Title
Amendments to EO No. 8 on PPP Center Reorganization
Law
Executive Order No. 136
Decision Date
May 28, 2013
Benigno S. Aquino III's Executive Order No. 136 reorganizes the Public-Private Partnership Center of the Philippines, enhancing its operational efficiency by transferring it from the Department of Trade and Industry to the National Economic and Development Authority and establishing a governing board for strategic oversight.
executive order
public
private partnership

Legal basis and related authorities

  • Executive Order No. 136 is issued by the President under constitutional control over executive departments and the President’s reorganization authority, including Section 17, Article VII.
  • Executive Order No. 136 is anchored on Section 31, Chapter 10, Title III, Book III of the Administrative Code of 1987 on continuing authority to reorganize.
  • Executive Order No. 136 is also grounded on Section 20, Chapter 7, Title I, Book III of the Administrative Code of 1987 on residual powers.
  • Executive Order No. 136 is justified by Section 75 of Republic Act No. 10155, the General Appropriations Act of 2013, authorizing structural, functional, and operational adjustments for streamlined organization and improved performance.
  • Executive Order No. 136 references Section 4 of EO No. 230 (s. 1987) on the President acting as Chairman of the NEDA Board with authority to revise NEDA Board membership.

Policy purpose for PPP implementation

  • Executive Order No. 136 declares that amendments to EO No. 8 (s. 2010) are needed for more efficient implementation of PPP programs and projects (Whereas clauses).
  • Executive Order No. 136 establishes that PPP-related governance should be strengthened through creation of a PPP Governing Board (Section 3A).
  • Executive Order No. 136 directs that reporting and oversight on PPP projects be institutionalized through the PPP Center (Section 10).

PPP Center reorganization and attachment

  • Section 1 amends Section 1 of EO No. 8 (s. 2010) to rename the Build-Operate and Transfer (BOT) Center as the Public-Private Partnership (PPP) Center of the Philippines.
  • The PPP Center is transferred as an attached agency from the Department of Trade and Industry (DTI) to the National Economic and Development Authority (NEDA) for budgetary purposes and administrative supervision (Section 1).
  • Section 8 amends Section 8 of EO No. 8 to place the PPP Center’s budget releases under DBM, subject to budgeting, accounting, and auditing rules (Section 8).

Governance: PPP Governing Board and leadership

  • Section 3 adds Section 3A creating the PPP Governing Board as the overall policy-making body for all PPP-related matters, including the PDMF.
  • The PPP Governing Board is responsible for setting the strategic direction of the PPP Program and creating an enabling policy and institutional environment for PPP (Section 3A).
  • The PPP Center must report directly to the PPP Governing Board (Section 3A).
  • The PPP Governing Board is composed of:
    • Chairperson: Secretary of Socio-Economic Planning
    • Vice-Chairperson: Secretary of Finance
    • Members: Secretary of Budget and Management, Secretary of Justice, Secretary of Trade and Industry, Executive Secretary, and the Private Sector Co-Chairman of the National Competitiveness Council
  • Quorum and voting: The Chairperson and three (3) other members constitute a quorum, and a majority vote of members present is necessary for adoption of any Board issuance, order, resolution, decision, or other act (Section 3A).
  • The PPP Center must act as the Secretariat of the PPP Governing Board (Section 3A).

Executive Director; NEDA committee membership

  • Section 4 amends Section 4 of EO No. 8 to provide that the PPP Center is headed by an Executive Director with a rank equivalent to an Undersecretary.
  • The Executive Director is appointed by the President of the Philippines, upon recommendation of the Secretary of Socio-Economic Planning (Section 4).
  • The Executive Director undertakes day-to-day management and supervises PPP Center operations (Section 4).
  • Section 5 adds Section 4A requiring inclusion of the PPP Center Executive Director as a member of:
    • the NEDA Infrastructure Committee Technical Board (INFRACOM-TB), and
    • the NEDA Investment Coordination Committee Technical Board (ICC-TB) (Section 4A).

PDMF: facility management and funding

  • Section 2 amends Section 2 (d) of EO No. 8 by providing that the PPP Center must manage and administer the Project Development and Monitoring Facility (PDMF), formerly known as the Project Development Facility (PDF) established as a revolving fund under EO No. 44 (s. 2002) (Section 2).
  • Section 7 amends Section 6 of EO No. 8 to define the PDMF’s use as conducting:
    • business case, pre-feasibility and feasibility studies, and
    • tender documents of PPP programs and projects in a timely manner and ensuring effective monitoring of PPP project implementation (Section 6).
  • A PDMF Committee is created, composed of representatives from NEDA, Department of Finance (DOF), Department of Budget and Management (DBM), and the PPP Center (Section 6).
  • The PDMF Committee must approve applications for availment (Section 6).
  • Subject to approval of the PPP Governing Board, the PDMF Committee must formulate, prescribe and recommend policies, procedures, and guidelines for:
    • use of the PDMF for PPP project development, and
    • recovery of costs charged to the fund (Section 6).
  • The PPP Center must serve as the Secretariat of the PDMF Committee (Section 6).
  • To sustain the PDMF, the PPP Center may collect and receive reasonable fees and recover costs charged to the PDMF, in accordance with guidelines approved by the PPP Governing Board (Section 6).
  • Implementing agencies are authorized to reallocate their funds for purposes of the PDMF, subject to the General Appropriations Act (GAA) and relevant accounting and auditing rules and regulations (Section 6).

Budget and funding sources

  • Section 8 amends Section 8 of EO No. 8 to require DBM to release funds appropriated for the PPP Center in the annual GAA, subject to pertinent budgeting, accounting, and auditing rules (Section 8).
  • The PPP Center may receive contributions, grants, and/or other funds from:
    • government agencies and corporations,
    • LGUs,
    • local and foreign donors,
    • development partners, and
    • private sector/institutions, subject to existing laws, rules and regulations (Section 8).

PPP project reporting requirements

  • Section 9 adds Section 10 titled Reporting Requirements.
  • All government agencies, including LGUs, must submit reports to the PPP Center on all projects undertaken through Public-Private Partnerships (Section 10).
  • The PPP Center must prescribe the frequency of submission, format, and contents consistent with the requirements of the oversight agency (Section 10).

Separation benefits for affected personnel

  • Section 6 adds Section 5A providing separation benefits for personnel of the BOT Center separated due to reorganization under EO No. 8.
  • These personnel must receive, in addition to benefits authorized under RA No. 8291 (the Government Service Insurance System (GSIS) Act of 1997), separation benefits charged against available savings of the National Government (Section 5A).
  • Separation benefit computation is based on a fraction of monthly basic salary for every year of government service:
    • 1/2 of the monthly basic salary for every year of government service for those with less than 21 years of service (Section 5A(a)),
    • 3/4 of the monthly basic salary for every year of government service computed from the 1st year for those with 21 to less than 31 years of service (Section 5A(b)),
    • 1 month basic salary for every year of government service computed from the 1st year for those with 31 years and above (Section 5A(c)).
  • “Monthly basic salary” means the highest salary received before retirement/separation from the BOT Center (Section 5A).
  • The PPP Center must prepare a complete list of BOT employees separated from service, indicating for each employee their name, position title, monthly basic salary, and number of years of government service, and must have it duly certified by an authorized official of the Civil Service Commission, then submit it to DBM as the basis for computation of the special separation benefits (Section 5A).

Renumbering and effect rules

  • Section 10 renumbers Sections 10, 11 and 12 of EO No. 8 as Sections 11, 12 and 13, respectively.
  • Section 11 provides that Executive Order No. 136 takes effect immediately upon publication in a newspaper of general circulation.

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