QuestionsQuestions (IRR of Republic Act No. 11966)
The IRR is promulgated pursuant to Section 34 of RA 11966 (PPP Code). Its purpose is to carry out the provisions of the PPP Code.
Under Section 3, the first day is excluded and the last day is included, consistent with Article 13 of RA No. 386 (Civil Code). If the last day falls on a non-working day or declared holiday, it is moved to the next working day.
The State recognizes the private sector’s role, encourages private enterprise and needed investments, protects public interest via affordable, accessible, efficient services, ensures equitable risk allocation and Value for Money (VFM), promotes sustainability and public welfare, and emphasizes open, fair, transparent, and competitive selection with full public disclosure subject to law.
Availability Payments are predetermined payments by the Implementing Agency to the Private Partner in exchange for delivering an asset or service per the PPP Contract. They are not to be construed as Government Undertakings, Subsidy, or government contribution.
VFM is the effective, efficient, and economic use of resources, requiring evaluation of relevant costs and benefits and assessment of risks, and non-price attributes/life-cycle costs as appropriate. Price alone is not necessarily VFM.
Revenue-based: the Private Partner charges/collects reasonable Tariff from users (subject to regulation), or may receive a share of project revenue. Availability-based: the Implementing Agency commits to predetermined payments not paid by users for the service, but regular payments by the Implementing Agency in exchange for delivering an asset/service per the PPP Contract.
PPP is a contractual arrangement between an Implementing Agency and a Private Partner to finance, design, construct, operate, and maintain (or a combination) an infrastructure or development project/service where each party shares associated risks and the Private Partner’s investment recovery is linked to performance.
Examples include: highways and related facilities; land transportation systems/railways/BRT/transit systems; airports/air navigation; power generation/transmission/distribution; water supply/sewerage/drainage/waste water/desalination; telecommunications/IT networks; health/educational infrastructure; solid waste and environmental facilities; climate change and disaster risk reduction infrastructure. (Any four categories from Section 5 qualify.)
Examples include: joint ventures (JVs); toll operation agreements and related contractual arrangements involving construction/O&M of toll facilities; lease agreements (including rehabilitation/operation/maintenance for more than one year) involving PPP components; PPP lease components; BOT and variants (BT, BLT, BOO, BTO, CAO, AOT, DOT, ROT, ROO); and O&M.
They are not applicable to: (a) projects procured under RA 9184/GPRA; (b) infrastructure exclusively funded through foreign loans/grants covered by RA 8182 unless agreed otherwise with the foreign grantor/financier; (c) management contracts that do not have PPP elements (O&M PPP projects are excluded from this); (d) certain service contracts (coal, petroleum, mining, renewable energy service contracts) unless bundled as a component of a PPP; (e) divestments/dispositions removing authority/title over government assets; (f) corporatization or transfer of government assets/liabilities/staff into a public corporation; (g) incorporating subsidiaries with private equity; (h) onerous donations and (i) gratuitous donations; and (j) purely commercial joint ventures/leases that do not provide public infrastructure/development services or do not satisfy PPP elements.
Yes. The Implementing Agency may request a non-policy matter opinion from the PPP Center to determine whether a project is covered by the Code and IRR.
A Regulatory Body is not allowed to undertake PPP projects in the sector/industry it is mandated to regulate, except where there are no available alternative Implementing Agencies with capacity to undertake such projects. If it undertakes a PPP, it must adopt a conflict mitigation plan as part of its contract management plan.
Blended Finance is structured finance where a partner government/bilateral or multilateral agency can mobilize financing from private/commercial institutions for components of a PPP project. If a component is financed by government appropriations, procurement activities for that component are governed by RA 9184/GPRA and its IRR.
Only projects included in the CLIPs may be included in the List of PPP Projects. CLIPs guide identification, and Lists of PPP Projects must be consistent with development plans/programs embedded in those CLIPs.
At minimum: (a) name and brief description; (b) indicative project cost; (c) project location (with enough information for alignment/effects on other projects, possibly using GIS mapping); (d) plan/investment program where included; (e) project status; (f) development costs (per definitions referenced); and (g) recommended objectives/goals/outcomes and alignment with strategic objectives.
Implementing Agencies must post their lists on their websites or official digital platforms. The PPP Center posts a consolidated list within 20 calendar days from the last day of submission and updates it regularly. If discrepancies exist, the PPP Center’s consolidated list prevails.
Examples include: lapse of allowable procurement period (solicited projects); failure of bidding with decision not to rebid; rejection of the Unsolicited Proposal at any point; failure of negotiation in unsolicited proposals unless a new proposal is accepted or the project is bid out; expiration of OPS with comparative challenge not yet commenced; revocation of OPS; or termination/discontinuance of the project.