2.6 The PDMF is structured as a revolving fund. On successful completion of the bidding process, the project development cost would be recovered from the successful bidder1 plus an administrative fee of 10%. Said administrative fee shall be used to ensure the sustainability of the revolving fund. The collection and remittance mechanisms will be subject to the existing budgeting, accounting and auditing rules and regulations.
2.7 However there are some cases where the reimbursements will need to be recovered directly from the Government through the normal budgetary process2, to wit:
a. The IA/LGU will repay the project development costs incurred in full, plus the administrative fee, when due to reasons within IA's responsibility, the IA fails to:
■ Bid out the project;
■ Conclude the bidding process and/or;
■ Sign the contract with the winning bidder
b. The IA/LGU will refund 50% of the cost incurred for project development, plus the administrative fee, when due to reasons beyond IA's responsibility or control, the IA/LGU fails to:
■ Bid out the project after a series of failed re-biddings;
■ Conclude the bidding process and/or;
■ Sign the contract with the winning bidder
c. The cost of conducting such pre-feasibility or feasibility study will be reimbursed by the IA, thru the budgetary process, to the PDMF when:
■ The pre-feasibility or feasibility study of a Project approved for PDMF funding demonstrates that the project will not be feasible; or
■ The project fails to obtain ICC or NEDA Board approval and will no longer be pursued
________________________________________________________________________________________________________
1 The reimbursement of the project development costs will be a condition precedent for contract award to the private sector proponent or concessionaire. Furthermore, said reimbursement will be subject to existing laws, policies, rules, and regulations.
2 These repayment procedures will be coursed through the DBM and will be stipulated in the Technical Assistance Agreement (TAA) that will be executed between the PPP Center and the IA prior to initiation of consultants' selection.