Public-Private Partnership Code implementing rules and regulations signed

On 21 March 2024, members of the Public-Private Partnership (PPP) Code Implementing Rules and Regulations (IRR) Committee, led by National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan, signed the PPP Code IRR. These are expected to strengthen and institutionalize PPPs in the country, as these provide a unified legal framework in both the national and local levels. Below are some of the salient provisions.

1. Guiding principles in identifying PPP projects, including parameters for the inclusion and delisting of projects in the Implementing Agency’s (IA) “PPP list.” This list is also required to be published in the websites of IA and the PPP Center of the Philippines.

2. A list of the minimum required contents of a PPP feasibility study.

3. Guidance on determining whether a National PPP Project below PHP15bn will still require approval by the Investment Coordination Committee (ICC)

4. Detailed Process for the Approval of National and Local PPP Projects, including: 

   1. Required submissions to the Approving Body to determine completeness

   2. Minimum Parameters, Terms, and Conditions (PTCs) for National and Local PPP projects, and 

   3. Criteria for Approval of National and Local PPP Projects

5. For Unsolicited Proposals (USP):

   1. Process and parameters for determining confidential information in USPs

   2. Completeness checklist for USPs

   3. Establishing a "three-strike rule" on resubmission of USPs for purposes of conducting a completeness check, beyond which the same USP may no longer be resubmitted

   4. Parameters for conducting a detailed evaluation of USPs

6. Bid documents to be issued, including the required contents for each (i.e., the Invitation to Qualify/Pre-Qualify and Bid, the Instructions to Bidders, and the Draft PPP Contract)

7. Establishing a “freeze period,” which refers to the period when the procuring implementing agency will no longer be allowed to issue additional bid bulletins that introduce further revisions to bid documents that have already been issued

8. Clarification on the application of the concept of the “Reasonable Rate of Return” to instances where there is only a Single Complying and Responsive Bid, which may arise from either a single-stage or two-stage bidding process

9. Parameters to determine change in Control in the Special Purpose Company (SPC)

10. Required minimum contents of the Contract Management Plan (i.e., the agreed Project Execution Plan, the Conflict Mitigation Plan and if applicable, the Risk Mitigation Plan)

11. Parameters for the creation of a Trust Liability Block Account

12. Parameters for the PPP Center to act as the procurement agent of the IA

13. Parameters for the creation, use, sources of funding, and coverage of the PPP Risk Management Fund, including the roles of other agencies such as the Development Budget Coordination Committee (DBCC) and the Inter-Agency Technical Working Group on Contingent Liabilities (TWG-CL).

The PPP Code IRR will become effective on 6 April 2024. You may access the full version at the PPP Center’s website.