IRR for R.A. No. 6957 on BOT and BT schemes

Government infrastructure agencies and government-owned/controlled corporations (e.g., DPWH, DOTC, NIA, MWSS, LMWUA, PNR, etc.) are authorized.
Local Government Units (LGUs) are also authorized contracting parties.

Projects must be financially viable and may include highways, rail and non-rail mass transit, ports, airports, power, telecom, irrigation, water supply, education, health, land reclamation, industrial estates, markets, fishports, and environmental facilities.
DPWH clearance required to avoid proliferation and traffic disruption in highway projects managed by multiple operators.

Agencies/LGUs must include priority BOT/BT projects in their infrastructure programs.
Projects must be given wide publicity via newspapers twice annually and official written notices to registered contractors and industry associations.

National agency projects must be included in medium-term programs and approved by Congress before bidding.
LGU projects require approval from respective local development councils and sanggunians prior to bidding.

Agencies/LGUs prescribe minimum design and performance standards focusing on output quality and quantity.
Economic parameters include inflation, discount rates, foreign exchange rates, construction and operation period, and mechanisms for adjusting tolls and charges.
Government facilities or rights-of-way associated with projects must be indicated; costs may be included in contractor's bid.

PBAC composed minimally of agency officials: second-ranking officer (Chairman), legal officer (Secretary), technical officer, financial officer, and two observer representatives of users or contracting sector.

Upon project approval by Congress/local sanggunian, agencies must publish bidding notices weekly for three consecutive weeks in national and local newspapers.

Includes project description, design and economic standards, draft contract, prequalification criteria, bidding instructions, and evaluation criteria.

Legal requirements include adherence to constitutional equity rules for public utility franchises, registration with SEC, and accreditation of contractors, constructors, and joint ventures.
Experience criteria require proven successful projects similar to the subject project.
Capability criteria cover organizational, personnel, equipment, and financial capacity with minimum net worth and credit commitments.
Preparation time for prequalification documents is at least 30 days (45 days for projects over P300 million).

BID includes feasibility study with preliminary engineering design, toll/fee schedule (for BOT), payment schedule (for BT), bid bond, and supporting documents.
Alternatively, agencies may provide feasibility study; bidders remain responsible for its validity.
Bid bond amounts vary by project cost, forms acceptable include cash, certified checks, bank guarantees, or surety bonds.
Bid preparation period ranges from minimum 60 to maximum 180 days.

Prebid conference held at least 30 days before bid submission to clarify bid scope and details.
PBAC receives and opens bids publicly.
Bids evaluated for compliance and price based on preset criteria.
Contract awarded to lowest evaluated compliant bid; bidding failure declared if no compliant bids.

BOT contractors recover investment through approved tolls/fees.
Foreign contractors' right to convert and remit earnings governed by monetary rules included in bid documents.
BT contractors paid by amortization schedules.
Land reclamation/industrial estates repayment may include land portions respecting constitutional land ownership.

Automatic franchise to operate, maintain, and collect charges delegated.
Contractor responsible for financing, detailed engineering, construction, operation, and maintenance in compliance with standards.
Use of qualified Filipino/foreign constructors.
Revenue sharing with agency/LGU possible if stipulated.

Grant franchise for operation and collection of charges.
Approve detailed designs.
Approve tolls/fees with Toll Regulatory Board oversight on national thoroughfares.
Provide right-of-way and associated facilities free of third-party encumbrances.
Exercise technical supervision without diminishing contractor responsibility.
Ensure audit of toll/fee collections by Commission on Audit.

Permitted by agency without contractor fault due to force majeure, failure to provide right-of-way, or changes in government plans affecting project viability.
Contractor compensated for actual expenses plus reasonable return, with government risk insured.

Contracts provide for confiscation of performance bonds, liquidated damages, incentive bonuses for early completion, and franchise nullification for failure to comply.

Adjustments linked to official government price indices defined in bidding documents.
Compensation for contractor due to delays or inadequacies in government-provided facilities if stipulated.

IRR takes effect 15 days after publication in newspapers of general circulation.