Amendments to RA 6957 on Private Sector Infra Projects

Private sector infrastructure projects include those normally financed by the public sector but implemented fully or partly by the private sector, covering various facilities like power plants, highways, ports, telecommunications, and more.
Conditions apply to foreign contractors and ownership requirements, especially for projects needing public utility franchises.
Various contractual arrangements defined including:
- Build-Operate-and-Transfer (BOT)
- Build-and-Transfer
- Build-Own-and-Operate
- Build-Lease-and-Transfer
- Build-Transfer-and-Operate
- Contract-Add-and-Operate
- Develop-Operate-and-Transfer
- Rehabilitate-Operate-and-Transfer
- Rehabilitate-Own-and-Operate
Definitions include project proponent, contractor, facility operator, direct government guarantee, and construction scope.
Ownership restrictions require Filipino ownership of at least 60% for franchises.

Government infrastructure agencies and local government units (LGUs) authorized to enter contracts with qualified private proponents for financing and operating infrastructure projects.
Encourages solicitation of private sector expertise.

Government agencies and LGUs must include eligible priority projects in their development programs.
Projects must be publicly advertised every six months.
Project lists are subject to approval by the Investment Coordination Committee (ICC) of NEDA or the NEDA Board based on project cost.
Local projects require submission to appropriate local development councils according to project cost.

Allowed on a negotiated basis under conditions:
1. The project involves new concepts or is not on the priority list.
2. No direct government guarantee or subsidy is required.
3. Public invitation for competitive proposals yields no comparable offers.
Original proposer has right to match competing lower bids within 30 working days.

Upon project approval, a public bidding process must be conducted with at least three weekly notices in national and local newspapers.
BOT contracts awarded to compliant bidder with the lowest present value of proposed charges.
Build-and-transfer contracts awarded to lowest complying bid based on amortization payments.
Filipino contractors with equally advantageous bids get preference.
Consortium members are jointly liable, and withdrawal prior to implementation may lead to cancellation.
Bidding follows a two-envelope system: technical then financial proposals.
Contracts must be submitted to Congress.

Allowed when there is only one complying bidder after bidding procedures.
Conditions include scenarios where only one applicant qualifies or submits a compliant bid.
Disqualified bidders may appeal within 15 working days; agencies must respond within 45 working days.

Project proponents in BOT arrangements recover investments by charging tolls, fees, rentals not exceeding contract terms.
Charges may be adjusted based on official indices.
Reasonableness of rates to users must be considered.
For build-and-transfer arrangements, repayment is through government amortization.

Government must compensate proponents for actual expenses plus reasonable return upon termination without fault or by mutual agreement.
Insurance coverage required for government interest.
Proponents may terminate contract upon unresolved government default and receive reasonable compensation.

Projects exceeding one billion pesos are entitled to incentives under the Omnibus Investments Code upon registration with the Board of Investments.

A multi-agency committee to draft implementing rules within 60 days of the Act’s effectivity.
Committee chaired by a presidential appointee.
Rules to include bid evaluation criteria and available government incentives.

Coordinating Council of the Philippine Assistance Program (CCPAP) monitors project implementation.
Regional development councils and LGUs shall report project status periodically.
CCPAP reports progress annually to the President and Congress.

The Act takes effect 15 days after publication in two newspapers of general circulation.