Finance Secretary Benjamin E. Diokno has underscored that 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 December 5, 2023, will enhance public-private collaboration and lay the foundation for ensuring the realization of high-quality infrastructure projects and services in the country.

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.

It will consolidate all legal frameworks and create a unified system for investors to refer to when engaging in PPP projects.

Furthermore, it 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, Jr.’s administration as it supports the 8-Point Socioeconomic Agenda, which prioritizes job creation through the promotion of trade and investments and improving infrastructure.

According to the President, 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,” Secretary Diokno said.

Secretary Diokno emphasized that 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 added.

Under the Build Better More program, the government commits to invest in 197 infrastructure flagship projects (IFPs), amounting to about PHP 8.7 trillion. Secretary 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 likewise improves the framework for unsolicited proposals and establishes a predictable tariff regime to protect public interests.

Moreover, it strengthens institutions for PPPs, giving the PPP Center more powers and functions to work towards a more efficient and effective performance of its mandate.

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 President signed the PPP Code into law just two months after the ​​bicameral conference committee report on the disagreeing provisions of Senate Bill 2233 and House Bill 652 was ratified.

The PPP Code will take effect 15 calendar days after its publication in the Official Gazette or a newspaper of general circulation.

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.