Unsolicited proposals for PPP projects must offer new technology

MANILA, Philippines - The government’s Public-Private Partnership (PPP) Center said that unsolicited proposals for infrastructure projects need to offer new technology as mandated by the Build-Operate-Transfer Law.

PPP Center executive director Cosette Canilao that that right now, the government only accepts unsolicited proposals that are innovative and offer new technology.

“Under the BOT Law and the Implementing Rules and Regulations, we can only accept unsolicited proposals if a new technology is being introduced,” she said.

Canilao said that the government is reviewing the current rules but such a review would still go through scrutiny.

 “The review we are doing now will still undergo several procedural vetting and approvals before amendments, if any, can be done,” she said.

The government is currently reviewing its mechanism for unsolicited proposals for infrastructure projects that are not on its priority list.

In case the Aquino administration allows it, the government would have to put safeguards, she said.

In 2011, Finance Secretary Cesar Purisima said that the administration would stick to solicited proposals instead of unsolicited proposals which are more prone to “sweetheart deals.”

A PPP is a contractual arrangement between government and the private sector to deliver public infrastructure and public services. It is being pushed by the Aquino administration so that it would have more funds for public health and education.

Canilao said that should the government accept unsolicited proposals for priority projects, it would have to make sure that even those that would be submitting counter proposals under a Swiss Challenge mechanism of the BOT Law would be subject to scrutiny.

The government’s review of the unsolicited proposal mechanism stems from the North Luzon Expressway (NLEX)-South Luzon Expressway (SLEX) Connector Road Project.

Metro Pacific has submitted an unsolicited proposal to link NLEX and SLEX.