The pre-qualification and selection processes are performed by the PBAC, and entails compliance of project proponents with all the legal, technical and financial requirements prescribed under the IRR of RA 7718. Table 2-12 summarizes the legal requirements which the project proponent must satisfy, while Table 2-13 presents the general qualifications required of individual firms and consortia.
Table 2-12: Legal Requirements for Project Proponents | |
Type of project | Requirement |
BOT scheme whose operations require a public utility franchise Scheme other than BOT and requiring a public utility franchise | Project proponent and facility operator must be a Filipino or, if a corporation, must be duly registered with SEC and owned up to at least 60% by Filipinos. Facility operator must be a Filipino or, if a corporation, must be duly registered with SEC and owned up to at least 60% by Filipinos. |
Joint venture (JV) or consortium | Project proponent must submit a sworn statement undertaking that, if awarded the contract, the members of the joint venture/consortium shall bind themselves jointly, severally, and solidarily liable for the obligations of the project proponent under the contract. However, if the members organize themselves as a corporation registered under Philippine laws, their liabilities under the contract shall be in accordance with said laws. |
Operated by project proponent itself or facility operator not requiring public utility franchise | The project proponent or the facility operator may be a Filipino or foreign-owned. |
If a Filipino contractor needs to be pre-identified | The contractor must be duly licensed and accredited by PCAB; in case of foreign contractor, PCAB registration will not be required at pre-qualification stage, but it will be one of the contract milestones. |
Source: RA 6957, as amended by RA 7718 - IRR
Table 2-13: Qualifications of Individual Firms and Consortia | |
Individual firms | Consortium |
The individual firms and/or their contractors may individually specialize on any or several phases of the project/s. | In case of any consortium, the proponent shall be evaluated based on the individual or collective experience of the member-firms of the consortium and of the contractor/s which it has engaged for the project. Furthermore, it is required of the consortium to submit a preliminary business plan identifying its members and its contractors and the description of their respective roles. |
Source: RA 6957, as amended by RA 7718 - IRR
The technical capacity of the project proponent in terms of experience and track record is of critical consideration. The project proponent must possess adequate experience both at the levels of the firm and key personnel. The project proponents shall be evaluated based on similar projects they have successfully undertaken. In terms of key personnel experience, on the other hand, the evaluation is based on sufficient experience related to the subject project as specified by the LGU.
Financial capability refers to the capability of the proponent to sustain financing requirements for the detailed engineering plan, construction, operation and maintenance phases of the project. This capability is measured in terms of the following:
a. Proof to provide a minimum amount of equity to the project, measured in terms of net worth of the project proponent, or in case of joint ventures or consortia the combined net worth of the members or a set-aside deposit equivalent to the minimum equity required.
b. Letter testimonial from reputable banks attesting that the project proponent is banking with them and is in good financial standing and has adequate resources.
Private individuals, firms and consortia which satisfy the legal, technical and financial requirements of a proposed PPP project may then proceed to the tender process.