Republic of the Philippines

Public-Private Partnership Center

Philippine Standard Time

PPP Program

Legal and Regulatory Frameworks

Section 20, Article II of the 1987 Philippine Constitution provides that “The State recognizes the indispensable role of the private sector, encourages private enterprise, and provides incentives to needed investments.”

In recognition of this role in sustainable development, Congress enacted two primary laws to implement the same: Republic Act No. 9184 or the Government Procurement Reform Act (RA 9184) for the procurement of goods, supplies and services, and Republic Act No. 6957 as amended by Republic Act No. 7718 or the Philippine Build-Operate-and-Transfer (BOT) Law which provided a more focused framework in PPP infrastructure development.

The enactment of RA 6957 allowed LGUs to enter into contractual arrangements with the private sector to implement infrastructure projects through two variants – Build-Operate-and-Transfer (BOT) and Build-Transfer-and-Operate (BTO).

RA 7718 enhances the provision of RA 6957 by broadening the list of PPP government implementing agencies such as government owned and controlled corporations (GOCCs), government financing institutions (GFIs) and state universities and colleges (SUCs); putting in place incentives for attracting private sector investments to venture into PPP projects; and allowing negotiated unsolicited proposals provided that these comply with conditions outlined in the Law. More importantly, RA 7718 provided for the inclusion of other contractual arrangements or schemes to implement PPP projects.

As provided in the amended BOT Law and its Implementing Rules and Regulations (IRR), collaborative partnerships between the government and the private sector can be made possible through a broad spectrum of modalities. The BOT Law identifies a number of variants and includes a catch all provision for other variants that may be identified later. However project implemented using new variants are subject to the approval of the President of the Philippines.

The Philippine BOT Law and its Revised Implementing Rules and Regulations
    • Revised Implementing Rules and Regulations of R.A. No. 6957, “An Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector and for Other Purposes”, as Amended by Republic Act No. 7718

View/Download The Philippine BOT Law and Revised Implementing Rules and Regulations (PDF, 758 KB)
Published on 20 July 2012 at the Philippine Daily Inquirer

    • An Act Amending Certain Sections of Republic Act No. 6957, entitled “An Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector, and for Other Puposes”

View/Download The BOT Law and its Implementing Rules and Regulations (Revised 2006) (PDF, 452 KB)
Revised IRR Published on 29 March 2006 at the Philippine Daily Inquirer

Executive Order No. 136 series 2013

Amending certain sections of Executive Order No. 8 (S. 2010) which reorganized and renamed the Build-Operate and Transfer Center to the Public-Private Partnership Center of the Philippines and transferred its attachment from the Department of Trade and Industry to the National Economic and Development Authority, and for other purposes

View/Download Executive Order No. 136, series of 2013 (PDF, 69 KB)

Executive Order No. 8 series 2010

Reorganizing and Renaming the Build-Operate and Transfer (BOT) Center to the Public-Private Partnership (PPP) Center of the Philippines and Transferring its Attachment from the Department of Trade and Industry to the National Economic and Development Authority and for other Purposes

View/Download Executive Order No. 8 (PDF, 64 KB)