PPP Center notes reforms in the proposed PPP Code

MANILA – Public-Private Partnership (PPP) Center Executive Director Ma. Cynthia C. Hernandez discussed the significant reforms of the proposed PPP Code during the Philippine Infrastructure Summit 2023 held at the Sheraton Manila Hotel on November 22, 2023.    

In her presentation, Executive Director Hernandez emphasized that the proposed PPP Code will further strengthen the government’s PPP Program by consolidating all legal frameworks and creating a unified system that will further enhance private sector participation.  

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. 

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, while allowing the NEDA Investment Coordination Committee to review, evaluate, and update these 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.   

Once signed into law, the PPP Code will likewise strengthen the enabling institutions for PPPs. In particular, 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.   

Through the PPP Code, the use of the Project Development and Monitoring Facility (PDMF) will also be strengthened, and its scope of services expanded to include additional technical assistance to PPP projects as may be required or contemplated under applicable laws, rules and regulations, and other issuances, subject to the approval of the PPP Governing Board.   

The Undersecretary 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.  

The Undersecretary emphasized that sharing these policy updates in avenues such as the Philippine Infrastructure Summit is also in the interest of the government as it “ensures that the private sector is aware of these reforms and can adjust their strategies and plans accordingly”.  

Doing so is in the “hope that we leave a legacy of strengthened institutions and get these PPP projects started,” the official added.  

The Philippine Infrastructure Summit 2023, with the theme “Reshaping the Philippine infrastructure landscape”, brings together key players from both government and the private sector to better understand prevailing issues in the industry.