Investing in infra ecosystem
“All these innovations are perfectly timed as the President’s ‘Build, Better, More’ program has already identified and committed to investing 197 IFPs, amounting to about P8.7 trillion.
Daily Tribune“All these innovations are perfectly timed as the President’s ‘Build, Better, More’ program has already identified and committed to investing 197 IFPs, amounting to about P8.7 trillion.
On 5 December, President Ferdinand Marcos Jr. signed Republic Act 11966, or An Act Providing for the Public-Private Partnership Code of the Philippines (PPP Code).
The President was scheduled to lead the ceremonial signing in Malacañang that day. However, the event had to be canceled after he tested positive for Covid-19. Instead, he signed it while in isolation in his residence at Bahay Pangulo.
The PPP Code was identified as a priority measure of President Marcos Jr.'s administration as it supports the government's 8-Point Socioeconomic Agenda, which prioritizes job creation by promoting trade and investments and improving infrastructure. It only took the administration less than two years to craft and turn it into law.
"The PPP Code will enable much-needed development across various sectors and accelerate the delivery of public services necessary for economic growth and socio-economic transformation. With its implementation, the government can harness PPPs to finance priority programs such as the Marcos administration's Infrastructure Flagship Projects and even social infrastructure in the education and health sectors," NEDA Secretary Arsenio M. Balisacan said.
"The law encourages leveraging private sector expertise in process innovation, resource mobilization, and high-quality service delivery," he added.
The law consolidates all legal frameworks and creates a unified system for investors to refer to when engaging in PPP projects. It clarifies ambiguities in its compliance, which will encourage more PPP participation from the private sector. The law also aims to reduce transaction costs and improve the ease of doing business for PPPs.
The new law states more clearly that it covers all types of PPP arrangements, such as Build-Operate-Transfer and its variants, joint ventures, and toll operations agreements.
The Code streamlines the project implementation process, updates approval thresholds for national PPP projects, and promotes autonomy in implementing local PPP projects while ensuring that local government projects are aligned with national development plans.
The law likewise improves the framework for unsolicited proposals and establishes a predictable tariff regime to protect the public interest while at the same time ensuring revenues for the government.
Moreover, it strengthens and empowers institutions for PPPs, giving the PPP Center more powers to work towards a more efficient and effective performance and implementation of its mandate.
The law also institutionalizes the PPP Governing Board, Project Development and Monitoring Facility, and the new Risk Management Fund to guarantee the sustainability of the Philippine PPP Program.
All these innovations are perfectly timed as the President's "Build, Better, More" program has already identified and committed to investing 197 IFPs, amounting to about P8.7 trillion. Secretary of Finance Benjamin Diokno stated that 41 of the 197 IFPs will be financed and undertaken through PPPs.
When infrastructure projects are discussed, what we immediately imagine are the structures of the projects themselves. What is not apparent are the other positive and long-term effects that flow from these projects, such as rapid economic growth, the generation of high-quality employment opportunities, and the improvement of the quality of life for all.
The PPP Code will take effect 15 calendar days after its publication in the Official Gazette or a newspaper of general circulation.
The PPP Governing Board, led by the NEDA secretary, will issue the Implementing Rules and Regulations to the code within 90 calendar days from its effectivity.
I commend the administration for addressing the infrastructure gaps in the country with urgency.
We all look forward to the issuance of the IRR to the new PPP Code and collectively hope for the best outcome with its implementation!