18TH CONGRESS

SEP
30
2019

SBN-1080: Public Private Partnership Act

An Act Institutionalizing Public-Private Partnerships (PPP), Creating The PPP Center, Appropriating Funds Therefor, And For Other Purposes

  • This bill is aimed at further improving the “Build-Operate-Transfer” (BOT) law by expanding its coverage and providing more incentives to the private sector who become partners of the government in infrastructure projects.
  • To ensure consumer protection, it gives paramount consideration to the affordability of user fees and efficiency of public services when awarding PPP projects.
  • It limits the projects to be implemented as PPP projects to hard infrastructure charging user fee or tariff and excludes social infrastructure projects such as prisons, education and health facilities, and other infrastructure projects like government buildings, tourism projects, power projects, climate change mitigation and adaptation measures.
  • One salient feature of this bill is the automatic approval by the Regional Development Council of PPP projects which have satisfactorily complied with the requirements to avoid arbitrary and unreasonable withholding of endorsement of projects. 
  • Infrastructure projects with a direct economic impact which should not be less than the threshold set by the Investment Coordination Committee (ICC); with a direct positive impact on at least two cities or municipalities; and can create new jobs shall be classified as “Projects of National Significance”. When classified as such, these projects will be exempted from real property tax.
  • It protects projects from being the subject of judicial reliefs such as temporary restraining orders (TROs), preliminary injunctions and preliminary mandatory injunctions issued by the Supreme Court.
  • In the interest of transparency and good governance, four private sector representatives shall be elected by the concerned private sector associations in the PPP Governing Board, which shall be the overall policy-making body for all PPP-related matters. 

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