The Philippines has three legal bases for implementing PPP projects. The Build-Operate-Transfer Law of 1994 (Republic Act No. 7718) mandates the state to provide the enabling environment and incentives for private participation in infrastructure and development projects. Executive Order No. 423 of 2005 provides guidelines on joint ventures for government-owned and controlled corporations. The Local Government Code of 1991 (Republic Act No. 7160) can be used by local government units as an alternative legal basis for PPPs to the act. The government's contribution to a PPP must not exceed 50% of a project's cost, and the validity of contracts under the Build-Operate-Transfer Law may not exceed 50 years. Public utility PPPs must be operated by Filipino entities and, if a project is a corporation, it must be at least 60% owned by Filipinos.