Deep dive into PPPs (3)
If a local project intersects with national or sectoral development plans, endorsement from the national government — through the relevant Regional Development Council — is required.
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Daily TribuneIf a local project intersects with national or sectoral development plans, endorsement from the national government — through the relevant Regional Development Council — is required.
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The appropriate approving body for a Public-Private Partnership (PPP) project depends on its cost and whether it’s a national or local initiative. National projects are undertaken by the national government, GOCCs, and SUCs; local projects involve LGUs and LUCs.
For national projects costing P15 billion or more, the NEDA Board is the approving body, acting on the Investment Coordination Committee’s (ICC) recommendation, with a 120-day window to decide. If the project is by an SUC and doesn’t require a government undertaking, it may follow a green lane process for expedited approval.
Projects below P15 billion may be approved by the governing board of the implementing agency, its department head, or the agency head — within 90 to 120 days. However, even lower cost projects must be submitted to the NEDA-ICC under specific conditions: physical overlap with existing projects, adverse effects on other initiatives, or if a government undertaking is required. Circumventing the cost threshold by splitting the project is expressly prohibited.
To initiate the approval process, the implementing agency must submit complete documentation, including a feasibility study, economic and financial models, value-for-money analysis, proposed PTCs, stakeholder consultation records, and other key reports not older than three years. The Approving Body has seven days to determine the completeness of the submission. If deemed complete, the agency is notified in writing.
Once approved, a Notice of Approval is issued within 10 days. If no action is taken within the set period, the project is deemed approved, and the agency may proceed with procurement upon notification from the PPP Center. If disapproved, it may be revised and resubmitted. All decisions are final and executory.
For local PPP projects, approval lies with local Sanggunians (for LGUs) or university boards (for LUCs), which have 120 days upon receipt of complete requirements. Multi-LGU projects require approval from all Sanggunians concerned. Before this, the Local Development Council’s (LDC) Executive Committee must confirm the project’s alignment with local development plans within 30 days. If no response is issued within this period, confirmation is deemed granted.
If a local project intersects with national or sectoral development plans, endorsement from the national government — through the relevant Regional Development Council (RDC) — is required.
The RDC reviews the project’s consistency with national plans and issues a decision within 30 days. In the event of non-endorsement, the LGU or LUC may revise and resubmit the proposal, triggering another 30-day review. If the RDC again fails to act, endorsement is deemed granted.
For local projects involving Government Undertakings or Availability Payments sourced from national funds, additional review and approval by the ICC is required after RDC endorsement.
The ICC has 60 days to decide. A non-approval only pertains to the requested government support — not to the viability of the project itself. Once ICC review is complete or the period lapses, the project can proceed to LDC confirmation.
For more of Dean Nilo Divina’s legal tidbits, please visit www.divinalaw.com. For comments and questions, please send an email to cad@divinalaw.com.
