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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Public-Private Partnership (PPP) Project refers to any public infrastructure or development projects and services implemented under this Code.
The Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 11966 for the purpose of carrying out the provisions of RA No. 11966, otherwise known as the “Public-Private Partnership Code of the Philippines”.
This IRR seeks to implement the State’s policy to provide an enabling environment for the private sector to mobilize its resources to finance, design, construct, operate, and maintain infrastructure or development projects and services. It is further declared that the State shall protect the public interest by providing affordable, accessible, and efficient public services. In order to achieve better quality of Public-Private Partnership (PPP) Projects at lower costs, the State shall ensure equitable risk allocation in PPP Projects, and that all PPP Projects yield sufficient Value for Money (VFM), promote sustainability, and advance public welfare.
The State shall protect the public interest by providing affordable, accessible, and efficient public services. In order to achieve better quality of Public-Private Partnership (PPP) Projects at lower costs, the State shall ensure equitable risk allocation in PPP Projects, and that all PPP Projects yield sufficient Value for Money (VFM), promote sustainability, and advance public welfare.
With the worsening climate issues and growing gender issues that we face today, the State declared its policy to ensure the integration of climate resilience, sustainability, and gender and development policies and programs in the planning, design, and implementation of PPP Projects.
WHAT IS A PPP?
It is a contractual arrangement between an Implementing Agency and a Private Partner to finance, design, construct, operate, and maintain, or any combination or variation thereof, Infrastructure or Development Projects and Services which are typically provided by the public sector, where each party shares in the associated risks, and where the investment recovery of the Private Partner is linked to performance.
COVERAGE
This Code shall cover all contractual arrangements between an Implementing Agency and a Private Partner to finance, design, construct, operate, and maintain, or any combination or variation thereof, infrastructure or development projects and services which are typically provided by the public sector, where each party shares in the associated risks. PPP Projects may be financed partly from direct government appropriations and/or from ODA of foreign governments or institutions.
EXCLUSIONS
This Code shall not apply to infrastructure projects undertaken under Republic Act No. 9184 or the “Government Procurement Reform Act”, management contracts, service contracts, divestments or dispositions, corporatization, incorporation of subsidiaries with private sector equity, onerous donations, gratuitous donations, and joint venture agreements involving purely commercial arrangements that neither provide nor include public infrastructure or development services. In such cases, the aforementioned contractual arrangements shall be implemented in accordance with relevant governing laws.
INFRASTRUCTURE OR DEVELOPMENT PROJECTS AND SERVICES
The Implementing Agency and the Private Partner may enter into a PPP as defined in Section 4(rr) of this IRR for the following Infrastructure or Development Projects and Services, among others:
(a) Highways, including expressways, roads, bridges, interchanges, tunnels, viaducts, and related facilities;
(b) Land transportation systems, including railways, road-based transportation systems,
bus rapid transit, high priority public utility vehicle systems, active transportation,
transit-oriented developments, public utility vehicle stations, transport plazas,
intermodal terminals, park and ride, and related facilities;
(c) Transport and traffic management projects, including transportation databases,
automated fare and toll collection systems, traffic signaling, traffic monitoring
systems, traffic enforcement systems, congestion and management systems, and
related facilities;
(d) Port infrastructure like piers, wharves, quays, storage, handling, roll-on roll-off facilities,
and other related facilities;
(e) Maritime infrastructure like navigable inland waterways, shipping and ferry services,
shipping vessels or components thereof, shipping and freight enterprises, and related
facilities;
(f) Airports, air navigation, and related facilities;
(g) Power generation, transmission, sub-transmission, distribution, including hydropower
plants, and related facilities;
(h) Downstream oil and gas industry facilities, and other energy-related facilities;
(i) Energy efficiency and conservation, renewable energy, and electric vehicle charging
stations, and related facilities;
(j) Telecommunications, backbone network, terrestrial, aerial, and space infrastructure,
and related service facilities;
(k) Information technology networks and database infrastructure, geo-spatial resource
mapping, cadastral survey for resource accounting and planning, and related facilities;
(l) Irrigation and related facilities;
(m) Water supply, sewerage, drainage, waste water and water treatment, desalination, and related facilities;
(n) Educational infrastructure, including technological equipment used to facilitate learning and teaching, and related facilities;
(o) Health infrastructure, hospitals, clinics, research facilities, clinical laboratories, and other related facilities;
(p) Multi-purpose water resources projects covering a combination of irrigation, power, water supply, flood control, and related facilities;
(q) Land reclamation, dredging, flood control projects, and related facilities;
(r) Industrial and tourism estates or townships, including ecotourism projects such as terrestrial and coastal/marine nature parks, among others and related infrastructure facilities and utilities;
(s) Government buildings, convention centers, and other related facilities;
(t) Urban redevelopment, townships, and housing projects;
(u) Heritage preservation and adaptive reuse projects;
(v) Markets, slaughterhouses, trading posts, and related facilities;
(w) Warehouses and post-harvest facilities;
(x) Public fish ports and fishponds, including storage and processing facilities;
(y) Agri-fishery industrial hubs, agribusiness facilities, agricultural research facilities, agricultural estates, agrilogistics systems, contract farming, and related facilities;
(z) Cold chain systems or centers, and related-facilities;
(aa) Prisons, lease of security-related government assets, O&M of military facilities and equipment, and other national defense or security-related facilities;
(bb) Environmental and solid waste management related facilities such as but not limited to waste collection, transportation and disposal facilities, transfer stations, composting plants, material recovery, landfill, and tidal barriers, among others;
(cc) Climate change adaptation and mitigation and disaster risk reduction and management infrastructure projects, biodiversity conservation projects, and related facilities; and
(dd) Other Infrastructure or Development Projects and Services, as may be authorized by the Implementing Agency pursuant to the Code and this IRR, and following applicable laws, rules, and regulations.
Related facilities may include commercial spaces within the project scope.
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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