DOF spearheads efforts in advancing high-quality and cost-effective infrastructure in PH through PPPs
Through the leadership of Finance Secretary Benjamin E. Diokno, the Department of Finance (DOF)’s Privatization and Corporate Affairs Group (PCAG) has spearheaded efforts to improve the Philippines’ public-private partnership (PPP) policy environment to pave the way for high-quality and cost-effective infrastructure.
Within President Ferdinand R. Marcos, Jr.’s first 100 days in office, the PCAG, led by Undersecretary Catherine L. Fong, took the lead in amending the Build-Operate-Transfer Law’s (BOT) implementing rules and regulations (IRR).
The revised IRR of the BOT Law, which took effect on October 12, 2022, sought to address stakeholders’ concerns about the financial viability and bankability of PPP projects and about potential delays due to extra steps, rigid processes, or ambiguous provisions.
“The revised BOT Law IRR was a necessary step to allow us to better leverage PPPs in boosting the competitiveness of domestic industries and attracting a diverse range of investment opportunities,” Secretary Diokno said.
To further enhance private sector participation, the PCAG also spearheaded pushing for the approval of the PPP code, which codifies all PPP laws, rules, and regulations to establish a stable and predictable PPP policy framework in the country.
On September 27, 2023, the PPP Code of the Philippines was ratified by the Senate and House of Representatives in the Bicameral Conference Committee Report on the Disagreeing Provisions of Senate Bill No. 2233 and House Bill No. 6527.
The passage of the PPP Code is expected to directly support the Marcos, Jr. administration’s objective of closing the infrastructure funding gap to bolster economic development and sustain recovery.
In December 2022, the PCAG also played a crucial role in revising the Investment Coordination Committee (ICC) Guidelines by introducing an updated checklist that streamlines the submission, evaluation, and approval of PPP projects.
The PCAG’s Privatization Group is responsible for evaluating solicited and unsolicited PPP proposals, which undergo a rigorous screening process before they are submitted to the ICC.
The ICC evaluates the fiscal and monetary impacts of significant government