PPP CODE


The General Santos City Public-Private Partnership (PPP) Code or the Ordinance No. 09, Series of 2014 is a local ordinance that provides rules and guidelines for entering into PPP Contractual Arrangements between the City Government and the private sector (Section 4).

The code also includes the creation of the General Santos City Public-Private Partnership Board (GSCPPPB) and the Public-Private Partnerships Selection Committee (PPP-SC).

Public-Private Partnerships are contractual agreements between the government and a private firm. These are aimed at financing, designing, implementing and operating infrastructure facilities and services that were traditionally provided by the public sector. PPP is a mechanism to distribute project risks to both public and private sectors while offering monetary and non-monetary advantages especially for the public sector.

The Philippine Government sees the PPP programs as a reliable and solid strategy to efficiently deliver public services, and create more job opportunities through a dynamic and solid infrastructure program. Guided by principles of transparency, accountability and good governance, PPP will engage the private sector as vital partners who can bankroll critical infrastructure projects that will deliver much needed services for its growing populace.

Supporting Legal Frameworks

  • Article II, Section 20 of the 1987 Philippine Constitution
  • RA 7160 (1991 Local Government Code)
  • RA 6957 (Build-Operate-and-Transfer Law of 1990)
  • Ordinance No. 09, Series of 2014 of General Santos City (General Santos City Public-Private Partnership (PPP Code)

Projects Eligible for PPP

  • Power Plants
  • Highways/ Roads
  • Railroads & Railways
  • Ports
  • Airport improvement/expansion
  • Transport Systems
  • Telecommunications
  • ICT Systems/ Facilities
  • Canals, Dams and Irrigation
  • Water Supply
  • Land Reclamation
  • Sewerage, Drainage and Dredging
  • Solid Waste Management
  • Tourism Facilities
  • Education
  • Health Facilities
  • Industrial and Tourism Estates
  • Markets, Warehouses and Slaughterhouses
  • Housing, Government Buildings
  • Other Infrastructure/ Development Projects/ Systems

PPP Projects on the Pipeline

  • Garbage Collection (Barangay Level)
  • Management of Sanitary Landfill (Recycling Facility and Waste-to-Energy Facility)
  • Specialized hospital services
  • Low-cost housing
  • Septage and Sewerage (GSC District)
  • Completion and Management of the GSC Gymnasium
  • Management of K’laja Karst Eco Park
  • Management of Bula Coral Reef
  • Antonio Acharon Sports Complex (Brgy. Calumpang)
  • Public Transport Terminal with Commercial Complex
  • Management of Traffic Lights with CCTV
  • Development and Management of Carlos P. Garcia Freedom Park (Oval Plaza)
  • Government Center

Investments Priority Areas

 

How PPP Works

 

PPP Variants

Build-and-Transfer (BT)
Project Proponent :

  • Financing and construction
  • Turns it over to the City Government after completion

City Government  :

  • Operates and Maintains
  • Pays the proponent on an agreed schedule its investments expended on the project plus Reasonable Rate of Return

 

Bulid-Lease-and –Transfer (BLT)
Project Proponent :

  • Financing and construction 
  • Transfers ownership of facility after cooperation/lease period (+50 years)

City Government  :

  • Ownership is automatically transferred to CG after contract term.

 

Build-Own-and-Operate (BOO)
*Needs approval of the President
Project Proponent :

  • Financing, construction, ownership, operation and maintenance
  • Collect tolls, fees, and rentals
  • May assign its operation and maintenance to a facility operator.

 

Build-Operate-and-Transfer (BOT)
Project Proponent :

  • Financing, construction, operation and maintenance
  • Charge facility users appropriate tolls, fees and rentals not exceeding the rates incorporated in the contract.
  • Transfers the facility after contract term not exceeding 50 years.

City Government  :

  • Facility is transferred after the contract term.

 

Build-Transfer-and- Operate (BTO)
Project Proponent :

  • Builds the facility on a turn-key basis, assuming cost overruns, delays and specified performance risk.
  • Operates the facility under an agreement.

City Government :

  • Facility is transferred after it is commissioned satisfactorily.

 

Contract-Add-and-Operate (CAO)
Project Proponent :

  • Adds to an existing infrastructure facility which it is renting from the CG
  • Operates over an agreed franchise period

City Government :

  • Paid a rental fee.

 

Develop-Operate-and-Transfer (DOT)
Project Proponent :

  • Right to develop adjoining property

City Government :

  • Enjoys the benefits the investment creates.

 

 Rehabilitate-Own-and-Transfer (ROT)
Project Proponent :

  • Refurbish existing facility, operate, maintain for a franchise period.

City Government :

  • Legal title is turned over to CG at the end of franchise period.

 

Joint Venture Agreements (JVA)
Project Proponent :

  • Jointly contribute capital services, assets or a combination of any or all and share risks to jointly undertake the financing, construction, rehabilitation, operation, maintenance and management.

 

Lease or Affermage
Project Proponent :

  • Provides improvement, operation, maintenance, and management of a facility leased for a fixed term.
               o    Under lease, project proponent
                      retains revenue and pay lease
                      fee to City Government.
               o    Under affermage, both parties
                      share revenues.

City Government :

  • Finance investment in infrastructure assets.
    Retains ownership of the facility/infrastructure.
               o  Paid a lease fee
               o  Shares revenue
                   as agreed.

 

Management Contract
Project Proponent :

  • Supplies management services to the public entity for a fee.

City Government :

  • Remains responsible for service provision.

 

 


Cost of Doing Business