Hailing it as a “new dawn” in the relationship between the public and private sectors, House leaders on Wednesday said that the newly signed Public-Private Partnership Code of the Philippines (PPP Code) would help cover the P23 trillion infrastructure investment gap in the country.
House Committee on Public Works and Highways Chairman Romeo Momo Sr. and House Committee on Ways and Means Chairman Joey Sarte Salceda said the code would establish a precise system, while concurrently ensuring accountability for government officials in PPP projects.
“The passing of the PPP Code is a new dawn in our commitment to strengthen the relationship between the public and private sectors. It shows our government’s dedication to improving the country’s infrastructure, as it would pave the way for sustainable development and bolster the private sector’s indispensable role in bringing much-needed services to the people,” he said.
“I personally want to thank the President, who turned this landmark legislation into reality. It shows his understanding of the intricacies of the legal framework that encompasses our economic agendas,” Momo added.
The PPP Code, or “An Act Providing for the Public-Private Partnership of the Philippines,” signed as Republic Act No. 11966, will establish a stable and predictable environment for collaboration between the public and private sectors.
PPP programs seek to address the gaps in the country’s infrastructure systems, and they will also free up much-needed resources when the private sector begins infusing their own money into projects.
It would enable the government to fund other equally important projects and initiatives and allow for a more systematic approach to national development.
By incorporating the best practices from implementing the Build-Operate-Transfer (BOT) Law, the PPP Code ensures that the country builds better infrastructure projects and mitigates risks during implementation.
For his part, Salceda said the PPP code moves towards a rules-based, transparent, and efficient PPP framework that will help cover the P23 trillion infrastructure investment gap in the country.
“This measure also makes the PPP framework as open as possible. We expressly empowered any and all government agencies and instrumentalities to undertake PPPs. We raised the threshold for Neda-ICC (National Economic and Development Authority-Investment Coordinating Committee) approval to P15 billion, and for local government units whose PPPs do not require any national government undertaking, the sky’s the limit,” Salceda added.
“The new PPP Code does not suffer from longstanding defects of ambiguity. It is clearly specified which undertakings are not allowed. The process is outlined. The comparative challenge process is simple. There is Original Proponent Status, good for only one year upon acceptance by agency, and a comparative challenge within 90 days to one year, with 30 days right to match,” Salceda said.
Joint ventures (JV) have also been expressly defined and allowed as a PPP modality, Salceda said, “ending decades of uncertainty and a kind of anything-goes attitude in the use of JVs for PPPs.”
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