Finance Secretary Ralph Recto said over the weekend the signing of the Public-Private Partnership (PPP) Code implementing rules and regulations (IRR) will open the floodgates for a non-stop influx of strategic and high-quality investments that will benefit all Filipinos.
“The signing came at a very opportune time when the Philippine economy is in robust shape to welcome investors. We are leaving no opportunity untapped to entice investors to come to the Philippines. With the PPP Code IRR in place, we have unlocked the floodgates for a sustained flow of strategic investments that will deliver top-tier infrastructure and public services to the Filipino people,” Recto said.
Signed into law on Dec. 5, 2023, the PPP Code offers a stable, predictable and competitive environment where high-quality PPP investments can thrive.
It consolidates all legal frameworks and creates a unified system for investors to refer to when engaging in PPP projects.
The law leverages the experience and clarifies the ambiguities in the Build-Operate-Transfer (BOT) Law, which was amended in 1994, to integrate best practices in streamlining processes, reducing transaction costs and enhancing the ease of doing business for PPPs.
The PPP Code will directly support the Marcos administration’s objective of closing the infrastructure funding gap to bolster economic development, according to Recto.
Under the “Build Better More” program, the government commits to invest in 185 infrastructure flagship projects (IFPs) worth P9.14 trillion, 45 of which will be financed through PPPs.
“The PPP Code will empower us to optimize resource mobilization while harnessing the private sector’s expertise, including innovative techniques and cutting-edge technologies, to deliver cost-effective infrastructure projects and services across the country,” Recto said.
Since January, the PPP Code IRR Committee, with DOF as the vice chair, held 23 extensive consultations and information sessions, gathering input from 840 comments across public, private and development sectors.
These discussions were open, inclusive and constructive and highlighted the crucial trust between the public and private sectors, which is essential for effective nation-building and development.
“I thank everyone who has worked hard to meticulously craft the IRR to be consistent with the law at the earliest possible time. Your work has ensured that investor concerns are rightfully addressed and that our PPP framework aligns with the best practices globally,” Recto said.
He said the PPP Code is only one aspect of the government’s comprehensive efforts to address policy and regulatory barriers, expedite investment approvals and proactively identify creative solutions and opportunities to foster a more favorable business environment in the country.
The IRR was signed by IRR Committee chairperson and National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan; IRR Committee vice chairperson and DOF Secretary Recto; Department of Budget and Management (DBM) Secretary Amenah Pangandaman; Department of Justice (DOJ) Secretary Jesus Crispin Remulla; Department of Trade and Industry (DTI) Secretary Alfredo Pascual; Department of the Interior and Local Government (DILG) Secretary Benjamin Abalos, Jr.; Commission on Higher Education (CHED) Chairperson J. Prospero De Vera III; PPP Center Executive Director Ma. Cynthia Hernandez; and private sector representative Ferdinand Tolentino.
The IRR was made available to the public on March 22, 2024 and will take effect 15 calendar days after publication.