Looking back, this policy journey can be viewed through four significant eras.
Era 1: The BOT era
Anchored on the 1987 Constitution, which recognizes the indispensable role of the private sector in national development, the first era began with the enactment of the Build-Operate-Transfer (BOT) Law in 1990. The framework was further strengthened through amendments in 1994.
Republic Act No. 6957 initially recognized only two arrangements: Build-Operate-and-Transfer (BOT) and Build-and-Transfer (BT). It also allowed only competitive public bidding as the method for selecting private sector partners.
Republic Act No. 7718 expanded the framework by introducing seven additional PPP modalities and allowing unsolicited proposals.
For many years, the BOT Law served as the principal legal framework for PPP projects undertaken by both the national government and local government units. It also became one of the world's earliest comprehensive legal frameworks governing public-private partnerships.
Era 2: National joint ventures
The second era began with the issuance of the National Economic and Development Authority's (NEDA) Joint Venture (JV) Guidelines in 2008. The guidelines were subsequently revised in 2013 and again in 2023.
Unlike the BOT framework, under which the government primarily acts as a facilitator or "steerer," the JV framework enables government-owned and -controlled corporations (GOCCs) and government instrumentalities with corporate powers (GICPs) to contribute assets, participate in project management, and share in a project's profits and losses.
This gave government entities genuine "skin in the game," allowing them to move beyond policy-making and regulatory functions to become active project partners.
Era 3: Local joint ventures and leases
Recognizing that the NEDA JV Guidelines did not cover joint ventures and leases undertaken by local government units (LGUs), this author developed a template PPP Ordinance, which has since been adopted or used as a reference by more than 100 provinces, cities, and municipalities since 2012.
The authority of LGUs to enact such ordinances is anchored on the constitutional grants of local autonomy and fiscal autonomy, a position confirmed by the Department of the Interior and Local Government (DILG) in 2016. These ordinances have enabled LGUs to pursue innovative and responsive partnerships tailored to local needs, priorities, and development objectives.
Era No. 4: The PPP Code era
The BOT Law and the NEDA JV Guidelines are now part of Philippine PPP policy history. The enactment of the Public-Private Partnership (PPP) Code (Republic Act No. 11966) in 2023 ushered in a new era by repealing the BOT Law and the 2023 NEDA JV Guidelines, while establishing a comprehensive statutory framework for PPPs.
The PPP Code consolidated and modernized the country’s PPP framework by prescribing 13 PPP arrangements, providing clearer rules, streamlining procedures and approval processes, centralizing the initial check of unsolicited proposals, and strengthening institutional mechanisms for PPP Implementation.
However, the PPP Code does not cover all forms of collaboration between the government and the private sector. Notably, it excludes joint ventures and leases undertaken solely for purely commercial, revenue-generating, or asset monetization purposes.
Consequently, GOCCs, GICPs, LGUs, and State Universities and Colleges (SUCs) and Local Universities and Colleges (LUCs) may adopt their own policies governing these excluded arrangements.
Understanding these four eras is essential to appreciating the continuing evolution of Philippine PPP policy.
Rather than replacing one another, these policy frameworks reflect the country's evolving governance needs.
As the Philippine PPP framework continues to evolve, the enduring challenge is to ensure that each framework promotes transparency, accountability, efficiency, innovation, and greater value for the Filipino people. —Ed: Corrie S. Narisma
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