National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said that the signing into law of the Public-Private Partnership (PPP) Code of the Philippines will create a more stable policy environment for infrastructure projects.
“The PPP Code will enable much-needed development across various sectors and accelerate the delivery of public services necessary for economic growth and socioeconomic transformation,” he said.
“With its implementation, the government can harness PPPs to finance priority programs such as the Marcos Administration’s Infrastructure Flagship Projects (IFPs) and even social infrastructure in the education and health sectors,” he added.
The code also aims to strengthen and institutionalize PPPs in the country. It will provide a unified legal framework for all PPPs at both national and local levels.
This legal framework covers all types of arrangements, such as build-operate-transfer (BOT) variants, joint ventures, and toll operations agreements. It reduces transaction costs and improves the ease of doing business for PPPs.
Ma. Cynthia Hernandez, PPP Center undersecretary and executive director, said that the code enables the government to deliver financially viable, well-structured, and high-quality PPP projects.
“The PPP Code incorporates the best practices and lessons learned from over 33 years of experience in implementing PPPs in the country to ensure that present and future PPP projects are of high quality and can mitigate risks during implementation,” sbe said.
The code streamlines the implementation process to ensure the alignment of LGU projects to national development plans, enhance the framework for unsolicited proposals, and establish a predictable tariff regime that safeguards public interests.
The code will strengthen enabling institutions for PPPs by giving additional powers and functions to the PPP Center.
“To sustain rapid economic growth, generate high-quality employment opportunities, and reduce poverty sustainably, we will need massive amounts of investment in physical and human capital,” the NEDA secretary said.
“Given the tight fiscal space, the private sector becomes an indispensable partner in building the foundations to propel the economy’s medium- and long-term expansion,” he added
The code will be in effect after 15 calendar days following its publication with the PPP Governing Board, chaired by the NEDA secretary. The code’s implementing rules and regulations (IRR) will be issued within 90 calendar days from the effectivity of the code.
