QuestionsQuestions (NEDA)
The policy is to encourage the private sector as the main engine for growth and development to finance, construct, operate, and maintain private sector infrastructure and development projects, while the Government provides appropriate incentives such as financial incentives, a climate of minimum regulations, and specific government undertakings.
The IRR covers private sector infrastructure or development projects undertaken by Agencies or LGUs under contractual arrangements authorized by RA 6957 as amended by RA 7718. Purely LGU projects may follow LGU-specific guidelines consistent with the IRR and the law.
BT: proponent finances and constructs, then turns over to Government; Government pays investment plus reasonable return on agreed schedule. BLT: proponent builds then turns over on lease for fixed period; ownership transfers automatically afterward. BOT: proponent builds, operates and maintains for a fixed term to recover investment via user charges, then transfers at term end (term not to exceed 50 years). BOO: proponent finances, constructs, owns, operates and maintains, recovers investment via charges; operator may assign O&M. BTO: contractor builds turnkey (cost overruns/delays/performance risks assumed), title transfers to agency after commissioning; private entity operates for the agency. CAO: proponent adds to an existing facility it is renting from Government and operates expanded project over franchise period. DOT: integrates favorable conditions (e.g., adjoining property development rights). ROT: refurbish and operate existing facility for franchise period, then turn over to Government. ROO: refurbish and operate existing facility with no time limit on ownership.
A project proponent is the private entity with contractual responsibility and adequate financial base consisting of equity and firm commitments from reputable financial institutions to provide sufficient credit lines to cover total estimated project cost upon award.
National projects: if costing up to PHP 300 million, the list is submitted to the ICC for approval. If more than PHP 300 million, submission is to the NEDA Board upon recommendation of the ICC.
Local projects implemented by LGUs are confirmed as follows: municipal development council (up to PHP 20M); provincial development council (PHP 20M to PHP 50M); city development council (up to PHP 50M); regional development council or Metro Manila Authority (above PHP 50M up to PHP 200M); and ICC of NEDA Board (above PHP 200M).
After approval by NEDA Board/ICC/LDC, the list must be published once every six (6) months in a national newspaper of general circulation; an LGU/Agency may, at its discretion, publish in an international newspaper as well.
They must act within 30 working days upon satisfactory compliance with requirements. Failure to act unless otherwise notified in writing means the Agency/LGU may proceed with solicitation of proposals.
For Agencies: Chairman is at least the third ranking officer; Member-Secretary is a legal officer; member(s) include a technical officer for project (provisional), and optionally a technical officer from a concerned regulatory body (provisional, non-voting) plus finance and operations/maintenance knowledgeable officers; also two private sector reps (contractors association and facility users/accounting association). Observers include COA rep and CCAP rep (case-to-case). For LGUs, PBAC composition follows RA 7160 (Local Government Code of 1991).
PBAC handles all aspects of pre-bidding and bidding: preparation of bidding/tender documents; publication of invitations; prequalification; pre-bid conferences; issuance of supplemental notices; interpretation of bidding rules; conduct of bidding and evaluation; resolution of bidder disputes; and recommendation of acceptance/award.
Quorum is a simple majority of voting members. The Chairman votes only in case of a tie.
They must include: Instructions to Bidders; minimum design/performance standards/specifications and economic parameters; draft contract; bid form; forms of bid and performance securities; and other documents as deemed necessary.
They must be clearly defined as desired outputs/quality, including environmental standards. Non-conformity with minimum requirements renders bids non-responsive.
Bids are submitted in two sealed envelopes: Technical Proposal (with feasibility, engineering, environmental assessment, cost/financing plan, bid security, and other technical documents) and Financial Proposal. At opening, only the first envelope is opened and checked for completeness and required bid security. Incomplete technical data or missing/invalid bid security results in automatic rejection and the second envelope is returned unopened.
Stage 1 evaluates technical/operational/environmental/financing viability against minimum standards; only those passing proceed to Stage 2. Stage 2 compares financial proposals: for BOT/BOO/CAO/DOT/ROT/ROO (and similar), based on lowest present value of tolls/fees/rentals/charges over the fixed term; for BT/BLT/BTO (and similar), based on lowest present value of amortization schedule. For non-public utility projects where proponent pays Government, award may be based on highest present value of proposed payments.
BOO projects require Presidential approval. Also, projects undertaken through arrangements other than those defined in Section 1.3.c require Presidential approval.
Conditions: (1) project involves a new concept/technology and/or is not part of priority projects; (2) no direct government guarantee, subsidy, or equity is required; and (3) the Agency invited comparative/competitive proposals by publication for three consecutive weeks and no other proposal is received for 60 working days; if a later lower price is proposed by another party, the original proponent gets a right to match within 30 working days or else award goes to the lowest tenderer.