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QC Enacts Public-Private Partnership Ordinance

 

ppp-ordinanceOrdinance No. SP 2336, series of 2014, provides for the Public Private Partnership Code of Quezon City or the “Quezon City Code pursuing a Public-Private Partnership Approach towards the development, providing for the procedure for selecting private sector proponent, adopting a contract management framework and providing appropriations and for other purposes.”  The PPP is a priority program of the Bautista Administration, to encourage private enterprise participation in projects to promote public good.  The legislation recognizes how public - private partnership projects can in result in more efficient, speedy and cost-effective delivery of services to the public.  

The PPP Code serves as an essential part of the overall infrastructure reform policy of the City government.  By encouraging performance-based management of the delivery of public services, applying commercial principles and incentives whenever possible.

The code provides for the creation of bodies within the QC-LGU responsible for selecting, managing and assessing PPP projects, the process for selection and evaluation, as well as guidelines for participation under the 16 different PPP modalities.  For all PPP modalities, the QC-LGU may provide credit enhancements and cost-sharing schemes.  In case of PPP projects requiring a franchise of license to operate, the winning private sector proponent shall be automatically granted by the QC-LGU, the franchise, license or permit to operate.

The City government, as a partner in PPP arrangements, may provide equity, subsidy, or guarantee and use local funds for the use of PPP projects.   It may be an investor,  subscribing to shares of stock in the special purpose vehicle or single purpose project company formed for the purpose of the project.  Another means of participation may be through cost-sharing or having the City government shoulder a portion of the capital expenses associated with the establishment of an infrastructure development facility, such as the provision of access infrastructure or any partial financing of the project.

Among the various PPP modes covered by this ordinance are:  Joint Venture (JV), Build and Transfer (BT), Build-Lease and Transfer (BLT), Build Operate and Transfer (BOT), 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), Lease or Affermage, Management Contract, and Service Contract.

Projects costing above Php 20M to Php 50M shall be submitted for confirmation by the City Development Council.  Projects of Php 50M to Pho 200M are for confirmation by the Regional Development Councils; and those above Php 200M pass through the Investment Coordination Committee of the National Economic and Development Authority.

 

Earlier key business-related legislation:
Economic Development Investment Incentives Code of Quezon City (SP-2219, series of 2013) provides for the creation of an Economic Development and Incentives Board (EDIB) which is tasked to develop policies to enhance the business climate, attract investors and promote existing businesses in the city.  It shall also result in the formulation of an annual investment priorities plan in consultation with the private sector.  Key considerations will be the business’ multiplier effect on the economy and the upgrading of quality of life especially of the poor.  Covered by this Code are investments in medium and large industries, or businesses with capitalization of at least Php 15M.  Both pioneer and nonpioneer enterprises are entitled to incentives.

New Quezon City Zoning Ordinance (SP-2200, series of 2013) aims to enhance the optimum use and allocation of land for future development needs of those who live, work and study in Quezon City.  It delineates specific areas which fall within “Growth Centers,” which are defined as those which have potential of being “nuclei for future economic, social and political development of surrounding areas; or central places that perform functions or offer services patronized by a wide-ranging clientele.  Among these are:  CBD Knowledge Community District, Cubao Growth Center, Batasan NGC Growth Center, Novaliches Lagro Growth Center, and the Balintawak Munoz Growth Center.

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