PPP Code IRR to open floodgates for investments — Recto
The signing of the Public-Private Partnership Code IRR comes ‘at a very opportune time when the Philippine economy is in robust shape to welcome investors.’
Daily TribuneThe signing of the Public-Private Partnership Code IRR comes ‘at a very opportune time when the Philippine economy is in robust shape to welcome investors.’
Trade Secretary Alfredo Pascual said he is pleased to highlight the critical importance of the newly enacted Public-Private Partnership Code and its Implementing Rules and Regulations, as the Philippine government recognizes the urgent need to accelerate the development of the country's infrastructure, the backbone of economic growth and a catalyst for inclusive development.
photograph courtesy of DTI
The recent signing of the Public-Private Partnership Code implementing rules and regulations is expected to open the floodgates for an influx of strategic and high-quality investments
Department of Finance Secretary Ralph Recto has hailed its signing, saying that it comes “at a very opportune time when the Philippine economy is in robust shape to welcome investors.”
Recto said, “We are leaving no opportunity untapped to entice investors to come to the Philippines. With the PPP Code IRR in place, we have unlocked the floodgates for a sustained flow of strategic investments that will deliver top-tier infrastructure and public services to the Filipino people.”
Stable environment
Signed into law on 5 December 2023, the PPP Code offers a stable, predictable, and competitive environment where high-quality PPP investments can thrive.
It consolidates all legal frameworks and creates a unified system for investors to refer to when engaging in PPP projects.
It also leverages the experience and clarifies ambiguities in the Build-Operate-Transfer Law, which was last amended in 1994, to integrate best practices in streamlining processes, reducing transaction costs, and enhancing the ease of doing business for PPPs.
The PPP Code will directly support the Marcos Jr. administration’s objective of closing the infrastructure funding gap to bolster economic development.
Under the “Build, Better, More” program, the government commits to invest in 185 infrastructure flagship projects worth P9.14 trillion, 45 of which will be financed through PPPs.
“The PPP Code will empower us to optimize resource mobilization while harnessing the private sector’s expertise, including innovative techniques and cutting-edge technologies, to deliver cost-effective infrastructure projects and services across the country,” the DoF secretary said.
Extensive consultations
Since January, the PPP Code IRR Committee, of which the DoF is the vice chairperson, has held 23 extensive consultations and information sessions, gathering input from 840 comments across public, private, and development sectors.
These discussions were open, inclusive, and constructive and highlighted the crucial trust between the public and private sectors, which is essential for effective nation-building and development.
“I thank everyone who has worked hard to meticulously craft the IRR to be consistent with the law at the earliest possible time. Your work has ensured that investor concerns are rightfully addressed and that our PPP framework aligns with the best practices globally,” Recto said.
He further emphasized that the PPP Code is only one aspect of the government’s comprehensive efforts to address policy and regulatory barriers, expedite investment approvals, and proactively identify creative solutions and opportunities to foster a more favorable business environment in the country.
Signatories to the IRR were IRR Committee chairperson and National Economic and Development Authority Secretary Arsenio Balisacan; IRR Committee vice chairperson and DOF Secretary Recto; Budget and Management Secretary Amenah Pangandaman; Justice Secretary Jesus Crispin Remulla; Trade and Industry Secretary Alfredo Pascual; Department of the Interior and Local Government Secretary Benjamin Abalos Jr.; Commission on Higher Education chairperson Prospero de Vera III; PPP center executive director Ma. Cynthia Hernandez; and private sector representative Ferdinand Tolentino.
It was made available to the public on 22 March 2024 and will take effect 15 calendar days after publication.