Types of Procurement

The Build-Operate-Transfer Law provides for nine contractual arrangements: BOT, BTO, BOO, build-and-transfer, build-lease-transfer, contract-add-operate, develop-operate-transfer, rehabilitate-operate-transfer, and rehabilitate-own-operate. Other arrangements can qualify as a procurement type under the law, if approved by the president. Implementing agencies can accept unsolicited proposals for PPP projects on a negotiated basis, if certain conditions are met.

Building and upgrading infrastructure, its financing, and operation and maintenance can be wholly or partly financed by the private sector in the Philippines. Other infrastructure projects authorized by government agencies can be proposed under the Build-Operate-Transfer Law. But these must have a cost-recovery component covering at least 50% of the project cost or a level determined by the approving body.