THE PHILIPPINE

PUBLIC-PRIVATE
PARTNERSHIP (PPP)
PROGRAM
Investment in Strategic
Infrastructure
Strengthens competitiveness

Improves access to basic and social

services

Enhances the scope and quality of

economic and social infrastructure
PPP Definition

Contractual arrangement between

government and private sector to
deliver public infrastructure and/or
public services
Rationale of PPP

Private sector offers efficiency gains

Private sector participation can accelerate

the provision of public services

Government’s role can be rationalized

PPP Legal Framework

Republic Act 7718 or BOT Law

Latest IRR amended in 2006

Salient Features of the
BOT Law
Many allowable variants
Covers most infrastructure sectors
Allows reasonable return on investments
made by the private sector
Institutionalizes provision of government
support
Authorized BOT Variants

Build-Operate-Transfer (BOT)
Build and Transfer (BT)
Build-Own-and-Operate (BOO)
Build-Lease-and-Transfer (BLT)
Build-Transfer-and-Operate (BTO)
Contract-Add-and-Operate (CAO)
Develop-Operate-and-Transfer (DOT)
Rehabilitate-Own-and-Transfer (ROT)
Rehabilitate-Own-and-Operate (ROO)
Other variations as may be
approved by the President of the Philippines
Eligible Infrastructure &
Development Projects
Power Plants Land Reclamation
Highways Sewerage, Drainage, Dredging,
Solid Waste Management
Railroads & Railways
Tourism, Education
Ports
Health Facilities
Airports
Industrial & Tourism Estates
Transport Systems
Markets, Warehouses,
Telecommunications Slaughterhouses
Information Technology Housing
Canals, Dams, Irrigation, Government Buildings
Water Supply Other Infrastructure/ Development
Project
Repayment Schemes
Project proponent repaid through:
• Tolls, fees, rentals and other charges from
users of facility for a fixed term not to exceed
50 years
• Share in revenue of the project
• Other non-monetary payments
Government Support

Fiscal Incentives
• Incentives under Omnibus Investment Code
(OIC) upon registration with BOI
• Incentives under OIC subject to inclusion in the
current Investment Priorities Plan
• LGU incentives subject to the provisions of the
LG Code and other pertinent laws
Government Support

Cost Sharing
• Projects with difficulty sourcing funds may be
partially financed from direct government
appropriations (GAA) and/or Official Development
Assistance (ODA)
• Financing from GAA or ODA not to exceed 50%
of project cost
PPP Process

• Completed FS
• Right of Way Acquisition (ROWA)
Plans
• Draft PPP agreement
• Proposed risk allocation
• Valuation of direct and contingent
government support
• Implementation plan with
organizational & admin
IAs/GOCCs/
requirements
LGUs
(Sponsoring
Government
Units)
PPP Process

PPP Center

Priority Projects under the MTPDP/MTPIP and CIIP

Solicited Proposals (6 months)

IAs/GOCCs/
LGUs
(Sponsoring
Government Unsolicited Proposals (9 months or more)
Units)
PROJECT APPROVAL PROCESS
Project Approval and
Bidding Flowchart
Start Responsible Party

Project Submission to NEDA –ICC IAs /GOCCs/LGUs (PPP Center to assist)

Project Review and Evaluation NEDA Secretariat / LGUs

LGUs / ICC Approval:

• ICC TB and ICC CC Investment Coordination Committee (ICC)
• NEDA Board NEDA Board

Invitation and Prequalification IAs /GOCCs/LGUs / Private Sector

Preparation and Submission of Bids Private Sector

Evaluation of Bids IAs /GOCCs/LGUs

Award and start of Implementation IAs /GOCCs/LGUs

End
Support Mechanisms

Project Development and Monitoring Fund

(PDMF)

Support for Infrastructure Development

10 Priority PPP Projects

Project Name Project Cost

MRT/LRT Expansion Program: Privatization of LRT 1 Operation & Maintenance 7,700Million)

(2010 Prices in PhP
LRT Line 2: East Extension Project (DOTC/LRTA)
(DOTC/LRTA) 11,300
MRT/LRT Expansion Program: Privatization of MRT 3 Operation & Maintenance 6,300

MRT/LRT Expansion Program: LRT 1 South Extension Project (DOTC/LRTA)

(DOTC/LRTA) 70,000

New Bohol Airport Development 7,600

Puerto Princesa Airport Development 7,600

(DOTC/MIAA/CAAP)
New Legaspi (Daraga) Airport Development 3,200
(DOTC/MIAA/CAAP)
Privatization of Laguindingan Airport Operation &Maintenance (DOTC/MIAA/CAAP) 1,500
(DOTC/CAAP)
NAIA Expressway, Phase 2 (DPWH) 10,590
CALA Expressway – Cavite Side Section (DPWH) 11,790
 THANK YOU!

PUBLIC-PRIVATE PARTNERSHIP (PPP)

CENTER
National Economic and Development Authority (NEDA)
Tel. No:: (+63 2) 897-6826 ● Fax No:: (+63 2) 899-8821
www.botcenter.gov.ph