NEDA: Revised guidelines on joint ventures now in effect

MANILA, Philippines — Revised guidelines for joint ventures (JV) between the government and private entities took effect last Wednesday.

The new guidelines are in line with the government’s efforts to encourage public-private partnerships (PPPs) and investments in infrastructure.

The National Economic and Development Authority (NEDA) board chaired by President Marcos approved the revised guidelines last March 9.

“The amendments have been designed to enhance competition for projects under joint ventures, enhance the performance of private sector participants, and strengthen checks and balances to ensure the technical and financial viability of government projects. These changes aim to address recurring issues that have been observed in past JV projects,” NEDA Secretary Arsenio Balisacan said.

Revisions to the guidelines were made as part of the government’s push for improvements in the regulatory and policy environment for investments, particularly for PPPs and infrastructure.

Amendments to the guidelines include safeguard provisions aimed at promoting the pooling of resources and expertise between government and private entities through JVs as a viable, efficient and practical alternative to achieve development goals.

Under the guidelines, a JV may also charge tolls, fees and rentals for the use of the facility or service subject to regulatory approval.

Any addition to the scope of the project that is separable from the existing scope, and costs more than 10 percent of the original project cost shall be treated as a new project and will be subject to the approval and tendering process.

Due to its limited resources, the government is pushing for PPPs for infrastructure development.