Philippines: Public-Private Partnerships by Local Government Units

As local government units (LGUs) have strived to carry out the responsibilities and activities devolved to them by the 1991 Local Government Code, they have explored and availed of various financing options including grants, loans, bonds, and public–private partnership (PPP) arrangements. The Local Government Code specifically authorized LGUs with financially viable infrastructure projects to enter into build–operate– transfer (BOT) agreements subject to the 1990 BOT Law and its Implementing Rules and Regulations (IRRs).

Lender Issues - Taking Security/Step-in Rights/Government Support

Taking Security

  • Is it possible to take security over the project assets and/ or the land on which they are built?

  • Is it possible to take security/ a pledge over shares? If so, do potential liabilities attached to those shares pass with the security?

  • Is it possible to take security over the cash flows / contractual rights (including future rights as they crystallize) / bank accounts of the project?

  • Which creditors get priority in the case of insolvency?

Public Private Partnership Act 2006

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PUBLIC PRIVATE PARTNERSHIPS ACT 2006

ARRANGEMENT OF SECTIONS

Part 1: PRELIMINARY

1. Short title and commencement

2. Interpretation

3. Act binds Government

4. Purposes

Part 2: AUTHORISATION AND IMPLEMENTATION REGULATIONS

5. Authorisation Regulations

6. Public process

7. Initial consultation requirements

8. Implementation Regulations

9. Content of Implementation Regulations

10. Harmonisation obligations

11. Public charges for PPP goods and services

Structurer les contrats de participation du secteur privé (PSP) aux petits projets d’approvisionnement en eau : Une boîte à outils

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Dans les pays en développement, les autorités publiques de l’eau doivent relever un redoutable défi : honorer leur obligation de fournir des services de distribution d’eau aux habitants des zones rurales isolées, des zones périurbaines et des petites villes. Ainsi, même dans les pays où le secteur de l’eau a été décentralisé, les communautés locales ont de plus en plus tendance ces dernières années à passer des accords avec des opérateurs privés pour assurer la fourniture de services de distribution d’eau de petite envergure. On reconnaît aujourd’hui que les opérateurs privés sont peut-être mieux placés pour assurer ces services dans des localités isolées, car ils sont plus près des sites d’intervention et potentiellement mieux à même de rendre compte de leur gestion aux usagers. Les opérateurs locaux privés ont parfois aussi la possibilité de mobiliser des sources de financement supplémentaires, aux conditions du marché.

Proyecto EcoPark: 350 estacionamientos subterráneos en San Borja (PerPublic-private partnership for the Construction and Operation of 350 Underground Parking Lot in San Borja, Peru)

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Short summary in English: Public-private partnership for the design, financing, construction, operation, maintenance and transfer of 14,320 square meters of space, including an underground parking lot and commercial space at ground level. The period of the contract is 32 years from the date of signing. The municipality will receive 8% of income from the parking operations and rental income from commercial space. The private party is free to set prices on both the parking and rental operations.

PPP Manual for Local Government Units

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PPP Manual for Local Government Units (LGUs) - Developing Public-Private Partnerships in Local Infrastructure and Development Projects, Public-Private Partnership Center, 2012.

 

- Volume 1: Understanding PPP Concepts, and Framework

- Volume 2: Developing Public-Private Partnerships in Local Infrastructure and in Development Projects

- Volume 3: Utilizing LGU PPP Project Templates and Bid Documents

 

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