Gov’t pushes amendments to BOT Law

MANILA, Philippines - The Aquino administration is pushing for the enactment of a new law amending the Build-Operate-Transfer (BOT) law to lure more investors to participate in Public-Private Partnership (PPP) projects worth over P200 billion.

Cosette Canilao, PPP Center executive director, said the enactment of the PPP Act of the Philippines through the amendment of Republic Act 7718 or the BOT Law would entice more investors to join the bidding for the PPP projects.

“We want to lure more investors to participate in our projects,” she stressed.

With the PPP Act, the gains of the PPP program would be institutionalized through a policy and institutional environment that has now been strengthened and made more facilitative of private sector engagements over the long term.

“We are pushing for the amendments to ensure that current process improvements are sustained and that these PPP contracts, procured through credible, transparent and accountable processes, will be honored in succeeding administrations. We also want to allay the fears of investors, so we are aligning all our national policies, guidelines and processes”, she explained.

Part of the amendments, she said, would introduce new provisions on how government would treat unsolicited proposals to include lengthening the time for the Swiss challenge.

“This will enable challengers to come up with better counter proposals,” she added.

Canilao also shared that some of the amendments hope to give additional incentives to the private sector for undertaking PPP projects of national significance.

The additional incentives, she added, includes exempting the winning private proponent from real property tax and other local taxes as well as the automatic grant of franchise, licenses, and other necessary business permits.

In order to ease private sector concerns on perceived risks from big-ticket projects, Canilao said the creation of a contingent liability fund would likewise be institutionalized through the amendment.

The PPP Center is also advocating full disclosure of PPP contracts, with exemption to those that contain proprietary information which may be kept confidential for a limited period.

Further, this initiative would institutionalize the Project Development and Monitoring Facility (PDMF), the PPP Center and its Governing Board – all aimed at ensuring the sustainability of the program.

Several bills were filed in both houses of Congress and are now going through deliberations.

“We’re hoping that both Houses of Congress will work on the amendments before the end of the year,” Canilao said.

Canilao earlier said at least 15 major infrastructure projects worth over P222 billion would be awarded before the term of President Aquino ends in June 2016. These include the P64.9-billion Light Rail Transit Line 1 Cavite extension project, the P35.4-billion Cavite – Laguna expressway project, the P29.83-billion Bulacan bulk water supply project, and the P15.92-billion operation and maintenance (O&M) of the Laguindingan Airport.