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Lipa City Integrated PPP Code
Lipa City Integrated PPP Code
PPP CODE
SPECIAL ORDINANCE NO. 59-2015
OPERATIVE PRINCIPLES:
■ FISCAL AUTONOMY OF THE LOCAL GOVERNMENT
■ GENERL WELFARE OF THE PUBLIC, TRANSPARENCY, PUBLIC
ACCOUNTABILITY AND SOCIAL ACCOUNTABILITY MECHANISMS
■ GOVERNMENTAL AND PROPRIETRY CAPACITIES THE CITY
■ POWER TO ACQUIRE, DEVELOP, LEASE ENCUMBER, ALIENATE, DISPOSE,
REAL OR PERSONAL PROPERTY.
■ PARTICIPATION OF THE SANGUNIAN.
■ Lipa City’s autonomy in the exercise of proprietary functions as well as
necessary, appropriate or incidental for its effective governance.
■ Collaboration or cooperation with other Local Governments, National
Government Agencies, GOCC, Government instrumentality,
■ Implementation of a comprehensive multi-sectoral development plan.
OPERATIVE PRINCIPLES:
■ As partner in a PPP arrangement, provide equity, subsidy, or
guarantee and use of local funds and use thereof for public
use and purpose.
■ Enter into JOINT VENTURES with people’s and non-
governmental organizations to engage in the delivery of
certain basic services, capability-building and livelihood
projects.
■ Active participation of the private sector in local governance.
■ Full public disclosure of all its transactions.
RATIONALE FOR PPP
■ Better, affordable and timely services to the community guided by
the following reasons:
– Lipa City’s development and Physical framework.
– Overall infrascracture reform policy of Lipa.
– Pressing and urgent public need.
– Avoidance of cost and public borrowing.
– Technology transfer and improved efficiency and quality
service.
– Commercial viability.
– Value for money and economic value-for-money and good
economic value.
– Social benefits
RATIONALE FOR PPP
– Economic growth and sustainability.
– Procurement of PPP projects must be competitive and
undertaken through OPEN COMPETITIVE BIDDING.
– A duly executed and legal PPP contract shall be
respected and not impaired, and shall be binding ong
the SECCESSOR ADMINISTRATOR pursuant on the
provision of CORPORATE SUCCESSION
– Efficient public service.
AUTHORITIES
■ Prohibition for extending Direct City Guarantee, Direct City Subsidy, and Direct City
Equity,
■ No event shall PPP Agreement subjecting Lipa City to pecuniary obligation of 20% of
the INTERNAL REVENUE ALLOTMENT
GENERAL REQUIREMENTS
■ for BOT variants that will be subject to bidding, the City may provide Direct
City Guarantee, Direct City Subsidy, and Direct City Equity, or viability Gap
Funding, PROVIDED that the City can use a portion of its GENERAL FUND, its
development fund comprising of 20% of its annual share in the Internal
Revenue Allotment.
■ For PPP Modalities, the city may provide CREDIT ENHANCEMENTS AND COST-
SHARING SCHEMES.
■ Official Development Funds may be availed for PPP projects where there is
difficulty in sourcing funds. ODA financing shall not exceed 50% of the
project cost.
■ Each PPP Modality adopted for a specific PPP Project MUST PROVIDE AND
ADOPT S TARIFF MECHANISM.
■ The rate of return on rate base shall be determined by laws, (12%)
GENERAL REQUIREMENTS
■ In case if project requires a Franchise or license to operate, the winning PSP
shall automatically be granted by the City.
■ Original franchise period shall not exceed 25 years.
EXTENDABLE: 15 years, thereafter 10 years.
MAXIMUM TOTAL FRANCHISE PERIOD: 50 years.
PPP PROCEDURES AND PPP CONTRACTS
1. SELECTION OF PSP BY COMPETITIVE SELECTION OR COMPETITIVE CHALLENGE
(preparation of FEASIBILITY STUDY)