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Public-Private Partnerships, commonly referred to as PPP, are collaborative agreements between government entities and private sector partners to develop infrastructure projects or deliver public services. In the Philippines, including Makati City, PPPs have become a preferred solution to bridge gaps in funding, technology, efficiency, and management capacity for public ventures. These partnerships leverage the strengths of both sectors to achieve sustainable development goals, especially in critical sectors like transportation, healthcare, energy, and urban development.
Makati City, as a pivotal financial and commercial hub, actively pursues PPP projects to enhance its public services and maintain its competitive edge. These arrangements are subjected to national laws such as Republic Act No. 6957, as amended by RA No. 7718, which establishes the legal foundations for PPPs in the country, alongside local ordinances and guidelines adopted by the city government.
Engaging in a PPP project involves navigating complex legal, financial, and regulatory landscapes. Here are some common situations where legal assistance is essential:
If you are a private company, consortium, or government entity intending to participate in, initiate, or contest a PPP project in Makati City, seeking legal advice early in the process can help you avoid costly missteps and ensure a well-structured agreement.
PPPs in Makati City are governed primarily by national laws such as the Build-Operate-and-Transfer (BOT) Law, but the local city government has also issued ordinances and guidelines for the procurement, execution, and monitoring of locally-initiated PPP projects. Key provisions include:
It is important to study both national and local legislation in conjunction with each other, as Makati City may provide additional requirements or offer unique incentives to promote PPP investments tailored to local needs.
A Public-Private Partnership in Makati City is a formal collaboration between the local government and private sector entities to design, finance, build, operate, or maintain public infrastructure or services. These partnerships are regulated by both national and local laws.
Private corporations, joint ventures, consortia, and international investors who fulfill the eligibility criteria can participate in PPP projects, subject to compliance with the relevant laws, ordinances, and bidding requirements.
Common PPP schemes include Build-Operate-and-Transfer (BOT), Build-Lease-and-Transfer (BLT), Build-Own-and-Operate (BOO), joint ventures, management contracts, and lease agreements, among others.
You must follow the prescribed procedures which include submitting a detailed project proposal to the appropriate city government office. The proposal undergoes technical, legal, and financial evaluations before any negotiations or approvals.
Certain PPP projects may be eligible for tax incentives, regulatory relief, or support under special laws, especially if they are aligned with priority development areas or promote public welfare.
PPP contracts define risk allocation and sharing between the government and private sector based on project requirements. Issues covered include construction, financing, revenue, political or regulatory changes, and force majeure events.
The Makati City PPP office or unit facilitates the review, approval, monitoring, and evaluation of PPP projects, ensuring transparency, accountability, and efficient delivery of public services.
Legal uncertainties, regulatory delays, land acquisition issues, public opposition, changes in leadership, and fulfillment of financial obligations are some challenges that may arise in PPP initiatives.
Yes, all PPP projects must comply with national and local environmental laws, obtain the necessary permits and clearances, and conduct environmental impact assessments when required.
A lawyer can provide expert advice on compliance, contract negotiation, deal structuring, risk assessment, and dispute resolution to protect your interests and ensure the project's legal soundness.
To further guide you, here are some relevant resources and agencies that can provide more information or assistance regarding PPPs in Makati City:
If you are considering participation in a PPP project in Makati City or seeking to resolve issues in an ongoing PPP venture, take the following steps:
Early legal intervention helps anticipate pitfalls, negotiate favorable terms, and expedite the successful implementation of your PPP project in Makati City.
