NO

ASPECTS

DESCRIPTION

1.

Legal and Regulatory Framework

1. Article II, Section 20 of the 1987 Philippine Constitution provides that "the State recognizes the indispensable role of the private sector, encourages private enterprises, and provides incentives to needed investments."

2. Republic Act (R.A.) No. 7718 or An Act Amending Certain Sections of R.A. No. 6957, entitled "An Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector, and for other purposes" and its Revised Implementing Rules and Regulations (IRR). - R.A. No. 7718 governs the procedure on how to do PPPs in the Philippines.

3. Republic Act No. 8974 or An Act to Facilitate the Acquisition of Right-of-Way, Site or Location for National Government Infrastructure Projects and for Other Purposes. - R.A. No. 8974 provides for the process on how to acquire ROW for PPP projects.

4. Republic Act No. 8975 - An Act to Ensure the Expeditious Implementation and Completion of Government Infrastructure Projects By Prohibiting Lower Courts From Issuing Temporary Restraining Orders. Preliminary Injunctions or Preliminary Mandatory Injunctions, Providing Penalties for Violations Thereof, And For Other Purposes. - R.A. No. 8974 governs the issuance of TROs or injunctions by Courts and the penalty for violation thereof.

5. Executive Order (E.O.) No. 78, series of 2012 - Mandating The Inclusion of Provisions On The Use of Alternative Dispute Resolution Mechanisms in All Contracts Involving Public-Private Partnership Projects, Build-Operate and Transfer Projects, Joint Venture Agreements Between The Government and Private Entities and Those Entered Into By Local Government Units. - E.O. No. 78 provides for the inclusion of ADR Mechanisms in all PPP contracts.

6. Revised Guidelines and Procedures for Entering into Joint Venture (JV) Agreements Between Government and Private Entities - Revised JV Guidelines provides the process for Government Owned and Controlled Corporations (GOCCs), Government Corporate Entities (GCEs), Government Instrumentalities with Corporate Powers (GICPs), Government Financial Institutions (GFIs), and State Universities and Colleges (SUCs) in entering into JV with the Private Entities.

7. Republic Act No. 7160 or the Local Government Code of 1991 - It provides for the corporate power of the Local Government Units to enter into contracts and full autonomy to enable them to attain their fullest development.

8. Bangko Sentral ng Pilipinas (BSP) Circular No. 779 or the Single Borrower's Limit (SBL) - SBL increase of 25% for PPP projects is extended up to 2016.

9. Creation of a Contingent Liability (CL) Fund. - The CL Fund is already included in the 2015 General Appropriations Act.

10. Guidelines for the Appraisal and Approval Procedures in Processing PPP Projects. - It provides for the procedure for appraisal and processing of PPP projects.

11. Guidelines for Debriefing Process of a Disqualified Bidder in PPP Projects - It helps the implementing agencies debrief bidders who submitted prequalification documents in a fair and transparent manner.

2.

Involved Government Agencies

Tasks/Roles

Concerned Government Institutions

Contracting Parties/ Implementing Agencies

All concerned departments, bureaus, offices, commissions, authorities, or agencies of the national government, including Government Owned and Controlled Corporations, Government Financial Institutions, State Universities and Colleges, and Local Government Units authorized by law or by their respective charters to undertake Infrastructure or Development project are authorized to enter into contractual arrangements under the Build-Operate and Transfer (BOT) Law and its Revised IRR.

Reviewing and Approving Bodies

a. NEDA Board - Approves PPP projects costing more than Php300 million, upon recommendation of ICC and negotiated projects, regardless of amount. The Board is composed of the following:

• President as Chairman;

• Secretary of Socio-Economic Planning as Vice-Chairman; and

• Board members as follows: Executive Secretary; Secretaries of Finance, Trade and Industry, Agriculture, Environment and Natural Resources, Public Works and Highways, Budget and Management, Labor and Employment, and Interior and Local Government.

b. Inter-Agency Investment Coordination Committee (ICC) - Undertakes the review and approval of projects requiring ICC clearance and/or NEDA Board approval as a pre-condition for facilitating private sector participation in National Government projects under Republic Act No. 7718, as amended. ICC-CC review and approval covers programs/projects of national line agencies with total cost of Php500 million and above regardless of financing; projects of national line agencies and GOCCs implemented through the BOT and its variant schemes, local BOT projects to be implemented by local government units costing above Php200 million.

c. Local Development Councils for Local Government Units:

• Municipal Development Council - Section 2.6 (b)(i) of the Revised Implementing Rules and Regulations of BOT Law provides that local projects costing up to Php20 million shall be submitted for confirmation to the municipal development council where the municipality is situated.

• Provincial Development Council - Section 2.6(b)(ii) of the Revised IRR of BOT Law provides that local projects costing above Php20 million up to Php50 million shall be submitted for confirmation to the provincial development council where the province is situated.

• City Development Project - Section 2.6(b)(iii) of the Revised IRR of BOT Law provides that local projects costing up to Php50 million shall be submitted for confirmation to the city development council where the city is situated.

• Regional Development Council or Regional Development Council for Metropolitan Manila - Section 2.6 (b)(iv) of the Revised IRR of BOT Law provides that local projects costing above Php50 million up to Php200 million shall be submitted for confirmation to the regional development council where the municipal, city or province is situated or the regional development council for metropolitan manila in case the municipality or city is situated therein.

Coordinating and Monitoring Agency

Public-Private Partnership Center (PPPC):

- By virtue of Executive Order No. 81 series of 2010, the PPP Center is mandated to facilitate the implementation of the economy's PPP Programs and Projects.

- Conducts project facilitation and assistance to implementing agencies;

- Provides advisory services, technical assistance, trainings and capacity development to implementing agencies in project preparation and development;

- Recommends plans, policies and implementation guidelines related to PPP in consultation with appropriate oversight committees, implementing agencies, and private sectors;

- Manages and administers Project Development and Monitoring Facility; and

- Monitors and facilitate the implementation of the priority PPP Programs and Projects pursuant to the contractual agreements or schemes authorized under Republic Act No. 7718 and its Revised IRR.

Other Government Bodies Concerned

a. PPP Governing Board - by virtue of Executive Order No. 1362, the Board has been created to function as the overall policy-making body for all PPP-related matters, including the Project Development and Monitoring Facility (PDMF). It is composed of the following members:

• Secretary of Socio-Economic Planning as Chairman;

• Secretary of Finance as Vice Chairman;

• Members as follows: Secretaries of Budget and Management, Justice, Trade and Industry, Executive Secretary, and Private Sector Co-Chairman of the National Competitiveness Council.

b. Project Development and Monitoring Facility (PDMF) Committee - By virtue of Executive Order No. 136, PDMF Committee is created to properly administer and manage the PDMF. It is also responsible to formulate, prescribe and recommend policies, procedures and guidelines for the use of the PDMF for the development of PPP projects and recovery of costs charged to the fund. It is also tasked to approve applications for availment. PDMF Committee is composed of the National Economic and Development Authority as Chair, Department of Finance, Department of Budget and Management and the PPP Center.

3.

Supporting Agencies

1. Department of Environment and Natural Resources - Environmental Management Bureau

2. Department of Finance

3. Office of the Solicitor General

4. Office of the Government Corporate Counsel

5. National Economic and Development Authority

6. Department of Interior and Local Government

7. Commission on Audit

8. Board of Investments - Department of Trade and Industry.