The Philippine Government recognizes the essential role of the private sector as the main engine for national growth and development. In accordance with this, pertinent incentives will be provided to stimulate private resources for the purpose of financing the construction, operation and maintenance of infrastructure and development projects normally undertaken by the Government.
The government is willing, on a project basis, to protect investors from certain regulatory risk events such as court orders or decisions by regulatory agencies which prevent investors from adjusting tariffs to contractually agreed levels. Such regulatory risk insurance could take the form of make-up payments from the government to PPP investors, other guaranteed payments, and adjustments to contract terms. The specifics of the type of protection to be offered by the government, and the mechanisms through which such protection will be offered will be part of the contract terms for each project. Such protection will only be offered for solicited projects which undergo a competitive bidding process.
Private sector investors will be selected through open competition under fair and transparent terms. All interested investors will be given a level playing field with reasonable returns and appropriate sharing of risks without compromising the protection of public interests. Through this program, end-users will be provided with adequate, safe, efficient, reliable, and reasonably-priced infrastructure services.
The projects under the PPP Program were selected based on the following criteria:
1. Project Readiness/Preparation
a. Completed Initial Business Case;
b. Included in the priority projects of the Implementing Agencies;
c. Initial preparation on-going, i.e., FS stage, hiring of consultants for Feasibility Study updating and transaction preparation
2. Responsiveness to the sectorâ€™s needs (e.g., part of the transport network system, water supply/sewerage, electric power capacity, etc); and
3. High Implementability (bankable, no major issues).
The Government is committed to facilitating the approval and implementation process for PPP projects. In accordance with this, solicited proposals will be processed within six (6) months. Qualified PPP proposals must complete all necessary documents to facilitate the approval process.
While the BOT Law allows for the government to process unsolicited proposals, solicited proposals will be actively promoted.
To provide a long-term fund structure to sustain and further promote PPP in the country, the government together with various Multilateral Organizations (MOs) are working on establishing the Philippine Infrastructure Development Fund (PIDF).