Question & AnswerQ&A (Republic Act No. 11966)
The short title of Republic Act No. 11966 is the "Public-Private Partnership (PPP) Code of the Philippines."
The State recognizes the indispensable role of the private sector, encourages private enterprise, and provides incentives to needed investments. It shall provide an enabling environment for private sector participation in financing, designing, constructing, operating, and maintaining infrastructure or development projects while ensuring public interest by providing affordable, accessible, and efficient public services. The State shall ensure equitable risk allocation, value for money, sustainability, and public welfare, and support multiple financing sources including appropriations, ODA, and PPPs.
Government Undertakings refer to any form of contribution and/or support which the government may extend to a Private Partner for the implementation of PPP Projects as provided under the Code, including subsidies, guarantees, equity contributions, or other support measures.
The entities authorized to approve PPP Projects are called Approving Bodies, which vary depending on the project's cost and whether it is national or local. National PPP Projects costing Fifteen billion pesos or above are approved by the NEDA Board, while those below by the Head of the Implementing Agency or the respective governing board. Local PPP Projects are approved by local Sanggunians or boards of Local Universities and Colleges, with necessary confirmations from local development councils and endorsements by regional development councils as appropriate.
The PPP Center assists Implementing Agencies in identifying, developing, and maintaining PPP projects; provides advisory services; facilitates project appraisal and approval; reviews PPP contracts; monitors PPP project implementation; serves as a central repository of PPP information; develops capacity building; promotes the PPP Program; manages the Project Development and Monitoring Facility and the PPP Risk Management Fund; and acts as the Secretariat to relevant bodies.
All PPP contracts must include provisions on the use of dispute avoidance and Alternative Dispute Resolution (ADR) mechanisms pursuant to Republic Act No. 9283 (Alternative Dispute Resolution Act of 2004). Parties have freedom to choose the ADR mechanism, subject to applicable laws and regulations.
A Solicited Project refers to a PPP Project identified by an Implementing Agency and subjected to a public bidding process as provided in Section 9 of the Code. It involves submissions by Private Proponents in response to a public bidding initiated by the Implementing Agency.
Prohibited acts include downgrading project cost category to evade approvals, submitting false information, falsifying PPP contracts, violating key Sections of the Code, gross negligence by public officers, failure to act on unsolicited proposals, premature disclosure of bids, undue influence, restricting transparency or competition, bid rigging, malicious submission of bids to create appearance of competition, agreements to refrain from bidding, use of another’s name in bidding, and unjustified withdrawal or refusal of award after winning. Penalties include imprisonment from three to six years and fines from One million to Five million pesos.
Unsolicited Proposals are proposals made by a Private Proponent not initiated by government solicitation, submitted to the PPP Center for completeness and proper Approving Body determination. If complete, they are endorsed to the Implementing Agency for evaluation. The Implementing Agency may accept, reject, or require a comparative challenge period where other proponents may submit competing proposals under a right-to-match mechanism.
The PDMF is a revolving fund institutionalized to procure advisory and support services related to the preparation, structuring, evaluation, procurement, probity management, Financial Close, and monitoring of PPP Projects. It may be funded through the General Appropriations Act, official development assistance, or other sources and is managed by the PPP Center.