
of ADR mechanisms. The contracting parties shall be given complete freedom to
14 
choose which venue and forum shall govern their dispute, as well as the rules or
15 
procedures to be followed in resolving the same.
16 
Sec. 24. Miscellaneous Provisions. -
17 
(a) 
Safeguard Mechanisms to Protect Public Interest. -  In order to
18 
improve transparency and to promote bankability and social acceptability of PPP
19 
projects, the following mechanisms shall be observed:
20 
(i) Whenever applicable, the implementing agency shall assess the
21 
affordability of fee or tariff, and conduct a willingness-to-pay survey among
22 
the users of the infrastructure facility;
23 
(ii) The implementing agency shall conduct public consultation or
24 
dialogue with all potential stakeholders, including the users, in all stages of
25 
the PPP project; and
26 
(iii) The implementing agency and the PPP Center shall post in their
27 
respective websites the approved starting fare or user fee in a PPP project
28 
as well as the approved parametric formula on fare increases or
29 
adjustments, if applicable.
30 
(b) 
Recovery of Investment. -  As may be agreed in the PPP contract,
31 
the project proponent may be allowed to collect tolls, fees, rentals, or charges.
19


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
1
engage in commercial development, receive viability gap funding, and receive 
direct government payments, among others, to recover investment.
(c) 
Wind-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.
(d) 
Prescription. -  No one shall in any proceedings before any court 
or tribunal allege the invalidity of any PPP contract on the ground of non- 
compliance with the provisions of this Act or its IRR after a period of one (1) 
year has elapsed from the signing of the PPP contract.
(e) 
Construction. -  If the person, whether or not the project 
proponent, that shall actually perform the construction of the infrastructure 
facility is a foreigner, such person shall hire Filipino employees throughout the 
period of construction.
(f) 
Operation. -  The person, whether or not the project proponent, 
who shall actually operate and maintain the infrastructure facility, including but 
not limited to the collection of tolls, fees, rentals or charges from users of the 
infrastructure facility, must be registered with the Securities and Exchange 
Commission.
20


1 
Sec. 25. Transitory Provisions. -  All unexpended funds for the calendar year,
2 
properties, equipment, contracts and records of the PPP Center are hereby retained.
3 
The amount necessary to carry out the organizational changes of PPP Center provided
4 
in this Act shall be determined by the PPP Governing Board. Appropriations for
5 
succeeding years shall be incorporated in its budget proposals for Congressional
6 
action.
7 
All officials and employees of the PPP Center shall be retained and shall not
8 
suffer any loss of seniority or rank or decrease in emoluments.
9 
Sec. 26. Joint Oversight Committee. -  There is hereby created a Joint
10 
Congressional Oversight Committee to oversee the implementation of this Act. The
11 
Committee shall be composed of the Chairpersons of the Senate Committees on Public
12 
Works, on Finance, and on Economic Affairs, and the Chairpersons of the House
13 
Committees on Public Works and Highways, on Appropriations, and on Economic
14 
Affairs. To effectively monitor the implementation of this Act, the Philippine
15 
Development Plan (PDP) and the priority list of national and local projects shall be
16 
submitted to the Joint Congressional Oversight Committee.
17 
Sec. 27. Implementing Rules and Regulations. -  The members of the PPP
18 
Governing Board shall designate its representatives who shall constitute the IRR
19 
Committee. Within sixty (60) days from the effectivity of this Act, the IRR Committee
20 
shall formulate and prescribe, in consultation with the PPP Center, after public hearing
21 
and 
publication as required by law, the rules and regulations to implement the
22 
provisions of this Act. The IRR shall be approved by the PPP Governing Board.
23 
From time to time the PPP Governing Board may instruct the IRR Committee, to
24 
conduct, formulate and prescribe, in consultation with the PPP Center, after due public
25 
hearing and publication, amendments to the IRR, consistent with the provisions of this
26 
Act.
27 
Sec. 28. Separability Clause. -  If any portion or provision of this Act is declared
28 
unconstitutional, the remainder of this Act or any provisions not affected thereby shall
29 
remain in force and effect.
30 
Sec. 29. Repealing Clause. -  Republic Act No. 7718, Republic Act No. 6957, Sec.
31 
3(a) of Presidential Decree (PD) No. 1112, Section 2 of PD No. 1894, and Executive
32 
Order (EO) No. 08 (s. 2010) as amended by EO 136 (s. 2013), EO 78 (s. 2012),
21


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 Entities,
3 
Joint Venture Guidelines issued by LGUs, and PPP Codes issued by LGUs, are hereby
4 
repealed. All other laws, rules and regulations or parts thereof inconsistent with the
5 
provisions of this Act are hereby repealed or modified accordingly.
6 
Sec. 30. Effectivity. This Act shall take effect after fifteen (15) days following its
7 
complete publication in the Official Gazette or in at least two (2) newspapers of
8 
general circulation.
Approved,
22