Gov't signs implementing rules of public-private partnership code

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Gov't signs implementing rules of public-private partnership code

Jekki Pascual,

ABS-CBN News

 | 

Updated Mar 21, 2024 07:23 PM PHT

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The first North Luzon Expressway (NLEX) Connector, a five-kilometer elevated expressway from Caloocan City to España in Sampaloc, Manila. KJ Rosales, PPA PoolMANILA -- The implementing rules and regulations (IRR) of the Public-Private Partnership (PPP) Code of the Philippines are set to take effect next month, the National Economic and Development Authority (NEDA) said on Thursday. 

NEDA said the IRR was signed today, and a copy will be released to the public on March 22. The IRR will take effect 15 calendar days after publication, or on April 6.

The agency said the PPP Code and its IRR clarify ambiguities in the Build-Operate-Transfer Law, which was last amended in 1994, and other existing PPP legal frameworks. 

NEDA said the law will speed up the delivery of affordable, accessible, and efficient public services. 

President Ferdinand Marcos Jr. signed the PPP Code on December 5, 2023.

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At the IRR's signing ceremony, NEDA Secretary Arsenio Balisacan said there has never been a better and more exciting time for the private sector to participate in the PPP program. 

"The government is going all out to institute reforms, address policy and regulatory roadblocks, fast-track approvals, and identify novel solutions and opportunities to enhance the business climate," he said.

He now expects more PPP projects to be developed, however, he also notes that there may be fewer projects that will now go through NEDA. 

Under the IRR, small PPP projects, especially involving local government units, need not get NEDA approval. These projects can be approved, for example, at the local level as long as the project needs no government subsidy.

“Many of the projects that used to go to the NEDA board for approval may no longer go through the NEDA board for approval because the threshold has been increased to P15 billion,” he said.

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The PPP Center said the IRR will also entice more companies to invest because there is now one unified law that all government agencies should follow. This will also hasten the process of approvals.

“Project approvals in PPP projects which used to take a year for some projects have now been capped at 120 days max. Otherwise, the project will be deemed approved,” said Jeffrey Manalo, Deputy Executive Director, PPP Center.

The new policy also speeds up government response to unsolicited proposals. 

“The implementing agencies will act on it, kasi dati if they don’t feel like doing the project, parang itatabi lang nila. Unfair din for the private sector to have spent resources putting together an ‘unsol’ [unsolicited proposal], it’s in limbo for years and years, said PPP Center Executive Director Ma. Cynthia Hernandez.

NEDA has listed 185 major infrastructure projects so far, with a total project cost of P9.143 trillion. About 45 of these projects are PPP projects, most of which are transport-related projects.

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