Warranties, Liabilities

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RA 6957 refers to the "Build-Operate-Transfer Law" in the Philippines.

Enacted in 1990, this law


allows private entities to participate in infrastructure projects by financing, designing,
constructing, operating, and maintaining public infrastructure and development projects. The
government transfers ownership to the private entity, usually after a specified period.

The law aims to accelerate infrastructure development by leveraging private sector resources
and expertise. It's essential for public-private partnerships, contributing to the country's
economic growth. The specifics of projects under RA 6957 may vary, and subsequent
amendments or related laws could have occurred since my last knowledge update in January
2022. For the most recent information, consider checking the latest legal documents or
government sources.

RA 6957, also known as the Build-Operate-Transfer Law, consists of several sections. Here is a
brief explanation of some key sections:

1. **Section 1: Title** - This section simply states the title of the law, which is "An Act
Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects
by the Private Sector, and for Other Purposes."

2. **Section 2: Declaration of Policy** - It outlines the policy of the government to encourage


private sector participation in infrastructure projects to accelerate their development and
promote economic growth.

3. **Section 3: Definition of Terms** - This section provides definitions for key terms used in the
law to ensure clarity and consistency in its interpretation.

4. **Section 4: Government Undertakings Subject to Private Sector Participation** - Specifies


the types of projects eligible for private sector involvement under this law.

5. **Section 5: Kinds of Contracts Allowed** - Outlines the permissible arrangements for


contracts between the government and private entities, including Build-Operate-Transfer (BOT)
and variants.

6. **Section 6: Guidelines for the Transfer of Ownership** - Provides guidelines for the eventual
transfer of the project back to the government after a specified period.

7. **Section 7: Powers and Functions of the Implementing Agencies** - Details the


responsibilities and authority of government agencies tasked with implementing the law.

8. **Section 8: Incentives** - Specifies incentives or benefits that may be granted to private


entities to encourage their participation in infrastructure projects.

9. **Section 9: Revolving Fund** - Establishes a revolving fund to facilitate the implementation


of projects covered by the law.
10. **Section 10: Penalties for Violation** - Outlines penalties for individuals or entities found to
be in violation of the provisions of the law.

11. **Section 11: Separability Clause** - Ensures that if any provision of the law is declared
invalid, the remaining parts will still be effective.

12. **Section 12: Repealing Clause** - States that laws, decrees, orders, rules, and regulations
inconsistent with the provisions of RA 6957 are repealed or modified accordingly.

13. **Section 13: Effectivity** - Specifies when the law takes effect.

Each section plays a crucial role in defining the scope, procedures, and regulations related to
private sector participation in infrastructure projects under the Build-Operate-Transfer
framework in the Philippines. For a more detailed understanding, referring to the full text of the
law and any subsequent amendments is recommended.

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