Opening Remarks
(Delivered by Undersecretary Joseph J. Capuno)

Arsenio M. Balisacan, PhD

Secretary, National Economic and Development Authority

Ceremonial Signing of the Implementing Rules and
Regulations (IRR) of Republic Act No. 11966 or the
Public-Private Partnership (PPP) Code of the Philippines

Megatower, Mandaluyong City

21 March 2024 | 10:00 AM

 

On behalf of our Secretary,
• Senator Joseph Victor G. Ejercito,
• Cong. Joey S. Salceda,
• Cong. Romeo S. Momo, Sr.,
• Cong. Rida Robes,
• Officials and colleagues in government,
• Distinguished guests,
• Friends from the media,
Good morning.

On December 5, 2023, President Ferdinand R. Marcos, Jr. signed Republic Act No. 11966 or the Public-Private Partnership (PPP) Code of the Philippines. The law, which updates the Build-Operate-Transfer Law after nearly three decades, took effect on December 23, 2023. Today, we witness the signing of its Implementing Rules and Regulations or IRR. This pivotal moment underscores the Marcos Administration’s commitment to its “Build-Better-More” program of building and realizing high-quality, game-changing infrastructure projects that enable socioeconomic transformation.

To recall, the PPP Code clarifies ambiguities in the existing law, addresses the bottlenecks that constrained the PPP Program, and provides a stable and predictable framework that fosters competition and creates an enabling environment for PPP projects. Under the law, the PPP Governing Board, acting as the IRR Committee, was mandated to promulgate the rules within 90 days from the law’s effectivity or by March 23, 2024. I am happy to announce that we have promptly met the deadline as we sign the IRR today. Tomorrow, the rules will be published in a newspaper of general circulation.

The PPP Program is a major government initiative—in light of the tight fiscal space, it is an essential component of the President’s transformation agenda under the Philippine Development Plan (PDP) 2023-2028. PPPs will allow us to tap the private sector’s valuable experiences, expertise, and financial resources to advance the country’s socio-economic agenda and development initiatives. We are in a hurry to get strategic investments to increase our economy’s growth potential. The momentum for reform and action is strong, and we are pulling out all the stops for investors who wish to do business in one of the most promising economies in the region.

Since January, the PPP Code IRR Committee has engaged in extensive consultations with stakeholders across the public, private, and development sectors in open, inclusive, and constructive discussions. The Committee conducted 23 consultations and information sessions and received and processed 840 comments. Indeed, we have done our best to enable dialogue, engage in consultation, and be receptive to the new ideas during the drafting process. This exercise underscores the importance of trust built with the private sector as we recognize its indispensable role in nation-building and sustainable development. Indeed, as the term ‘partnership’ implies, trust will enable the PPP program to take off and deliver in the coming years.

Thus, I express my most profound appreciation to everyone involved in the development of the IRR. Your efforts ensured the IRR’s clarity, flexibility, and consistency with the law and its responsiveness to sector-specific realities and challenges relative to the development, approval, procurement, and implementation of PPPs in the country.

We extend our gratitude to our partners in government and implementing agencies, both national and local, for their unwavering dedication and tireless efforts in our shared mission of delivering essential and high-quality public services. Special thanks go to our esteemed champions and partners in the Legislature – Senator JV Ejercito, Congressman Joey Salceda, Congressman Romeo Momo, as well as Cong. Rida Robes whose support was instrumental in passing this landmark legislation.

We acknowledge our esteemed development partners’ invaluable contributions and insightful comments on the draft IRR. Your thoughtful feedback has been instrumental in shaping this framework, ensuring its alignment with best practices and international standards. We sincerely appreciate your ongoing engagement and look forward to continued collaboration as we work together to achieve ever-loftier aspirations.

As I close, it is reasonable to say that there has never been a better and more exciting time for the private sector to participate in the PPP Program. Presently, there are 119 projects in the pipeline, with 95 at the national level and 24 at the local level, collectively worth about PHP 2.4 trillion. Majority of these are in the physical and digital connectivity phases as well as property development, but opportunities also abound for social infrastructure projects. We anticipate and eagerly look forward to more proposals in the coming years.

As has been mentioned by my fellow Economic Managers, we are rolling out the red carpet for investment because the President is in a hurry to get things done. Members of the Cabinet have taken this directive to heart: the government is going all out to institute reforms, address policy and regulatory roadblocks, fast-track approvals, and identify novel solutions and opportunities to enhance the business climate. Investors and analysts have expressed their optimism and excitement over the country’s prospects for growth. Therefore, we have no choice but to deliver – and deliver we will.

We are poised to deliver more financially viable, well-structured, and high-quality PPP projects that the Filipino people deserve under a Bagong Pilipinas, paving the way for the realization of a matatag, maginhawa, at panatag na buhay para sa lahat.

Thank you once again, and good day to all.

-END-