AN OVERVIEW
"... these (PPP) projects promise so much for our economy and for the Filipino,
and they (private partners) will play a vital role in our administration's
fulfillment of our Social Contract with our people."
President Benigno S. Aquino III
President Benigno S. Aquino III's "Social Contract with the Filipino People" acknowledges the role of the private sector as an important partner in attaining the Philippines' national development objectives of inclusive growth and poverty reduction. Recognizing the indispensable role of the private sector as the main engine for national development, the Aquino administration identified the implementation of Public-Private Partnership (PPP) "as a cornerstone strategy of the national development plan to accelerate the infrastructure development of the country and sustain economic growth" [Executive Order (EO) No. 8, series of 2010]. The administration further pledges to provide the enabling environment for private sector investment through a stable macroeconomic environment and sound and consistent public policies.
The PPP Program has been the vehicle for private sector participation in the provision of infrastructure services. The private sector has always played a significant role in the country's pursuit of bridging gaps in the economy. In 1986, private sector played a leading role in national development when the government undertook massive divestment, disposition and sale of all business-related assets. This was later formalized in 1990 when the then newly restored Congress enacted Republic Act (RA) 6957, "An Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector, and for other purposes, better known as the "Build-Operate-Transfer (BOT) Law." After successful implementation of national projects, the BOT Law was amended in 1994 through the enactment of RA 7718 or An Act Amending Certain Sections of RA 6957. The Philippine BOT Law and its subsequent amendment provided national implementing agencies and local government units (LGUs) with a new avenue for financing and fast-tracking the implementation of infrastructure and development projects. The legal and regulatory framework for PPP expanded its coverage to include non-traditional infrastructure sectors such as health, education, information and communications technology, and other social infrastructure and development projects.