Public Private Partnership in

the Philippines
Some Q and A
What is Public-Private
Partnership (PPP)
PPP can be broadly defined as
contractual agreement between
the Government and a private firm
to:
• Finance
• Design
• Implement and
• Operate
Infrastructure facilities and
services that were traditionally
provided by the public sector.
Public + Private
= Infrastructure facilities
and services
 What is unique with PPP
• Balancing act: Embodies optimal risk
allocation between the parties –
minimizing cost while realizing project
developmental objectives.
• Needs to structure a project in such a way
that the private sector gets a reasonable
rate of return on its investment
 Elements of PPP
• A contractual agreement between the
public sector and the private sector
• Strategic mode of procurement
• Shared risks and resources
• Value for Money
• Outcome orientation
• Acceleration of infrastructure provision
and faster implementation
The Philippines is
one of the first
Asian country to
implement PPP
July 1990 – Republic Act No. 6957, also called the
BOT Law. It presented two project schemes:
build-operate-and-transfer (BOT) and build-and-
transfer (BT).
1994 – Amends Republic Act. No. 6957
to allow more contractual agreements
 9 Contractual agreements under
the BOT Law as amended
• Build-operate-and-transfer (BOT)
• Build-and-transfer (BT)
• Build-lease-and-transfer (BLT)
• Build-own-and-operate (BOO)
• Build-transfer-and-operate (BTO)
• Contract-add-and-operate (CAO)
• Develop-operate-and-transfer (DOT)
• Rehabilitate-operate-and-transfer (ROT)
• Rehabilitate-own-and-operate (ROO)
2010 – President Aquino reorganizes the BOT
Center and renames it as the Public-Private
Partnership of the Philippines and transfers it from
the Department of Trade and Industry to the
National Economic Development Authority