Gov’t OKs amendments to BOT Law IRR

The government has approved amendments to the implementing rules and regulations (IRR) of the build-operate-transfer (BOT) law, which seek to address concerns raised by the private sector and enhance the public-private partnership (PPP) program.

Socioeconomic Planning Secretary Arsenio Balisacan said in a tweet yesterday, the cabinet-level BOT IRR review committee has approved the revised IRR.

“We see PPPs in infrastructure and development initiatives as pivotal to the rapid transformation of the Philippine economy. Today’s approval by the cabinet-level BOT IRR review committee of the revised IRR is a significant step moving forward,” he said.

The IRR review committee is composed of the National Economic and Development Authority (NEDA) as chair, Department of Finance as co-chair and the departments of Environment and Natural Resources, Information and Communications Technology, Agriculture, Interior and Local Government, Energy, Trade and Industry, Transportation, Public Works and Highways, and the PPP Center.

“As promised during the public consultation, we will be publishing the updated version showing approved revisions in the IRR,” PPP Center deputy executive director Jeffrey Manalo said.

He said the government aims to have the amended BOT IRR published by October.

A public consultation was held for the proposed amendments to the BOT law’s IRR last Tuesday.

In particular, the proposed amendments seek to address stakeholder concerns on the financial viability and bankability of PPP projects; and clarify the ambiguous provisions that could cause delays in the PPP process.

The proposed amendments to the IRR were based on comments raised by stakeholders on revisions to the rules approved by the government earlier this year.

Concerns were raised on the risk sharing between the government and the private sector, as well as the provision that the government cannot be taken to court for arbitration.

Given the tight fiscal space, the government wants to utilize PPPs to address impediments to attracting more investments and to create jobs.

In particular, the government sees PPPs as a mode of financing infrastructure projects in energy, transportation and logistics, information technology, and water.