NO

ASPECTS

DESCRIPTION

12.

Facilities Available to Facilitate Project Structuring and Transaction Advisory

Pursuant to Section 7 of Executive Order No. 136, Series of 2013, amending Executive Order No. 8 Series of 2010, provides that, Project Development and Monitoring Facility (PDMF) shall be used for the conduct of business case, pre-feasibility and feasibility studies and tender documents of PPP programs and projects in a timely manner and ensure effective monitoring of PPP project implementation.

The PDMF is a special fund which shall be used for the procurement of advisory and support services related to the preparation, structuring, procurement, financial close, and monitoring of implementation of PPP projects.

PDMF scope of services include pre-investment activities of potential PPP projects, including but not

limited to: Preparation of project pre-feasibility and feasibility studies;

Project structuring;

Preparation of bid documents and draft

contracts; Procurement of advisory and

support services; and

Assistance in the tendering process including bid evaluation and project award through competitive selection.

13.

Role of Local Government

Local government units (LGUs) are responsible for the issuance of the necessary business permits, including renewals thereof as well as collection of local taxes, fees and charges to and from the winning project proponent.

Section 13.2(d) of the Revised IRR of R.A. 7718 provides that LGUs may provide additional tax incentives, exemptions, or reliefs, subject to the provisions of the Local Government Code of 1991 and other pertinent law.

14.

Risk Sharing Policies/Practices

Section 13.3 of the Revised IRR of R.A. 7718 provides that "subject to the existing laws, policies, rules and regulations, the Government may provide any form of support or contribution to solicited projects, such as, but not limited, to the following:

1. Cost Sharing;

2. Credit Enhancements;

3. Direct Government Subsidy;

4. Direct Government Equity;

5. Performance Undertaking;

6. Legal Assistance; and

7. Security Assistance.

The Agency/LGU may offer any one or more Government Undertakings relative to a project, which shall be pre-cleared in principle, in writing, by the department, bureau, office, commission, authority, agency, GOCC, or LGU or any other government entity that will grant the same as mandated by law; provided that the total government undertakings shall not exceed fifty percent (50%) of the total project cost.

The government undertakings shall be based on the approved risk allocation matrix which shall be issued by the Approving Body/ICC."

15.

Financing Mix Options Allowed

Viability Gap Funding (VGF) may be provided to solicited concession-based PPP projects which are economically viable but not commercially or financially attractive. It shall be in the form of cash subsidy available to the private sector as a contribution of the Government to the project. The maximum VGF support that the Government can provide to such projects shall be in accordance with existing law.

16.

PPP Promotions/ Marketing Mechanisms

1. Up-to-Date PPP Website

PPP Center manages and maintains an up-to-date website. The latest and relevant information on the Program and the status of the various projects in the pipeline are updated in the website regularly. Website content include the following:

a. Pipeline of PPP projects and dedicated pages for each of the projects. These pages contain basic project information and their status. Project information memos and bidding documents are also uploaded.

b. PPP project milestones are announced, documented and shared through press releases.

c. Progress on the implementation of awarded PPP projects.

d. Local and international news coverage of the PPP market in the Philippines is posted on a daily basis.

e. Projects that are for bidding are also highlighted informing prospective investors of the various PPP opportunities.

f. Legislations, official issuances and policy briefs are shared.

g. Manuals are available for download which explains the PPP process and contains templates for implementing agencies.

h. PPP Center releases its regular newsletter called the "PPP Talk"

i. PPP Center releases Infographics.

2. Active Social Media Presence

The PPP Center has also maintained its social media presence through Facebook and Twitter. It has tapped the social media to update and engage PPP stakeholder through the Internet. Social media accounts of the Center are updated on a daily basis.

3. Established Good Media Relations and Wide Media Coverage

The PPP Center conducts the following project marketing and promotion mechanisms to attract potential project

proponents/investors: Production of marketing collaterals;

Market Sounding

Activities; International

Briefings;

International and Domestic

Roadshows; Round Table

Discussions;

Pre-bid

Conferences;

Investors Conferences;

Briefings for interested private firms; and

Attendance to international and domestic seminars, fora, business matching activities or gatherings that may be a venue for [HIDDEN TEXT]

17.

Monitoring and Evaluation

The PPP Center shall be responsible for the coordination and monitoring of projects implemented under Contractual Arrangements or schemes authorized under the Revised IRR of the Amended BOT Law. Project monitoring will be undertaken to ensure that the project complies with the Revised IRR, including the proponent's required environmental clearances from the Department of Environment and Natural Resources. For this purpose, concerned Agencies/LGUs shall periodically submit to the PPP Center information on the status of projects implemented by them. In addition, all concerned Agencies/LGUs shall submit to the PPP Center a copy of all Unsolicited Proposals that they receive and all other related documents. The PPP Center is also mandated to guide the Agency/LGU in the preparation and development of the project. At the end of every calendar year, PPP Center shall report to the ICC, President, and the Congress on the progress of all projects implemented under the Revised IRR.

18.

Dispute Resolution Mechanism

Pursuant to Section 1 of Executive Order No. 78, "all contracts involving Public-Private Partnership (PPP) projects and/or those entered into under

R.A. No. 6957 entitled, "The Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector, and for Other Purposes," as amended by R.A. No. 7718, otherwise known as the "Build-Operate and Transfer (BOT) Law," as well as Joint Venture Agreements (JVAs) between government and private entities issued by the National Economic and Development Authority (NEDA) pursuant to Executive Order No. 423 (s. 2005), shall include provisions on the use of ADR mechanisms, at the option and upon agreement of the parties to said contracts.

All parties who enter into similar contracts with LGUs are encouraged to stipulate on the use of ADR mechanisms, in accordance with their own JV rules, guidelines or procedures.

When parties to the abovementioned contracts agree to submit the case for ADR , the use of either domestic or international ADR mechanisms shall be highly encouraged, giving the parties complete freedom to choose which venue and forum shall govern their dispute, as well as the rules or procedures to be followed in resolving the same."