THE House of Representatives voted late Monday to approve on third and final reading House Bill No. 6527 or the proposed Public-Private Partnership (PPP) Act which the Marcos government is banking on to spur more investments in major infrastructure and other development projects.
On a vote of 254 in favor and three against, the Lower House approved its version of the measure which will now be forwarded to the Senate for concurrence.
HB 6527 provides for incentives for PPP projects, including fast-tracking of franchise and permits, greater protection from injunction or retraining orders from lower courts, and an extensive menu of project delivery models including Build-Lease-Transfer (BLT), Build-Own-and Operate (BOO), Build-Operate and Transfer (BOT), Build and Transfer (BT), Build-Transfer and Operate (BTO), Contract-Add-and-Operate (CAO), and Develop-Operate-and-Transfer (DOT).
Under the measure, all PPP contracts are required to include provisions on the use of dispute avoidance and alternative dispute resolution, as well as the adoption of contract management and risk mitigation plan.
Other than the Supreme Court, other courts are barred from issuing any directive that would affect the progress of a PPP project with exceptions provided where matters of extreme urgency are raised involving a constitutional issue, grave injustice, or irreparable injury will arise unless court intervention is granted.
The bill maintains the existing PPP Center and institutionalizes the PPP Governing Board headed by the secretary of NEDA as chairperson, the secretary of the Department of Finance as vice chairperson, and the secretaries of the departments of budget, justice, trade, interior and environment; the Executive Secretary, the executive director of the PPP Center, and one private sector representative as members.
In addition, implementation of the PPP Law will also be subject to review by a Joint Congressional Oversight Committee.
Finance Secretary Benjamin Diokno had earlier voiced optimism that the enactment of the PPP Act coupled with the amendment of the Public Service Act removing restrictions on ownership would encourage more investors to take on big-ticket projects and create more employment opportunities.
Among the industries expected to benefit are telecommunications, toll roads, shipping, and aviation.
In undertaking PPP projects, the private proponent is allowed to recover its investments and earn reasonable profit by authorizing it to charge and collect reasonable tools, fares, fees, rentals, or other charges subject to appropriate regulations.
In the alternative, the implementing agency may instead make regular payments to the private proponent in exchange for delivering an asset or service in accordance with the contract. Other non-monetary payments may also be allowed.
