PRA’s own JV Guidelines

Yesterday, May 20, 2018, the Joint Venture Guidelines of the Philippine Reclamation Authority (PRA JV Guidelines) took effect. The issuance of the PRA JV Guidelines is a testament to PRA’s commitment to advance public-private partnership (PPP) as a pro-people development strategy and to aggressively contribute to the current Administration’s “Build, Build, Build” program.

PRA is not just about reclamation. As a public estates authority, PRA, aside from carrying out and regulating reclamation projects, is mandated to develop, improve, acquire, administer, deal in, subdivide, dispose, lease and sell any and all kinds of lands, buildings, estates and other forms of real property, owned, managed, controlled and/or operated by the government.

PRA JV Guidelines is not for reclamation. Subject to relevant laws, regulations and jurisprudence, PRA can enter into PPPs under the BOT law, undertaken lease arrangements under the Public Land Act, and dispose and privatize its assets and properties. The PRA JV Guidelines only extends to development and disposition of PRA’s existing properties and projects, whether owned, administered or controlled by PRA and the operations of PRA assets and facilities.

PRA not covered under the 2013 Neda JV Guidelines. The JV Guidelines issued by the National Economic and Development Authority in 2013 (Neda JV Guidelines) does not cover all government agencies, corporations and instrumentalities. In the exclusion list, the Neda JV Guidelines does not extend to local governments and JV activities of government corporate entities in the exercise of their primary mandate to dispose government assets and properties, among others. PRA’s exemption was affirmed by Neda and the Office of the Government Corporate Counsel, which is PRA’s statutory counsel. The Bases Conversion and Development Authority (BCDA) also adopted its own.

JV not explicitly defined. Although not expressly defined under the PRA JV Guidelines, a JV is a PPP modality whereby both parties, the government implementing agency and the private sector proponent (PSP), will proportionately share in the performance of all the components of the project, in the assumption of responsibilities and obligations, and allocation of revenues, profits, losses and risks.

Possible JV Projects. PRA, together with the PSP, can codevelop and coimplement a building, monorail, waste-to-energy, fiber optic or port project, or any combination thereof, on PRA reclaimed land or roads. The JV period shall be for a maximum of 50 years.

PRA’s “Skin” in the Project. Like in any other JV, PRA can make cash or noncash contributions, subject to third party independent valuation, in the form of equipment, land, utility franchise, development rights, leasehold rights, intellectual property or anything of value.

2 PSP Selection Procedures. PRA, in selecting its private coventurer, may either pursue competitive selection (open bidding) or negotiated JVs, i.e., competitive challenge giving the Original Proponent the right to outbid if there are challengers, or limited negotiations when there is failure in the bidding.

Last Say by PRA. Unlike the Neda JV Guidelines, and like the BCDA, PRA can award its JV project without the intervention of Neda (regardless of the value of PRA’s contribution), Governance Commission for GOCCs (even if PRA will enter into an incorporated JV) and Privatization Council (even if there is disposition).

PRA is now open for JVs.

 

 

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