Proposed Public-Private Partnership (PPP) code to harmonize national and local government regulations to boost investment.
Ma. Cynthia C. Hernandez, PPP Center executive director, said the new code will integrate legal frameworks and establish a unified system for better private sector involvement.
As it awaits President's signature, the PPP code is also aimed at addressing fragmented legal frameworks for PPPs. Goal is to ensure high-quality PPP projects and mitigate risks during implementation.
Key reforms include updating project approval thresholds for Build-operate-and-transfer projects, last set 29 years ago. The National Economic and Development Authority (NEDA) Investment Coordination Committee will review and update threshold amounts.
Reforms aim to uphold local autonomy while ensuring harmonized investment programming.
Unsolicited proposals allowed in PPP projects without new concept or technology requirement, subject to government reimbursement of development costs.
New PPP code to harmonize all gov't rules
Hernandez: It will spur greater investment
At a glance
The proposed Public-Private Partnership (PPP) code would harmonize the regulations of the national government with those of local government units (LGUs), which will spur greater investment.
Ma. Cynthia C. Hernandez, PPP Center executive director, said the new code will bolster the government’s PPP Program by integrating all legal frameworks and establishing a unified system to further improve private sector involvement.
Hernandez explained that the proposed PPP Code, which now awaits signature of the President, will address the fragmented legal frameworks for PPPs.
“The law aims to ensure that the country’s PPP projects are of high quality and are able to mitigate risks during implementation,” Hernandez said in a statement on Wednesday, Nov. 22.
Some of these key reforms include the updating of project approval thresholds for Build-Operate-Transfer (BOT) projects, which was last set 29 years ago.
It will also allow the National Economic and Development Authority (NEDA) Investment Coordination Committee to review, evaluate, and update the threshold amounts.
Another reform would be to uphold and retain local autonomy while providing mechanisms to ensure harmonized investment programming between LGUs and the national government.
“Unsolicited proposals are allowed in the list of PPP projects even without the new concept or technology requirement, subject to reimbursement of the government’s development costs,” Hernandez said.
Once signed into law, the PPP Code will likewise strengthen the enabling institutions for PPPs.
In particular, she said the PPP Center will be institutionalized with additional powers and functions in order to work towards a more efficient and effective performance of its mandate.
The PPP Code will also make the Project Development and Monitoring Facility (PDMF) stronger and provide more assistance to PPP projects as needed, subject to approval by the PPP Governing Board.
Hernandez also highlighted that the law will institutionalize the PPP Risk Management Fund (RMF) which is a facility created for the payment of contingent liabilities arising from PPPs.
“The Code is expected to further strengthen the partnership between the public and private sectors, recognizing the private sector’s indispensable role in nation-building and sustainable development,” she said.