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Senate COMMITTEE on PUBLIC WORKS

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Senate COMMITTEE on PUBLIC WORKS Republic of the Philippines CONGRESS OF THE PHILIPPINES Senate PASAY CITY COMMITTEE ON PUBLIC WORKS joint with the Committees on Economic Affairs, Finance and Ways and Means TECHNICAL WORKING GROUP MEETING FOR THE PPP BILLS DATE : 9 August 2020 FOR : SEN. RAMON “Bong” REVILLA, JR. Vice-Chairperson SEN. SONNY ANGARA, Vice-Chairperson SEN. PANFILO M. LACSON SEN. MANUEL “Lito” M. LAPID SEN. RONALD “Bato” DELA ROSA SEN. FRANCIS “Tol” N. TOLENTINO SEN. JOEL VILLANUEVA SEN. GRACE POE SEN. CHRISTOPHER LAWRENCE T. GO SEN. RICHARD GORDON SEN. LEILA M. DE LIMA SEN. FRANCIS “Kiko” PANGILINAN SEN. RALPH G. RECTO, Ex-Officio Member SEN. JUAN MIGUEL “Migz” F. ZUBIRI, Ex-Officio Member SEN. FRANKLIN M. DRILON, Ex-Officio Member SEN. IMEE MARCOS FROM : SEN. EMMANUEL “MANNY” D. PACQUIAO, Chairperson SUBJECT : TECHNICAL WORKING GROUP MEETING FOR THE PPP BILLS The Committee on Public Works conducted three (3) public hearings held on September 4, 2019, October 2, 2019, and January 29, 2020, respectively. On the second hearing, Senator Franklin Drilon suggested that we wait for the proposed draft of the bill to be submitted by the Executive Branch. That procedure will allow the Committee to appreciate the suggestions from the Government’s implementing arm. The Executive Branch’s proposal is expected to image its needs based on the understanding of the present situation. The consideration of its ideas will also enhance the approval of the bill. Presently the undersigned Committee Chair, has been apprised that the proposal from the Executive Branch is still in the process of consideration and discussion prior to approval by the Infrastructure Committee (INFRACOM) of the National Economic and Development Authority (NEDA). Nonetheless, the Chair tasked the Secretariat support group and his staff to assist in the preparation of a discussion draft based on the bills submitted by our colleagues Senator Ralph Recto, Senator Franklin Drilon, Senator Juan Edgardo Angara, Senator Imee Marcos, and the one from the Committee Chair. In the same light that will facilitate approval of the bill, the version from our counterparts in the House of Representatives was also reviewed. Moreover, the working group invited experts and representatives from concerned agencies of the Government for consultation to reflect a better understanding of the PPP, and have a preview of implementation concerns. Professor-Lawyer Alberto C. Agra, who is a certified PPP specialist and formerly of the Institute for Public-Private Partnerships in Virginia, USA, sat down with the Chair and the working staff on August 13, 2019 and March 9, 2020. Mr. Alvin Sia and Ms. Sarah Amor Conche of the Department of Finance (DOF) and Director Francis Bryan Coballes, Mr. Quintin de Luna and Ms. Leyden Sta. Isabel of the NEDA, came to discuss with the Chair and the working staff and shared their views on various dates in February 2020. Deputy Executive Director Eleazar Ricote, Director Jeffrey Manalo, Atty. Phebean Ramos, Norbert Peter Indunan, Ricardo Benjamin Osorio, John Dexter Lunk and Maria Beatriz Quintos of the PPP Center gave insights to the Chair and the working staff at a meeting on February 4, 2020, and via Zoom meetings on May 18, June 8, 10, 11, 15, 16, 19, 22, July 8, 15, 30 and August 4 all in 2020. However, the wisdom and input of the Senators are the essence and eminent value of any bill that will pass approval from the Senate. Therefore, while the Executive Branch proposal is being awaited, and while ideas were distilled as discussed above, the Chair presently submits the attached discussion draft for preliminary consideration of ideas. Specifically, the valued learning and experience of the Senators is being borrowed to give more focus to the following matters in the discussion draft: 1) For flexibility in implementing PPP projects, should PPP modalities be referred to the IRR? 2) Should the new PPP law cover all PPP projects, including Joint Venture Agreements (JVAs)? 3) What type of projects are eligible to be implemented as PPP? 4) Which agencies are eligible to undertake/implement PPP projects? 5) Is there a need to adjust the project cost thresholds for approval? If yes, how shall it be adjusted? 6) Should local (LGU) PPP Projects undergo review and approval by the ICC and the NEDA Board? 7) How do we ensure the timely approval of PPP projects? 8) Should unsolicited proposals be allowed for projects which are part of the priority list of the government? 9) Should Implementing Agencies be allowed to convert an Unsolicited Proposal to a Solicited Bidding? 10) What is the most competitive mode for conducting the Swiss challenge for unsolicited PPP proposals? 11) Is 60 working days sufficient for the challenge period for unsolicited proposals, or should it be lengthened? 12) How will the proposed law ensure that lessons from past PPP projects are applied in present and future PPP projects? 13) How do we ensure that the objectives of implemented PPP projects are being met? 14) What additional powers and functions should be given to the PPP Center as the focal agency of the PPP Program? 15) In which agency should the PPP Center be attached to? 16) Which agencies should be represented in the PPP Governing Board? 17) Should there be tax incentives/ specific tax-related provisions for PPP projects to encourage more PPP investments? 18) What are the considerations in determining the reasonable rate of return (RROR) of a PPP project? 19) What should be the threshold for allowing expansions or extensions of existing PPP projects? I will appreciate the views that will be kindly shared by the Honorable Senators. Enclosed are the following: Matrix of the five PPP bills filed by Senators Drilon, Angara, Recto, Marcos, and the undersigned; House Bills 77, 1244, 5452, 5452 and 6575 on PPP Technical Working Group Discussion Points History of PPPs in the Philippines and Other Relevant Information Republic Act No. 6957 or the Build-Operate-Transfer (BOT) Law; Republic Act No. 7718 an Act Amending the BOT Law; Executive Order No. 08, s. 2010, Creating the PPP Center; and Executive Order No. 136, s. 2013, Amending Executive Order No. 8. In view of the abovementioned information, the Committee on Public Works will convene the Technical Working Group via Cisco Webex (videoconference/teleconference) on 26 August 2020. 10 a.m. We would like to request your representative/s (max of 2) to participate in this meeting to help us draft the consolidated bill. For confirmation of attendance, please contact the Committee on Public Works Secretariat through the email provided below. We shall be sending out the guidelines on how to access the Cisco Weber application to confirmed attendees at a later date. To facilitate the TWG discussion, the Committee prepared discussion points (attached). We request that your representative/s prepare positions regarding each discussion point. Other comments, issues, and/or recommendations that will be raised during the TWG will be consolidated and discussed at another meeting to be set at a later date. Should your representative/s be unable to attend the TWG, we request for your written comments on the attached materials, using the discussion points as guide. For information and guidance. Thank you. FOR THE CHAIRPERSON: By: ETHEL HOPE L. DIGNADICE-VILLAFLOR Legislative Committee Secretary Tel. No. 0906 573 3043 Email: [email protected] .
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