I. PPP History
I. PPP History
I. PPP History
PPP HISTORY
In 1986, under President Corazon Aquino, the government issued Presidential
Proclamation No. 50 which created the Asset Privatization Trust and the
Committee on Privatization, which divested itself from non-essential business-
related assets acquired during the Marcos Era.
The 1987 Constitution defined the role of the private sector. Section 20,
Article II of the 1987 Constitution provides that “The State recognizes the
indispensable role of the private sector, encourages private enterprise, and
provides incentives to needed investments.”
In 1990, Republic Act 6957 entitled “An Act Authorizing the Financing,
Construction, Operation and Maintenance of Infrastructure Projects by the
Private Sector and for other purposes” was enacted. This law was also known
as the Build-Operate-Transfer (BOT) Law. It brought the participation of the
private sector into the frontline of development efforts.
In 1993, under Fidel Ramos’s administration, the BOT Law was amended to
what is currently known as RA 7718. Consequently, Ramos issued
Memorandum Order No. 166 directing the Coordinating Council of the
Philippine Assistance Center (CCPAP) of the Office of the President to
establish a BOT Center with the CCPAP Chairman as BOT Action Officer.
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In May 2013, EO 136 was issued mandating the creation of the PPP
Governing Board chaired by the Socioeconomic Planning Secretary, with the
Finance Secretary as co-Chair. Included as members of the Board are the
Secretaries of Budget and Management, Justice, Trade and Industry, the
Executive Secretary and the Private Sector co-chair of the National
Competitiveness Council. The PPP Governing is the overall policy-making
body for all PPP-related matters, including the Project Development and
Monitoring Facility. It shall be responsible for setting the strategic direction of
the Philippine PPP Program while creating an enabling policy and institutional
environment for PPPs in the Philippines.
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Administration Laws/Programs Offices Created
Committee on Privatization
ODA/GAA/PPP (Hybrid)
II. CURRENT PPP PROJECT CYCLE
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https://ppp.gov.ph/ppp-program/ppp-processes/
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III. International practice of PPP in other countries.
In Australia, adherence to PPP is debatable. In the UK, the think that PPP
is a scam. In Indonesia, PPP is favored.
Why? If the government has the financial capacity to sustain its own
projects and programs, such as that of Australia and the UK, private
entities are no longer needed to be partnered with.
(a) Is there a need to establish by law and/or strengthen the PPP Center
that was previously organized only by an Executive Order?
(b) What powers and functions should be given to the PPP Center, if it shall
be established by law and/or strengthened?
(c) Should the PPP Center be authorized to receive unsolicited PPP project
proposals?
(d) Which body should determine the Implementing Agency and Approving
Authority for unsolicited PPP project proposals?
(e) Should the threshold for dichotomizing the referral to the NEDA-ICC and
NEDA Board be adjusted, or be made subject to adjustment according to
economic indexes to be determined in the IRR?
(f) Should local (LGU) PPP Projects be made to undergo prior review and
approval by the NEDA?
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(g) Is a regular review of national PPP projects by an oversight Committee
of the Congress sufficient, or should it be supplemented by an regular
operational audit by another body, such as the PPP Center?
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Professor-Lawyer Alberto C. Agra, who is a certified PPP specialist and
formerly of the Institute for Public-Private Partnerships in Virginia, USA, sat
down with the Chair and the working staff on August 13, 2019 and March 9,
2020.
Mr. Alvin Sia and Ms. Sarah Amor Conche of the Department of
Finance (DOF) and Director Francis Bryan Coballes, Mr. Quintin de Luna and
Ms. Leyden Sta. Isabel of the NEDA, came to discuss with the Chair and the
working staff and shared their views on various dates in February 2020.
Director Jeffrey Manalo, Atty. Phebean Ramos, Mr. Eleazar Ricote,
Ricardo Benjamin Osorio, John Dexter Lunk and Maria Beatriz Quintos of the
PPP Center gave insights to the Chair and the working staff at a meeting on
February 4, 2020, and via Zoom meetings on May 18, June 8, 10, 11, 15, 16,
19, and 22, all in 2020.