SECTOR: Economy
SONA YEAR: 2022
Pass amendments to BOT Law
PROMISE STATUS - DATE: In progress as of 07/17/2023
- Amendments to the implementing rules and regulations (IRR) of RA 6957 or the Build-Operate-Transfer Law were approved on Sept. 15, 2022 and took effect on Oct. 12, 2022. RA 6957, amended by RA 7718, provides a framework for Public-Private Partnership (PPP) infrastructure development.
- The revisions in the IRR include: providing a fairer definition of material adverse government action; revising definition of Reasonable Rate of Return; reinstituting the tariff setting and adjustment regime of the 2012 IRR; and deleting clause prohibiting arbitration arising from regulatory acts and decisions in the existing IRR.
- On Dec. 12, 2022, the House Committee on Public Works and Highways approved the consolidated HB 6527 on third and final reading, strengthening PPP for infrastructure projects and other development projects. Last May 23, the Senate filed its version, SB 2233, which President Marcos certified as urgent.
- Sen. JV Ejercito said on May 24 that the bill will provide a unified legal framework for PPP both at the national and local levels. This bill will unify the BOT Law, NEDA Joint Venture Guidelines, Local PPP, Joint Venture ordinances, guidelines issued by agencies with special charter and Supplemental Toll Operation Agreements by virtue of presidential decrees 1113 and 1894.