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Wednesday, February 28, 2024

Diokno: PPP Code to support more infrastructure projects

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Finance Secretary Benjamin Diokno said the newly-enacted Public-Private Partnership (PPP) Code of the Philippines, which was signed into law as Republic Act No. 11966 by President Ferdinand R. Marcos Jr. on Dec. 5, 2023, will enhance public-private collaboration and lay the foundation to ensure the realization of high-quality infrastructure projects and services.

The PPP Code will establish a stable and predictable environment for collaboration of both public and private sectors and address the gaps in infrastructure financing, he said.

It will consolidate all legal frameworks and create a unified system for investors to refer to when engaging in PPP projects. It also clarifies the ambiguities in the existing Build-Operate-Transfer (BOT) Law, which was last amended in 1994.

The PPP Code was identified as a priority measure of President Marcos’ administration as it supports the 8-Point Socioeconomic Agenda, which prioritizes job creation through the promotion of trade and investments and improving infrastructure. The President said the PPP Code shows the country’s commitment and readiness to accelerate economic development.

“The Department of Finance has been actively supporting this measure since day one. I thank the President for his swift response in enacting the PPP Code, which is a testament to the government’s commitment to promoting stronger collaboration between the public and the private sectors,” Diokno said.

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He said the Philippines has a private sector-led economy, highlighting that it plays an indispensable role in building the foundations to propel the economy’s long-term growth and development.

“By encouraging stronger collaboration with the private sector, the law promotes innovation in processes, efficient resource mobilization, and the delivery of high-quality and cost-effective infrastructure projects and services in the country,” he said.

Under the Build Better More program, the government commits to invest in 197 infrastructure flagship projects (IFPs) amounting to about P8.7 trillion. Diokno said 41 of these projects will be financed through PPPs.

The PPP Code streamlines the project implementation process, updates approval thresholds for national PPP projects and promotes autonomy in implementing local PPP projects while ensuring alignment of local projects to national development plans.

The law also improves the framework for unsolicited proposals and establishes a predictable tariff regime to protect public interests.

The law also institutionalizes the PPP Governing Board, Project Development and Monitoring Facility and the new Risk Management Fund for a more sustainable Philippine PPP Program.

The PPP Governing Board, led by the National Economic and Development Authority (NEDA) secretary, is responsible for issuing the implementing rules and regulations (IRR) within 90 calendar days from the law’s effectivity.

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