PPP unit pushed to vet JVA proposals

CEBU, Philippines — A Public-Private Partnerships (PPP) Unit to standardize all project proposals to be entered with the city government has been pushed by the City Council. 

The council, upon motion of Councilor Rey Gealon following a privilege speech last Wednesday, asked the Office of the Mayor to issue an executive order creating the said unit and appoint its members.

The mayor’s office was also urged to mobilize the Local Development Council to stand as a reception of the proposals from the public sector.

Gealon began by citing several PPPs in Cebu City such as Pilipinas Water Resources Incorporated, South Road Properties (SRP) Water Management, Filinvest Citi de Mari Development, Megawide Carbon Market Rehabilitation, Universal Hotels and Resorts Incorporated (UHRI) Cebu Integrated Resort and Casino Project, Cebu–Cordova Link Expressway (CCLEX), etc.

He said there are others also lining up in hopes of engaging with the city’s direction towards progress and development.

According to Gealon, Cebu City has been welcoming private entities who desire to venture into a partnership provided that they are law, rule, and regulation compliant.

He then cited Republic Act (RA) 11966 otherwise known as the PPP Code of the Philippines, which was signed into law last December 5, 2023, and came into effect in the same month. It then becomes effective last April 6, 2024.

The PPP code, according to Gealon, aims to strengthen and institutionalize PPPs in the country through a unified legal framework. He added this code clarified the “ambiguities” in the Build Operate Transfer Law which was last amended in 1994.

“The PPP code rendered inoperable all existing ordinances such as ours, Cebu City Joint Venture Ordinance, or City Ordinance 2154,” he said.

He explained that the JVA ordinance of Cebu City has adopted the NEDA framework which was repealed by the PPP code. Gealon said the PPP code has superseded the existing Cebu City JVA ordinance.

According to Gealon, the PPP code encompasses all the contractual arrangements including the JVA, toll operation agreements, lease agreements, rehabilitation, and maintenance among others, for all government-owned properties.

The most salient feature of the PPP code according to Gealon, is that the procedure for approving both the local and national PPP projects has been standardized.

The local PPP projects shall be approved by the local council regardless of the cost to ensure alignment of the local development plans. As for the PPP projects that affect national landscapes shall secure the endorsement of the national government and its respective regional councils under the NEDA.

“The PPP code also introduced a new procedure for unsolicited proposals which must be endorsed to the PPP center for determination of their completeness before being forwarded to a local government unit (LGU),” said Gealon.

Another provision stipulates that private proponents are obliged to submit their proposal first to the PPP centers before the LGU can act on it with strict periods to follow. In line with this, the establishment of PPP units among LGUs is also hereby mandated.

This unit will stand as the Pre-Qualification Bids and Awards Committee (PBAC).The mobilization of the Local Development Council is also important considering that the city regularly receive various unsolicited proposals from the private sector.  (CEBU NEWS)