Sector-specific PPP landscape

Roads

North Luzon Expressway Rehabilitation and Expansion Project

Road Network Length

2,08,329.40 km

Road Infrastructure Quality

3.7 1 (low)-7 (high)

km = kilometer.

Sources: Department of Public Works and Highways (DPWH). 2022. Summary of Existing National Bridges; 2022. Road Data: Atlas 2022; House of Representatives Congressional Policy and Budget Research Department. 2023. Philippine Road Network: Facts in Figures; theGlobalEconomy.com. 2019. Philippines: Roads Quality.

The Philippine road network is divided into national, local, and other roads, based on the road functional classification criteria set by the DPWH described in the table below and illustrated in the figure below.

Philippine Road Functional Classification Criteria

National Roads
National primary roads
A contiguous length of significant road sections extending linearly without any breaks or forks that connect major cities (at least around 100,000 people) comprising the main trunk line or the backbone of the national road system
National secondary roads
Directly connect cities to national primary roads, except in metropolitan areas Directly connect major ports and major ferry terminals to national primary roads Directly connect major airports to national primary roads Directly connect tourist service centers to national primary roads Directly connect cities (not included in the category of major cities) Directly connect provincial capitals within the same region Directly connect major national government infrastructure to national primary roads or other national secondary roads
Applicable only for national primary and national secondary roads
Bypass/diversion roads—roads that divert through traffic away from the city/municipality business center (with affirmative feasibility study) Roads that would connect or fill the gap between adjoining national roads (protruding) to form a continuous national road network
National tertiary roads
Other existing roads under Department of Public Works and Highways that perform a local function

Local Roads
Provincial roads
Connect cities and municipalities without traversing national roads Connect national roads to barangays through rural areas Connect to major provincial government infrastructure
Municipal and city roads
Roads within the poblacion (city/town center) Roads that connect to provincial and national roads Roads that provide inter-barangay connections to major municipal and city infrastructure without traversing provincial roads
Barangay roads
Other public roads (officially turned over) within the barangay and not covered in the above definitionsa

Other Roads
Expressways
Highways with limited access, normally with interchanges; may include facilities for levying tolls for passage in an open or closed system

aThese are public roads officially turned over to the barangay either by the national or higher LGU or by private developers.

Source: DWPH. 2018. Department Order No. 133, Series of 2018.

Philippine Road Network

Department of Public Works and Highways (DPWH). 2022. Road Data: Atlas 2022.

Roads

Contracting Agencies

As the engineering and construction arm of the Philippine government, the Department of Public Works and Highways (DPWH) is the implementing agency for national PPP projects in the roads sector.1 The DPWH is tasked to continuously develop its technology to ensure the safety of all infrastructure facilities and secure the highest efficiency and best quality in construction for all public works and highways. Its responsibilities include the planning, design, construction, and maintenance of infrastructure facilities, especially national highways, water resource development systems, and other public works. It is also responsible for providing an integrated planning for highways, flood control and water resource development systems, and other public works. In addition, the DPWH develops and implements effective codes, standards, and reasonable guidelines to ensure the safety of all public and private structures in the country and assure efficiency and proper quality in the construction of public works. It is further mandated to classify roads and highways into national, regional, provincial, city, municipal, and barangay roads and highways, and to provide or authorize the conversion of roads and highways from one category to another.
The Toll Regulatory Board (TRB), an attached agency of the Department of Transportation (DOTr), was likewise authorized to enter into contracts for the construction, operation, and maintenance of toll facilities such as national highways, roads, bridges, and public thoroughfares. However, the PPP Code has repealed that authority. The TRB continues to be the regulator of the roads sector.
LGUs have primary jurisdiction over the planning, funding, and maintenance of barangay, municipal, city, and provincial roads and bridges within their respective territorial jurisdictions. They are responsible for developing comprehensive development plans for their jurisdictions. The LGUs are required to collaborate with the DPWH and other national agencies to ensure proper integration of the local roads into the broader national transportation network and to standardize design and construction guidelines and advancements.
For road transport projects, the national implementing agency is the DOTr. The Land Transportation Franchising and Regulatory Board (LTFRB), an attached agency of the DOTr, is in charge of promulgating, administering, enforcing, and monitoring the compliance of policies, laws, and regulations of public land transportation.2 The LTFRB prescribes and regulates routes, economically viable capacities, and zones or areas of operation of public land transportation services provided by motorized vehicles in accordance with the public land transportation development plans and programs approved by the DOTr. It has the authority to issue, amend, revise, suspend or cancel certificates of public convenience or permits authorizing the operation of public land transportation services provided by motorized vehicles, and to prescribe and periodically review their fares, rates and other related charges.3
1Implementing agencies, whether national or local, are the government contracting agencies for PPP projects in the sectors that are within their respective mandates to undertake.
2Land Transportation Franchising and Regulatory Board (LTFRB). What is LTFRB? Land Transportation Franchising and Regulatory Board.
3Government of the Philippines. 1987.Executive Order No. 292.

Roads

Sector Laws and Regulations

The key laws and regulations that govern or support the roads sector are summarized in the table below.

Law or Regulation	Description
Limited Access Highway Act (Republic Act No. 2000, 1957)a	Authorized the Department of Public Works and Communications to plan, designate, establish, regulate, vacate, alter, improve, maintain, and provide limited access facilities for public use whenever it was of the opinion that traffic conditions, present or future, would justify such special facilities, and to design any limited access facility and to so regulate, restrict, or prohibit access as to best serve the traffic for which such facility was intendedb
Revised Philippine Highway Act (Presidential Decree No. 17, Series of 1972)	Controls the selection of highways or highway projects to receive national aid; expenditures for administration, maintenance, improvement, betterment, and rehabilitation on highway projects; and the classification of highways and the widths, acquisition, and use of ROW
Toll Operation Decree (Presidential Decree No. 1112, Series of 1977)	Creates the TRB Authorizes the TRB to grant authority to (i) operate a toll facility and issue the necessary toll operation certificate; (ii) issue, modify, and promulgate initial toll rates; and (iii) approve or disapprove petitions for toll increasesc
Local Government Code (Republic Act No. 7160, as amended)	Authorizes LGUs to provide basic services within their respective territorial jurisdictions, such as barangay, municipal, city, and provincial roads and bridges Authorizes the sanggunian of an LGU to prescribe the terms and conditions and fix the rates for the imposition of toll fees or charges for the use of any public road, pier or wharf, waterway, bridge, ferry, or telecommunication system funded and constructed by such LGU
Right-of-Way Act (Republic Act No. 10752) and its Implementing Rules and Regulations	Governs the site or ROW acquisition process for government infrastructure projects Authorizes the government to acquire real property needed as ROW site or location for any national government infrastructure project through donation, negotiated sale, or expropriation
Prohibited Uses Within the Right-of-Way of National Roads (DPWH Department Order No. 73, Series of 2014)	Directs all regional/district engineering offices of the DPWH to immediately remove or cause the removal of all obstructions and prohibited uses within the ROW of all national roads within their respective jurisdictions and to prohibit the presence/occurrence of the prohibited structures and objects and other similar items and activities along national roads
DPWH ROW Acquisition Manual (DPWH Department Order No. 152, Series of 2017)	Prescribes the workflow for the overall process of ROW acquisition applicable to infrastructure projects, and to all scopes of work of the project, whether involving entirely new construction or expansion/improvement of existing infrastructure

aA “limited access facility” is a highway or street especially designed for through traffic, and over, from, or to which owners or occupants of abutting land or other persons have no right or easement or only a limited right or easement of access, light, air, or view by reason of the fact that their property abuts upon such facility or for any other reason, which may be parkways, from which trucks, buses, and other commercial vehicles are excluded and freeways open to use by all customary forms of street and highway traffic. In 2007, the Department of Transportation and Communications, acting as successor of the Department of Public Works and Communications, issued Department Order No. 2007-15, designating and declaring, as limited access facilities, the existing expressway facilities—namely, the South Luzon Expressway, the Manila–Cavite Toll Expressway (Coastal Road), the North Luzon Expressway, the South Metro Manila Skyway, the Southern Tagalog Arterial Road Tollway, the Subic–Clark–Tarlac Expressway, and all other road networks, including any extension of these existing expressway facilities that may be constructed, established, and/or operated as expressway toll facilities by law from time to time.
bThe Department of Public Works and Communications (1931) was a predecessor of the DPWH and the DOTr.
cThe PPP Code repeals the authority of the TRB to enter into toll operation agreements.

DPWH = Department of Public Works and Highways, LGU = local government unit, ROW = right-of-way.

Sources: Department of Transportation (DOTr). 2007. DOTC Department Order No. 2007-15; DPWH. 2014. Department Order No. 73, Series of 2014; 2017. Department Order No. 157, Series of 2017; Government of the Philippines. 1957. Limited Access Highway Act; 1972. Revised Philippine Highway Act; 1977. Toll Operation Decree; 1991. Local Government Codes of 1991; 2016. Right-of-Way Act; Implementing Rules and Regulations of Republic Act No. 10752.

Foreign Investment Restrictions

COMPARE

DOWNLOAD

Parameter	2021	2022	2023
Maximum allowed foreign ownership of equity (road operation)	40%	100%	100%
Maximum allowed foreign ownership of equity (public utility vehicles)	40%	40%	40%

Standard Contracts

COMPARE

DOWNLOAD

Type of Contract	Availability
PPP/concession agreement	a
Performance-based operation and maintenance contract
Engineering, procurement, and construction contract

aHowever, a model PPP contract for local government units is provided in a 2012 publication of the PPP Center. Executed PPP concession agreements in the roads sector may also provide guidance on required contractual provisions.

Source: PPP Center. 2012. A PPP Manual for LGUs 3. Utilizing LGU PPP Project Templates and Bid Documents; Tavidell Law.

Roads

Sector Master Plan

In 2010, Japan International Cooperation Agency (JICA) assisted the DPWH in preparing the Study of Master Plan on High Standard Highway (HSH) Network Development (HSH Phase 1). The HSH Phase 1 network development focused mainly on Metro Manila and its suburbs. Recognizing the importance of the improvement of access to rural areas, the Philippine government requested the Government of Japan to implement Phase 2 as a follow-through study of HSH Phase 1. The objective of Phase 2 was to define and clarify the overall HSH network, focusing on the nationwide expressway network, and to identify HSH priority projects with an implementation program of up to 2040.1

In November 2021, the DPWH received the final report on the Master Plan on HSH Phase 2 from JICA. 2, 3 The new master plan proposes the construction of 4,400 km of HSH Class-1 and about 4,600 km of HSH Class-2 . HSH Class-1 are inter-urban and intra-urban expressways aimed at mitigating over-concentration of people and economic activities in Metro Manila, and mitigating chronic traffic congestion in and around major urban centers. Meanwhile, HSH Class-2 are regional HSH aimed at accelerating regional developments, particularly in rural areas. These projects are categorized into long-, medium-, and short-term projects based on implementation importance. Most of the new HSH projects will be implemented by the DPWH under the PPP scheme. Aside from the master plan, JICA’s development assistance also covered the pre-feasibility study of four important roads and bridges: Agusan Del Norte–Butuan City Logistical Highway in Region 13; Cebu Circumferential Road in Region 7; Central Mindanao Highway, Cagayan de Oro–Malaybalay Section, in Region 10; and 2nd San Juanico Bridge in Region 8.4

The table below shows the priority projects identified in the roads sector for the PPP mode of implementation based on NEDA’s list of IFPs as of August 2024.

1Japan International Cooperation Agency (JICA). 2021. Project for Masterplan on High Standard Highway Network Development (Phase 2) Final Report Executive Summary.
2DPWH. 2021. DPWH Receives New Highway Master Plan from JICA.
3JICA. 2021.Project for Masterplan on High Standard Highway Network Development (Phase 2) Final Report Executive Summary
4DPWH. 2021.DPWH Receives New Highway Master Plan from JICA.

Public–Private Partnership Priority Road Projects, as of August 2024

No.	Project	Implementing Agency	Estimated Project Cost
No.	Project	Implementing Agency	($ million)	(₱ billion)
1.	C5 South Link Expressway Project	DPWH/TRBc	216.95	12.65
2.	Cagayan De Oro Bus Rapid Transit	DOTr	439.21	25.61
3.	Cavite–Laguna Expressway	DPWH	612.94	35.74
4.	Cebu Bus Rapid Transit Operation and Maintenance	DOTr	68.60	4.00
5.	Central Luzon Link Expressway Phase II	DPWH	270.97	15.80
6.	Davao PTMP Operation and Maintenance	DOTr	-	TBD
7.	EDSA Busway (Improved)	DOTr	525.42	31.22
8.	Iloilo–Capiz–Aklan Expressway	DPWH	2,160.90	126.00
9.	Iloilo–Santa Barbara Bus Rapid Transit	DOTr	1,201.53	70.06
10.	Naawan–Opol–Cagayan de Oro City–Villanueva Expressway	DPWH	834.86	48.68
11.	National Transportation Database	DOTr	48.02	2.80
12.	NLEX–SLEX Connector Road	DPWH	397.88	23.20
13.	North Luzon East Expressway (La Mesa Parkways Project)	DPWH	133.77	7.80
14.	North Luzon Expressway Segment 8.2	DPWH/TRBc	197.23	11.50
15.	North NCR Intermodal Transit Exchange	DOTr	85.75	5.00
16.	Rehabilitation/Reconstruction/Improvement, Operation, and Maintenance of Kennon Road Projectb	DPWH	227.07	13.24
17.	SLEX Toll Road 4	DPWH/TRBc	224.32	13.08
18.	South Luzon Expressway Toll Road 5 Segment 1	DPWH/TRBc	482.77	28.15
19.	Southeast Metro Manila Expressway Project	DPWH/TRBc	537.14	31.32
20.	Taguig City Integrated Terminal Exchange	DOTr	89.18	5.20
21.	Tarlac–Pangasinan–La Union Expressway Extension Project from last exit in Rosario, La Union, to San Juan, La Unionc	DPWH	400.62	23.36

cThese are ongoing projects approved before the enactment of the PPP Code and when the TRB was still authorized to enter into toll operation agreements.
bThe concession agreement for this project was signed on 3 July 2024.

DPWH = Department of Public Works and Highways, NLEX = North Luzon Expressway, PTMP = Public Transport Modernization Project, SLEX = South Luzon Expressway, TBD = To be determined, TRB = Toll Regulatory Board.

Source: NEDA. 2024. Infrastructure Flagship Projects. (accessed 27 October 2024).

Projects under Preparation and Procurement

Roads Public–Private Partnerships under Preparation and Procurement

COMPARE

DOWNLOAD

LEARN MORE

Roads

Sector Master Plan

The PPP Center tracks the progress of the pipeline of PPP projects in the Philippines, with the list updated regularly and published on the website. Below tables present the lists of pipeline PPP road projects and pipeline PPP road transport projects, as of October 2024, based on the PPP Center’s project list.

Pipeline Public–Private Partnership Road Projects, as of October 2024

No.	Project (Length)	Implementing Agency	Procurement Mode	Estimated Project Cost		Status
No.	Project (Length)	Implementing Agency	Procurement Mode	($ million)	(₱ billion)	Status
1.	CLLEX Phase 1 O&M and Phase 2 Project (35.7 kma )	DPWH	Solicited	278.52	16.24	Preparation phase (under development)
2.	Iloilo–Capiz–Aklan Expressway (210 km)	DPWH	Solicited	-	TBD	Preparation phase (under development)
3.	Naawan–Opol–Cagayan de Oro City-Villanueva Expressway (77.8 km)	DPWH	Solicited	-	TBD	Preparation phase (under conceptualization)
4.	O&M of Davao City Bypass Construction Project (45.5 km)	DPWH	Solicited	-	TBD	Preparation phase (under conceptualization)
5.	North Luzon East Expressway (91.10 km)	DPWH	Solicited	-	TBD	Preparation phase (under conceptualization)
6.	Boracay Bridge Project (1.2 km)	DPWH	Unsolicited	137.37	8.01	Negotiation phase

a This is the length of CLLEX Phase 2 only.

CLLEX = Central Luzon Link Expressway, DPWH = Department of Public Works and Highways, km = kilometer, O&M = operation and maintenance, TBD = to be determined.

Source: DPWH. Iloilo-Capiz-Aklan Expressway (ICAEx); PPPC Center. 2024. List of PPP Projects in the Pipeline (accessed 27 October 2024); Naawan–Opol–Cagayan de Oro City–Villanueva Expressway.

Pipeline Public–Private Partnership Road Transport Projects, as of October 2024

No.	Project	Implementing Agency	Procurement Mode	Estimated Project Cost		Status
No.	Project	Implementing Agency	Procurement Mode	($ million)	(₱ billion)	Status
1.	NCR Epifanio de los Santos Avenue Busway Project	DOTr	Solicited	-	TBD	Preparation phase (under development)
2.	O&M of Cebu Bus Rapid Transit Project	DOTr	Solicited	-	TBD	Preparation phase (under development)
3.	North Integrated Transport System	DOTr	Solicited	-	TBD	Preparation phase (under development)
4.	National Transportation Database	DOTr	Solicited	-	TBD	Preparation phase (under conceptualization)
5.	Davao Public Transport Modernization Project: O&M, ITS, and AFCS	DOTr	Solicited	-	TBD	Preparation phase (under development)
6.	Cagayan de Oro Bus Rapid Transit	DOTr	Solicited	439.21	25.61	Preparation phase (under development)
7.	Iloilo–Santa Barbara Bus Rapid Transit	DOTr	Solicited	1,201.53	70.06	Preparation phase (under development)
8.	North NCR Intermodal Transit Interchange	DOTr	Solicited	-	TBD	Preparation phase (under development)
9.	North Luzon Express Terminal Project	DOTr	Unsolicited	116.96	6.82	Preparation phase (under evaluation by IA)
10.	Unsolicited BOT proposal for Skyway Bus Transit System	DOTr	Unsolicited	385.02	22.45	Preparation phase (under evaluation by implementing agency)
11.	Baguio City Intermodal Terminal Project	City Government of Baguio	Unsolicited	20.41	1.19	For approval of relevant government bodies
12.	Smart Urban Mobility Project	City Government of Baguio	Unsolicited	43.39	2.53	Negotiation phase
13.	La Union Integrated Terminal Exchange	Provincial Government of La Union	Solicited	-	TBD	Preparation phase (under conceptualization)
14.	High-Capacity Bus System in Iloilo City	City Government of Iloilo	Solicited	42.53	2.48	Negotiation phase
15.	Cavite Bus Rapid Transit System	Provincial Government of Cavite	Unsolicited	32.07	1.87	Under comparative challenge
16.	South Luzon Integrated Terminal Exchange (SLITX) Project	City Government of Carmona	Unsolicited	13.55	0.79	Preparation phase (under evaluation by implementing agency)

AFCS = automated fare collection system, BOT = build–operate–transfer, DOTr = Department of Transportation, ITS = intelligent transport system, O&M = operation and maintenance, NCR = National Capital Region, TBD = to be determined.

Source: PPPC Center. 2024. List of PPP Projects in the Pipeline (accessed 27 October 2024).

Note: The roads sector includes road transport projects such as bus transport, public transport modernization, transportation database, terminal, and active transport projects.

Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024).

Roads

Features of Past PPP Projects

Procurement of PPP Projects

Roads Public-Private Partnerships procured through various modes

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

Sources: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024); World Bank. 2023. Infrastructure Finance, PPPs, and Guarantees. Country Snapshots. Philippines. Custom Query (accessed 29 August 2024); Tavidell Law.

PPP Projects Reaching Financial Close

Roads Public-Private Partnerships reaching Financial Close

COMPARE

DOWNLOAD

PPP = public–private partnership.

Note: Only active and concluded projects are considered. Value of PPP is not available for one project. PPP projects “under implementation” in the PPP Center database are assumed to have reached financial closure.

PPP Projects with Foreign Sponsor Participation

Roads Public-Private Partnerships with Foreign Sponsor Participation

COMPARE

DOWNLOAD

PPP = public–private partnership.

Note: Only active and concluded projects are considered.

Government Support to PPP Projects

Government Support for Roads Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

Payment Mechanism for PPP Projects

Payment Mechanisms for Roads Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered. Government Pay (off-take) information not available.

Typical Risk Allocation for PPP Projects

COMPARE

DOWNLOAD

Risk Type	Private	Public	Shared	Comment
Traffic risk				Except in availability-based PPPs
Collection risk				Except in availability-based PPPs
Competition risk
Government payment risk
Environmental and social risk	(unsolicited)		(solicited)
Land acquisition risk	(unsolicited)	(solicited)
Interface
Permits
Geotechnical risk				Except for material unidentified risks
Brownfield risk: inventories studies, property boundaries, project scope
Political risk				Private party bears risk up to a materiality threshold, beyond which public party bears risk
Force majeure
Foreign exchange risk
Construction risk				Except for delays caused by government
Early termination risk				Subject to specific conditions and compensation mechanisms

Source: PPP Center. 2016. Generic Preferred Risks Allocation Matrix; Tavidell Law.

Financing Details

Parameter	1990–2021	1990–2022	1990–2023
PPP projects with foreign lending participation	2	2	2
PPP projects that received export credit agency/international financing institution support	2	2	2
Typical debt: equity ratio	75:25 to 80:20
Time for financial closure	3 months after the issuance of Notice to Proceed
Typical concession period	30–35 years, extendible to up to 50 years
Typical Financial Internal Rate of Return	UA

PPP = public–private partnership.

Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024); NAIA Expressway Phase II Project; Cavite–Laguna Expressway (CALAX); World Bank. 2023. Infrastructure Finance, PPPs, and Guarantees. Country Snapshots. Philippines. Custom Query (accessed 29 August 2024); Tavidell Law.

Roads

Tariffs

The TRB sets the rates of tolls for national highways, roads, and bridges, while LGUs can set toll fees or charges for barangay, municipal, city, and provincial roads and bridges, within their territorial jurisdictions and which they have funded and constructed.

For national PPP road projects, concessionaires may charge and collect toll fees and charges based on the terms of the concession agreement, subject to the approval of those fees and charges by the TRB. For local PPP road projects, concessionaires may implement toll fees and charges based on the terms of the concession agreement, subject to the approval of the local toll regulatory council/board established by the LGU concerned.

In 2023, to reduce transport and logistics costs and ensure the efficient movement of goods across regions, President Marcos, Jr issued Executive Order No. 41, Series of 2023, to prohibit LGUs from collecting toll fees and charges on all motor vehicles transporting goods or merchandise while passing through any national roads and other roads the LGUs did not construct and fund. As LGUs enjoy local autonomy, the President is unable to impose this prohibition on local public roads constructed by LGUs. Thus, LGUs are only strongly urged to suspend or discontinue the collection of fees imposed on all motor vehicles transporting goods and passing through any local public roads constructed and funded by said LGUs.1

The TRB publishes the tariffs for national toll roads on its website.

1Government of the Philippines. 2023. Executive Order No. 41, Series of 2023.

Tariffs for Toll Roads

Road	Toll Type	Class 1: Cars, Jeepneys, Pickups, Vans (₱)	Class 2: Light Trucks, Tourist and School Buses, Class 1 > 7 feet in height (₱)	Class 3: Heavy and Multi-Axle Trucks, Trailers (₱)
Tarlac–Pangasinan–La Union Expressway	Closed	19–311	47–778	57–933
North Luzon Expressway/Subic–Clark–Tarlac Expressway	Closed	8–539	16–1,569	24–2,053
Manila–Cavite Toll Expressway	Open	8–73	44–146	66–219
Ninoy Aquino International Airport Expressway	Open	35–45	69–90	104–134
Skyway–South Luzon Expressway/Muntinlupa–Cavite Expressway Integrated	Open	5–270	11–541	16–811
Apolinario Mabini Super Highway	Open	10–104	21–208	31–311
Cavite–Laguna Expressway	Closed	14–81	29–163	43–244
Metro Manila Skyway Stage 3	Open	105–264	210–528	315–792

Source: TRB. Toll Rates.

Roads

Challenges

Before the Public Service Act was amended in 2022, the operation of roads was considered a public utility. Thus, the restriction of foreign investments (capped at 40%) limited competition in the roads sector, as the controlling stake in the project company belonged to local companies. This has now been addressed by the amendment to the Public Service Act, which no longer includes road operations in the definition of public utilities. However, foreign investment in public utility vehicles operating on roads continue to be subject to the 40% foreign equity restriction.
In PPP road projects, the implementing agency is responsible for procuring the land required. The contract is usually signed before such land is completely procured/delivered to the concessionaire, which, in many cases, is delayed, leading to delays in the start of construction and/or completion of the project.
PPP road projects also encounter major interface issues relating to interoperability and interconnection among expressways, which may require a variation after construction has started as a result of the process of redesigning the road for the interconnection and inter-operation with another expressway (e.g., DaangHari SLEX Link Road project).1
There have been delays in the procurement owing to
major changes in project structure, terms, and conditions, or even road alignment, after procurement has commenced;2 and
protest/appeal of disqualified bidder, resulting in a rebidding of the project.3
The assessment of unpaid real property tax and related enforcement actions taken by certain LGUs on PPP project assets has become an issue during the procurement of some PPP projects.
Despite the parametric formula for toll rate adjustments forming part of the PPP contract, there have been delays in the past in the regulator’s approval of toll rate adjustments, which have led to arbitration.
Full implementation of the toll interoperability rollout under the memorandum of agreement on toll collection interoperability signed by the toll road operators with the regulator, the DPWH, and the DOTr in 2017 (in relation to the use of electronic toll collection systems and their interoperability) is delayed.4
1PPIAF Global Infrastructure Hub. Daang-Hari SLEX Link Road.
2Agcaoili, L. 2014. DPWH Sets Meeting with Calax Bidders on Road Alignment Issue.Philippine Star.
3Rappler. 2014. Malacañang Orders Rebid of Cavite–Laguna Expressway Project.
4Amojlar, D. 2024. Toll Interoperability Rollout Postponed to October 2024.Manila Standard.

Railways

Railway Network Length

270.16 km

Number of Passengers

UA

Freight Volume

UA

Quality of railway infrastructure

2.4 1 (lowest)-7 (highest)

UA = Unavailable, km = kilometer.

Sources: DOTr. 2024. PH Entering the “Railway Renaissance”-- Asec. Aquino. theGlobalEconomy.com. 2019. Philippines: Railroad Infrastructure Quality.

Philippine Railway Network

Railway Network

Note: The operations of PNR Southrail are suspended for 5 years beginning 28 March 2024 to give way to the construction of the North South Commuter Railway project.

Source: Urban Rail. 2024. Manila.

Railways

Contracting Agencies

The DOTr is the primary contracting agency for national PPP projects in the railways sector. It is the primary policy, planning, programming, coordinating, implementing, and administrative entity of the executive branch of the government on the promotion, development, and regulation of a dependable and coordinated network of transportation systems, as well as in fast, safe, efficient, and reliable transportation services.1 It formulates and recommends national policies and guidelines for the preparation and implementation of integrated and comprehensive transportation systems at the national, regional, and local levels. The DOTr has the authority to issue certificates of public convenience, which serve as the authority for entities to operate public land and rail transportation utilities and services. It also has the power to determine, fix, or prescribe their charges or rates.2
Other agencies that are attached to the DOTr, such as the Light Rail Transit Authority (LRTA) and the Philippine National Railways (PNR), may also enter into PPP railway contracts with private entities for the performance of their mandate.3
The LRTA is primarily responsible for the construction, operation, maintenance, and/or lease of LRT systems in the Philippines.4
The PNR is a state-owned corporation created to serve as the instrumentality of the Philippine government in providing a nationwide railroad and transportation system.5 It is the sole operator of the most extensive intra-island railway in Luzon. It operates two commuter rail services in Metro Manila, the North (Green Line) and the South (Orange Line) Main Lines, and the Bicol Region. The only operating line, and presently under rehabilitation, is the South Main Line (Orange Line), which serves as the regional rail backbone of Southern Luzon. The Bicol service is currently under rehabilitation in preparation for the resumption of the Bicol Express run to Naga City in Camarines Sur province, and eventually to the southern terminal in Legazpi City in Albay.6
1DOTr.About DOTr.
2Government of the Philippines. 1987.Executive Order No. 292.
3Both the DOTr (then the Department of Transportation and Communication) and the LRTA are the implementing agencies of the Manila LRT1 Extension, Operations, and Maintenance Project. Its concession agreement provides that any and all obligations of the grantors (including any obligation to make any payment to the concessionaire) under the concession agreement shall be construed as being the obligations of the DOTr.
4Government of the Philippines. 1980.Executive Order No. 603.
5Government of the Philippines. 1964. Republic Act No. 4156; 2014. Republic Act No. 10638. The PNR exists for a corporate term that ends 50 years from 16 June 2014.
6PNR. Corporate Profile.
Railways

Sector Laws and Regulations

The key law that governs or support the railways sector is Executive Order No. 125, Series of 1987, as amended by Executive Order No. 125-A and the Administrative Code of 1987 (Executive Order No. 292), which mandated the DOTr to regulate public land and rail transportation utilities and services. In 2022, the DOTr created the Railway Regulatory Unit (RRU) through its Department Order No. 2022-27. The RRU has the authority, among others, to promulgate rules and procedure for fixing rates and fare adjustments in public rail transportation upon approval of the DOTr secretary, including the conduct of related hearings and public consultations, and to approve with finality applications for fare adjustment, including those under concession agreements.1
1DOTr. 2022. Department Order No. 2022-027. The RRU is replacing the Land Transportation Franchising and Regulatory Board in setting routes, regulating fares, and overseeing licensing requirements for rail transportation services.

Foreign Investment Restrictions

COMPARE

DOWNLOAD

Parameter 2021 2022 2023

Maximum allowed foreign ownership of equity in projects 40% 100% 100%

LEARN MORE

Railways
Sector Laws and Regulations

Before the Public Service Act was amended by Republic Act No. 11659 in March 2022, which redefined public utilities, the operation of a railway was considered a public utility. Thus, prior to 2022, the operation of PPP railway projects was subject to the 40% maximum equity investment allowed for foreign investors in public utility projects.1 Thereafter, foreign investments in the operation of PPP railway projects may be up to 100%.
1Government of the Philippines. 2022. Revised IRR of Republic Act No. 6957.

Standard Contracts

COMPARE

DOWNLOAD

Type of Contract Availability

PPP/concession agreement a
Performance-based operation and maintenance contract
Engineering, procurement, and construction contract

aHowever, a model PPP contract for local government units is provided in a 2012 publication of the PPP Center. Executed PPP concession agreements in the railways sector may also provide guidance on required contractual provisions.

No

LEARN MORE

Railways
Sector Laws and Regulations

There are no standard contracts for PPPs in the railways sector.

Source: PPP Center. 2012. A PPP Manual for LGUs 3. Utilizing LGU PPP Project Templates and Bid Documents; Tavidell Law.

Parameter	2021	2022	2023
Maximum allowed foreign ownership of equity in projects	40%	100%	100%

Railways

Sector Master Plan

There is currently no sector-specific master plan for the railways sector. However, for the transport sector, the NEDA Board approved the National Transport Policy Act in 2017, which mandates the formulation and periodic updating of the Philippine Transport System Master Plan, which guides the rational development of an intermodal transport network in the country through coordinated planning and operation of projects and programs as an integrated network of intermodal sub-systems. NEDA Board Committee on Infrastructure approved the IRR for the Act in 2018.1

The NTPA is priority legislation of the administration. It aims to help achieve a safe, secure, efficient, competitive, dependable, integrated, environmentally sustainable, and people-oriented Philippine transportation system.2

In 2023, JICA and the DOTr agreed to prepare a “30-year Railway Master Plan for the Greater Capital Region.” While the agreement already considered the current major railway infrastructure projects being rolled out, such as the Metro Manila Subway, the North–South Commuter Railway, the Metro Rail Transit (MRT)-3 rehabilitation, and capacity enhancement of LRT Lines 1 and 2, further expansion of railway systems to form a transport network was considered by the parties as a prerequisite for the country’s development.3 JICA targets the release of the master plan by 2026.4

1NEDA. 2017. National Transport Policy.
2Government of the Philippines. 2023. Philippine Development Plan 2023–2028.
3JICA. 2023. Why a 30-Year Railway Master Plan Makes Sense for PH Now.
4Business World. 2024. Railway Masterplan Seen Delayed to 2026, JICA Says.

The table below shows the priority projects identified in the railways sector for the PPP mode of implementation based on NEDA’s list of IFPs as of August 2024.

PPP Priority Projects in the Railway Sector

No.	Project	Implementing Agency	Estimated Cost
No.	Project	Implementing Agency	($ million)	(₱ billion)
1.	LRT Line 2 Operations & Maintenance	DOTr	51.45	3.00
2.	Manila Metro Line 1 Cavite Extension (Baclaran–Niog, Bacoor)a	DOTr	1,333.58	77.76
3.	Metro Manila Subway Project—O&M	DOTr	1,172.89	68.39
4.	Mindanao Railway Project Phase 3 (Northern Mindanao)	DOTr	1,905.02	111.08
5.	MRT Line 3 O&M	DOTr	51.45	3.00
6.	MRT Line 4 O&M	DOTr	51.45	3.00
7.	MRT Line 5	DOTr	4,287.50	250.00
8.	MRT-7 Project	DOTr	1,320.55	77.00
9.	North Long Haul Railway	DOTr	6,860.00	400.00
10.	North–South Commuter Railway System—O&M	DOTr and PNR	2,814.83	164.13
11.	San Mateo Railway	DOTr	1,372.00	80.00

aFinancing source indicated is official development assistance/public–private partnership.

DOTr = Department of Transportation, LRT = Light Rail Transit, O&M = operation and maintenance, MRT = Metro Rail Transit.

Source: NEDA. 2024. Infrastructure Flagship Projects (accessed 27 October 2024).

Projects under Preparation and Procurement

Railways Public-Private Partnerships under Preparation and Procurement

COMPARE

DOWNLOAD

LEARN MORE

Railways

Sector Master Plan

The table below presents a list of pipeline national PPP railway projects as of October 2024, based on the PPP Center’s project list.

Pipeline Public–Private Partnership Railway Projects, as of October 2024

No.	Project	Implementing Agency	Procurement Mode	Estimated Project Cost		Status
No.	Project	Implementing Agency	Procurement Mode	($ million)	(₱ billion)	Status
1.	Metro Manila Subway Project O&M PPP Project	DOTr	Solicited	1,229.48	71.69	Preparation phase (under development)
2.	North–South Commuter Railway O&M PPP Project	DOTr and PNR	Solicited	2,946.03	171.78	Preparation phase (under development)
3.	North Long Haul (NCR Ilocos Norte and Cagayan) Inter-Regional Railway Project	DOTr	Solicited	8,528.18	497.27	Preparation phase (under development)
4.	Mindanao Railway Project, Phase 3 (Northern Mindanao)	DOTr	Solicited	-	TBD	Preparation phase (under development)
5.	San Mateo Railway Project	DOTr	Solicited	1,347.99	78.6	Preparation phase (under development)
6.	MRT Line 3 O&M	DOTr	Solicited	-	TBD	Preparation phase (under development)
7.	MRT Line 4 O&M	DOTr	Solicited	-	TBD	Preparation phase (under development)
8.	Rehabilitation, Expansion, and O&M of LRT Line 2	DOTr	Solicited	-	TBD	Preparation phase (under development)
9.	MRT-5	DOTr	Solicited	-	TBD	Preparation phase (under conceptualization)
10.	C5 MRT-10 Project	DOTr	Unsolicited	2,102.76	122.61	Preparation phase (under evaluation by IA)
11.	Cebu Monorail Transit System Project	DOTr	Unsolicited	1,365.31	79.61	Preparation phase (under evaluation by IA)
12.	Fort Bonifacio–Makati Skytrain Project	DOTr	Unsolicited	67.06	3.91	Preparation phase (under evaluation by IA)
13.	MRT-11 Project	DOTr	Unsolicited	1,402.70	81.79	Preparation phase (under evaluation by IA)
14.	Unsolicited BTOM Proposal for Modified LRT-6, Phase 1	DOTr	Unsolicited	1,256.07	73.24	Preparation phase (under evaluation by IA)
15.	Unsolicited Proposal for Modified LRT-6B & C, Phase 1	DOTr	Unsolicited	1,579.00	92.07	Preparation phase (under evaluation by IA)
16.	East–West Rail Project	PNR	Unsolicited	1,236.17	72.08	Preparation phase (under evaluation by IA)
17.	MRT-7 Airport Access—North Line Project	PNR	Unsolicited	2,244.94	130.9	Preparation phase (under evaluation by IA)
18.	MRT-7 Katipunan Spur Line Project	PNR	Unsolicited	1,835.05	107	Preparation phase (under evaluation by IA)
19.	MRT3 Rehabilitation and O&M Project	DOTr	Unsolicited	1,689.28	98.5	Preparation phase (endorsed to IA after completeness check)
20.	Baguio Transport Solutions (Elevated Monorail and Electric Bus System)	City Government of Baguio	Unsolicited	198.94	11.6	Negotiation phase

BTOM = build–transfer–operate–maintain, DOTr = Department of Transportation, IA = implementing agency, LRT = Light Rail Transit, MRT = Metro Rail Transit, NCR = National Capital Region, O&M = operation and maintenance, PPP = public–private partnership.

Source: PPPC Center. 2024. List of PPP Projects in the Pipeline (accessed 27 October 2024).

Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024).

Railways

Features of Past PPP Projects

Procurement of PPP Projects

Railways Public-Private Partnerships procured through various modes

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

PPP Projects Reaching Financial Close

Railways Public-Private Partnerships reaching Financial Close

COMPARE

DOWNLOAD

PPP = public–private partnership.

PPP Projects with Foreign Sponsor Participation

Railways Public-Private Partnerships with Foreign Sponsor Participation

COMPARE

DOWNLOAD

PPP = public–private partnership.

Note: Only active and concluded projects are considered.

Government Support to PPP Projects

Government Support for Railways Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered. The LRT-1 Project, which received viability gap funding, is both financed by JICA and the Philippine government through the GAA.

Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024); World Bank. 2023. Infrastructure Finance, PPPs, and Guarantees. Country Snapshots. Philippines. Custom Query (accessed 29 August 2024); Tavidell Law.

Payment Mechanism for PPP Projects

Payment Mechanisms for Railways Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

Typical Risk Allocation for PPP Projects

COMPARE

DOWNLOAD

Risk Type	Private	Public	Remarks
Demand risk
Revenue collection risk			For MRT Line-3, a BLT project, government assumes risk; however, preferred risk allocation is for the private entity. For the LRT-1 extension, a BTO project, the private party bears the risk
Tariff risk			For MRT Line-3, a BLT project, government assumes risk; however, preferred risk allocation is for the private entity. For the LRT-1 extension, a BTO project, the private party bears the risk
Government payment risk
Environmental and social risk
Land acquisition risk	(Unsolicited)	(Solicited)
Interface
Handover
Brownfield risk: inventory studies, property boundaries, project scope, asset condition
Political risk			Private party bears risk up to a materiality threshold, beyond which public party bears risk
Force majeure
Foreign exchange risk
Construction risk			Except for delays caused by government
Early termination risk			Subject to specific conditions and compensation mechanisms

BLT = build–lease–transfer, BTO = build–transfer–operate, LRT = Light Rail Transit, MRT = Metro Rail Transit.

Source: PPP Center. 2016. Generic Preferred Risks Allocation Matrix; Tavidell Law.

Financing Details

Parameter	1990-2021	1990-2022	1990-2023
PPP projects with foreign lending participation	2	2	2
PPP projects that received export credit agency/international financing institution support	2	2	2
Typical debt: equity ratio	UA
Time for financial closure	UA
Typical concession period	25–30 years, extendible up to 50 yearsa
Typical financial internal rate of return	UA

PPP = public–private partnership, UA = Unavailable

aThe concession period for MRT-7 and for LRT-1 was 25 and 32 years, respectively.

Railways

Tariffs

Tariffs for Railway Projects

Line	No. of Stations	Fare ($)		Fare (₱)
LRT-1	20	0.22–0.60		13–35
LRT-2	13	0.22–0.60		13–35
MRT-3	13	0.22–0.48		13–28
PNR Metro South Commuter Traina	26		0.26–1.02	15–60b
PNR Metro South Commuter Traina	26		0.20–0.82	12–48c

aThe PNR has suspended its operations in Metro Manila for five years, starting 28 March 2024, to give way to the construction of the North South Commuter Railway (NSCR) project.
bWith air conditioning.
cOrdinary.

LRT = Light Rail Transit, MRT = Metro Rail Transit, PNR = Philippine National Railways.

Notes: Fares are subject to a 20% discount for senior citizens and people with disabilities.

Source: Light Rail Manila Corporation. 2023. Fare Matrix; Light Rail Transit Authority (LRTA). 2023. Tickets and Fares; DOTr. Metro Rail Transit Line 3 (MRT-3) Fare Matrix. PNR. Metro South Commuter Train Fare Tariff No. 2 (Aircon); Fares & Tickets – Manila (Tutuban) Station.

Railways

Challenges

The previous restriction on foreign investments in the sector (capped at 40%) limited competition in the sector. With the amendment of the Public Service Act, this issue has now been addressed.
Land acquisition is a key challenge in PPP railway projects that traverse several locations. The completion of the MRT-7 is delayed owing to ROW issues in its Bulacan segment, which have required a feasibility study on realignment sites.1
Bankability issues raised by bidders led to bidding failure of the LRT-1 Cavite extension project and the need to seek government authorization for new project terms in the rebidding.2
The assessment of real property tax and related enforcement actions taken by certain LGUs on certain PPP project assets has become an issue during the procurement of some PPP projects, such as the LRT-1 Cavite extension project.
There are recurring challenges in the transport sector owing to the absence of a single encompassing policy document for the sector, which include, among others (i) lack of an integrated and coordinated transport network; (ii) overlapping and conflicting functions of transport agencies; (iii) transport safety and security concerns; and (iv) inadequate transport facilities particularly in conflict-affected and underdeveloped areas.3
1Business World. 2024. DoTr: SMC Conducting Feasibility on Realignment Sites for MRT-7’s Bulacan Segment; Rosales, E.F. 2024. MRT-7 Construction Suffers Another Delay. PhilStar Global.
2Rappler. 2013. LRT-1 Cavite Extension Bidding “a Failure.”
3NEDA. 2017. National Transport Policy.

Ports

Number of Ports

575

Container Traffic

9,249,451 TEUs

Port Infrastructure Quality

3.7 1 (low)-7 (high)

Quality of trade and transport-related infrastructure index

3.2 1 (low)-5 (high)

Total freight capacity of all ports

UA

TEUs = 20-foot equivalent unit, UA = Unavailable.

Sources: PPA. List of Ports; World Bank. 2021. Container Port Traffic; 2022. Logistics Performance Index: Quality of Trade and Transport-Related Infrastructure (1=Low to 5=High) – Singapore, Philippines; theGlobalEconomy.com. 2019. The Philippines: Port Infrastructure Quality.

Ports

Contracting Agencies

The DOTr and the Philippine Ports Authority (PPA) are the key implementing agencies in the ports sector. Special economic zone authorities may also enter into PPP contracts in the ports sector.
The PPA is a GOCC attached to the DOTr. As an attached agency, it exercises autonomy but adheres to the DOTr for policy and program coordination. The PPA’s mandate is to oversee port administration in the country and ensure the rapid development of ports or the port system. The PPA is authorized to sign PPP contracts to execute port projects under its program.

Ports

Sector Laws and Regulations

Pursuant to its mandate to oversee port administration in the country, The PPA has issued the following regulations:

Port Terminal Management Regulatory Framework (Administrative Order No. 03-2016) (PTMRF). The PTMRF covers all government ports within the PPA’s jurisdiction (except those with existing port management contracts). It seeks to promote private sector participation in port operations to provide a higher-quality service by separating its regulatory and operational functions through port operation privatization. In line with the PTMRF, the PPA issued in 2018 and 2023 administrative orders providing the guidelines for the selection and award of port terminal management contracts under the PTMRF.1
Revised Guidelines on the Transfer of the Management and Operation of PPA Ports to LGUs (Administrative Order No. 08-2020). This allows the PPA to temporarily transfer the management, operation, development, and maintenance of PPA ports to the LGU where it is located or to a government corporation created or authorized by said LGU, without necessarily abandoning its statutory responsibility over the ports. These guidelines apply only to government ports, which are public ports constructed, owned, and maintained by the national government and under the administrative jurisdiction of the PPA. The LGU may then outsource to a third-party service provider (which may be from the private sector) the undertaking of cargo-handling operations and other related services.

Under the PTMRF, the investment arrangements between the PPA and the contractor are classified into Tier 1, Tier 2, and Tier 3, as detailed in the table below.

1The PPP Code repealed pertinent provisions of the PPA’s revised charter (Presidential Decree No. 857, as amended), thus placing contracts under the PTMRF within its purview. The PPA is currently revising its policy on the PTMRF to comply with the PPP Code’s IRR.

Investment Arrangements Under the Port Terminal Management Regulatory Framework

Infrastructure	Capital Investment Responsibility	Tier 1	Tier 2	Tier 3
Physical undersea infrastructure	Capital dredging	PPA	PPA	PPA
Physical undersea infrastructure	Maintenance dredging	Contractor	PPA	PPA
Physical landside infrastructure	Wharf, piers, land reclamation	Contractor	Contractor	PPA
Above ground semi-fixtures	Quay crane, gantry cranes	Contractor	Contractor	PPA
Above ground fixtures	Passenger terminal building, pavement, fence	Contractor	Contractor	Contractor
Mobile handling equipment only	Forklifts, trucks	Contractor	Contractor	Contractor
Concession period		25 years	20 years	15 years

PPA = Philippine Ports Authority

Source: PPA. 2023. PPA Administrative Order No. 003-2023.

Aside from the PPA, the Maritime Industry Authority (MARINA) and the Philippine Coast Guard (PCG), which are both attached to the DOTr, likewise play vital roles in the regulation of the ports sector in the Philippines. The PCG has entered into separate memoranda of agreement with the PPA and MARINA to assist them in enforcement functions.2

2PCG and PPA. Memorandum of Agreement – PCG and Philippine Ports Authority; PCG and MARINA. Memorandum of Agreement-PCG and MARINA.

Relevant Mandates and Functions of Regulatory Agencies in the Ports Sector

Agency	Mandates and Functions
Maritime Industry Authority (MARINA)	Adopt and implement a practicable and coordinated Maritime Industry Development Program, which shall include, among others, the early replacement of obsolescent and uneconomic vessels, modernization and expansion of the Philippine merchant fleet, enhancement of domestic capability for shipbuilding, repair and maintenance, and the development of a reservoir of trained workforce Provide for the effective supervision, regulation, and rationalization of the organizational management, ownership, and operations of all water transport utilities, and other maritime enterprises Register vessels Issue, modify, suspend, or revoke at any time certificates of public convenience, or any extensions or amendments thereto, authorizing the operation of all kinds, classes, and types of vessels in domestic shipping Establish and prescribe routes, zones, or areas of operations of domestic ship operators Require any domestic ship operator to provide shipping services to any coastal area, island, or region in the country where such services are necessary for the development of the area, to meet emergency sealift requirements, or when public interest so requires Ensure that all domestic ship operation shall have the financial capacity to provide and sustain safe, reliable, efficient, and economic passenger or cargo service, or both Determine the impact any new service shall have on the locality it will serve Set safety standards for vessels in accordance with applicable conventions and regulations, and adopt and enforce such rules and regulations (including vessel inspections) that will ensure compliance by every domestic ship operator with required safety standards and other rules and regulations on vessel safety Adopt such rules and regulations that ensure the reasonable stability of passengers and freight rates and, if necessary, intervene in order to protect public interest Impose fines and penalties on, including the revocation of licenses of, any domestic ship operator that shall fail to maintain its vessels in safe and serviceable condition, or that shall violate or fail to comply with safety regulations, and investigate any complaint made in writing against any domestic ship operator, or any shipper, or any group of shippers
Philippine Ports Authority (PPA)	Formulate, in coordination with NEDA, a comprehensive and practicable Port Development Plan, program its implementation, and renew and update it annually in coordination with other national agencies Supervise, control, regulate, construct, maintain, operate, and provide such facilities or services as are necessary in the ports vested in, or that belong to, the PPA Prescribe rules and regulations, procedures, and guidelines governing the establishment, construction, maintenance, and operation of all other ports, including private ports in the country Impose, fix, prescribe, increase, or decrease rates, charges, or fees for the use of port premises, works, appliances, or equipment belonging to the PPA and port facilities, and for services rendered by the PPA or by any private entity within the port district. The rates are then approved by the PPA Board, composed of the DOTr secretary (chair), the PPA general manager (vice-chair), and its members—the NEDA secretary, the DPWH secretary, the DOF secretary, the DENR secretary, the DTI secretary, the MARINA administrator, and a private sector representative. License, control, regulate, and supervise any construction or structure within any port district Provide services (whether on its own, by contract, or otherwise) within the port district and the approaches thereof, including but not limited to berthing, towing, mooring, moving, slipping, or docking any vessel; loading or discharging any vessel; and sorting, weighing, measuring, warehousing, or otherwise handling goods Exercise control of or administer any foreshore rights or leases that may be vested in the PPA from time to time Coordinate with the Bureau of Lands or any other government agency or corporation in the development of any foreshore area Control, regulate, and supervise pilotage and the conduct of pilots in any port district Provide or assist in the provision of training programs and training facilities for its staff of port operators and users for the efficient discharge of its functions, duties, and responsibilities
Philippine Coast Guard (PCG)	Enforce regulations in accordance with all relevant maritime international conventions, treaties, or instruments and national laws for the promotion of safety of life and property at sea within the maritime jurisdiction of the Philippines and conduct port state control implementation Conduct inspections on all merchant ships and vessels, including but not limited to inspections prior to departure, to ensure and enforce compliance with safety standards, rules, and regulations Detain, stop, or prevent a ship or vessel that does not comply with safety standards, rules, and regulations from sailing or leaving port Grant, within its capabilities and consistent with its mandate, requests for assistance of other government agencies in the performance of their functions
Office for Transportation Security	Prescribe security standards for the security of sea transport and maritime infrastructure Monitor compliance of the PPA, other port authorities, the PCG, MARINA, and other relevant government agencies, and recognized security organizations, with the standards prescribed in the International Ship and Port Facility Security Code

DENR = Department of Environment and Natural Resources, DOTr = Department of Transportation, DOF = Department of Finance, DPWH = Department of Public Works and Highways, DTI = Department of Trade and Industry, MARINA = Maritime Industry Authority, NEDA = National Economic and Development Authority, PCG = Philippine Coast Guard, PPA = Philippine Ports Authority

Sources: Government of the Philippines. 1974 Presidential Decree No. 474; 1975. Presidential Decree No. 857, as Amended; 2004. Republic Act No. 9295; 2009. Republic Act No. 9993; 2016. Executive Order No. 197.

There are currently pending bills that seek to separate the regulatory and commercial functions of the PPA by converting it into the Philippine Ports Corporation responsible for the development, management, and operation of public ports within its system, and transferring its regulatory functions to MARINA.3

3House of Representatives. 2022. House Bill No. 1400; 2023. House Bill No. 8055.

Foreign Investment Restrictions

COMPARE

DOWNLOAD

Parameter	2021	2022	2023
Maximum allowed foreign ownership of equity in greenfield projects	40%	40%	40%

Source: Government of the Philippines. 2021. Republic Act No. 11659.

Standard Contracts

COMPARE

DOWNLOAD

Type of Contract	Availability
PPP/concession agreement	a
Performance-based operation and maintenance contract
Engineering, procurement, and construction contract

aHowever, a model PPP contract for local government units is provided in a 2012 publication of the PPP Center.

Sources: PPP Center. 2012. A PPP Manual for LGUs 3. Utilizing LGU PPP Project Templates and Bid Documents; Tavidell Law.

Ports

Sector Master Plan

The ports sector does not have a sector-specific master plan. The PPA is considering the formulation of master plans to develop 10 seaport terminals across the country as the government seeks to improve cargo movement and tourism activities.1

The table below shows the priority projects identified in the ports sector for the PPP mode of implementation based on NEDA’s list of IFPs as of August 2024.

1Philippine Daily Inquirer. 2024. PPA Set to Start Crafting Ports Development Plans.

Public–Private Partnership Priority Port Projects, as of August 2024

No.	Project	Implementing Agency	Estimated Project Cost
			($ million)	(₱ billion)
1.	Davao Sasa Port	PPA	169.44	9.88
2.	MaPaLLa Ferry System (Pasig River Ferry System Project)	DOTr	505.93	29.50
3.	San Ramon New Port Project	ZCSEZA	327.39	19.09
4.	Upgrading and Improvement of Iloilo International Container Port	PPA	180.59	10.53

DOTr = Department of Transportation, PPA = Philippine Ports Authority, ZCSEZA = Zamboanga City Special Economic Zone Authority.

Source: NEDA. 2024. Infrastructure Flagship Projects (accessed 27 October 2024).

Projects under Preparation and Procurement

Ports Public-Private Partnerships under Preparation and Procurement

COMPARE

DOWNLOAD

LEARN MORE

Ports

Sector Master Plan

The table below presents a list of pipeline national PPP port projects as of October 2024, based on the PPP Center’s project list.

Pipeline Public–Private Partnership Port Projects, as of October 2024

No.	Project	Implementing Agency	Procurement Mode	Estimated Project Cost		Status
No.	Project	Implementing Agency	Procurement Mode	($ million)	(₱ billion)	Status
1.	San Ramon New Port Project	ZCSEZA	Solicited	327.39	19.09	Preparation phase (under development)
2.	Upgrading and Improvement of Iloilo Commercial Port Complex	PPA	Solicited	-	TBD	Preparation phase (under development)
3.	Poro Point Seaport Modernization Project	BCDA	Solicited	-	TBD	Preparation phase (under conceptualization)
4.	Manila Bay-Pasig River-Laguna Lake Ferry Project	DOTr	Solicited	-	TBD	Preparation phase (under development)
5.	New Cebu International Container Port	DOTr	Solicited	-	TBD	Preparation phase (under development)
6.	O&M with Improvement and Expansion Arrangement of Port of General Santos Project	PPA	Unsolicited	89.18	5.20	Preparation phase (under evaluation by implementing agency)
7.	Seafarers Training Vessels	DOTr	Solicited	-	TBD	Preparation phase (under conceptualization)
8.	Tri-City Ferry System	City Governments of Alaminos and Dagupan, Pangasinan, and San Fernando, La Union	Solicited	83.52	4.87	Preparation phase (under development)

BCDA = Bases Conversion and Development Authority, DOTr = Department of Transportation, O&M = operation and maintenance, PPA = Philippine Ports Authority, TBD = to be determined, ZCSEZA = Zamboanga City Special Economic Zone Authority.

Source: PPPC Center. 2024. List of PPP Projects in the Pipeline (accessed 27 October 2024).

Note: The ports sector includes port services and transport projects such as ferry system and seafarers training vessels projects.

Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024).

Ports

Features of Past PPP Projects

Procurement of PPP Projects

Ports Public-Private Partnerships procured through various modes

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

PPP Projects Reaching Financial Close

Ports Public-Private Partnerships reaching Financial Close

COMPARE

DOWNLOAD

PPP = public–private partnership.

PPP Projects with Foreign Sponsor Participation

Ports Public-Private Partnerships with Foreign Sponsor Participation

COMPARE

DOWNLOAD

PPP = public–private partnership.

Note: Only active and concluded projects are considered.

Government Support to PPP Projects

Government Support for Ports Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

Payment Mechanism for PPP Projects

Payment Mechanisms for Ports Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered. Government Pay (off-take) data is unavailable.

Typical Risk Allocation for PPP Projects

COMPARE

DOWNLOAD

Risk Type	Private	Public	Shared
Demand
Competition risk (exclusivity)
Tariff risk
Environmental and social risk
Permits
Geotechnical risk

Source: PPP Center. 2016. Generic Preferred Risks Allocation Matrix; Tavidell Law

Financing Details

Parameter	1990–2021	1990–2022	1990–2023
PPP projects with foreign lending participation	1	1	1
PPP projects that received export credit agency/international financing institution support	1	1	1
Typical debt: equity ratio	75:25	75:25	75:25
Time for financial closure	UA
Typical concession period	25 years, extendible to 50 years
Typical financial internal rate of return	UA

PPP = public–private partnership.

Ports

Tariffs

Tariffs for cargo handling vary for ports privatized under the PTRMF and for non-PTRMF ports. Further, tariffs for cargo handling in PTRMF ports vary depending on the classification of the investment of the private sector. In all cases, however, while terminal operators may apply for a cargo handling tariff adjustment, the PPA still exercises its regulatory function in approving such applications. For container terminals, terminal handling charges cover the movement of a container between the ship’s hold and the exit–entry gate via the container terminal yard. The table below sets out the cargo handling tariffs for PTMRF ports and the most recently approved cargo handling tariffs for non-PTMRF ports—i.e., Manila South Harbor and Manila International Container Terminal, and Batangas International Port.

Vessel and Cargo Charges for the Ports Sector in the Philippines

		20-foot equivalent unit ($)	40-foot equivalent unit ($)
Cargo handling tariffs for Tier 1 ports under PTMRF (full concession—greenfield)
Vessel charges (stevedoring)	Container yard/commercial freight and logistics	116.00	162.27
	Container freight station/less than container load—inbound/outbound	287.37	418.79
	Foreign transshipment	153.40	191.82
Cargo charges (arrastre)	Full container load—import	81.26	186.40
	Full container load—export	66.34	152.34
Cargo handling tariffs for Tier 2 Ports under PTMRF
Vessel charges (stevedoring)	Container yard/commercial freight and logistics	61.58	86.38
	Container freight station/less than container load—inbound/outbound	61.58	86.38
Cargo charges (arrastre)	Container yard commercial freight and logistics	43.28	72.29
Cargo handling tariffs for Tier 3 ports under PTMRF
Vessel charges (stevedoring)	Lift-on-lift-off	34.44
Handling fee	Container-chassis roll-on-roll-off/stowable roll-on-roll-off	9.42
Ports of Manila (Manila South Harbor and Manila International Container Terminal)—effective 6 August 2024
Vessel charges (stevedoring)	Container yard/commercial freight and logistics	70.409	121.140
	Container freight station/less than container load—inbound/outbound	257.468	401.006
	Foreign transshipment	68.331	106.851
Cargo charges (arrastre)	Full container load—import	89.39	205.05
	Full container load—export	72.97	167.59
Batangas International Port—effective 14 May 2022
Vessel charges (stevedoring)	Container yard/commercial freight and logistics	73.29	102.51
	Container freight station/less than container load—inbound/outbound	181.55	264.56
	Foreign transshipment	106.60	133.31
Cargo charges (arrastre)	Full container load—import	66.64	152.90
	Full container load—export	54.41	124.96

₱1 = $ 0.01715

PTMRF = Port Terminal Management Regulatory Framework.

Source: PPA. 2023. PPA Administrative Order No. 10-2023; PPA Administrative Order No. 002-2023; PPA Administrative Order No. 10-2019; PPA Memorandum Circular No. 008-2024; PPA Memorandum Circular No. 07-2022.

Ports

Challenges

The restriction on foreign investments (capped at 40%) limits competition in the sector, as the controlling stake in the project company belongs to local companies.
The combined regulatory and commercial function of the PPA creates conflict of interest.1
For ports operated by LGUs, securing sufficient funding in a timely manner presents a challenge in relation to procuring the needed equipment to pursue efficient operations.
As a result of budget constraints in national and local governments and lack of a clear institutional investment strategy, there are insufficient incentives for the private sector to participate in port infrastructure development.
While there are plenty of other port options, the majority of shippers and shipping lines still prefer Manila port because of its more reliable and efficient schedule, thus resulting in port congestion and unequal distribution of the load.
1Association of International Shipping Lines, Inc. 2024. Biz Groups Seek Senate Bill Splitting PPA Regulatory, Commercial Functions.

Airports

Number of Airports

90

Passenger Capacity

53.78 M

Quality of airport infrastructure

4.1 1 (lowest)-7 (highest)

Total number of projects with cumulative lending, grant, and technical assistance commitments from ADB in transport sector

162

Total amount of cumulative lending, grant, and technical assistance commitments from ADB in transport sector

7,105 $ million

₱1 = $ 0.01715

M = million.

Sources: Civil Aviation Authority of the Philippines (CAAP). Area Centers; Statista. 2023. Total Number of Passengers Travelling by Air in the Philippines from 2014 to 2023; theGlobalEconomy.com. 2019. Philippines: Air Transport Infrastructure Quality; ADB. 2023. Cumulative Lending, Grant, and Technical Assistance Commitments.

Philippine Airports

Source: CAAP. 2024. Area Centers

Airports

Contracting Agencies

The DOTr and the Civil Aviation Authority of the Philippines (CAAP) are the primary implementing agencies in the airports sector.
The DOTr is in charge of formulating and recommending national policies and guidelines for the preparation and implementation of integrated and comprehensive transportation systems (including in the airports sector) at the national, regional, and local levels.1
The CAAP is the country’s civil aviation authority, with jurisdiction over the restructuring of the civil aviation system and the promotion, development and regulation of technical, operational, safety, and aviation security functions. It is an independent regulatory body, with corporate, quasi-judicial, and quasi-legislative powers, attached to the DOTr. It may also enter into contracts that are necessary or incidental to its purpose, which is to provide safe and efficient air transport and regulatory services in the Philippines.2
Government corporate entities attached to the DOTr are authorized to undertake specialized airport projects and facilities as directed by the President of the Philippines or as provided by law.3 Examples of airport authorities created by law are the Manila International Airport Authority (MIAA) and the Mactan–Cebu International Airport Authority (MCIAA). The MIAA and the MCIAA are implementing agencies together with the DOTr for the PPP projects for the Ninoy Aquino International Airport (NAIA) and the Mactan–Cebu International Airport (MCIA), respectively. The MIAA administers and operates NAIA, including Manila domestic airport, and all its installations, facilities, and equipment, and such other airports as may, in the future, be constructed and, administered by the MIAA. The MCIAA controls, manages, and supervises MCIA, including the domestic airport.
The Bases Conversion and Development Authority (BCDA), also an attached agency of DOTr, is designated implementing agency of the Clark International Airport engineering, procurement, and construction and O&M projects.
1Government of the Philippines. 1987.Administrative Code of 1987.
2Government of the Philippines. 2008.Republic Act No. 9497.
3Government of the Philippines. 1987.Administrative Code of 1987.

Airports

Sector Laws and Regulations

There are several regulations that have an impact on PPP projects:

The ASEAN Single Aviation Market was established in January 2015. The aim of this is to liberalize the air transport market in ASEAN countries to improve the region’s connectivity and competitiveness and reduce airfares. The single market enables ASEAN-based carriers to carry passengers and cargo from and to any third country to an ASEAN member state. This requires each state to fully open up its international airports to other ASEAN members and eliminate restrictions on the frequency and maximum capacity of flights. The Philippines has withheld NAIA, the country’s largest, from the ASEAN provisions because of the slot-constrained nature of the airport.1
Manila and Cebu airports are subject to slot coordination to manage any spare capacity efficiently. Slots are either allocated by an independent slot coordination body based on a number of allocation rules or, in the case of Cebu, by the MCIAA. Slots are usually allocated for each summer and winter season.2
To ensure safe and secure air transport operations, the International Civil Aviation Organization has published a number of regulations that Philippine airport operators have to adopt. These regulations set out the physical requirements for any type of civil airport to receive an operating license from the CAAP, as well as various security measures to safeguard the aviation industry against acts of unlawful interference.3
The local and national police provide policing services to airports. Regulations on security, customs, quarantine, and immigration specify the functions to be undertaken by the state or public authorities.4

Two government bodies regulate the technical and aviation industry in the Philippines, which are both attached agencies of the DOTr:

The CAAP regulates the technical, operational, safety, and aviation security functions under the civil aviation authority.
The Civil Aeronautics Board regulates the economic aspect of air transportation, and has the general supervision and regulation of, and the jurisdiction and control over, air carriers, general sales agents, cargo sales agents, and airfreight forwarders as well as their property, property rights, equipment, facilities, and franchise.5

The Philippines is a signatory to the Convention on International Civil Aviation (the Chicago Convention). The Chicago Convention embodies the principles and arrangements agreed to by the contracting states in order that international civil aviation may be developed in a safe and orderly manner and that international air transport services may be established on the basis of equality of opportunity, and operated soundly and economically. Consistent with its commitment under the Chicago Convention, the Philippines, through the CAAP, has aligned its regulations, the Philippine Civil Aviation Regulations, with the Standards and Recommended Practices issued by the International Civil Aviation Organization to govern the different aspects of civil aviation.

The table below shows the functions of regulatory agencies in the Philippines’ airports sector.

1ADB. 2019. Public–Private Partnership Monitor. Second Edition.
2ADB. 2019. Public–Private Partnership Monitor. Second Edition.
3ADB. 2019. Public–Private Partnership Monitor. Second Edition.
4ADB. 2019. Public–Private Partnership Monitor. Second Edition.
5Government of the Philippines. 1987. Republic Act No. 776, as Amended; 2008. Republic Act No. 9497.

Relevant Functions of Airports Sector Regulatory Agencies in the Philippines

Agency	Function
Department of Transportation (DOTr)	Establish and prescribe rules and regulations for the inspection and registration of air transportation facilities, such as aircraft Determine, fix, or prescribe charges or rates pertinent to the operation of public air transportation utility facilities and services, except such rates or charges as may be prescribed by the CAB, and in cases where charges or rates are established by international bodies or associations of which the Philippines is a participating member or by bodies or associations recognized by the Philippine government as the proper arbiter of such charges or rates
Civil Aviation Authority of the Philippines (CAAP)	Regulate the technical, operational, safety, and aviation security functions under the civil aviation authority Impose and fix reasonable charges and fees for the use of government aerodromes (airports) or air navigation facilities Determine and fix landing fees; parking space fees; royalties on sales or deliveries, direct or indirect, to any aircraft for its use of aviation gasoline, oil and lubricants, spare parts, accessories and supplies, and tools; and other royalties, fees, or rentals for the use of any of the property under its management and control Determine, fix, impose, collect, or receive reasonable charges, fees, dues, or assessments in respect of aviation certificates, licenses, and all other authorizations or permissions authorized to be issued under the Civil Aviation Act and all services performed by the CAAP Regulate airports pursuant to the Civil Aviation Authority Act of 2008, the Civil Aviation Regulations governing Aerodromes, and the Manual of Standards for Aerodromes, and their administrative orders and advisory circulars
Civil Aeronautics Board	Regulate the economic aspect of air transportation, and conduct general supervision and regulation of, and hold jurisdiction and control over, air carriers, general sales agents, cargo sales agents, and airfreight forwarders as well as their property, property rights, equipment, facilities, and franchise Issue economic regulations Issue permits to engage in air commerce and/or transportation (including foreign air carriers), or to act as a general sales agent, cargo sales agent, or airfreight forwarder in the Philippines
Office for Transportation Security	Implement the requirements of the Chicago Convention on aviation security Exercise operational control and supervision over all units of law enforcement agencies and agency personnel providing security services in the transportation system, except for motor vehicles in land transportation Exercise responsibility for transport security operations including, but not limited to, security screening of passengers, baggage, and cargo, and hiring, retention, training, and testing of security screening personnel Prescribe security and safety standards for transportation systems

CAAP = Civil Aviation Authority of the Philippines, CAB = Civil Aeronautics Board, DOTr = Department of Transportation.

Sources: Government of the Philippines. 1987. Executive Order No. 292; Republic Act No. 776, as Amended; 2004. Executive Order No. 311, Series of 2004; 2008. Republic Act No. 9497.

Foreign Investment Restrictions

COMPARE

DOWNLOAD

Parameter	2021	2022	2023
Maximum allowed foreign ownership of equity in greenfield projects	40%	100%	100%

Standard Contracts

COMPARE

DOWNLOAD

Type of Contract	Availability
PPP/concession agreement	a
Performance-based operation and maintenance contract	a
Engineering, procurement, and construction contract	a

aHowever, a model PPP contract for local government units is provided in a 2012 publication of the PPP Center. Executed PPP concession agreements in the airports sector may also provide guidance on required contractual provisions.

Source: PPP Center. 2012. A PPP Manual for LGUs 3. Utilizing LGU PPP Project Templates and Bid Documents; Tavidell Law.

Airports

Sector Master Plan

The DOTC, the DOTr’s predecessor, caused the completion of the Master Plan Studies on the Strategy for the Improvement of National Airports in the Republic of the Philippines and the Strategy for the Development of National Airports in 2006, which was updated in 2015. The identified key priorities to address the growing demands of the aviation industry are:

Modernizing and continuously upgrading air traffic and air navigation facilities to meet the demands of a rapidly growing aviation sector;
Separating airport operational functions from air traffic and air navigation responsibilities; and
Clearly delineating regulatory and operational responsibilities among government entities.1

Building on these efforts, the PDP 2023–2028 outlines specific priorities for the sector:2

increasing the capacity of airports to revitalize tourism;
24/7 operations of agencies at airports to reduce transport and logistics cost;
modernization of existing airports to reduce transportation costs and shipment delays;
expansion of fiber-optic, broadband, and 5G networks in airports; and
upgrading and improving airport infrastructure to ease air traffic congestion and address future demand.

The table below shows the priority projects identified in the airports sector for the PPP mode of implementation based on NEDA’s list of IFPs as of August 2024.

1DOTC. 2015. Master Plan Studies on the Strategy for the Improvement of National Airports in the Republic of the Philippines and the Strategy for the Development of National Airports.
2Government of the Philippines. 2023. Philippine Development Plan 2023–2028.

Public–Private Partnership Priority Airport Projects, as of August 2024

No.	Project	Implementing Agency	Estimated Project Cost
			($ million)	(₱ billion)
1.	Laoag International Airport Development Project	DOTr	257.25	15.00
2.	New Baguio Airporta	DOTr	215.23	12.55
3.	New Cagayancillo Airporta	DOTr	205.80	12.00
4.	New Manila International Airport (Bulacan International Airport)	DOTr	12,616.05	735.63
5.	Ninoy Aquino International Airport PPP Project	DOTr	2,925.62	170.59
6.	Upgrade, Expansion, Operations, and Maintenance of Laguindingan International Airport Project	DOTr	218.66	12.75
7.	Upgrade, Expansion, Operations, and Maintenance of Bohol–Panglao International Airport Project	DOTr	77.69	4.53

afinancing source indicated is official development assistance/PPP

DOTr = Department of Transportation, PPP = public–private partnership.

Source: NEDA. 2024. Infrastructure Flagship Projects (accessed 27 October 2024).

Projects under Preparation and Procurement

Airports Public-Private Partnerships under Preparation and Procurement

COMPARE

DOWNLOAD

LEARN MORE

Airports

Sector Master Plan

The table below presents a list of pipeline national PPP airport projects as of October 2024, based on the PPP Center’s project list.

Pipeline Public–Private Partnership Airport Projects, as of October 2024

No.	Project	Implementing Agency	Procurement Mode	Estimated Project Cost		Status
No.	Project	Implementing Agency	Procurement Mode	($ million)	(₱ billion)	Status
1.	Upgrade, Expansion, Operations, and Maintenance of Bohol–Panglao International Airport	DOTr and CAAP	Unsolicited	77.69	4.53	Procurement phase (under comparative challenge)
2.	Rehabilitation, O&M, and Expansion of Puerto Princesa International Airport	DOTr and CAAP	Unsolicited	175.62	10.24	Negotiation phase
3.	Rehabilitation–Expansion–O&M of Iloilo International Airport	DOTr and CAAP	Unsolicited	357.58	20.85	Negotiation phase
4.	O&M and Facility Upgrade of Kalibo International Airport	DOTr	Unsolicited	62.08	3.62	Negotiation phase
5.	Laoag International Airport Development Project	DOTr	Solicited	-	TBD	Preparation phase (under development)
6.	Development, Expansion, and O&M of Sayak Siargao Airport	DOTr	Unsolicited	14.75	0.86	Preparation phase (under evaluation by IA)
7.	O&M of Francisco B. Reyes Airport and New Busuanga Airport	CAAP	Unsolicited	23.15	1.35	Preparation phase (under evaluation by IA)
8.	Design–Build–Finance–Operate Air Navigation Services (Air Traffic Service and Air Navigation Service) of the Philippines	CAAP	Unsolicited	511.41	29.82	Preparation phase (under evaluation by IA)
9.	New Surigao Airport Project	City Government of Surigao	Solicited	-	TBD	Preparation phase (under conceptualization)
10.	Upgrade, Expansion, and O&M of Laguindingan Airport Projecta	DOTr and CAAP	Unsolicited	218.66	12.75	Procurement phase (under comparative challenge)a

aThe concession agreement for this project was signed with the original proponent on 28 October 2024.

CAAP = Civil Aviation Authority of the Philippines, DOTr = Department of Transportation, IA = implementing agency, O&M = operation and maintenance, TBD = to be determined.

Source: PPP Center. 2024. List of PPP Projects in the Pipeline (accessed 27 October 2024).

Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024).

Airports

Features of Past PPP Projects

Procurement of PPP Projects

Airports Public-Private Partnerships procured through various modes

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

PPP Projects Reaching Financial Close

Airports Public-Private Partnerships reaching Financial Close

COMPARE

DOWNLOAD

PPP = public–private partnership.

Note: Only active and concluded projects are considered. PPP projects “under implementation” in the PPP Center database are assumed to have reached financial closure.

PPP Projects with Foreign Sponsor Participation

Airports Public-Private Partnerships with Foreign Sponsor Participation

COMPARE

DOWNLOAD

PPP = public–private partnership.

Note: Only active and concluded projects are considered.

Government Support to PPP Projects

Government Support for Airports Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

Payment Mechanism for PPP Projects

Payment Mechanisms for Airports Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

Typical Risk Allocation for PPP Projects

COMPARE

DOWNLOAD

Risk Type	Private	Public
Demand risk
Revenue collection risk
Tariff risk
Government payment risk
Environment and social risk
Land acquisition risk	(Unsolicited)	(Solicited)
Interface
Handover
Political risk
Foreign exchange risk

Source: PPP Center. 2016. Generic Preferred Risks Allocation Matrix; Tavidell Law.

Financing Details

Parameter	1990-2021	1990-2022	1990-2023
PPP projects with foreign lending participation	2	3	3
PPP projects that received export credit agency/international financing institution support	2	3	3
Typical debt: equity ratio	80:20
Time for financial closure	270 days from commercial close/90 days from O&M start date (whichever is later)
Typical concession period	15/25 years, subject to extension, 50 years
Typical Financial Internal Rate of Return	UA

O&M = operation and maintenance, PPP = public–private partnership.

Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024); Mactan–Cebu International Airport Project; Clark International Airport Expansion Project Operation and Maintenance; Ninoy Aquino International Airport (NAIA) Public–Private Partnership Project; New Manila International Airport (Bulacan International Airport); World Bank. 2023. Infrastructure Finance, PPPs, and Guarantees. Country Snapshots. Philippines. Custom Query (accessed 29 August 2024); Tavidell Law.

Case Study: Ninoy Aquino International Airport Public–Private Partnership Project

Brief History and Problems

NAIA has been the Philippines’ primary international gateway since it was built in 1956. It is overwhelmingly the Philippines’ largest airport for both international and domestic travel. The airport has been expanded several times since its construction, with new terminals added in 1999 and 2008. However, it has long exceeded its design capacity of 33.2 million passengers per year. In 2019, the last full year before the COVID-19 pandemic, 47.9 million passengers used NAIA, resulting in significant congestion. Despite strong traffic and passenger growth, NAIA has long been plagued by underinvestment, leading to overcrowded terminals, long waits, substandard facilities, and a reputation—both local and international—as one of the world’s worst airports. Recognizing NAIA’s role as the Philippines’ face to the world, the first place where many foreigners form their views of the Philippines, and the main entry and exit point for the country’s millions of overseas workers, the government made bidding and awarding a PPP concession for NAIA a very high priority, as shown by the speed at which the entire process was completed.

The Solution

The DOTr launched the bid for the NAIA PPP in August 2023. The NAIA PPP was designed to ensure that the capex investments needed to bring NAIA to international standards were undertaken over the first 6 years of the concession period, and that O&M improvements would be undertaken by the private sector partner 6 months after the signing of the concession agreement. Required capex investments include modernizing air traffic control systems, rehabilitation of runways and taxiways, upgrading baggage handling systems, expansion of terminals, and flood control measures, among others. These are expected to increase aircraft movements from 42 to 48 per hour and increase passenger capacity to 62 million per year, while simultaneously reducing delays, improving efficiency, and enhancing the overall passenger experience.

The operator is also expected to meet a set of defined key performance indicators to ensure critical equipment always works, sufficient space for passengers is available, and waiting times are reasonable. To ensure compliance with prescribed standards, failure to meet these indicators will result in financial penalties.

Bankable Transaction Structure and Competitive Tender: A Whole Nation Wins

CAAP = Civil Aviation Authority of the Philippines, EPC = engineering, procurement, and construction, DOTr = Department of Transportation, MIAA = Manila International Airport Authority, O&M = operation and maintenance.

NAIA’s location and track record make it a uniquely attractive commercial opportunity compared with the existing and future airports servicing the Metro Manila area. NAIA is situated within Metro Manila itself. Compared with Clark and the future New Manila Airport in Bulacan, NAIA is much closer to residential and commercial centers in Metro Manila, and easily accessible through already existing infrastructure. This, and a thriving Philippine economy fueling strong growth in domestic and international travel, made the NAIA PPP an attractive target for investment. The NAIA PPP features a 15-year concession, renewable for another 10 years following an assessment on the eighth year (for a total of concession period of 25 years), that has optimized government receipts, through a predetermined upfront payment of ₱30 billion ($513 million) paid upon O&M start date and ₱2 billion ($34 million) in annuity payments throughout the concession period. Additionally, the winning bidder was determined based on the highest revenue share to government, provided annually throughout the concession period. Revenue from airport operations, including aeronautical and non-aeronautical, including commercial operations, will be shared with the government, aligning both parties’ interests. This revenue-sharing structure guarantees that, as NAIA’s passenger numbers continue to grow, the government will benefit from a progressive income stream, ensuring rising traffic translates into tangible fiscal gains.

The DOTr and the MIAA embarked on a single-stage solicited tender process for the NAIA PPP, which was launched in August 2023. The competitive tender process culminated in December with four bid submissions from reputable international airport operators and established local players. The notice of award was issued to the winning bidder on 16 February 2024.

The bid process was transparent, fair, and decisive. After a thorough evaluation of both the technical and financial proposals, the SMC-SAP & Company Consortium, led by San Miguel Corporation, was selected as the winning bidder, offering the highest revenue share to the government at 82.16%.

Ultimately, the project proves that the solicited process yields superior results as compared with the unsolicited route, with much better financial outcomes for the government and a more secure revenue structure, as illustrated in the table below.

	Winning Bidder	2nd Place	3rd Place	Shadow Bld	Unsol
Revenue share (%)	82.16%	33.30%	25.91%	25.00%	5%
Revenue share to Government	831.12	352.74	323.32	204.77	32.35
Upfront payment and Annuity	80.00	80.00	80.00	80.00	56.64
Total Govt. Payment	911.12	432.74	403.32	284.77	88.99
NPV	341.59	170.77	157.74	127.07	63.44

PHP Billion, Nominal

PHP = Philippine peso, NPV = net present value.

The Winning Bidder

The SMC-SAP & Company Consortium is composed of San Miguel Holdings Corp., one of the Philippines’ largest conglomerates; two local firms—RMM Asian Logistics Inc. and RLW Aviation Development Inc.; and Incheon Airport Development Corporation, the operator of the Republic of Korea’s main international gateway, Incheon Airport, outside Seoul. After winning the bid, the consortium organized itself into a new company, the New NAIA Infrastructure Corporation, which then entered into the concession agreement with the Government of the Philippines.

Financing Structure

At the heart of the NAIA PPP is a carefully structured financing package. The project’s financing was fully committed and provided on a non-recourse basis in local currency. The loan tenor is 15 years, inclusive of the 3-year grace period, and is competitively priced with a step-down provision post-construction, and a debt service coverage ratio covenant at 1.15x, applicable only after the grace period. The ₱80 billion (approximately $1.4 billion) senior debt facility consists of the upfront payment facility and capex facilities. Although there was considerable interest from foreign lenders, debt was oversubscribed domestically by a club of local banks led by Banco de Oro, Inc. as Mandated Lead Arranger. Other lenders are Bank of Commerce, Asia United Bank Corp., China Banking Corp., Security Bank, and Development Bank of the Philippines. Equity is provided by San Miguel Corporation, RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon Airport Corporation.

ADB’s Role as Transaction Advisor and Value Addition

ADB provided transaction advisory services and served as an impartial facilitator, committed to ensuring transparency and fostering competition through a structured, solicited tender process. This approach successfully attracted participation from a broad range of suitably qualified international and domestic investors. ADB’s role extends beyond financial structuring to include the integration of environmental, social, and governance safeguards into project specifications. This includes climate adaptation measures, such as flood protection, as well as renewable energy solutions.

Setting a Precedent: A Model for Future PPPs

The NAIA PPP is a flagship infrastructure project for the Philippines that demonstrates how the government can mobilize private capital and maximize its receipts by structuring a bankable project. Through a competitive tender process that ensures transparency and adheres to best practices, the NAIA PPP sets a new standard for PPPs in the region.

With its robust risk mitigation strategies and incorporation of social safeguards and sustainability measures, the NAIA PPP has created a blueprint for future airport deals in Southeast Asia and beyond. It underscores the benefits of a competitively tendered PPP in addressing infrastructure deficits.

The successful execution of this deal positions NAIA to become a world-class airport, serving as a catalyst for growth in the Philippine aviation sector and setting a precedent for future large-scale infrastructure projects across the region.

Source: Asian Development Bank.

Airports

Tariffs

The CAAP implements the Integrated Passenger Service Charge, whereby the domestic passenger service charge is integrated into every domestic air ticket purchased with enplanement from CAAP terminals.1 The Tourism Industry and Enterprise Zone Authority (TIEZA) collects travel tax from individuals who are leaving the Philippines irrespective of the place where the air ticket is issued and the form or place of payment, pursuant to the Tourism Act of 2009.
The MIAA implements airport fees and charges, including the Passenger Service Charge (PSC), for all terminals at NAIA, covering Terminals 1, 2, 3, and 4.2 Similarly, the same policy applies to the MCIA, where corresponding airport fees and charges, including the PSC, are implemented under the supervision of the MCIAA.3
1CAAP. 2017.Memorandum Circular No. 022-17.
2MIAA. 2024. Revised Administrative Order No. 1 (Series of 2024).
3MIAA. 2024. Revised Administrative Order No. 1 (Series of 2024).
Airports

Challenges

The previous restriction on foreign investments (capped at 40%) limited competition in the sector, as the controlling stake in the project company belonged to local companies.1 This has now been addressed by the amendment of the Public Service Act, which no longer considers airport operation a public utility.
Changes in the source of financing and the procurement modality for airport projects with changes of government have in the past led to cancellation of the procurement of airport PPP projects, even though there were already prequalified bidders. This was the case of the regional airports PPP project, which went through several changes in structure before it was finally canceled by the previous administration, which preferred a hybrid mode of implementation for PPP projects—one where the government would build or develop infrastructure projects and bid out their O&M to the private sector.2
Many of the pipeline PPP projects in the airports sector are USPs, which may not result in the most competitive and advantageous bids for the government, as compared with solicited PPPs.
It is crucial to address interface issues with other parties, including other government entities, at the outset. In the MCIA project, the concessionaire could proceed with the construction of Terminal 2 only after the Philippine Air Force had vacated 17 structures located at the air base within the proposed site. This delayed the start of construction by around 5–6 months.3
There is currently airport and runway congestion. Current capacity is unable to adjust to the increasing demand of air travelers and aircrafts. Relatedly, connectivity between airports is unfavorable and inefficient because of underdeveloped roads and highways leading to airports, which results in some airports being more favored, hence more congested, than others.4
The current regulatory framework needs to be improved to ensure coherent implementation of policies for airport development and regulation, with bills seeking to streamline the conflicting roles and powers of government agencies yet to be approved and signed into law.5
Natural hazards, especially the strong typhoons that visit the country every year, are among the greatest challenges to PPP infrastructure (especially airports) in the Philippines. The need to future-proof airports by making them climate-resilient is likewise a challenge in itself, given the impact of climate change. In December 2021, Typhoon Odette damaged the MCIA, leading to flight cancellations and the indefinite suspension of airport operations.6 Significant damage to Terminal 1 meant the concessionaire had to transfer all departures for both domestic and international flights to Terminal 2 beginning 16 January 2022 to ensure the safety of passengers and staff during emergency rectification and repairs to damaged structures.7 The rehabilitation works to the MCIA were completed 6 months after.8
1ADB. 2020. Public–Private Partnership Monitor: Philippines.
2PPP Center and InterAksyon. 2017. DOTr Cancels PPP Plan for 5 Regional Airports.
3MyCebu.ph. 2015. GMR-Megawide Faces Challenges in Mactan Airport Expansion.
4Bariuan, D.G.C. The Four Key Airports. Business World. 2023.Infrastructure Upgrades Urgently Needed to Address Rising Air Travel Demand, Study Finds.
5Senate of the Philippines. 2022. Senate Bill No. 1073.
6Inquirer.net. 2021. Mactan–Cebu Int’l Airport shut ‘until further notice’ amid damage from ‘Odette’.
7Mactan–Cebu International Airport. 2022. Public Advisory: Transfer of Operations in T2.
8SunStar Philippines. 2022. MCIA Terminal 1 Rehab Expected to Be Completed by July 2022.

Energy

Power Consumption

876.4 kWh per capita

Share of Clean Energy

22.3 % of total energy use

Electricity Access

94.8 % of population

Energy Imports

46 % of total energy use

Getting electricity (score out of 100)

87.4 no.

Investment in energy with private participation

245.18 current $ million

Total number of projects with cumulative lending, grant, and technical assistance commitments from ADB in energy sector

152

Total number of projects with cumulative lending, grant, and technical assistance commitments from ADB in energy sector

6,828 $ million

₱1 = $ 0.01715

Govt. = government, kWh = kilowatt-hour.

Sources: ADB. 2023. Cumulative Lending, Grant, and Technical Assistance Commitments; DOE. 2023. Philippine Energy Plan 2023-2050. Volume I. World Bank. 2014. Energy Imports, Net (% of Energy Use) – Philippines; 2020. Getting Electricity; 2022. Access to Electricity (% of Population); 2022. Investment in Energy with Private Participation (in $); World Data. 2021. Energy Consumption in the Philippines.

Given that there are no reported additional oil or gas reserves in the Philippines, this section focuses on the power sector.

As of 2023, the Philippines had a total installed capacity of 28,291 megawatts across all plant types. Fossil fuel power plants constitute the bulk of the electricity production in the country. Combined renewable energy plants, on the other hand, account for 29.75% in installed capacity.

Installed Power Capacity by Plant Type in the Philippines, 2023

Plant Type	Installed Capacity (MW)
Coal	12,406
Oil-based	3,737
Natural gas	3,732
Renewable energy	8,417
Geothermal	1,952
Hydro	3,799
Biomass	585
Solar	1,653
Wind	427
Total installed capacity	28,291

Source: DOE. 2023. Annual Power Statistics.

The Philippine electric power industry is divided into four sectors: generation, transmission, distribution, and supply sector. Considering how the industry is structured and regulated under the Electric Power Industry Reform Act (EPIRA), with electric power supply no longer a public service provided by the government, PPP opportunities in the energy sector, except for renewable energy, are limited.

Energy

Contracting Agencies

The main implementing agencies in the energy sector are the Department of Energy (DOE), the National Power Corporation (NPC), and the National Transmission Corporation (TransCo).
The National Irrigation Administration (NIA) is also developing floating solar and hydroelectric power projects on its irrigation waters or existing irrigation systems nationwide.1
LGUs, particularly provinces and cities, may enter into PPPs for mini-hydroelectric projects for local purposes.
1NIA. 2023. NIA and SNAP switch on pilot floating solar project in Magat reservoir.

Energy

Sector Laws and Regulations

Key Laws and Regulations in the Energy Sector

Law or Regulation
Electricity Power Industry Reform Act of 2001 (Republic Act No. 9136) (EPIRA) and Implementing Rules and Regulations	Restructured and deregulated the entire electric power industry and privatized most state-owned power generation and transmission assets: Divided the Philippines’ electric power industry into four sectors: generation, transmission, distribution, and supply Created the Energy Regulatory Commission (ERC) as an independent, quasi-judicial regulatory body mandated, among others, to perform such regulatory functions as are appropriate and necessary to ensure the successful restructuring, privatization, and modernization of the electric power sector Created the Power Sector Assets and Liabilities Management Corporation (PSALM) as a GOCC tasked to manage the orderly sale, disposition, and privatization of NPC assets, real estate, and other disposable assets, and independent power producer IPP contracts with the objective of liquidating all NPC financial obligations and stranded contract costs Created the National Transmission Corporation (TransCo) as a GOCC that assumed the electrical transmission function of the NPC Provided for the establishment by the DOE of the Wholesale Electricity Spot Market (WESM), composed of WESM participants, tasked to provide the mechanism for identifying and setting the price of actual variations from the quantities transacted under contracts between sellers and purchasers of electricity, and implemented by a market operatora
Renewable Energy Act of 2008 (Republic Act No. 9513) and Implementing Rules and Regulations	Require all stakeholders in the electric power industry to contribute to the growth of the renewable energy industry and provides for the granting of fiscal incentives to entities that will utilize renewable energy resources. It created the National Renewable Energy Board (NREB) to act as the advisory body tasked to monitor the implementation of the Renewable Energy Act. The NREB was tasked to set the minimum percentage of generation from renewable energy resources based on their sustainability, available capacity of the relevant grids, available renewable energy resources within the specific grid, and other relevant parameters, and to determine to which sector Renewable Portfolio Standards (RPS) should be imposed on a per grid basis.b The law further mandated a FIT system (which offers guaranteed payments on a fixed rate per kWh for electricity produced from wind, solar, ocean, run-of-river hydropower, and biomass) and establishment by the DOE of the Renewable Energy Market and the Green Energy Option program, which provides end-users the option to choose renewable energy resources as their sources of energy. The ERC has approved the templates for the power supply agreements in the renewable energy sector, particularly the renewable energy payment agreement (REPA) and the renewable energy supply agreement (RESA). Renewable energy plants are required to enter into a REPA with TransCo, which is the administrator of the FIT-Allowance Fund. Renewable energy plants operating where the WESM is not operational, whether connected directly to the grid or to a distribution system, must enter into a RESA with the host distribution utility.
Energy Virtual One-Stop Shop (EVOSS) Act of 2019 (Republic Act No. 11234) and Implementing Rules and Regulations	Implemented to establish the EVOSS under supervision of the DOE, an online system that allows the coordinated submission and synchronous processing of all required data and information, and provides a single decision-making portal for actions on applications for permits and/or certifications related to applications for new power generation, transmission, or distribution projects. Prospective developers can use the EVOSS online paperless platform to apply, monitor, and receive all the needed permits and applications, submit all the required documents, and pay charges and fees. The EVOSS has the following characteristics, among others: Provides a secure and accessible paperless processing system for collection of application forms, monitoring of application status, and payment of fees, among others; and Provides a secure, accessible, and unified system for all national and local government agencies involved in the permitting process of energy projects, using standard templates and governed by mandatory processing time frames.
Microgrid Systems Act (Republic Act No. 11646) and Implementing Rules and Regulations	Enacted to accelerate total electrification of the country and ensure the provision of quality, reliable, and secure electricity service via microgrid systems at reasonable rates in unserved and underserved areas, taking into account geographical limitations in connectivity. These unserved and underserved areas, initially under the jurisdiction of the NPC through the Small Power Utilities Group in the performance of their missionary electrification function, are now opened to other qualified entities for the generation and delivery of electric power.
Philippine Grid Code (2016 Edition)	Establishes and documents the basic rules, requirements, procedures, and standards that govern the operation, maintenance, and development of the high-voltage backbone transmission system in the Philippines. The Grid Code identifies and recognizes the responsibilities and obligations of three key independent functional groups: grid owner, system operator, and market operator. These functional groups and all users of the grid must comply with all the provisions of the Grid Code. The Grid Code is intended to be used along with the WESM Market Rules to ensure the safe, reliable, and efficient operation of the grid.
Philippine Distribution Code (2017 Edition)	Establishes the basic rules and procedures that govern the operation, maintenance, development, connection, and use of the electric distribution systems in the Philippines. Compliance with the provisions of the Distribution Code is mandatory for all participants in distribution system operations, which include distributors and users of the distribution system, including embedded generators, other distributors connected to the distribution system, and large customers.
Providing the Revised Guidelines for the Green Energy Auction Program in the Philippines (DOE Department Circular No. DC 2021-11-0036)	Provides the guidelines for the DOE’s Green Energy Auction Program (GEAP), which the DOE established pursuant to the Renewable Energy Act to make the procurement of renewable energy supply in the Philippines a competitive process. Through the GEAP, the mandated participants of the RPS Program are given substantial assistance to procure their energy requirements through a competitive process and ensure compliance with their minimum RPS requirements designed to continuously trigger the increase of renewable energy capacity in the country.c
Wholesale Electricity Spot Market (WESM) Rules (as of 27 January 2023)	Establish the basic rules, requirements, and procedures that govern the operation of the WESM, which are complementary with the Grid Code and the Distribution Code. The WESM rules provide for the mechanism for determining the price of electricity not covered by bilateral contracts between sellers and purchasers of electricity.
Revised Omnibus Guidelines Governing the Award and Administration of Renewable Energy Contracts and the Registration of Renewable Energy Developers (DOE Department Circular No. DC2024-06-0018)	Prescribes the guidelines and procedures on the pre-application, application, and award of renewable energy contracts; the conversion of existing service contracts to renewable energy contracts for the exploration, development, or utilization of renewable energy resources with the DOE; the issuance by the DOE of certificates of registration for renewable energy developers of projects with or without renewable energy contracts; and the administration of renewable energy contracts.

aParticipants in the energy sector are required to register with the WESM’s market operator, subject to compliance with certain criteria. TransCo and the National Grid Corporation of the Philippines (NGCP) are registered with the WESM’s market operator as the network service provider and system operator, respectively.
bThe RPS is a market-based policy that requires electricity suppliers to source an agreed portion of their energy supply from eligible renewable energy resources. The Philippine transmission system is composed of three grids, the Luzon Grid, Visayas Grid, and Mindanao Grid. For purposes of RPS, each grid is treated as a separate entity. Thus, the percentage of electricity generation required to come from renewable energy sources is determined independently for each grid.
cThe mandated participants are the electric power industry participants that were obligated to comply with the RPS Rules, based on the minimum annual requirements set by the DOE.

DOE = Department of Energy, EPIRA = Electricity Power Industry Reform Act, EVOSS = Energy Virtual One-Stop Shop, FIT = feed-in tariff, GEAP = Green Energy Auction Program, GOCC = government-owned or controlled corporation, IPP = independent power producer, LGU = local government unit, NGCP = National Grid Corporation of the Philippines, NPC = National Power Corporation, NREB = National Renewable Energy Board, PSALM = Power Sector Assets and Liabilities Management Corporation, RPS = Renewable Portfolio Standards, TransCo = National Transmission Corporation, REPA = renewable energy payment agreement, RESA = renewable energy supply agreement, WESM = Wholesale Electricity Spot Market.

Sources: DOE. 2009. Department Circular No. DC2009-05-0008; 2021. Department Circular No. DC 2021-11-0036; 2024. Department Circular No. DC2024-06-0018; Philippine Grid Code; Philippine Distribution Code; Energy Regulatory Commission (ERC). 2014. Resolution No. 18, Series of 2014; 2016. Resolution No. 22, Series of 2016; 2018. Resolution No. 02, Series of 2018; Government of the Philippines. 1998. Republic Act No. 8479; 2000. Republic Act No. 9136; 2008. Republic Act No. 9513; 2019. Republic Act No. 11234.

Current Sectors of the Electric Power Industry

Sector	Description
Generation sector (generation companies/ PSALM/NPC)	Generation of electricity refers to the production of electricity by a generation company or a co-generation facility, which must be competitive and open. Any new generation company is required, before it operates, to secure from the ERC a certificate of compliance and health, safety, and environmental clearances from the appropriate government agencies. No company or related group is allowed to own, operate, or control more than 30% of the installed generating capacity of a grid and/or 25% of the national installed generating capacity. Power generation is not considered a public utility operation, although it is a business affected with public interest. Upon implementation of the retail competition and open access, the prices charged by a generation company for supply of electricity will not be subject to ERC regulation.a The power generation assets of the government were privatized through PSALM to liquidate the obligations of the NPC. Pending completion of the privatization efforts of PSALM, the undisposed generating assets and IPP contracts of the NPC remain under the NPC. The NPC may continue to generate and sell electricity from these generating assets and IPP contracts.
Transmission sector (TransCo as grid owner and NGCP as system operator)	Transmission of electricity refers to the conveyance of electricity through the high-voltage backbone system. It is a regulated common electricity carrier business. Its operation, maintenance, and development is governed by the Grid Code. Transmission of electricity must comply with the Transmission Development Plan, the plan for managing the transmission system, including expansion, upgrading, rehabilitation, repair, and maintenance. EPIRA created TransCo, a GOCC, to assume the NPC’s electrical transmission functions. As grid owner, TransCo remains the owner of the transmission assets even since EPIRA took effect. The NGCP, a private corporation, took over the management and operation of TransCo’s nationwide transmission system, as system operator. It was granted a 50-year franchise to operate, manage, and maintain the country’s nationwide transmission system and to engage in the business of transmitting electricity through the country’s state-owned power grid. The NGCP is responsible for ensuring and maintaining the reliability, adequacy, security, stability, and integrity of the grid, and improving and expanding its transmission facilities to adequately serve generation companies. During the operation of the franchise, at least 60% of the NGCP’s capital is required to be owned by citizens of the Philippines.
Supply sector (retail electricity suppliers)	The supply of electricity refers to the sale of electricity to electricity end-users, who have a choice of supplier (contestable market), and include, among others, Competitive Retail Electricity Market (CREM) end-users, GEOP end-users, directly connected customers (industrial or bulk end-users directly supplied with electricity by a generation company/PSALM/the NPC), and aggregated groups (end-users whose demand has been consolidated and supplied by a retail supplier to qualify for contestability). Retail competition and open access allows electricity end-users (who have a choice) to choose their supplier provided their average peak demand is at least 500kW for CREM and aggregated end-users and at least 100kW for GEOP end-users. This sector is a business affected with public interest. As such, it requires a license from the ERC, except for distribution utilities and electric cooperatives with respect to their existing franchise areas. It is not considered a public utility operation and a local or national franchise is not required.b The ERC does not regulate prices charged by suppliers to the contestable market.
Distribution sector (distribution utilities)	Distribution of electricity refers to the conveyance/sale of electric power by a distribution utility through its distribution system. It is a regulated common carrier business requiring a franchise. The operation, maintenance, development, connection, and use of electric distribution systems in the Philippines is governed by the Philippine Distribution Code. Distribution of electricity to electricity end-users who do not have the choice of a supplier of electricity (captive market) is a regulated common carrier business, requiring a national franchise.c Distribution may be undertaken by private distribution utilities, electric cooperatives, LGUs presently undertaking this function, and other duly authorized entities, subject to regulation by the ERC. In remote and unviable areas where the distribution utility is unable to serve for any reason, the areas will be opened to other qualified third parties that may provide the service. Participation as a qualified third party is open to any party that has demonstrated capability and willingness to comply with the relevant technical, financial, and other requirements through competitive bidding.

aOpen access refers to the system of allowing any qualified person the use of transmission and/or distribution system and associated facilities subject to the payment of transmission and/or distribution retail wheeling rates approved by the ERC.
bIn the energy sector, a franchise is the authorization given by the Philippine Congress to an entity to operate a public utility, which applies to the distribution sector (captive market). On the other hand, a license is given by the DOE to a supplier of electricity to the retail/contestable market.
cCaptive market refers to electricity end-users who do not have the choice of a supplier of electricity, such as households/the consuming public.

CREM = Competitive Retail Electricity Market, EPIRA = Electricity Power Industry Reform Act, ERC = Energy Regulatory Commission, GEOP = Green Energy Option Program, GOCC = government-owned or controlled corporation, LGU = local government unit, PSALM = Power Sector Assets Liabilities Management, IPP = independent power producer, NGCP = National Grid Corporation of the Philippines, NPC = National Power Corporation, TransCo = National Transmission Corporation.

Sources: DOE. 2019. Department Circular No. DC2019-11-0015; Philippine Grid Code; Philippine Distribution Code; Philippine Energy Market Corporation. Retail Overview.

Energy Sector Regulatory Authorities in the Philippines

Agency	Function
Department of Energy (DOE)	Mandated to prepare, integrate, coordinate, supervise, and control all plans, programs, projects, and activities of the government relative to energy exploration, development, utilization, distribution, and conservation, and to monitor private sector activities relative to energy projects to attain the goals of the restructuring, privatization, and modernization of the electric power sector. It is authorized to issue rules and regulations necessary to implement the objectives of EPIRA. The DOE is also the lead agency designated to implement the provisions of the Renewable Energy Act.
Energy Regulatory Commission (ERC)	An independent, quasi-judicial regulatory body responsible for the enforcement of the implementing rules and regulations of pertinent energy laws, tasked to promote competition, encourage market development, ensure customer choice, and penalize abuse of market power in the restructured electricity industry. The ERC is mandated to promulgate rules and regulations and perform regulatory functions to ensure the successful restructuring of the Philippine electric power industry. It establishes and enforces a methodology for setting transmission and distribution wheeling rates and retail rates for the captive market of a distribution utility, which must allow the recovery of just and reasonable costs and a reasonable return on rate base to enable the entity to operate viably. It has original and exclusive jurisdiction over all cases contesting rates, fees, fines, and penalties imposed by it and over all cases involving disputes between and among participants or players in the energy sector.
Philippine Competition Commission	Mandated to promote free and fair competition across all sectors, including energy. It penalizes monopolistic and anticompetitive behavior, and has the authority to approve asset transactions in the power sector.
Philippine Energy Market Corporation (PEMC)	The governing body of the WESM. It was incorporated in 2003 as a non-stock, non-profit corporation upon the initiative of the DOE with representatives from various sectors of the electric power industry. It served as the autonomous group market operator and governing body of the WESM for over 10 years. In 2018, pursuant to EPIRA, it transferred WESM operations to an independent market operator whose board of directors was not affiliated with power industry stakeholders, the Independent Electricity Market Operator of the Philippines, but it continues to be the governing body of the WESM.

DOE = Department of Energy, EPIRA = Electric Power Industry Reform Act, ERC = Energy Regulatory Commission, PEMC = Philippine Energy Market Corporation, WESM = Wholesale Electricity Spot Market.

Sources: ADB. 2019. Public–Private Partnership Monitor. Second Edition; Government of the Philippines. 1992. Republic Act No. 7638; 2000. Republic Act No. 9136; 2014. Republic Act No. 10667; 2017. Executive Order No. 30, Series of 2017; NPC. NPC Now; PEMC. About PEMC.

Foreign Investment Restrictions

COMPARE

DOWNLOAD

Parameter	2021	2022	2023
Power generation (traditional sources)	100%	100%	100%
Power generation (renewable energy)	40%a	40%/100%b	40%/100%b
Power transmission	40%	40%	40%
Power distribution	40%	40%	40%
Oil and gas	40%c	40%c	40%c

a100% for large-scale geothermal projects or those with an initial investment cost of $50 million, under financial or technical assistance agreements entered into with the President.
b40% is still applicable to geothermal projects, except for large-scale geothermal projects or those with an initial investment cost of $50 million, under financial or technical assistance agreements entered into with the President where foreign equity investment may be up to 100%.
c100% for large-scale exploration, development, and utilization of minerals, petroleum, and other mineral oils, under financial or technical assistance agreements entered into with the President.

Sources: DOE. 2022. Department Circular No. DC2022-11-0034; 2024. Department Circular No. DC2024-06-0018; Government of the Philippines. 2000. Republic Act No. 9136; 2021, Republic Act No. 11659; 2022. Executive Order No. 175; Republic of the Philippines. 1987. The Constitution of the Republic of the Philippines.

Standard Contracts

COMPARE

DOWNLOAD

Type of Contract	Availability
PPP/concession agreement
Power purchase agreement	a
Capacity take-or-pay contract
Fuel supply agreement
Transmission and use of system agreement	b
Engineering, procurement, and construction contract

aThe ERC has approved the template for the REPA and RESA. The DOE has likewise prescribed the templates for renewable energy operating agreements and renewable energy service contracts.
bTemplates for the connection agreement, transmission service agreement, and metering service agreement to be entered into with the NGCP are available.

Source: DOE. 2024. Department Circular No. DC2024-06-0018; ERC. Resolution No. 18, Series of 2014.

Energy

Sector Master Plan

The DOE has developed the Philippine Energy Plan 2023–2050, which aims to facilitate access to affordable energy, secure a reliable and resilient energy supply, and transition to clean, sustainable, and climate-centered energy resources. The plan sets the strategic framework for the energy sector under three objectives: access to affordable energy, reliability and resiliency, and clean and sustainable energy.1 It targets 100% household electrification by 2028 through the Total Electrification Program.

NGCP has presented its 2024–2050 Transmission Development Plan (TDP) to various energy stakeholders for nationwide public consultations. The 2024–2050 TDP is a critical road map to build a more sustainable and efficient power grid system in the coming years. It is designed to address the needs of the power grid, ensuring its reliability and stability to prevent transmission-related outages.2

There is currently no PPP energy project listed as an IFP. The Agus-Pulangi Hydropower Plant Complex Rehabilitation Project of the NPC, with an indicative cost of ₱10.19 billion, is an IFP, but its procurement method is not yet indicated.

1DOE. 2023. Philippine Energy Plan 2023-2050.
2National Grid Corporation of the Philippines. 2024. NGCP unveils long-term grid development plan in nationwide consultations.

Projects under Preparation and Procurement

Energy Public-Private Partnerships under Preparation and Procurement

COMPARE

DOWNLOAD

LEARN MORE

Energy

Sector Master Plan

The table below presents a list of pipeline national and local PPP energy projects as of October 2024, based on the PPP Center’s project list.

Pipeline Public–Private Partnership Energy Projects, as of October 2024

No.	Project	Implementing Agency	Procurement Mode	Estimated Project Cost		Status
				($ million)	(₱ billion)
1.	Power Generation and Distribution in San Vicente Flagship Tourism Enterprise Zone	Tourism Infrastructure and Enterprise Zone Authority	Solicited	22.30	1.30	Preparation phase (under development)
2.	Development and Improvement of Asin Hydropower Plants	City Government of Baguio	Unsolicited	21.78	1.27	Negotiation phase
3.	Repurposing of Existing PNOC Port at Mabini Batangas as Offshore Wind Integration Port for Offshore Wind Development in Batangas or Mindoro Area	PNOC	Solicited	85.75	5	Preparation phase (under development)
4.	Combined 17MW Upper Sampaloc and 8MW Lower Sampaloc Hydroelectric Power Project	National Irrigation Administration	Unsolicited	123.65	7.21	Preparation phase (under evaluation by IA)
5.	Mariano Marcos State University 2MWp Solar Photovoltaic System	Mariano Marcos State University	Unsolicited	1.20	0.07	Preparation phase (under evaluation by IA)
6.	Marinduque Decarbonization Project	National Power Corporation	Unsolicited	72.72	4.24	Preparation phase (under evaluation by IA)
7.	Solar Rooftop Project	Provincial Government of Bataan	Unsolicited	0.69	0.04	Negotiation phase
8.	Bataan Rooftop Microgrid Project	Provincial Government of Bataan	Unsolicited	4.63	0.27	Negotiation phase

IA = implementing agency, PNOC = Philippine National Oil Company.

Source: PPP Center. 2024. List of PPP Projects in the Pipeline (accessed 27 October 2024).

Note: Information is not available for renewable energy projects developed under the FIT scheme.

Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024).

Energy

Features of Past PPP Projects

Procurement of PPP Projects

Energy Public-Private Partnerships procured through various modes

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

Sources: DOE. 2024. List of Renewable Energy (RE) Plants with Certificate of Endorsement (COE) to Energy Regulatory Commission (ERC) for Feed-in Tariff (FIT) Eligibility As of March 2024; PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024); World Bank. 2023. Infrastructure Finance, PPPs, and Guarantees. Country Snapshots. Philippines. Custom Query (accessed 29 August 2024); Tavidell Law.

PPP Projects Reaching Financial Close

Energy Public-Private Partnerships reaching Financial Close

COMPARE

DOWNLOAD

PPP = public–private partnership.

Note: Only active and concluded projects are considered. PPP projects “under implementation” in the PPP Center database are assumed to have reached financial closure. Value of PPP projects considered only refers to the value of PPP projects not awarded under the FIT scheme. Values of PPP projects awarded under the FIT are not available.

PPP Projects with Foreign Sponsor Participation

Energy Public-Private Partnerships with Foreign Sponsor Participation

COMPARE

DOWNLOAD

PPP = public–private partnership.

Note: Only active and concluded projects are considered in the above graph. The number of FIT projects with foreign sponsors are not included in the graph.

Government Support to PPP Projects

Government Support for Energy Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

Payment Mechanism for PPP Projects

Payment Mechanisms for Energy Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

Typical Risk Allocation for PPP Projects

COMPARE

DOWNLOAD

Risk Category	Private	Public	Shared
Demand risk
Revenue collection risk		a
Tariff risk
Environmental and social risk
Land acquisition risk
Permits
Handover risk
Political risk
Regulatory risk
Interconnection risk
Brownfield risk: asset condition
Grid performance risk
Hydrology risk

aFor renewable energy projects, payment is sourced by TransCo from the FIT-All Fund.

Source: PPP Center. 2016. Generic Preferred Risk Allocation Matrix.

Financing Details

Parameter	1990–2021	1990–2022	1990–2023
PPP projects with foreign lending participation	21	23	25
PPP projects that received export credit agency/international financing institution support	16	16	17
Typical debt: equity ratio	60:40–70:30
Time for financial closure	UA
Typical concession period	20–25
Typical financial internal rate of return	UA

PPP = public–private partnership.

Sources: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024); Ilijan Natural Gas Combined Cycle Power Plant (1200 MW Natural Gas Combined Cycle Power Project); Caliraya–Botocan–Kalayaan (CBK) Power Plant; World Bank. 2023. Infrastructure Finance, PPPs, and Guarantees. Country Snapshots. Philippines. Custom Query (accessed 29 August 2024); Tavidell Law.

Energy

Tariffs

The FIT system applies to renewable energy projects—wind, solar, ocean, run of river hydropower, and biomass. It is a policy mechanism to accelerate investments in and the growth of renewable energy as a key strategy toward achieving energy security and self-reliance. Under the FIT rules, a renewable energy developer who elects to participate in the FIT system and whose renewable energy plant meets the qualifications under the FIT rules is eligible for a FIT, which is a guaranteed payment (in ₱/kWh) for renewable energy generated and actually delivered to the transmission and/or distribution network. Generation companies with eligible renewable energy capacity are paid a FIT rate that is guaranteed for 20 years from the date of effectivity. The ERC promulgated the FIT rules in 2010 (FIT Rules), designating the NGCP as FIT Allowance (FIT-All) administrator or settlement agent. In 2012, the ERC amended the FIT Rules, substituting TransCo as FIT-All administrator or settlement agent.1

A renewable energy developer with a valid and subsisting renewable energy service contract and operating contract with the DOE may apply for the eligibility and inclusion of its contract under the FIT system by submitting to the DOE a declaration of commerciality based on the approved FIT rate and work plan, stating that the project is commercially feasible (development stage). If its declaration of commerciality is compliant, the DOE will then issue a Certificate of Confirmation of Commerciality to the project, which will serve as a notice to proceed to the construction phase. The DOE monitors the status of the project and conducts site validation, and issues the Certificate of Endorsement for FIT eligibility to the ERC for the project upon confirmation of its successful commissioning. To be eligible for a FIT, a renewable energy plant must have a Certificate of Compliance from the ERC, authorizing it to operate as a FIT-eligible renewable energy plant. The Certificate of Endorsement from the DOE is a requirement for the ERC’s issuance of the Certificate of Compliance to the project.2

In 2012, the ERC approved the initial FIT rates for wind, biomass, solar, and hydropower, but the payment of the approved FIT rates to eligible renewable energy developers commenced only upon the effectivity of the FIT-All, which the ERC approved in 2015 pursuant to the 2013 FIT-All guidelines. The FIT-All guidelines cover the determination and computation of the FIT-All and the procedure for collecting and disbursing the FIT-All fund to eligible renewable energy developers. As per the FIT Rules, consumers supplied electricity through the distribution or transmission network must share in the cost of the FITs in part through a uniform charge (in ₱/kWh), referred to as the FIT-All and applied to all billed kWh.

The FIT-All is established and set by the ERC on an annual basis on petition by TransCo, which is tasked with settling the FITs of the eligible renewable energy plants. The FIT-All takes into account forecasted annual required revenue of the eligible renewable energy plants, the previous year’s over- or under-recoveries, TransCo’s administration costs, the forecasted annual electricity sales, and other relevant factors, to ensure no stakeholder is allocated additional risks in the implementation of the FITs.3

TransCo filed the initial (2014–2015) FIT-All application in 2014, which the ERC approved in 2015, fixing the FIT-All rate at ₱0.0406/kWh for all on-grid electricity customers. Under the FIT Rules, FIT rates are subject to adjustment to allow pass-through of local inflation and foreign exchange rate variations. However, no adjustments have been made to them since their implementation. In 2020, the ERC approved adjustments to the FIT rates using the FIT adjustment formula. TransCo executes a renewable energy payment agreement (REPA) with each eligible renewable energy developer, following the template provided by the ERC.4

In November 2022, the ERC temporarily suspended collection of the FIT-All to mitigate high electricity rates in the past months. The ERC lifted the suspension of the FIT-All collection starting in the billing month of February 2024.

Intermittent and FIT-eligible renewable energy generating units are given preference in the Wholesale Electricity Spot Market (WESM) dispatch schedule to ensure its maximum output injection in the grid.5

1DOE. 2010. Resolution No. 16, Series of 2010; ERC. 2012. Resolution No. 15, Series of 2012; 2020. Resolution No. 06, Series of 2020.
2DOE. 2013. Department Circular No. 2013-05-0009; ERC. 2014. Resolution No. 16, Series of 2014.
3DOE. 2010. Resolution No. 16, Series of 2010; ERC. 2012. Resolution No. 15, Series of 2012; 2013. Resolution No. 24, Series of 2013; 2020. Resolution No. 06, Series of 2020.
4ERC. 2014. Resolution No. 18, Series of 2014; 2020. Resolution No. 06, Series of 2020.
5DOE. 2015. Department Circular No. DC2015-03-0001.

Feed-In-Tariffs

Technology	Feed-in-Tariff (₱/kWh)	Signed Renewable Energy Payment Agreement		Effective Renewable Energy Payment Agreement
Technology	Feed-in-Tariff (₱/kWh)	Number	Capacity (MW)	Number	Capacity (MW)
Solar		25	584.93	24	543.63
	FIT 1 (2012): 9.68	7	108.90	6	67.60
	FIT 2 (2015): 8.69	18	476.03	18	476.03
Wind		7	426.90	7	426.90
	FIT 1 (2012): 8.53	3	249.90	3	249.90
	FIT 2 (2015): 7.40	3	144.00	3	144.00
	Bangui 1 and 2: 5.96 (Pre-RE Law)	1	33.00	1	33.00
Hydro		34	332.62	17	226.47
	FIT 1 (2012): 5.90	5	34.60	5	34.60
	Digression Rate (2017): 5.8705	2	54.44	2	54.44
	Bakun: 5.6715 (pre-RE Law)	1	74.80	1	74.80
	FIT 2 (2017): 5.8705	23	163.77	8	62.18
	FIT 3 (2023): 6.1110	3	5.013	1	0.4530
Biomass		34	299.05	25	194.61
	FIT 1 (2012): 6.63	13	119.56	13	119.56
	Digression Rate (2017): 6.5969	4	14.56	4	14.56
	FIT 2 (2021): 6.19	17	164.92	8	60.48
Total		100	1,643.50	73	1,391.61

FIT = feed-in-tariff, kWh = kilowatt-hour, MW = megawatt, RE = renewable energy.

Source: DOE. 2010. Resolution No. 16, Series of 2010; ERC. 2012. Resolution No. 15, Series of 2012; 2013. Resolution No. 24, Series of 2013; 2020. Resolution No. 06, Series of 2020; 2023. Resolution No. 14, Series of 2023; TransCo FIT-All Fund Administration Division (data provided by email on 11 September 2024).

Energy

Challenges

Owing to the structure of the power sector, PPP projects are limited mainly to renewable energy power generation projects under FIT.
Planning of the power system requires improvement as the country’s needs are not always addressed because of constraints in the transmission system and overcapacity in some areas.1
The variable nature of renewable energy technologies such as solar power and wind power presents additional challenges of managing the stability of the Philippine grid and of securing a reliable supply of energy, particularly when amplified through geographic concentration such as in Negros. There is an overgeneration of electricity from renewable energy in Negros, resulting in stranded power, which in turn affects the stability of the Philippine grid.2
Investors face challenges to renewable energy project caused by complex and lengthy permitting procedures, requiring multiple approvals from various government agencies.3 Developers have to follow a sequential project development process, with uncertainty at each stage. This results in a very protracted process, which, in turn, results in higher cost to consumers. The tedious process of securing local and national permits from various institutions also leads to significant delays in the construction, commissioning, and commercial operation of both non-renewable energy and renewable energy projects.4 On the part of the government, the effectiveness of the EVOSS system is critical to harmonize the procedures in obtaining permits and licenses.5
Land or ROW acquisition continues to be a challenge in the sector, delaying the construction of energy facilities.6 Among other things, investors may need to navigate the process for land use conversion clearance, which takes some time to obtain from the Department of Agrarian Reform.
Expansion and development plans in the transmission sector require capital expenditures that are still subject to approval by the ERC. Waiting for approval may delay the project.7
The transmission and grid integration for intermittent renewable energy resources necessitates investments in physical infrastructure. The National Renewable Energy Program 2020–2040 cites the limited remaining capacity of existing grid infrastructure and delays in the needed grid expansion projects as the cause of the grid’s inability to immediately absorb new renewable energy projects and delays in their commercial operation.8
1Mercurio, R. 2023. Transmission Planning to Be Included in New Philippine Energy Plan. The Philippine Star.
2Center for Energy, Ecology, and Development. 2020. REPOWER NEGROS: A Scoping Study on Negros Island’s Power Sector Transformation. 2020.
3ASEAN Energy Database System. 2024. Red Tape, Tight Rules Discourage Investments in Renewable Energy.
4DOE. 2020. National Renewable Energy Program 2020-2040.
5Power Philippines News. 2023. DOE to Include LGUs in EVOSS for Energy Projects.
6Business World. 2022. Land Acquisition, Right of Way Seen as Key Hurdles for PPP Projects.
7Velasco, M. 2023.ECs Urged to Follow ERC Rules on Capex Approval. Matuwid na Singil sa Kuryente.
8DOE. 2020. National Renewable Energy Program 2020-2040.

Water and Wastewater

Access to water

97.6 % of population with access

Access to sanitation

84 % of population with access

Investment in water and sanitation with private participation

UA

Total number of projects with cumulative lending, grant, and technical assistance commitments from ADB in water and other urban infrastructure services

148 no.

Total amount of cumulative lending, grant, and technical assistance commitments from ADB in water and other urban infrastructure services

2,516 $ million

₱1 = $ 0.01715

UA = Unavailable.

Sources: ADB. 2023. Cumulative Lending, Grant, and Technical Assistance Commitments; PSA. 2022. Majority of Families Have Access to Improved Source of Drinking Water (Results from the 2022 Annual Poverty Indicators Survey).

Water and Wastewater

Contracting Agencies

The institutional arrangement for the water and sanitation (wastewater) sector in the Philippines has been complicated, with overlaps between the executive, regulatory, and service provision functions. There is no central organization tasked to oversee the operations of the entire water supply and sanitation system.1
The entities providing water supply and sanitation services that may act as contracting agencies for PPP water and wastewater projects include GOCCs, such as the Metropolitan Waterworks and Sewerage System (MWSS) and water districts, and LGUs.
1Senate of the Philippines. Quenching Policy Thirst: Reforming Water Governance in the Philippines. Policy Brief; World Bank. 2016. Private Sector Provision of Water and Sanitation Services in Rural Areas and Small Towns: The Role of the Public Sector-Country Report: Philippines.

Water and Wastewater

Sector Laws and Regulations

The following are the relevant laws and regulations for the water and wastewater sector:

Key Laws and Regulations in the Water and Wastewater Sector

Law or Regulation	Description
MWSS Charter (Republic Act No. 6234, 1971)	Decentralized the water sector by dissolving the National Waterworks and Sewerage Authority and creating MWSS, which is responsible for service provision in Metro Manila. Other municipal and provincial water and sewerage systems in about 1,500 cities and towns became the responsibilities of the local governments.
Provincial Water Utilities Act (Presidential Decree 198, 1973)	Strengthened the decentralized system by introducing a new management model for urban water supply and encouraging LGUs to form water utilities called “water districts,” which operate with a degree of autonomy from the LGUs. It also established the Local Water Utilities Administration (LWUA), a GOCC with a specialized lending function to promote and oversee the development of water supply systems in provinces, cities, and municipalities outside of Metro Manila.
Water Code of the Philippines (Presidential Decree 1067, 1976)	Governs water resource allocation, priority, and use as well as water supply, distribution, and pricing. Only citizens of the Philippines, cooperatives, associations, or corporations organized under Philippine laws whose capital is at least 60%–owned by Filipinos, and GOCCs and other government entities and/or instrumentalities, may apply for a right to abstract water from its natural source, known as a water permit, from the National Water Resources Board (NWRB).
The Local Government Code of 1991, Republic Act No. 7160, as amended	Authorizes LGUs to deliver basic services to their constituents, including water supply and sanitation services, and to charge fees for such services. LGUs may enter into contracts with other legal entities, including joint ventures and other forms of cooperative arrangement with the private sector, to provide basic services and other developments that will benefit their communities.
Philippine Clean Water Act of 2004 (Republic Act No. 9275)	Created a comprehensive program to reduce water pollution in all water bodies. It established governing boards to develop policies and strategies for carrying out the law’s objectives. It likewise imposed an accountability system by requiring project proponents to establish an environmental guarantee fund (EGF) to be used to for the maintenance of the project areas or for any emergency cleanup or rehabilitation that may be needed as a result of project implementation.

GOCC = government-owned or controlled corporation, LGU = local government unit, LWUA = Local Water Utilities Administration, MWSS = Metropolitan Waterworks and Sewerage System, NWRB = National Water Resources Board.

Sources: Department of Health (DOH). 2017. Administrative Order No. 10, s. 2017; Government of the Philippines. 1963. Republic Act No. 3601; 1971. Republic Act No. 6234, as Amended; 1973. Presidential Decree No. 198, as Amended; 1976. Presidential Decree No. 1067; 1991. Republic Act No. 7160, as Amended.

The regulatory agencies in the water and wastewater sector and their functions are provided in the table below. Some of these agencies are also contracting agencies in the sector.

Water and Wastewater Sector Regulatory Agencies

Agency	Function
Department of Health (DOH)	Agency that enforces the Philippine National Standards for Drinking Water (PNSDW) 2017. These standards are aligned with the guidelines and criteria recommended by international institutions such as the World Health Organization and the United States Environmental Protection Agency. The PNSDW aim to protect public health, safety, and welfare by ensuring quality standards of drinking water. A water service provider is required to obtain a certificate of potability duly signed and issued by the responsible health officer certifying that water samples collected passed the requirements set by the PNSDW.
Department of Environment and Natural Resources (DENR)	Agency that enforces the water quality guidelines and general effluent standards for wastewater pursuant to the Philippine Clean Water Act of 2004. This law provided for the designation of certain areas as water quality management areas by the DENR, in coordination with NWRB, the implementation of a wastewater charge system in all management areas through the collection of wastewater charges/fees, and the requirement for a permit to discharge from the DENR as legal authorization to discharge wastewater. The DENR is also implementing the Integrated Water Resources Master Plan (IWMP) through the Waste Resources Management Office (WRMO) which aims to manage the water supply of the country to maximize its use and to ensure its continuous supply in the face of extreme events or changes in accessibility, availability, and affordability.
Metropolitan Waterworks and Sewerage System (MWSS)	A GOCC that owns and/or has jurisdiction, supervision, and control over all waterworks and sewerage systems over Metro Manila, the entire Rizal Province, and a portion of Cavite Province. The bulk water supply of Bulacan Province is also under the jurisdiction of MWSS. In 1997, it entered into concession agreements for the operation of its east and west service areas. Its Regulatory Office recommends adjustments to water and sewerage rates implemented by its concessionaires for the approval of the MWSS board of trustees. In 2015, MWSS entered into a concession agreement for the Bulacan Bulk Water Supply Project, a PPP project under the Amended BOT Law.
Local Water Utilities Administration (LWUA)	A GOCC created by the Provincial Water Utilities Act. LWUA is mandated to regulate water districts. It establishes standards for local water utilities, which include minimum drinking water standards; minimum criteria for the design and construction of new or additional facilities; standards for the optimum selection and effective utilization of equipment, materials, and supplies; standardized procedures for operating and maintaining equipment and facilities; the training of personnel who operate or manage local water utilities; and organizational and institutional criteria to assure independent operation and funding of water districts and a uniform accounting system, and rules and regulations for their enforcement. It reviews and approves rates and charges established by water districts. LWUA further regulates rural waterworks and sanitation associations, which are cooperative, non-profit, non-stock associations registered with LWUA, for the purpose of supplying water services in rural areas outside the jurisdiction of MWSS or any water district (unless with waiver).
Water districts	Established by LGUs pursuant to the Provincial Water Utilities Act, to operate and maintain water supply systems in one or more provinces, cities or municipalities. The water districts have the right to acquire, install, improve, maintain, and operate water supply and distribution systems for domestic, industrial, municipal, and agricultural uses for residents and lands within the boundaries of such districts. They also have the right to provide, maintain, and operate wastewater collection and treatment and disposal facilities, and to conduct other functions and operations incidental to water resource development, utilization, and disposal within such districts. To perform their functions, the water districts have the authority to enter into contracts and/or partnerships with any person or legal entities, including private sector entities. Water districts are considered GOCCs and thus PPP projects they implement are considered national projects.
National Water Resources Board (NWRB)	A government agency that regulates private water utilities pursuant to the Public Service Act, as well as the utilization and appropriation of water pursuant to the Water Code of the Philippines. As a water utility regulator, NWRB has the authority to issue certificates of public convenience/certificates of public convenience and necessity to private entities, including water service cooperatives organized pursuant to the Cooperative Code.a As a water resource regulator, it has the authority to issue water permits for the appropriation of water for any purpose.
National Irrigation Administration (NIA)	A GOCC created by Republic Act No. 3601, as amended. NIA has the power, among others, to investigate and study all available and possible water resources in the Philippines, primarily for irrigation purposes, to plan, design, construct, and/or improve all types of irrigation projects and appurtenant structures, and to operate, maintain, and administer all national irrigation systems. It also has the authority to supervise the operation, maintenance, and repair, or otherwise to administer temporarily, all communal and pump irrigation systems constructed, improved, and/or repaired wholly or partially with government funds, and to delegate the partial or full management of national irrigation systems to duly organized cooperatives or associations.
Department of Public Works and Highways	Agency that is responsible for the flood control of all public works in the country, with the exception of those that are under the purview of other agencies. It plans, implements, and maintains the development of water resources and flood control in all public works through an integrated planning process.
Local government units (LGUs)	The LGUs are empowered under the LGC of 1991 to operate their own water and sanitation systems pursuant to their authority to deliver basic services to their constituents. This is further strengthened by Executive Order No. 138, Series of 2021, which enables the full devolution of certain functions of the executive branch to LGUs, which includes provision of water and sanitation. LGUs establish their own regulatory units to monitor and regulate the implementation of their PPP contracts for the sector.

aWater service cooperatives are organized under the Cooperative Code to own, operate, and manage water systems for the provision and distribution of potable water for their members and their households.

BOT = build–operate–transfer, DENR = Department of Environment and Natural Resources, DOH = Department of Health, GOCC = government-owned or controlled corporation, LGC = Local Government Code, LGU = local government unit, LWUA = Local Water Utilities Administration, MWSS = Metropolitan Waterworks and Sewerage System, NIA = National Irrigation Administration, NWRB = National Water Resources Board, PNSDW = Philippine National Standards for Drinking Water, PPP = public–private partnership.

Sources: DENR. 2021. Administrative Order No. 2021-19; DOH. 2017. Administrative Order No. 10, s. 2017; Government of the Philippines. 1963. Republic Act No. 3601; 1971. Republic Act No. 6234, as Amended; 1973. Presidential Decree No. 198, as Amended; 1976. Presidential Decree No. 1067; 1991. Republic Act No. 7160, as Amended; 2004. Republic Act No. 9275.

The other government agencies regulating the water and sanitation sector are the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the Philippine Economic Zone Authority (PEZA), the Bases Conversion Development Authority (BCDA), the Subic Bay Metropolitan Authority (SBMA) through its Subic Water Regulatory Board (Subic WRB), the Clark Development Corporation (CDC), and special economic zone authorities (“zone authorities”). These agencies are authorized to construct and operate infrastructure facilities for utility services, such as water supply, and to regulate the private entities providing those services within their respective zones.1

The below figure depicts the legal and regulatory framework governing water supply and sanitation services in the Philippines.

1Government of the Philippines. 1992. Bases Conversion and Development Act of 1992; 1995. The Special Economic Zone Act of 1995; 2009. The Tourism Act of 2009.

Legal and Regulatory Framework for Water Supply and Sanitation Services

Legal and Regular Framework

BCDA = Bases Conversion and Development Authority, CDC = Clark Development Corporation, CPC = Certificate of Public Convenience, CPCN = Certificate of Public Convenience and Necessity, LGU = local government unit, LWUA = Local Water Utilities Administration, MWSS = Metropolitan Waterworks and Sewerage System, NWRB = National Water Resources Board, PEZA = Philippine Economic Zone Authority, PPP = public–private partnership, Subic WRB = Subic Water Regulatory Board, TIEZA = Tourism Infrastructure and Enterprise Zone Authority.

Sources: Government of the Philippines. 1963. Republic Act No. 3601; 1971. Republic Act No. 6234, as Amended; 1973. Presidential Decree No. 198, as Amended; 1976. Presidential Decree No. 1067; 1991. Republic Act No. 7160, as Amended.

Various bills have been filed for the enactment of a law that would implement reforms in the water supply and sanitation sector but these have yet to be approved by both houses of the Philippine Congress.2 The creation of the Department of Water Resources (DWR) and the Water Regulatory Commission (WRC) is a priority legislation of the current administration. The DWR is intended to address the weak and fragmented institutional setup in the sector by streamlining all water-related functions in the government, and to separate resource regulation from economic regulation. The WRC is intended to create a business and regulatory environment that is fair, transparent, and conducive to public and private domestic and foreign investment in the sector by implementing fair, just, and reasonable tariffs, rates, and charges for water supply and sanitation services.3 These bills seek to implement the following reforms:

The DWR will be the primary agency responsible for comprehensive and integrated identification and mapping of all water resources, planning, policy formulation, and management of the ownership, appropriation, utilization, development, and protection of water resources.
NWRB and other agencies involved in water resources management will be subsumed under the DWR; attached agencies will be MWSS, LWUA, NIA, and Laguna Lake Development Authority.
The WRC will be an independent, quasi-judicial regulatory body under the administrative supervision of the DWR, which will consist of a central regulatory unit and regional regulatory units.
The WRC’s authority will cover and apply to all service providers, whether private or public, providing or intending to provide water supply, sewerage, and/or septage treatment and disposal services. The economic regulatory units (including the tariff setting function) of MWSS, NWRB, LWUA, SBMA, PEZA and TIEZA will be transferred to the WRC.
The WRC will have the exclusive jurisdiction to provide an actual methodology for setting rates and tariffs.
There will be a framework for the registration and licensing of all water supply and sanitation service providers.

2Senate of the Philippines. National Water Resources Management Act (Senate Bill No. 2771), National Water Act (Senate Bill No. 2013), Department of Water Resources Management (Senate Bill No. 2412), Department of Water Resources Management Act of 2022 (Senate Bill No. 1395), Department of Water Resources (Senate Bill No. 1244), National Water Act (Senate Bill No. 1021), Water Resources Management Act (Senate Bill No. 268, Water Resources and Management Authority Act (Senate Bill No. 185), National Water Resources Act (House Bill No. 09663), among others.
3Government of the Philippines. 2023. Philippine Development Plan 2023–2028.

Parameter	2021	2022	2023
Can the private sector be given water abstraction rights?
Are there regulations in place on raw water extraction?
Are there regulations in place on the release of treated effluents?

Source: Tavidell Law.

Foreign Investment Restrictions

COMPARE

DOWNLOAD

Parameter	2021	2022	2023
Maximum allowed foreign ownership of equity in greenfield projects
Bulk water supply and treatment	40%a	40%a	40%a
Water distribution	40%	40%	40%
Wastewater treatment	100%	100%	100%
Wastewater collection	40%	40%	40%

aThe nationality requirement applies only if it involves extraction of raw water from its natural source.

Source: Government of the Philippines. 2021. Republic Act No. 11659; Republic of the Philippines. 1987. Constitution of the Republic of the Philippines.

Standard Contracts

COMPARE

DOWNLOAD

Type of Contract	Availability
PPP/concession agreement	a
Bulk water supply agreement	a
Performance-based operation and maintenance contract
Engineering, procurement, and construction contract

aHowever, model agreements for local government unit water supply system and PPP contracts are provided in a 2012 publication of the PPP Center. Executed PPP concession agreements in the water and wastewater sector may also provide guidance on required contractual provisions.

Source: PPP Center. 2012. A PPP Manual for LGUs 3. Utilizing LGU PPP Project Templates and Bid Documents; Tavidell Law.

Water and Wastewater

Sector Master Plan

The Philippine Water Supply and Sanitation Master Plan (PWSSMP), launched by NEDA in 2021, serves as the national action plan to achieve universal access to safe, sufficient, affordable, and sustainable water supply, hygiene, and sanitation by 2030.1 It defines the activities, responsible agencies, and budget necessary to support the sector in addressing the needs of the country. It highlights the fragmented nature of the sector, with the efforts of many government agencies uncoordinated. It notes that the lack of oversight makes water supply and sanitation programs prone to exploitation by political factions at the expense of long-term goals and communities’ welfare. It emphasizes the need for a unifying apex body for the sector and that the enforcement of water sector reforms are urgent and imperative.

The other critical policy and planning document for the sector is the 2010 National Sewerage and Septage Management Program (NSSMP). The DPWH established the NSSMP in coordination with the DENR, LGUs, and other concerned agencies pursuant to the Philippine Clean Water Act of 2004 (Republic Act No. 9275), which provided for the mandatory connection of establishments and households to existing sewerage systems within 5 years from the law’s effectivity. In areas not considered highly urbanized cities, a septage or combined sewerage-septage management system shall be employed. The Clean Water Act further mandates that the LGUs shall share the responsibility in the management and improvement of water quality within their territorial jurisdictions.

In 2023, President Ferdinand Marcos, Jr issued Executive Order No. 22, creating the Water Resources Management Office (WRMO) within the DENR. The WRMO, in coordination with all stakeholders, is primarily responsible for the integration and harmonization of all government efforts and regulatory activities to ensure availability and sustainable management of water resources in the whole country. It is mandated to ensure immediate implementation of the Integrated Water Resources Management—the United Nation’s program for coordinated development and management of water and related resources among nations—in line with the United Nations Sustainable Development Goals, and to formulate a corresponding Integrated Water Resources Master Plan (IWMP). Executive Order No. 22 mandates the WRMO to integrate and harmonize all government plans, policies, investment programming, and regulatory activities to ensure the availability, efficient use, and sustainable management of water resources. Through the WRMO, the IWMP was created. The IWMP aims to harmonize major water sector plans and strategies in achieving a common and concerted water security agenda. It not only serves as an action plan, composed of priority plans and programs, but also contains a strict timeline and identifies key responsible implementing agencies, such as the DENR, the DPWH, the Department of Interior and Local Government (DILG), NIA, and NEDA, in order to ensure coherence in their policies and plans. Further, the IWMP will guide the prioritization and complementation of the programs, projects, and activities of these implementing agencies, toward addressing water security challenges. The IWMP highlights the following priority strategies for water supply and sanitation:

Implement a program for poor and waterless communities by conducting and analyzing a capacity needs assessment/profiling water service providers and developing a capacity development program, and implementing water convergence program of national government grants.
Improve utility sustainability and performance by:
- strengthening economic regulation of water service providers,
- implementing a program to provide financing and support to start-up and struggling water districts and LGU-run water service providers to implement efficiency, performance, and service improvement projects (including service expansion and non-revenue water reduction),
- implementing a program to provide financing and support to well-performing water districts and LGU-run water service providers to develop or optimize multi-purpose surface water source reservoirs and bulk water supply projects under a clustered arrangement (with priority given to water-stressed areas),
- ramping up investments on sanitation, and
- reviewing the implementation of the Clean Water Act and NSSMP, and accelerating the pace of monitoring of water bodies.2

There is currently no PPP water and wastewater project listed as an IFP. All IFPs in the sector are being financed or to be financed through ODA.

1NEDA. 2021. Philippine Water Supply and Sanitation Master Plan.
2DENR. 2024. Integrated Water Resources Master Plan.

Projects under Preparation and Procurement

Water and Wastewater Public-Private Partnerships under Preparation and Procurement

COMPARE

DOWNLOAD

LEARN MORE

Water and Wastewater

Sector Master Plan

The table below presents a list of pipeline national and local PPP water and wastewater projects as of October 2024, based on the PPP Center’s project list.

Pipeline Public–Private Partnership Water and Wastewater Projects, as of October 2024

No.	Project	Implementing Agency	Procurement Mode	Estimated Project Cost		Status
No.	Project	Implementing Agency	Procurement Mode	($ million)	(₱ billion)	Status
1.	Unsolicited BOT Proposal for Long-Term Water Source Development for Metro Manila Project	Metropolitan Waterworks and Sewerage System	Unsolicited	264.45	15.42	Negotiation phase
2.	La Union Bulk Water Facility Project	Provincial Government of La Union	Solicited	-	TBD	Preparation phase (under conceptualization)
3.	Pampanga Bulk Water Supply Project	Provincial Government of Pampanga	Unsolicited	137.37	8.01	Negotiation phase
4.	Bislig City Bulk Water Supply	Bislig City Water District	Solicited	12.18	0.71	Procurement phase
5.	Bislig City Septage Project	Bislig City Water District	Solicited	1.37	0.08	Procurement phase
6.	Negros Occidental Bulk Water Supply Project	Provincial Government of Negros Occidental	Solicited	20.58	1.20	Procurement phase
7.	Bulk Water Supply System	Provincial Government of Bataan	Unsolicited	27.44	1.6	Negotiation phase
8.	Cavite Bulk Water Supply Project	Provincial Government of Cavite	Solicited	-	TBD	Preparation phase (under development)
9.	Iloilo Bulk Water Supply Project	Provincial Government of Iloilo	Unsolicited	144.92	8.45	Preparation phase (under evaluation by implementing agency)

BOT = build–operate–transfer, TBD = to be determined.

Source: PPP Center. 2024. List of PPP Projects in the Pipeline (accessed 27 October 2024).

Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024).

Water and Wastewater

Features of Past PPP Projects

Procurement of PPP Projects

Water and Wastewater Public-Private Partnerships procured through various modes

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

PPP Projects Reaching Financial Close

Water and Wastewater Public-Private Partnerships reaching Financial Close

COMPARE

DOWNLOAD

PPP = public–private partnership.

PPP Projects with Foreign Sponsor Participation

Water and Wastewater Public-Private Partnerships with Foreign Sponsor Participation

COMPARE

DOWNLOAD

PPP = public–private partnership.

Note: Only active and concluded projects are considered.

Government Support to PPP Projects

Government Support for Water and Wastewater Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

Payment Mechanism for PPP Projects

Payment Mechanisms for Water and Wastewater Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

Typical risk allocation arrangements in PPP water concession contracts

COMPARE

DOWNLOAD

Risk Type	Private	Public	Shared	Remarks
Demand risk
Revenue collection risk
Tariff risk
Environment and social risk
Land acquisition risk				Public, if solicited Private, if unsolicited
Interface
Handover
Political risk

Source: PPP Center. 2016. Generic Preferred Risks Allocation Matrix; Tavidell Law.

Typical risk allocation arrangements in PPP bulk water supply contracts

COMPARE

DOWNLOAD

Risk Type	Private	Public	Shared	Remarks
Demand risk
Revenue collection risk
Tariff risk				BOT project agreements have generally been drafted with provision for index-linked tarif
Environment and social risk
Land acquisition risk				Public, if solicited Private, if unsolicited
Interface
Handover
Political risk

BOT = build–operate–transfer.

Source: ADB. 2020. Public–Private Partnership Monitor: Philippines; PPP Center. 2016. Generic Preferred Risks Allocation Matrix; Tavidell Law

Financing Details

Parameter	1990-2021	1990-2022	1990-2023
PPP projects with foreign lending participation	1	1	1
PPP projects that received export credit agency/international financing institution support	1	1	1
Typical debt: equity ratio	70:30
Time for financial closure	180 days from commercial close
Typical concession period	25–40 years, subject to renewal/extension of up to 50 years
Typical Financial Internal Rate of Return	UA

PPP = public–private partnership.

Sources: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024); Bulacan Bulk Water Supply Project; MWSS Privatization Project (West); World Bank. 2023. Infrastructure Finance, PPPs, and Guarantees. Country Snapshots. Philippines. Custom Query (accessed 29 August 2024); Tavidell Law.

Water and Wastewater

Tariffs

The water system tariff structure varies widely across the country. It is similar in water districts and Metro Manila, with an average tariff for the first 10 cubic meters and increasing tariffs for additional consumption. Tariffs of MWSS Implemented by its east and west zone concessionaires are adjusted annually for inflation-related changes and are subject to rate rebasing every 5 years. For LGU-operated systems, tariff levels and structures vary widely because most connections are not metered, and LGUs offer different levels of service. In 2018, NWRB adopted the NWRB Economic Regulatory Framework setting out a revised tariff methodology for water utilities to improve cost recovery and regulation.1

The tariff levels must be approved by the relevant regulatory authorities based on a range of factors. MWSS is responsible for regulating tariffs of its concessionaires for the east and west zones of its franchise area, LWUA in water districts, and NWRB for private operators and other service providers. The zone authorities regulate tariffs of water service providers operating within their respective zones.

1National Water Resources Board (NWRB). 2018. Resolution No. 25-0818.

Average Water Tariff in Water Districts in the Philippines, 2023

Water Consumption (volume in m³)	$/m³	₱/m³
0–10	3.541475	206.50
11–20	0.394793	23.02
21–30	0.4357815	25.41
31–40	0.488089	28.46
41–50	0.542626	31.64
51 and above	0.555317	32.38

Note: The above rates are as of 31 December 2023.

Source: LWUA. Philippine Water Districts Average Yearly Water Rates.

Current Domestic Water Tariff in Metro Manila, 2024

Water Consumption (volume in m³)	Manila Water		Maynilad
Water Consumption (volume in m³)	$/m³	₱/m³	$/m³	₱/m³
Consuming less than 10 m³
Low-income lifeline customer	$1.15 per connection	₱67.83 per connection	$1.92 per connection	₱112.79 per connection
Regular lifeline customer	$1.15 per connection	₱67.83 per connection	$2.22 per connection	₱130.54 per connection
Consuming more than 10 m³
First 10	$2.99 per connection	₱175.41 per connection	$3.79 per connection	₱222.48 per connection
Next 10	0.36	21.37	0.46	27.14
Next 20	0.69	40.53	0.88	51.62
Next 20	0.91	53.42	1.15	67.80
Next 20	1.06	62.39	1.35	79.22
Next 20	1.11	65.40	1.41	82.85
Next 50	1.16	68.32	1.47	86.64
Next 50	1.21	71.26	1.54	90.51
Over 200	1.26	74.18	1.61	94.33

₱1 = $0.01702.

Note: The above rates are the basic water charge for residential customers and took effect on 1 January 2024. Other charges include an environmental charge of 20% of the basic water charge and applicable tax.

Sources: Manila Water Company, Inc. Notice to Manila Water Customers and the Public: New Water Rates for the East Zone Effective January 1, 2024; MWSS Regulatory Office. Notice to Maynilad Customers and the Public New Water Rates for the West Zone.

Water and Wastewater

Challenges

The cap of 40% on foreign investment and ownership in water sourcing and distribution hinders competition and has been a challenge to the development of PPPs in this sector. The nationality requirement not only limits foreign ownership and representation in the governing board of the water utility but also restricts foreigners from occupying executive and managing positions in the company. Meeting qualification and prequalification requirements to comply with nationality requirements, especially for listed companies, is also a challenge during procurement, thereby limiting competition.
Site acquisition is a key challenge to water projects, especially to water source projects, which are usually located in protected areas or ancestral domain sites.
The LGUs are constrained with limited technical resources and budgets for project preparation. Further, in local water projects, tariff levels are too low for cost recovery.
There is no strong apex body with sole responsibility for the country’s water needs and resources.
The sector remains extremely institutionally fragmented and there is no sole independent regulator that is free from political pressure or interference. In water districts that have entered into joint ventures with private parties for the development, rehabilitation, and operation of their distribution systems, there has been an issue as to whether it should be LWUA or NWRB that must regulate the private concessionaires.
There is no uniform set of regulatory requirements, including for tariff setting and adjustment, making water rates vulnerable to challenges and disputes. Further, there have been disputes between the regulator and concessionaires on interpretation of tariff adjustment provisions in the concession agreements, which have led to arbitration.
With water and sanitation services being capital-intensive, the uncertainty in the regulatory framework undermines access to financing, which, in turn, undermines investor interest/confidence.

ICT

Telephone Subscribers

UA

Cellular Phone Subscribers

144 per 100 inhabitants

Internet Subscribers

7.57 per 100 inhabitants

Internet Bandwidth per User

27.69 kbps

Cellular network coverage

84 % of population covered

Total number of projects with cumulative lending, grant, and technical assistance commitments in ICT sector

UA

Total amount of cumulative lending, grant, and technical assistance commitments in ICT sector

UA

₱1 = $ 0.01715

ICT = information and communication technology, kbps = kilobits per second, UA = unavailable.

Sources: theGlobalEconomy.com. 2016. Mobile Network Coverage – Country Rankings; 2016. Philippines: Internet Bandwidth; World Bank. 2022. Mobile Cellular Subscriptions (per 100 people); Fixed Broadband Subscriptions (per 100 people).

ICT

Contracting Agencies

The information and communication technology (ICT) sector refers to those engaged in providing goods and services primarily intended to fulfill or enable the function of information processing and communication by electronic means, and includes telecommunications and broadcast information operators, ICT equipment manufacturers, multimedia content developers and providers, ICT solution providers, internet service providers, ICT training institutions, software developers, and those involved in ICT-enabled services. The ICT-enabled services sector refers to those engaged in providing services that require the intrinsic use of ICTs, including engineering or architectural design, informatics services, offshoring and outsourcing services such as through call centers, back-office processing, software development, medical or legal transcription, animation, game development, and other services that require the intrinsic use of a networked information infrastructure.1
The contracting agencies in the ICT sector may thus be any government agency, including GOCCs and LGUs, that requires ICT services to support its functions and operations.
1Government of the Philippines. 2015. Republic Act No. 10844.

ICT

Sector Laws and Regulations

There are several regulations that have an impact on PPP projects in the ICT sector.

Agency	Function
Public Telecommunications Policy Act of the Philippines, 1995 (Republic Act No. 7925)	Mandates that public telecommunications services shall be provided by private enterprises, with the private sector to serve as the engine of rapid and efficient growth in the telecommunications industry.
Electronic Commerce Act of 2000 (Republic Act No. 8792)	Enacted to give legal recognition to electronic data messages, electronic documents, and electronic signatures. The Act required all departments, bureaus, offices, and agencies of the government, including GOCCs, within 2 years of its effectivity, to (i) accept the creation, filing, or retention of documents in the form of electronic data messages or electronic documents; (ii) issue permits, licenses, or approval in the form of electronic data messages or electronic documents; (iii) require and/or accept payments, and issue receipts acknowledging such payments, through systems using electronic data messages or electronic documents; or (iv) transact the government business and/or perform governmental functions using electronic data messages or electronic documents.
Data Privacy Act of 2012 (Republic Act No. 10173)	Regulates the processing of personal information. Processing refers to any operation— collecting, using, storing, or disposing—performed on personal data. It strictly requires any personal information processor and personal information controller (controls the processing, collection, holding, or use of personal data or instructs another to process personal data on its behalf) to adhere to the general principles of data privacy, such as transparency, legitimate purpose, and proportionality, implementing reasonable and appropriate organizational, physical, and technical security measures for the protection of personal data, and upholding the rights of data subjects to ensure the availability, integrity, and confidentiality of personal data being processed. The appointment of a data protection officer is a legal requirement for personal information processors and personal information controllers.
Philippine Identification System Act, 2017 (Republic Act No. 11055)	Established the Philippine Identification System (PhilSys) as the government’s central identification platform for all Filipino citizens and resident aliens of the Philippines. It authorized the Philippine Statistics Authority to be the primary implementing agency for the PhilSys, and the repository and custodian of all the data in the registry. The PhilSys will provide a valid proof of identity to simplify public and private transactions, as it aims to eliminate the need to present other forms of identification when transacting with the government and the private sector, subject to appropriate authentication measures based on a biometric identification system. It will likewise be a social and economic platform through which all transactions including public and private services can be availed of. A non-transferrable card, the Philippine Identification (PhilID), will be the physical medium to convey essential information about the person’s identity, which include the PhilSys Number (PSN). The PhilID serves as the official government-issued identification document of cardholders in dealing with all NGAs, LGUs, GOCCs, and government financial institutions, and all private sector entities.
National Payment System Act, 2018 (Republic Act No. 11127)	Enacted to promote the safe, efficient, and reliable operation of payment systems in order to control systematic risk and provide an environment conducive to the sustainable economic growth.
Radio Control Law of the Philippines , 1931 (Act No. 3846)	Enacted to regulate the construction, operation, establishment and operation of radio stations. Specifically, it required a franchise from Congress in order for entities to construct, install, establish, or operate a radio station in the Philippines except broadcasting stations, amateur stations, experimental stations, and private stations in remote areas without other means of communication available.
Philippine Competition Act, 2015	Created to ensure that there is free and fair competition in the market for the equal distribution of wealth and opportunities. It established the Philippine Competition Commission which is tasked with monitoring the market, prohibiting mergers and acquisitions which are deemed anti-competitive and to remedy any anti-competitive behavior which can be in the form of anti-competitive agreements, anti-competitive mergers and acquisitions or abuse of dominant position in the market.
Executive Order No. 127, s. 2021	Liberalized the satellite policy of the Philippines by allowing access to satellites to both telecommunications entities with franchises authorized by the NTC and those without provided that they will follow the NTC rules and regulations.
Department Circular No. 008 (Common Tower Policy), s. 2020	Provided guidelines for the use of Shared Passive Telecommunications Tower Infrastructure (PTTIs) to increase internet access to underserved and unserved areas in the Philippines.
Cybercrime Prevention Act of 2012 (Republic Act No. 10175)	Enacted to penalize violations that contemplate the exploitation of information and communication technology, as well as to grant powers and authorities necessary in the domestic and international detection, investigation, and prosecution of such offenses.
Internet Transactions Act of 2023 (Republic Act No. 11967)	Aimed at regulating electronic commerce in the Philippines. It also puts a premium on the protection of consumer rights, data privacy, and competition in online marketplaces and transactions, all while ensuring environmental sustainability. This law has extraterritorial application, such that any person or entity who engages in e-commerce in the Philippine market can be held legally liable regardless of their absence in the Philippines.

GOCC = government-owned or controlled corporation, LGU = local government unit, NGA = national government agency,

PhilID = Philippine Identification, PhilSys = Philippine Identification System, PSA = Philippine Statistics Authority.

Sources: Government of the Philippines. 1995. Public Telecommunications Policy Act of the Philippines (Republic Act No. 7925); 2000.Republic Act No. 8792; 2012. Republic Act No. 10173 (Data Privacy Act of 2012); 2018. National Payment Systems Act (Republic Act No. 11127).

The regulatory agencies in the Philippines’ ICT sector and their functions are provided in the table below.

Agency	Function
Department of Information and Communications Technology (DICT)	The primary policy, planning, coordinating, implementing, and administrative entity of the government, which plans, develops, and promotes the national ICT development agenda Formulates policies and initiatives to develop and promote ICT in education consistent with national goals and objectives and responsive to the human resources needs of the ICT and ICT-enabled services sectors Provides an integrated framework to optimize all government ICT resources and networks for the identification and prioritization of all e-government systems and applications Establishes guidelines for PPPs in the implementation of ICT projects for government agencies
National Telecommunications Commission (NTC)	Regulates the installation, operation, and maintenance of radio stations for both private and public use Regulates and supervises the provision of public telecommunications services Establishes rates and tariffs that are fair and reasonable and that provide for the economic viability of telecommunications entities and a fair return on their investments considering the prevailing cost of capital in the domestic and international markets Grants permits for the use of radio frequencies for wireless telephone and telegraph systems and radio communication systems, including amateur radio stations and radio and television broadcasting systems Regulates and supervises radio and television broadcast stations, cable television, and pay television
Philippine Statistics Authority (PSA)	The implementing agency of the Philippine Statistical Act of 2013, which reorganized and strengthened the Philippine statistical system Plans, develops, prescribes, disseminates, and enforces policies, rules, and regulations and coordinates government-wide programs governing the production of official statistics, general-purpose statistics, and civil registration services Primarily responsible for all national censuses and surveys, sectoral statistics, consolidation of selected administrative recording systems, and compilation of the national account Serves as the central statistical authority of the Philippine government on primary data collection (data produced by the PSA are regarded as the official and controlling statistics of the government) The primary implementing agency of the Philippine Identification System Act (Republic Act No. 11055), which established the Philippine Identification System (PhilSys), and responsible for the overall planning, management, and administration of the PhilSys
National Privacy Commission	Administers and implements the provisions of the Data Privacy Act of 2012 (Republic Act No. 10173) to monitor and ensure the country’s compliance with international standards for data protection.
Bangko Sentral ng Pilipinas (Central Bank of the Philippines) (BSP)	The independent central monetary authority of the Philippines Oversees payment systems in the Philippines and exercises supervisory and regulatory powers to ensure the stability and effectiveness of the monetary and financial system Registers, and issues prior authority to, operators of designated payment systems in the Philippines
National Bureau of Investigation and Philippine National Police	Empowered to jointly enforce the Cybercrime Prevention Act of 2012 Authorized to gather real-time traffic data with respect to communications that pass through computer systems
Department of Trade and Industry	Authorized by the Internet Transactions Act of 2023 to be a regulatory body ancillary to other agencies vested by law with regulatory functions Regulates internet use in relation to e-commerce Empowered, through its Secretary, to place and remove from the blacklist online businesses that violate the Internet Transactions Act of 2023
Philippine Competition Commission	Conducts inquiry, investigates and decides cases that involve any violation of the Philippine Competition Act Monitors market behavior Reviews mergers and acquisitions to determine if they are anti-competitive Provides remedies for anti- competitive acts

BSP = Bangko Sentral ng Pilipinas (Central Bank of the Philippines), DICT = Department of Information and Communications

Technology, ICT = information and communication technology, NTC = National Telecommunications Commission,

PhilSys = Philippine Identification System, PPP = public–private partnership, PSA = Philippines Statistics Authority.

Sources: Government of the Philippines. 1963. Radio Control Law, as Amended (Act No. 3846); 1979. Executive Order No. 546; 1993. New Central Bank Act (Republic Act No. 7653); 1995. Public Telecommunications Policy Act of the Philippines (Republic Act No. 7925); 2012. Philippine Statistical Act of 2013 (Republic Act No. 10625); 2012. Republic Act No. 10173 (Data Privacy Act of 2012); 2016. Department of Information and Communications Technology Act of 2015 (Republic Act No. 10844); 2018. National Payment Systems Act (Republic Act No. 11127); NTC. Mandate.

Foreign Investment Restrictions

COMPARE

DOWNLOAD

Parameter	2021	2022	2023
Maximum allowed foreign ownership of equity
Fixed line infrastructure	40%	50%/100%a	50%/100%a
Fixed line services	40%	50%/100%a	50%/100%a
Wireless/mobile infrastructure	40%	50%/100%a	50%/100%a
Wireless/mobile services	40%	50%/100%a	50%/100%a

aThe operation and management of telecommunications is considered critical infrastructure. A foreign national can own up to 100% of the capital of entities engaged in such business only if the country of such foreign national accords reciprocity to Philippine nationals. Otherwise, its foreign equity is restricted to 50%. However, despite the amendment of the Public Service Act removing telecommunications from the definition of public utility, a congressional franchise is still required for a telecommunications entity to operate in the Philippines.

Source: Government of the Philippines. 2021. Republic Act No. 11659; 2022. Executive Order No. 175.

Standard Contracts

COMPARE

DOWNLOAD

Type of Contract	Availability
What standardized contracts are available and used in the market?
Public-private partnership/concession agreement	a
Performance-based operation and maintenance contract
Engineering, procurement, and construction contract
License agreement

aHowever, a model PPP contract for local government units is provided in a 2012 publication of the PPP Center. Executed PPP concession agreements in the ICT sector may also provide guidance on required contractual provisions.

Source: PPP Center. 2012. A PPP Manual for LGUs 3. Utilizing LGU PPP Project Templates and Bid Documents; Tavidell Law.

ICT

Sector Master Plan

In 2019, the Department of Information and Communications Technology (DICT) launched the E-Government Masterplan 2022. The plan lays out the building blocks and strategies directed toward the vision of developing the country’s e-government systems through the digital transformation of basic services that cut across the whole of government.1

The plan includes the National Broadband Program, which aims to address the long-established problem of poor and costly internet connection in the country. The National Broadband Program includes the following components: (i) the development of new international new cable landing stations that will provide bandwidth for use in the government’s connectivity-related initiatives; (ii) the laying down of a national backbone or main fiber line that runs across the entire country, which shall connect to the landing stations; (iii) the erection of an optimal number of tower facilities; (iv) the building of access networks or fiber optic cables as last-mile connectivity to reach end-users; and (v) the implementation of satellite overlays to reach islands, mountainous areas, and isolated coastal areas.

In 2023, the DICT launched the National ICT Development Agenda (NICTDA) 2023–2028 which serves as a blueprint in creating a vibrant ICT ecosystem through leveraging the power of ICT in advancing nation-building, good governance, and global competitiveness. Pursuant to the NICTDA 2023–2028, the DICT developed the Digital Government Masterplan (DGMP) 2023–2028 which succeeds the EGMP 2022. The DGMP 2023–2028 seeks to harmonize and coordinate all ICT initiatives to optimize available government ICT resources, encourage information and resource-sharing and database-building, and ensure the development and protection of an integrated government ICT infrastructure.2

1Department of Information and Communications Technology (DICT). 2019. E-Government Masterplan 2022.
2DICT. 2023. Digital Governance Initiatives.

The table below shows the priority projects identified in the ICT sector for the PPP mode of implementation based on NEDA’s list of IFPs as of August 2024.

Public–Private Partnership Priority Information and Communication Technology Projects, as of August 2024

No.	Project	Implementing Agency	Estimated Project Cost
No.	Project	Implementing Agency	($ million)	(₱ billion)
8.	Air Traffic Services – Air Navigation Services (ATS-ANS) Project	DOTr	463.05	27.00
9.	Philippine Automatic Fare Collection System	DOTr	85.75	5.00

DOTr = Department of Transportation

Source: NEDA. 2024. Infrastructure Flagship Projects (accessed 27 October 2024).

Projects under Preparation and Procurement

ICT Public-Private Partnerships under Preparation and Procurement

COMPARE

DOWNLOAD

LEARN MORE

ICT

Sector Master Plan

The table below presents a list of pipeline national PPP ICT projects as of October 2024, based on the PPP Center’s project list.

Pipeline Public–Private Partnership Information and Communication Technology Projects, as of October 2024

No.	Project	Implementing Agency	Procurement Mode	Estimated Project Cost		Status
No.	Project	Implementing Agency	Procurement Mode	($ million)	(₱ billion)	Status
1.	Air Traffic Services (ATS)-Air Navigation Services (ANS) Project	DOTr	Solicited	463.05	27.00	Preparation phase (under development)
2.	Philippine Automatic Fare Collection System	DOTr	Solicited	85.75	5.00	Preparation phase (under development)
3.	LRA Unified CloudBased Information System Project	LRA	Solicited	-	TBD	Preparation phase (under conceptualization)
4.	PRA Digital Transformation Project	PRA	Unsolicited	5.49	0.32	Preparation phase (under evaluation by IA)
5.	2023 National Single Window Through an Integrated Trade Facilitation Platform	DICT	Unsolicited	7.55	0.44	Negotiation phase
6.	Comprehensive Digital Housing Platform Project	DHSUD	Unsolicited	0.34	0.02	Negotiation phase
7.	Civil Aviation and Immigration Security Services	Bureau of Immigration	Unsolicited	289.66	16.89	Negotiation phase
8.	Special Products Automated Revenue Collection System Project	Bureau of Internal Revenue	Unsolicited	91.92	5.36	Negotiation phase
9.	Bacolod Super City Project	City Government of Bacolod	Unsolicited	36.02	2.10	Procurement phase (under comparative challenge)
10.	Digitalized Traffic Enforcement for Bacoor City	City Government of Bacoor	Solicited	0.51	0.03	Negotiation phase
11.	Sta. Rosa City Digitalized Traffic Enforcement	City Government of Sta. Rosa	Solicited	0.34	0.02	Preparation phase (under evaluation by IA)
12.	Municipality of Cainta Digitalized Traffic Enforcement	Municipal Government of Cainta	Solicited	0.34	0.02	Preparation phase (under evaluation by IA)
13.	Caloocan City Digitalized Traffic Enforcement	City Government of CaloocanCaloocan	Solicited	0.51	0.03	Preparation phase (under evaluation by IA)
14.	Cauayan City Digitalized Traffic Enforcement	City Government of Cauayan	Solicited	0.34	0.02	Preparation phase (under evaluation by IA)
15.	Binan City Digitalized Traffic Enforcement	City Government of Binan	Solicited	0.34	0.02	Negotiation phase
16.	Lipa City Digitalized Traffic Enforcement	City Government of Lipa	Solicited	0.34	0.02	Preparation phase (under evaluation by IA)
17.	Catbalogan City Digitalized Traffic Enforcement	City Government of Catbalogan	Solicited	0.34	0.02	Preparation phase (under evaluation by IA)
18.	Municipality of Pagsanjan Digitalized Traffic Enforcement	Municipal Government of Pagsanjan	Solicited	0.17	0.01	Preparation phase (under evaluation by IA)
19.	Food and Drug License and Clearance System	Food and Drug Administration	Unsolicited	2.74	0.16	Preparation phase (under evaluation by IA)
20.	Electronic Invoicing and Tax Engine Systems Project	Department of Finance	Unsolicited	164.64	9.6	Preparation phase (endorsed to IA after completeness check)
21.	Digitized Traffic System	Provincial Government of Bataan	Unsolicited	0.17	0.01	Negotiation phase
22.	Dasmariñas City Digitalized Traffic Enforcement System	City Government of Dasmariñas	Unsolicited	0.34	0.02	Preparation phase (endorsed to IA after completeness check)
23.	Gen. Mariano Alvarez Cavite Digitalized Traffic Enforcement	Municipal Government of Gen. Mariano Alvarez, Cavite	Unsolicited	0.17	0.01	Preparation phase (endorsed to IA after completeness check)

BCDA = Bases Conversion and Development Authority, DHSUD = Department of Human Settlements and Urban Development,

DICT = Department of Information and Communications Technology, DOTr = Department of Transportation, IA = implementing

agency, ICT = information and communication technology, LGU = local government unit, LRA = Land Registration Authority,

LTFRB = Land Transportation Franchising and Regulatory Board, O&M = operation and maintenance, PRA = Philippine Retirement Authority, TBD = to be determined.

Source: PPP Center. 2024. List of PPP Projects in the Pipeline (accessed 27 October 2024).

Note: The ICT sector includes the air traffic services-air navigation services project.

Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024).

ICT

Features of Past PPP Projects

Procurement of PPP Projects

ICT Public-Private Partnerships procured through various modes

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

PPP Projects Reaching Financial Close

ICT Public-Private Partnerships reaching Financial Close

COMPARE

DOWNLOAD

PPP = public–private partnership.

PPP Projects with Foreign Sponsor Participation

ICT Public-Private Partnerships with Foreign Sponsor Participation

COMPARE

DOWNLOAD

PPP = public–private partnership.

Note: Only active and concluded projects are considered.

Government Support to PPP Projects

Government Support for ICT Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

Payment Mechanism for PPP Projects

Payment Mechanisms for ICT Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

Typical Risk Allocation for PPP Projects

COMPARE

DOWNLOAD

Risk Type	Private	Public	Shared	Remarks
Demand risk				Except in availability-based PPPs
Revenue collection risk				Except in availability-based PPPs
Competition risk
Interface
Permits
Political risk				Private party bears risk up to a materiality threshold, beyond which public party bears risk
Force majeure
Foreign exchange risk
Construction risk				Except for delays caused by government
Early termination risk				Subject to specific conditions and compensation mechanisms

Source: Public–Private Partnership Center. 2016. Generic Preferred Risks Allocation Matrix; Tavidell Law.

Financing details

Parameter	1990–2021	1990–2022	1990–2023
PPP projects with foreign lending participation	UA	UA	UA
PPP projects that received export credit agency/international financing institution support	UA	UA	UA
Typical debt: equity ratio	UA
Time for financial closure	UA
Typical concession period	10–12 years
Typical financial internal rate of return	UA

PPP = public–private partnership.

Sources: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024); Land Titling Computerization Project (LTCP); Civil Registry System Information Technology Project Phase II (CRS-IT₱2); Automatic Fare Collection System; World Bank. 2023. Infrastructure Finance, PPPs, and Guarantees. Country Snapshots. Philippines. Custom Query (accessed 29 August 2024); Tavidell Law.

ICT

Tariffs

According to Worldwide Mobile Data Pricing 2023, the average price of 1 gigabyte of mobile data in the Philippines, with sample data as of 6 August 2023, was estimated at $0.59, which puts the country 55th out of 237 countries in the ranking.1
1cable.co.uk. 2023. Worldwide Mobile Data Pricing.
ICT

Challenges

The ICT infrastructure of the Philippines lags behind that of its neighbors in the region, as shown in its low number of telecommunications towers across the country, coupled with a high number of users per tower.
The government is yet to develop an updated and efficient system of inter-agency data management, integration, and sharing.
Access to/distribution of fast, reliable, and affordable internet throughout the country is not equal, which is aggravated by the interconnectivity challenge between the islands of the Philippine archipelago. This gaping digital divide has adversely affected other sectors, such as education, which relied heavily on internet connectivity during the early years of the COVID-19 pandemic.
Since the Philippine Identification System (PhilSys) requires the collection of demographic data (i.e., names, sex, date and place of birth, blood type), biometrics information, photographs, fingerprints, and iris scans, the database for this system is extremely prone to, and is a lucrative target of, attacks by hackers and cybercriminals. As such, technical assistance from the DICT on the appropriate security measures is crucial to ensure the information gathered is protected from unauthorized use, disclosure, and access, and against accidental or intentional loss, destruction, or damage. While the share of the population that has registered in the system is already near 100%, public accessibility, especially in geographically isolated and disadvantaged areas, remains a challenge.

Agriculture and Fisheries

Agricultural land

126,830 square kilometers

Fertilizer consumption

232 kilograms per hectare of arable land

Crop production

104 index points

Arable land

18.7 % of land area

Food production

100.5 index points

GDP share of agriculture, forestry, and fishing

9.4 % of GDP

Total number of projects with cumulative lending, grant, and technical assistance commitments from ADB in agriculture and fisheries sector

342 number

Total amount of cumulative lending, grant, and technical assistance commitments from ADB in agriculture and fisheries sector

4,151 $ million

₱1 = $ 0.01715

GDP = gross domestic product.

Sources: theGlobalEconomy.com. 2022. Philippines: Crop Production Index; World Bank. 2021. Agricultural Land (sq. km) – Philippines; Fertilizer Consumption (Kilograms per Hectare of Arable Land) – Philippines); 2021. Arable Land (% of Land Area) – Philippines; 2022. Food Production Index; 2023. Agriculture, Forestry, and Fishing, Value Added (% of GDP) – Philippines.

Agriculture and Fisheries

Contracting Agencies

The Department of Agriculture is the government agency responsible for the promotion and development of agriculture. It carries out its mandate by providing policy frameworks, public investments, and support services for the Philippines’ domestic and export-oriented enterprises as it envisages the country to be food-secured and resilient.1
The National Irrigation Administration (NIA), an attached agency of the Department of Agriculture, is currently the contracting agency for all pipeline national PPP projects in the sector, consisting of irrigation projects. Other contracting agencies in the sector may include the Department of Agriculture and its line bureau for the fisheries sector, the Bureau of Fisheries and Aquatic Resources (BFAR). The BFAR is responsible for the development, improvement, management, and conservation of the country’s fisheries and aquatic resources. Its mission is to ensure sustainable fisheries and aquatic resources by empowering fisherfolk toward productivity and resiliency.2
The DOTr is the implementing agency for the Farm-to-Market Ports Network and Port Cold Chain Network projects, which are listed as IFPs. However, their funding source is identified as ODA and not PPP.
The Philippine Fisheries Development Authority (PFDA) may also undertake PPPs in the fisheries sector. The PFDA is a GOCC attached to the Department of Agriculture, created to promote the development of the fishing industry through the provision of postharvest infrastructure facilities and essential services that improve efficiency in the handling and distribution of fish and fishery products and enhance their quality. The PFDA aims to promote the development of the fisheries industry and improve efficiency in the handling and distribution of fish and fishery/aquatic products through the establishment and operation of fish ports, fish markets, and other postharvest facilities.3
LGUs are mandated to provide basic services to infrastructure facilities, including fish ports, and thus may enter into PPP contracts for the development and O&M of their fish ports. Several LGUs have entered into PPP contracts, mostly for their public markets and slaughterhouses.
1Department of Agriculture. Mandate.
2Government of the Philippines. 1998. Republic Act No. 8550.
3Philippine Fisheries Development Authority (PFDA). About Us.

Agriculture and Fisheries

Sector Laws and Regulations

In 2013, the Department of Agriculture issued its Guidelines in the Development of Public–Private Partnership Projects of the Department of Agriculture (Department Administrative Order No. 004-13). The guidelines set out the policy direction to use PPP to attain food security and self-sufficiency, sustainable agriculture and fisheries, natural resource management, and climate change resilience. They also provide a list of eligible projects, including irrigation, farm- and cost-to-market access, postharvest, production centers, farm mechanization services, food and product transport and terminal services, fish ports, and markets. Under the guidelines, the Department of Agriculture mandates that its PPP projects must be consistent with the government’s policies and thrusts for the agriculture and fisheries sector, as laid down in the following:

The Agriculture and Fisheries Modernization Act of 1997 (Republic Act No. 8435), enacted to enable those in the agriculture and fisheries sector to participate and share in the fruits of development and growth through the establishment of a more equitable access to assets, income, basic and support services, and infrastructure. It seeks, among others, to modernize the sector by transforming it from a resource-based to a technology-based industry; to encourage horizontal and vertical integration, consolidation, and expansion of agriculture and fisheries activities; to pursue a market-driven approach to enhance the comparative advantage of the sector in the world market; and to adopt policies that will promote industry dispersal and rural industrialization;1
The Philippine Fisheries Code of 1998 (Republic Act No. 8550), which established the BFAR and Fisheries and Aquatic Resources Management Councils and has, as its main thrust, the utilization, management, development, conservation, and allocation system of fisheries and aquatic resources in the country;
The Agriculture and Fisheries Modernization Plan, which has been updated to the National Agriculture and Fisheries Modernization and Industrialization Plan 2021–2030, recently launched by the Department of Agriculture;
Programs launched by the Department of Agriculture, such as its Commodity Programs, Climate Change Adaptation Program, and National Organic Agriculture Program, as well as presidential and other government pronouncements and directives for the agriculture and fisheries sectors (e.g., the Investments Priorities Plan).

1Government of the Philippines. 1997. Republic Act No. 8435.

Foreign Investment Restrictions

COMPARE

DOWNLOAD

Parameter	2021	2022	2023
Maximum allowed foreign ownership of equity
Ownership of private agricultural land	40%	40%	40%
Construction, operation, and maintenance of irrigation facilities	40%a	40%a	40%a
Culture, production, milling, processing, and trading except retailing of rice and corn and acquiring, by barter, purchase, or otherwise, rice and corn, and their by-products	40%	40%	40%
Operation of fish port facilities (seaports)b	40%	40%	40%

aThe nationality requirement applies if it involves extraction of raw water from its natural source, which is considered exploration, development, and utilization of a natural resource.
bThe nationality requirement applies to the operation of fish ports that are considered seaports which are public utilities.

Source: Government of the Philippines. 2022. Executive Order No. 175.

Standard Contracts

COMPARE

DOWNLOAD

Type of contract	Availability
What standardized contracts are available and used in the market?
Publicprivate partnership /concession agreement	a
Performance-based operation and maintenance contract
Engineering, procurement, and construction contract

aHowever, a model agreement for a public market is provided in a 2012 publication of the PPP Center.

Source: PPP Center. 2012. A PPP Manual for LGUs 3. Utilizing LGU PPP Project Templates and Bid Documents; Tavidell Law.

Agriculture and Fisheries

Sector Master Plan

The Department of Agriculture endeavors to pursue sound agricultural development through holistic agrifood system measures espoused in the National Agriculture and Fisheries Modernization and Industrialization Plan 2021–2030. This is built on the Department of Agriculture’s vision for the agri-fisheries sector embodied in the Philippine Food Security Development Framework, which contains its key strategies and enablers to achieve its vision of food security and resiliency and to empower farmers and fisherfolk. It is further inspired by the Integrative Food and Nutrition Security Paradigm, which follows the United Nations Food Systems Model and incorporates global best practice.1

In 2023, the Department of Agriculture launched the Philippine Food Chain Logistics Masterplan 2023-2033, which recognizes the need to connect the entire system of logistical support through roads and seaports to reduce transportation expenses of agricultural products to give the general population secure and affordable food. This integrated approach does more than just bridge the physical distance between farms and consumers. It creates a sustainable value proposition for agricultural ports that can handle a diverse range of commodities, including livestock, and crops. The agricultural-food supply chain is dominated by intermediaries in the Philippines. Its unstructured and unrestrained nature is exploiting and marginalizing smallholder farmers. The plan involves connecting the entire Philippines from north to south, east to west through an efficient logistics transport network, alleviating strategic ports with appropriate facilities for smooth distribution, setting up short sea shipping services, and establishing an integrated model for inter-island movements of cargo. The plan discusses the recommendations for an efficient logistics system, that will ensure the appropriate transportation of goods.2

At present, the PDP 2023–2028 recognizes that the agriculture, forestry, and fisheries sector is part of a bigger agrifood system, which, currently, is dysfunctional in terms of serving its basic roles in generating a decent income for the sector’s stakeholders, particularly primary producers; ensuring sustainable use of natural resources; and providing for the health and nutrition of consumers and nurturing the local food culture.Thus, the PDP aims to pursue the following outcomes: (i) efficiency of agriculture, forestry, and fisheries production enhanced; (ii) access to markets and agriculture-, forestry-, and fisheries-based enterprises expanded; (iii) resilience of agriculture, forestry, and fisheries value chains improved; and (iv) agricultural institutions strengthened.3

As a response to the current challenges that contribute to the inefficiencies along segments of the value chain, several other policy reforms have been enacted: the Rice Tariffication Law of 2019 (Republic Act No. 11203); the Coconut Farmers and Industry Trust Fund Act of 2021 (Republic Act No. 11524); the Sagip Saka Act of 2019 (Republic Act No. 11321); the Free Irrigation Service Act of 2018 (Republic Act No. 10969); the Sugarcane Industry Development Act of 2015 (Republic Act No.10659); the Agriculture, Fisheries, and Rural Development Financing Enhancement Act of 2022 (Republic Act No. 11901); the Agricultural and Fishery Mechanization Law of 2012 (Republic Act No. 10601); and the Agricultural Free Patent Reform Act of 2018 (Republic Act No. 11231).

There is currently no agriculture and fisheries PPP project listed as an IFP. All IFPs in the sector, such as port cold chains, fish ports, livestock infrastructure modernization and enhancement projects, and irrigation projects, are being financed through ODA or general appropriations of the Philippine government under its GAA.

1Department of Agriculture. 2022. National Agriculture and Fisheries Modernization and Industrialization Plan 2021-2030: Transforming the Philippine Food System Together.
2Department of Agriculture. 2023. Philippine Food Chain Logistics Masterplan 2023-2033.
3Government of the Philippines. 2023. Philippine Development Plan 2023–2028.

Projects under Preparation and Procurement

Agriculture Public–Private Partnerships under Preparation and Procurement

COMPARE

DOWNLOAD

LEARN MORE

Agriculture and Fisheries

Sector Master Plan

The table below presents a list of pipeline national PPP agriculture and fisheries projects as of October 2024, based on the PPP Center’s project list.

Pipeline Public–Private Partnership Agriculture and Fisheries Projects, as of October 2024

No.	Project	Implementing Agency	Procurement Mode	Estimated Project Cost		Status
No.	Project	Implementing Agency	Procurement Mode	($ million)	(₱ billion)	Status
1.	Redevelopment of the Baguio City Public Market	City Government of Baguio	Unsolicited	77.18	4.50	Negotiation phase
2.	Redevelopment of General Santos City Public Market Project	City Government of General Santos	Unsolicited	39.96	2.33	Approval phase
3.	University of the Philippines Los Baños Agro-Industrial Information Technology Parks “AgriFutura” Project	University of the Philippines	Solicited	-	TBD	Preparation phase (under development)
4.	Tumauini River Multipurpose Projecta	NIA	Solicited	147.15	8.58	Preparation phase (under development)
5.	Upper Banaoang Irrigation Projecta	NIA	Solicited	-	TBD	Preparation phase (under development)
6.	Ilocos Norte-Ilocos Sur-Abra Irrigation Project II	NIA	Solicited	388.96	22.68	Preparation phase (under development)
7.	National Food Hub Project	BCDA and CIAC	Solicited	145.78	8.5	Preparation phase (under development)
8.	Industrial Park and/or Agri-Industry Development	Central Mindanao University	Solicited	15.95	0.93	Preparation phase (under conceptualization)
9.	Animal Production Research and Development Center in Mindanao	Central Mindanao University	Solicited	0.69	0.04	Preparation phase (under conceptualization)
10.	Agricultural Experimentation Center and Agronomy Farm Laboratory	Central Mindanao University	Solicited	0.34	0.02	Preparation phase (under conceptualization)

aThis is listed as an infrastructure flagship project in the National Economic and Development Authority’s List of Infrastructure Flagship Projects as of April 2024, under the water resources sector, but with the General Appropriations Act as funding source.

BCDA = Bases Conversion and Development Authority, CIAC = Clark International Airport Corporation, NIA = National Irrigation Administration, TBD = to be determined.

Source: PPP Center. 2024. List of PPP Projects in the Pipeline (accessed 27 October 2024).

Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024).

Agriculture and Fisheries

Features of Past PPP Projects

Procurement of PPP Projects

Agriculture Public-Private Partnerships procured through various modes

COMPARE

DOWNLOAD

UA = Information unavailable
Note: Only active and concluded projects are considered.
Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024).

PPP Projects Reaching Financial Close

Agriculture Public-Private Partnerships reaching Financial Close

COMPARE

DOWNLOAD

PPP = public–private partnership.
Note: Only active and concluded projects are considered. PPP projects “under implementation” in the PPP Center database are assumed to have reached financial closure. Value of PPP unavailable for three projects.
Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024).

PPP Projects with Foreign Sponsor Participation

Agriculture Public-Private Partnerships with Foreign Sponsor Participation

COMPARE

DOWNLOAD

PPP = public–private partnership.
Note: Only active and concluded projects are considered.
Source: PPP Center. Corporate Planning and Development Division. Projects List (provided on 9 August 2024)

Government Support to PPP Projects

Government Support for Agriculture Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable
Note: Only active and concluded projects are considered.
Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024)

Payment Mechanism for PPP Projects

Payment Mechanisms for Agriculture Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable
Note: Only active and concluded projects are considered.
Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024)

Typical Risk Allocation for PPP Projects

No information on the risk allocation for the agriculture and fisheries sector is available.

Financing Details

No information on the financing details of PPPs in the agriculture and fisheries sector is available.
Agriculture and Fisheries

Tariffs

No information on the tariffs for the agriculture and fisheries sector is available.
Agriculture and Fisheries

Challenges

There are high logistical costs, lack of scale of local raw materials suppliers, and low conformance of primary producers with local and international standards, resulting in weak investments in the sector.
PPP procurement in the sector is still untested, with PPP projects, such as for irrigation, still in the preparation phase.
In most cases, there is a need to settle property rights, especially on lots still covered by collective landownership certificates.
The number of workers in agriculture has been declining.
Pests and diseases among plants and animals as well as climate change are among the challenges agriculture faced in recent years and in the future.1
1Government of the Philippines. 2023. Philippine Development Plan 2023–2028; Business World. 2023. Developing Agriculture to Achieve Food Security

Social Infrastructure

Contracting Agencies

Social infrastructure refers to physical assets and facilities for social services that contribute to people’s sense of belonging and creating sustainable neighborhoods and communities. These assets and facilities include, among others, schools, universities, hospitals and clinics, prisons, community housing, recreational facilities, solid waste management, flood control, evacuation centers, government buildings, and environmental protection and conservation.

Education sector implementing agencies

The Philippine government implements a trifocal education system administered and regulated by three agencies: the Department of Education (DepEd), the Commission on Higher Education (CHEd), and the Technical Education and Skills Development Authority (TESDA). In addition, the country is implementing a National Early Childhood Care and Development (ECCD) System through its ECCD Council. These agencies may enter into PPP contracts to support their mandates and functions. SUCs and LUCs are also implementing agencies for PPPs purpose in the sector. SUCs are public higher education institutions (HEIs) established by the national government and governed by their respective independent boards of trustees. LUCs are CHEd-accredited public HEIs established by LGUs through an enabling ordinance, financially supported by the LGU concerned, and compliant with the policies, standards, and guidelines of the CHEd. As of 15 January 2024, there were 137 LUCs and 546 SUCs (including satellite schools) across the country.1
DepEd is currently implementing five PPP projects, which it procured under the Amended BOT Law: packages A, B, and C of the PPP for School Infrastructure Project (PSIP), and packages A and E of the PSIP Phase II. PSIP seeks to address the backlog in classrooms, which, as of 2010, was estimated to grow to about 150,000 by 2016 with increases in enrollment and the implementation of DepEd’s K–12 program and Education for All initiatives. DepEd adopted the PPP framework as a strategy to supplement the provision of educational facilities in the Philippine public school system.2
1Commission on Higher Education (CHEd). 2024. List of Higher Education Institutions. AY 2023-2024 as of 15 January 2024
2PPP Center. 2024. PPP for School Infrastructure Project (PSIP) Phase 1. DepEd’s First PPP Project.

Health care sector implementing agencies

The Department of Health (DOH) holds overall technical authority on health, as national health policymaker and regulatory institution. Its mandate is to develop national plans, technical standards, and guidelines on health. The DOH also provides special tertiary health care services and technical assistance to health providers and stakeholders.3 It now has a Public–Private Partnership for Health Program Management Office and is the implementing agency for five pipeline PPP projects. In 2014, the DOH, as implementing agency, signed a BOT agreement with the winning bidder for the Modernization of the Philippine Orthopedic Center pursuant to the Amended BOT Law. However, in 2015, the private partner sent a notice of termination to the DOH, citing the DOH’s delay in delivering the project site to the project proponent and the appointment of the independent consultant of more than 180 days.4
Aside from the DOH, SUCs, particularly those that have colleges of medicine and/or health care facilities, can also implement their health infrastructure and services through PPP.5 The University of the Philippines is implementing PPP contracts for the development of the Philippine General Hospital’s Cancer Center and the establishment of a second hospital in Diliman, Quezon City. Both projects are IFPs. The Department of National Defense operates and supervises military hospitals and health care facilities and thus may also enter into PPP contracts in the health care sector.
The health care system of the Philippines has been in a devolved setup since 1991 pursuant to the LGC, which devolved the delivery of basic services and facilities, including primary health services, to LGUs.6 Nevertheless, the DOH still operates or supervises certain retained hospitals, such as the hospitals in Metro Manila that are maintained by its Personnel Administration Division, specialty hospitals in Metro Manila, and regional hospitals across the Philippines.7 For Bangsamoro Autonomous Region in Muslim Mindanao, its Ministry of Health directly administers local hospitals and health offices within the region. LGUs can undertake PPPs to develop, rehabilitate, and improve the O&M of primary health care facilities and services (such as barangay and city health centers) and local secondary and tertiary hospitals. They can also consider developing an integrated health care system through a PPP with linkages between primary and specialized care.8 The Provincial Governments of Iloilo and La Union are implementing health care projects in the social infrastructure PPP pipeline. The City Governments of Pasig and Makati are likewise implementing health care PPP projects (i.e., Pasig City Mega Dialysis Center and Ospital ng Makati 1), both of which have been awarded.
Following the Mandanas-Garcia ruling and Executive Order No. 138 (2021), the DOH is implementing a re-devolution pursuant to its approved devolution transition plan. The DOH functions that will be re-devolved to LGUs mainly fall under the financing and service delivery pillars, where the LGUs are to assume full responsibility and accountability in providing and financing basic health services to constituents. Except for the National Nutrition Council, attached agencies and corporations of the DOH such as the Philippine Health Insurance Corporation (PhilHealth), DOH hospitals, and other national health facilities will not be affected by the re-devolution.9
The DOH provides assistance to LGUs, in effectively implementing programs, projects, and services that will promote the health and wellbeing of every Filipino; prevent and control diseases among populations at risk; protect individuals, families, and communities exposed to hazards and risks that could affect their health; and treat, manage, and rehabilitate individuals affected by disease and disability.10
3DOH. About DOH. Profile.
4Supreme Court of the Philippines. 2021. Cervantes v. Aquino, G.R. No. 210805.
5PPP Center. PPP Sectors. Investing in PPPs for Health.
6DOH. 2022. Devolution Transition Plan 2022-2024.
7PPP Center. Investing in PPPs for Health.
8PPP Center. Investing in PPPs for Health.
9DOH. 2022. Devolution Transition Plan 2022-2024.
10Government of the Philippines. 1999. Executive Order No. 102, Series of 1999.

Public housing sector implementing agencies

The Department of Human Settlements and Urban Development (DHSUD) is the primary implementing agency in the public housing sector.
DHSUD is responsible for the management of housing, human settlement, and urban development in the Philippines. It is the planning and policymaking, regulatory, program coordination, and performance monitoring entity for the country’s housing, human settlement, and urban development concerns. One of its key functions is to formulate a framework for resilient housing and human settlements as a basis for the mechanisms for post-disaster housing and resiliency planning; research and development; extension; and M&E of programs, projects, and activities to protect vulnerable communities from the adverse effects of climate change and natural hazards.
To perform its mandate, DHSUD owns and administers government-owned lands that have not been used for the purpose for which they were originally reserved, or set aside for at least 10 years, and are identified by DHSUD as suitable for urban development, particularly for housing purposes.11 DHSUD is the lead implementing agency of the Pambansang Pabahay Para sa Pilipino (National Housing for Filipinos Program) (4PH), which is a flagship program of the Philippine government.12
Aside from DHSUD, the other key government agencies that may enter into PPP arrangements are:
The National Housing Authority (NHA) was created in 1975 to develop and implement a comprehensive and integrated housing program that embraces, among others, housing development and resettlement, sources and schemes of financing, and delineation of government and private sector participation. With the creation of DHSUD, NHA continues to function as a production and financing arm in housing.13 Its mission is to be able to address, by 2025, 23% of the country’s housing need by building affordable, livable, adequate, and inclusive communities with basic services and socioeconomic opportunities.14 With its charter set to expire in 2025, however, House Bill No. 8156, now pending before the House of Representatives, intends to expand, strengthen, and reorganize NHA to allow it to implement innovative and alternative solutions in addressing the housing needs of informal settler families, the lower-income class, and the vulnerable sector.15
The National Home Mortgage Finance Corporation (NHMFC) was created in 1977 to develop and provide for a secondary market for home mortgage granted by public and/or private home financing institutions.16 It is mandated to increase the availability of affordable housing finance to support Filipino on their acquisition of housing units through the development and operation of a secondary market for home mortgages and other housing-related receivables.17
The Social Housing Finance Corporation, a wholly owned subsidiary of NHMFC, is the lead government agency tasked to develop and implement social housing programs for low-income groups in the formal and informal sectors, especially the underprivileged and homeless, to uphold their right to adequate housing though flexible, affordable, innovative, and responsive shelter financing, and development/production solutions that are community-driven.18
The Home Development Mutual Fund provides a mutual provident savings system for private and government employees and other earning groups, supported by matching mandatory contributions of their respective employers, with housing as the primary investment.19
The above agencies are attached to DHSUD for purposes of policy and program coordination, monitoring, and evaluation.
Another key agency in the public housing sector is the Philippine Guarantee Corporation (PhilGuarantee). PhilGuarantee is the principal agency for state guarantees in the Philippines. Its primary objective is to perform its development financing role by providing credit guarantees in support of trade and investments, exports, infrastructure, energy, tourism, agricultural business/modernization, housing, micro, small, and medium-sized enterprises, and other priority sectors of the economy, to facilitate and promote socioeconomic and regional development.20 PhilGuarantee may play an important role in the financing of PPP public housing projects.
11Government of the Philippines. 2019. Republic Act No. 11201.
12Government of the Philippines. 2023. Executive Order No. 34.
13Government of the Philippines. 2019. Implementing Rules and Regulations of Republic Act No. 11201.
14Government of the Philippines. 1975. Presidential Decree No. 757; NHA. About.
15NHA. 2023. Support for Charter Renewal.
16Government of the Philippines. 1977. Presidential Decree No. 1267.
17Government of the Philippines. 2019. Implementing Rules and Regulations of Republic Act No. 11201.
18Government of the Philippines. 2019. Implementing Rules and Regulations of Republic Act No. 11201.
19Government of the Philippines. 2019. Implementing Rules and Regulations of Republic Act No. 11201.
20Philippine Guarantee Corporation. Our Mandate.

Social Infrastructure

Sector Laws and Regulations

Education sector laws and regulations

The figure below presents an overview of the Philippine education sector, made up of the National ECCD System for children 0–4 years of age and the trifocal education system beginning at Year 5.

Overview of the Philippine Education Sector

Education sector

CHEd = Commission on Higher Education, DepEd = Department of Education, ECCD = early childhood care and development, TESDA = Technical Education and Skills Development Authority, TVET = technical and vocational education and training.

Sources: Government of the Philippines. 1994. Republic Act No. 7722; 1994. Republic Act No. 7796; 2001. Republic Act No. 9155; 2013. Republic Act No. 10410; 2013. Republic Act No. 10533.

The key roles and responsibilities of the education sector agencies are as follows:

The ECCD Council establishes national standards, develops policies and programs, ensures compliance with them, and provides technical assistance and support to ECCD service providers in consultation with coordinating committees at the provincial, city, municipal, and barangay levels. It also monitors ECCD service benefits and outcomes.1
DepEd is responsible for ensuring access to, promoting equity in, and improving the quality of basic education. It formulates the design and details of the enhanced basic education (K–12) curriculum, and works with CHEd to craft harmonized basic and tertiary curricula for the global competitiveness of Filipino graduates. To ensure college readiness and to avoid remedial and duplication of basic education subjects, DepEd is required to coordinate with CHEd and TESDA. To carry out its mandate, DepEd is organized into two major structural components. Its central office maintains overall administration of basic education at the national level while its field offices are responsible for regional and local coordination and administration of its mandate.2
CHEd formulates and recommends development plans, priorities, and programs on higher education and research and sets minimum standards for programs and institutions of higher learning recommended by panels of experts in the field and enforces them. It also identifies, supports, and develops potential centers of excellence in program areas needed for the development of world-class scholarship, nation building, and national development.3
TESDA formulates continuing, coordinated, and fully integrated technical education and skills development policies. It sets direction, promulgates relevant standards, and implements programs geared toward a quality-assured and inclusive technical education and skills development and certification system.4

1Government of the Philippines. 2013. Republic Act No. 10410; ECCD Council. About Us.
2Department of Education (DepEd). Management Structure; Government of the Philippines. 2001. Republic Act No. 9155; 2013. Republic Act No. 10533.
3Government of the Philippines. 1994. Republic Act No. 7722.
4Government of the Philippines. 1994. Republic Act No. 7796; TESDA. Mission.

Health care sector laws and regulations

The COVID-19 pandemic caused a health and economic crisis in the country, highlighting the urgent need for a proper, complete, and modern health care system. The enactment of a crucial reform in the sector through the Universal Health Care (UHC) Act just a year prior was very timely. The UHC Act ensures all Filipinos are guaranteed equitable access to quality and affordable health care goods and services, while being protected against financial risk. It also mandates for every Filipino citizen, including overseas Filipino workers, to be granted immediate eligibility and access to preventive, promotive, curative, rehabilitative, and palliative care for medical, dental, mental, and emergency health services.5 In response to this significant development, the PPP Center has identified health as one of its priority sectors, highlighting PPP as one of the possible delivery mechanisms for the government to achieve universal health care and ensure resilient health care systems, given that investments in health care can entail significant costs to the public sector.6

With the enactment of the UHC Act, the DOH is responsible for instituting a licensing and regulatory system for stand-alone health facilities, including those providing ambulatory and primary care services, and other modes of health service provision. It is also mandated to set standards for clinical care through the development, appraisal, and use of clinical practice guidelines in cooperation with professional societies and academia. Further, as the overall steward for health care, the DOH must strengthen national efforts in providing a comprehensive and coordinated approach to health development with an emphasis on scaling up health promotion and preventive care.7

The Philippine Health Insurance Corporation (PhilHealth), a GOCC attached to the DOH, manages the National Health Insurance Program, which was established to provide health insurance coverage and accessible health care services for all citizens of the Philippines. This program is the main payer for health services for the utilization of health services by covered beneficiaries but does not provide health care directly.8 PhilHealth is funded through premiums contributed by its members and government appropriation.

5Government of the Philippines 2019. Republic Act No. 11223.
6PPP Center. Investing in PPPs for Health.
7Government of the Philippines 2019. Republic Act No. 11223.
8PhilHealth. Agency’s Mandate and Functions.

Public housing sector laws and regulations

The core programs and implementing mechanisms for public housing were enacted into law in 2019 through the DHSUD Act. This mandates DHSUD to develop and adopt a national strategy to immediately address the provision of adequate and affordable housing to all Filipinos, and to ensure the alignment of the policies, programs, and projects of all its attached agencies to facilitate achievement of this objective.9

9Government of the Philippines. 2019. Republic Act No. 11201.

Foreign Investment Restrictions

COMPARE

DOWNLOAD

Parameter	2021	2022	2023
Maximum allowed foreign ownership of equity in greenfield projects
Construction of health care facilities	100%	100%	100%
Services, including hospital management, specialist hospital/clinic, mental hospital, dental clinic, and laboratory and medical check-up services	100%	100%	100%
Private maternity hospitals, clinic general medical services/public hospitals/public medical clinics, residential health services, and basic health care services facilities	100%	100%	100%
Construction of education facilities	100%	100%	100%
Non-formal education services (vocational training, computer education, language education)a	40%	40%	40%
Formal education servicesa	40%	40%	40%
Government buildings (including prisons and correction centers)	100%	100%	100%
Public housing	100%	100%	100%

aThe nationality requirement does not apply to educational institutions established by religious groups and mission boards for foreign diplomatic personnel and their dependents and other temporary residents, or for short-term high-level skills development that does not form part of the formal education system.

Source: Government of the Philippines. 2022. Executive Order No. 175.

Standard Contracts

COMPARE

DOWNLOAD

Parameter	Availability
What standardized contracts are available and used in the market?
Public-private partnership/concession agreement	a
Performance-based operation and maintenance contract
Engineering, procurement, and construction contract

aHowever, model agreements for a government administrative center is provided in a 2012 publication of the PPP Center.

Source: PPP Center. 2012. A PPP Manual for LGUs 3. Utilizing LGU PPP Project Templates and Bid Documents; Tavidell Law.

Social Infrastructure

Sector Master Plan

Education sector master plan

In 2022, DepEd adopted the Basic Education Development Plan (BEDP) 2030, as its blueprint in formulating, implementing, coordinating, monitoring, and evaluating its policies, plans, and programs in formal and non-formal basic education, providing the strategic road map to deliver quality basic education. It also seeks to address the immediate negative impacts of the COVID-19 pandemic on the learning of youth. The basic education sector analysis identified challenges and issues in access and efficiency, quality, and governance. To address these, the BEDP 2030 puts forward four priority development areas: (i) pivoting to quality education, ensuring all learners attain learning standards in every key stage in the K–12 program; (ii) expanding access to education for groups in situations of disadvantage to ensure inclusive and equitable quality service delivery; (iii) empowering learners to be resilient and to acquire life skills; and (iv) strengthening the promotion of the overall wellbeing of learners in a positive learning environment.1

In 2023, DepEd launched the Matatag Agenda to set the new direction of the agency and stakeholders in resolving basic education challenges.2 The Matatag Curriculum embodies the aspirations of Filipino learners inscribed in the Ambisyon Natin 2040, to successfully deal with future challenges by embedding 21st-century skills, preparing them to excel in the local and global job market. It fosters inclusivity by teaching global citizenship and diversity while promoting a future-oriented mindset that empowers learners to embrace and shape change.3 In 2024, the NEDA Board approved the BEDP 2030 and the Matatag Agenda as the national policy and plan for basic education in the Philippines.4

As part of the government’s enhanced support to social development, the PDP recognizes the enduring education crisis in the country, which highlights the need to modernize learning spaces and ensure adequate, safe, and resilient facilities for students. As such, the government will address classroom shortages and pursue universal access to basic utilities such as electricity, internet, and water supply in all schools. Provision of basic facilities, including water, sanitation, and hygiene facilities, libraries, and science laboratories, will be ensured. Learning spaces will be designed, configured, and equipped to emulate the classroom of the future. Government allocation for education spending will be prioritized while aid and resources from the private sector, nongovernment organizations, and civil society organizations will be sought.5 PPPs will play a pivotal role in helping the government bring about this enhanced support to the education sector.

There is currently no education PPP project listed as an IFP. The only IFP in the sector, the Infrastructure for Safer and Resilient Schools Project, will be financed through ODA.

1DepEd. 2022. Order No. 024, Series of 2022, Adoption of the Basic Education.
2DepEd. 2023. MATATAG: DepEd’s New Agenda to Resolve Basic Education Woes.
3DepEd. 2024. Order No. 010, Series of 2024, Policy Guidelines on the Implementation of the Matatag Curriculum.
4DepEd. 2024. DepEd’s MATATAG Agenda, BEDP 2030 approved by NEDA Board as National Policy and Plan for Basic Education.
5Government of the Philippines. 2023. Philippine Development Plan 2023–2028.

Health care sector master plan

In 2023, the Philippine government adopted the Philippine Health Facility Development Plan 2020–2040 (PHFDP) and directed the DOH, among others, to

Facilitate the dissemination of the PHFDP and ensure its effective and efficient implementation at the LGU level;
Assist, guide, and support LGUs in translating the PHFDP into long-term local health facility development plans to be reflected in their respective local investment plans for health and local development investment programs;
Coordinate with LGUs to formulate policies relative to the establishment of primary care provider networks and health care provider networks; and
Encourage LGUs to enter into PPPs to address the gaps identified in the PHFDP.

The PHFDP serves as the country’s overall strategy for infrastructure and medical investments, with the aim of ensuring a strong primary care and integrated health system for every Filipino, consistent with the UHC Act. The PHFDP operationalizes one of the key strategies under the PDP: promoting human and social development by boosting health through an accessible, efficient, and strengthened health care system.6

6Office of the President. 2023. Memorandum Circular No. 26, Series of 2023.

Public housing sector master plan

The strategy framework to establish livable communities in the PDP under the pillar of “built environment upgraded,” includes

Mobilizing private sector and government resources to meet housing needs;
Improving housing affordability;
Increasing the access of informal settler families, the homeless, and the underprivileged to housing;
Integrating accessibility, health, culture, and resilience outcomes into the design of housing and communities;
Ensuring availability of utilities; and
Providing public and active transportation links.

DHSUD targets the financing of 1 million housing units annually to narrow the housing deficit. Availing of fiscal incentives under the Urban Development and Housing Act will be facilitated to encourage more private sector participation in socialized housing. Allocation of funds to key shelter agencies (e.g., NHA, Social Housing Finance Corporation, NHMFC) will be rationalized to ensure increased allocation is matched with increased absorptive capacities. The secondary mortgage program of NHMFC will be strengthened and the housing credit guarantee program of PhilGuarantee will be enhanced. To raise funds for housing, LGUs are to tap financing schemes available to them, such as bond flotation and credit financing.7

In 2022, DHSUD launched the 4PH , a flagship housing program initiative of the Philippine government, to address the need for decent housing and to build on the potential impact of a robust housing sector on the growing economy. It aims to address the country’s 6.5 million housing needs by building 1 million units annually until 2028 and is expecting to involve the private sector, including through PPPs.8

There is currently no public housing PPP project listed as an IFP.

7Government of the Philippines. 2023. Philippine Development Plan 2023–2028.
8Government of the Philippines. 2023. Executive Order No. 34, s. 2023; Department of Interior and Local Government (DILG). 2024. Abalos: No Displacement in the Implementation of PBBM’s 4PH Housing Program.

Public–Private Partnership Priority Social Infrastructure Projects, as of August 2024

The table shows the priority projects identified in the social infrastructure sector for the PPP mode of implementation based on NEDA’s list of IFPs as of August 2024. All identified projects are in the health care subsector.

No.	Project	Implementing Agency	Estimated Project Cost
No.	Project	Implementing Agency	($ million)	(₱ billion)
1.	UP-PGH Cancer Center Project	UP	162.75	9.49
2.	UP PGH Diliman Project	UP	218.49	12.74

UP = University of the Philippines, UP-PGH = University of the Philippines-Philippine General Hospital.

Source: NEDA. 2024. Infrastructure Flagship Projects (accessed 27 October 2024).

Projects under Preparation and Procurement

Social Infrastructure Public-Private Partnerships under Preparation and Procurement

COMPARE

DOWNLOAD

LEARN MORE

Social Infrastructure

Sector Master Plan

The table below presents a list of pipeline national PPP social infrastructure projects as of October 2024, based on the PPP Center’s project list. The identified projects are in the health care and public housing subsectors.

Pipeline Public–Private Partnership Social Infrastructure Projects, as of October 2024

No.	Project	Implementing Agency	Procurement Mode	Estimated Project Cost		Status
No.	Project	Implementing Agency	Procurement Mode	($ million)	(₱ billion)	Status
1.	UP-PGH Diliman Project	UP	Solicited	-	TBD	Preparation phase (under development)
2.	Cagayan Valley Medical Center Hemodialysis Center	DOH	Solicited	2.40	0.14	Approval phase
3.	Vaccine Self-Reliance Project	DOH	Solicited	-	TBD	Preparation phase (under conceptualization)
4.	Establishment of Hemodialysis Centers in Iloilo Provincial and District Hospitals	Provincial Government of Iloilo	Unsolicited	3.94	0.23	Negotiation phase
5.	UP-PGH Manila Cancer Center Project	UP-PGH	Solicited	162.75	9.49	Procurement phase
6.	Dialysis Center PPP Project for Renal Center Facility of Baguio General Hospital and Medical Center	DOH	Solicited	6.69	0.39	Procurement phase
7.	San Juan-4PH	City Government of San Juan	Unsolicited	25.21	1.47	Preparation phase (under evaluation by IA)
8.	Mariveles Dialysis Center	Provincial Government of Bataan	Unsolicited	0.69	0.04	Negotiation phase
9.	Nuclear Medicine Research and Innovation Center	Philippine Nuclear Research Institute	Solicited	37.73	2.2	Preparation phase (under development)
10.	Lung Center of the Philippines’ Medical Arts Building Project	Lung Center of the Philippines	Solicited	21.61	1.26	Preparation phase (under conceptualization)
11.	Construction of Learning Resource and Student Service Center	Siquijor State College	Solicited	4.80	0.28	Preparation phase (under conceptualization)
12.	Construction of Livelihood Skills Training Center	Siquijor State College	Solicited	4.97	0.29	Preparation phase (under conceptualization)
13.	PPP for School Infrastructure Project Phase III (PSIP III)	Department of Education	Solicited	-	TBD	Preparation phase (under conceptualization)
14.	Santiago City Hemodialysis Center Project	City Government of Santiago, Isabela	Solicited	6.17	0.36	Procurement phase
15.	O&M of Pampanga Dialysis Centers Project	Provincial Government of Pampanga	Unsolicited	12.52	0.73	Procurement phase (under comparative challenge)
16.	O&M of Palayan City Hospital	City Government of Palayan, Nueva Ecija	Unsolicited	1.03	0.06	Negotiation phase
17.	Subdivision and Housing Program in Barangay Ordovilla and Bethel, Victoria Oriental Mindoro	Provincial Government of Victoria, Oriental Mindoro	Solicited	-	TBD	Preparation phase (under conceptualization)
18.	La Union Dialysis Center Central Circuit	Provincial Government of La Union	Unsolicited	-	TBD	Preparation phase (under evaluation by IA)
19.	O&M Including Supply and Installation of Laboratory Equipment and Laboratory Information System	City Government of Antipolo	Unsolicited	0.34	0.02	Preparation phase (endorsed to IA after completeness check)

4PH = Pambansang Pabahay Para sa Pilipino, DOH = Department of Health, IA = implementing agency, O&M = operation and maintenance, PPP = public–private partnership, PSIP = PPP for School Infrastructure Project, TBD = to be determined, UP = University of the Philippines, UP-PGH = University of the Philippines-Philippine General Hospital.

Source: PPP Center. 2024. List of PPP Projects in the Pipeline (accessed 27 October 2024); San Juan-Pambansang Pabahay Para sa Pilipino (4PH) Program.

The PPP Center’s list of pipeline PPP projects includes other projects in social infrastructure, such as solid waste management (discussed in section Other Infrastructure: Municipal Solid Waste) as well as development/ rehabilitation of government buildings, recreational/agro-industrial information technology parks, entertainment and events/food and transport hubs, public markets, urban renewal and heritage conservation, and lake rehabilitation and development, which are identified under the property development sector and are not considered in the PPP Monitor.1

1Public–Private Partnership Center. 2024. List of PPP Projects in the Pipeline

Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024).

Social Infrastructure

Features of Past PPP Projects

Procurement of PPP Projects

Social Infrastructure Public-Private Partnerships procured through various modes

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

PPP Projects Reaching Financial Close

Social Infrastructure Public-Private Partnerships reaching Financial Close

COMPARE

DOWNLOAD

PPP = public–private partnership.

PPP Projects with Foreign Sponsor Participation

Social Infrastructure Public-Private Partnerships with Foreign Sponsor Participation

COMPARE

DOWNLOAD

PPP = public–private partnership.

Note: Only active and concluded projects are considered.

Government Support to PPP Projects

Government Support for Social Infrastructure Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

Payment Mechanism for PPP Projects

Payment Mechanisms for Social Infrastructure Public-Private Partnerships

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active projects are considered.

Typical Risk Allocation for PPP Projects

COMPARE

DOWNLOAD

Risk Type	Private	Public	Shared	Remarks
Demand risk				Except in availability-based PPPs
Revenue collection risk				Except in availability-based PPPs
Competition risk
Environmental and social risk	(Unsolicited)		(Solicited)
Land acquisition risk	(Unsolicited)	(Solicited)
Interface
Permits
Geotechnical risk				Except for material unidentified risks
Brownfield risk: inventory studies, property boundaries, project scope, asset condition
Political risk				Private party bears risk up to a materiality threshold, beyond which public party bears risk
Force majeure
Foreign exchange risk
Construction risk				Except for delays caused by government
Early termination risk				Subject to specific conditions and compensation mechanisms

Sources: Tavidell Law.

Financing Details

Parameter	1990–2021	1990–2022	2023
PPP projects with foreign lending participation	UA	UA	UA
PPP projects that received export credit agency/international financing institution support	UA	UA	UA
Typical debt: equity ratio	UA
Time for financial closure	UA
Typical concession period	10 years (education); 30 years (health care)
Typical Financial Internal Rate of Return	UA

PPP = public–private partnership.

Sources: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024); PPP for School Infrastructure Project (PSIP) Phase I-Package A; UP Philippine General Hospital Manila Cancer Care Center; World Bank. 2023. Infrastructure Finance, PPPs, and Guarantees. Country Snapshots. Philippines. Custom Query (accessed 29 August 2024); Tavidell Law.

Social Infrastructure

Tariffs

For the education sector, the first phase of the PSIP (PSIP I) involved the design, financing, construction, and maintenance of 9,296 one-story and two-story classrooms, including furniture and fixtures in the regions, being implemented under a BLT arrangement for a lease period of 10 years. PSIP I has a total project cost of ₱16.27 billion ($279.03 million as of 28 October 2024), broken down into three packages: Package A, costing ₱3.44 billion; Package B, costing ₱5.28 billion; and Package C, costing ₱7.68 billion.1 PSIP II Package A involved the design, financing, and construction of 2,438 one-, two-, three-, and four-story classrooms, including furniture, fixtures, and toilets, in is regions, implemented under a BT arrangement for a total project cost of ₱3.86 billion, broken down into two packages: Package A, costing ₱2.26 billion, and Package E, costing ₱1.60 billion.2
No information on the tariffs for health care sector and public housing projects is available.
1PPP Center. PPP for School Infrastructure Project Phase 1 (PSIP 1) – Package A; PPP for School Infrastructure Project Phase 1 (PSIP 1) – Package B; PPP for School Infrastructure Project Phase 1 (PSIP 1) – Package C.
2PPP Center. PPP for School Infrastructure Project Phase II (PSIP II) – Package A; PPP for School Infrastructure Project Phase II (PSIP II) – Package E.
Social Infrastructure

Challenges

Restriction on foreign investments (capped at 40% for education services) limits competition in the education sector, especially since the restriction does not only limit the ownership of the entity and the composition of the board of directors but also requires that all executive and managing officers of the entity must be Filipinos.
As in all other PPP projects, site acquisition is a key challenge in the social infrastructure sector. In the Modernization of the Philippine Orthopedic Center project of the DOH, one of the reasons cited by the private partner for terminating the contract was the DOH’s delay in delivering the project site.1 The completion of PSIP I was delayed because of site issues such as inaccessibility, poor security, geotechnical concerns, presence of obstructions, and delay in providing substitute sites. During implementation of the project, DepEd had to provide replacement sites to the private partners because of issues on the original sites.2
The market for social infrastructure PPPs is relatively untested because only a few projects have entered the award/construction stage.3
1Rappler. 2015. Megawide Terminates PH Orthopedic Modernization Project; Supreme Court of the Philippines. 2021. Cervantes v. Aquino, G.R. No. 210805.
2PPP Center. 2021. PPP for School Infrastructure Project (PSIP) Phase 1: DepEd’s First PPP Project.
3ADB. 2020. Public–Private Partnership Monitor: Philippines.

Other Sectors

Contracting Agencies

Under the Ecological Solid Waste Management Act of 2000, LGUs are mandated to develop their respective solid waste management plans and execute the closure and rehabilitation of dumpsites, and the establishment of material recovery facilities, and create environmentally sound disposal systems.
LGUs are the implementing agencies for PPPs in the solid waste management sector. In addition, special economic zones may also enter into PPP arrangements for the solid waste management within their respective jurisdictions, pursuant to the powers granted to them to enter into contracts in their respective charters. The BCDA, for example, has a PPP sanitary landfill and waste-to-energy (WTE) project in New Clark City, which is currently in preparation.

Other Sectors

Sector Laws and Regulations

The Ecological Solid Waste Management Act of 2000 provides for a comprehensive ecological solid waste management program by creating the necessary institutional mechanism and incentives for private sector investment. The LGUs are likewise mandated to submit a plan that shows that they will divert at least 25% of all solid wastes from waste disposal facilities through reuse, recycling, and composting activities and other resource recovery activities, which percentage increases every 3 years.

In 2019, the DENR issued guidelines governing WTE facilities for the integrated management of municipal solid waste (Department Administrative Order No. 2019-21) pursuant to the Ecological Solid Waste Management Act of 2000. The guidelines also adhere to the government’s policy to promote compliance with the environmental impact statement system under Presidential Decree No. 1586, Toxic Substances and Hazardous and Nuclear Wastes Act of 1990 (Republic Act No. 6969), the Philippine Clean Air Act of 1999 (Republic Act No. 8749), and the Philippine Clean Water Act of 2004 (Republic Act No. 9275).

In 2022, the National Solid Waste Management Commission (NSWMC), created under the Ecological Solid Waste Management Act of 2000, adopted the 10-year Total Solid Waste Management Solution to optimize waste recovery and utilization in sanitary landfills prior to disposal.1 Related to this are the NSWMC’s previous resolutions adopting the Guidelines on Categorized Disposal Facilities, prescribing the design features and operational requirements for various sanitary landfill categories of LGUs according to the waste measured by tons per day.

WTE plant projects are awarded by the DOE pursuant to the Electric Power Industry Reform Act of 2001 and the Renewable Energy Act of 2008. In 2022, the DOE prescribed the policies and programs to promote and enhance the development of biomass WTE facilities. This is pursuant to the mandate of the DOE to encourage the private sector to invest in renewable energy resources. Biomass WTE resources are classified as a renewable energy resource for the purposes of all the entitlements under the Renewable Energy Act of 2008 and all related energy issuances.2

1NSWMC. 2021. Resolution No. 1452, Series of 2021.
2DOE. 2022. Department Circular No. DC2022-02-0002.

Foreign Investment Restrictions

Parameter	2021	2022	2023
Maximum allowed foreign ownership of equity	100%	100%	100%

Source: Tavidell Law.

Standard Contracts

Type of contract	Availability
What standardized contracts are available and used in the market?
Public–private partnership/concession agreement	a
Power purchase agreement
Long-term waste supply contract
Capacity take-or-pay contract
Transmission and use of system agreement
Performance-based operation and maintenance contract
Engineering, procurement, and construction contract

aHowever, a model PPP contract for local government units is provided in a 2012 publication of the PPP Center

Source: PPP Center. 2012. A PPP Manual for LGUs 3. Utilizing LGU PPP Project Templates and Bid Documents; Tavidell Law.

Other Sectors

Sector Master Plan

The NSWMC has passed a resolution adopting the Total Solid Waste Management Solution, which will maximize waste diversion and optimize the use of water disposal sites. While there are a number of LGUs in the process of preparing or procuring PPP projects for solid waste management such as sanitary landfills, integrated solid waste management systems, and WTE plants, only a few are exerting efforts to reduce their solid waste. Only a low 9% of all LGUs have adopted ordinances to regulate single-use plastics. Under the Ecological Solid Waste Management Act of 2000, LGUs are mandated to submit their respective solid waste management plans. However, as of December 2021, there were delays in the submission, review, and approval of the plans.1

1Commission on Audit (COA). 2023 Performance Audit Report. PAO-2023-01. Solid Waste Management Program.

Projects under Preparation or Procurement

Public–Private Partnership Municipal Solid Waste Projects under Preparation and Procurement

COMPARE

DOWNLOAD

LEARN MORE

Other Sectors

Sector Master Plan

The table below presents a list of pipeline national PPP municipal solid waste projects as of October 2024, based on the PPP Center’s project list.

Pipeline Public–Private Partnership Municipal Solid Waste Projects, as of October 2024

No.	Project	Implementing Agency	Procurement Mode	Estimated Project Cost		Status
No.	Project	Implementing Agency	Procurement Mode	($ million)	(₱ billion)	Status
1	Sanitary Landfill and Waste-to-Energy Project in New Clark City	BCDA	Solicited	-	TBD	Preparation phase (under development)
2	Catanduanes Solid Waste Management Project	Provincial Government of Catanduanes	Solicited	-	TBD	Preparation phase (under conceptualization)
3	General Santos City Sanitary Landfill Project	City Government of General Santos	Solicited	-	TBD	Preparation phase (under conceptualization)
4	Zamboanga City Integrated Solid Waste Management System	City Government of Zamboanga	Unsolicited	-	TBD	Preparation phase (under evaluation by IA)
5	University Chemical Wastes Storage Facility with Furniture, Fixture, and Equipment with Land Development	Central Mindanao University	Solicited	0.17	0.01	Preparation phase (under conceptualization)
6	Comprehensive Provincial Waste Management and Carbon Capture System Utilizing Bio-Methanation No-Burn Project	Provincial Government of Quirino	Unsolicited	13.72	0.8	Preparation phase (under evaluation by IA)

BCDA = Bases Conversion and Development Authority, IA = implementing agency, TBD = to be determined.

Source: PPP Center. 2024. List of PPP Projects in the Pipeline (accessed 27 October 2024).

Note: Only active projects are considered.

Source: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024).

Other Sectors

Features of Past PPP Projects

Procurement of PPP Projects

Modes of Procurement for Public–Private Partnership Municipal Solid Waste Projects

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

PPP Projects Reaching Financial Close

Public–Private Partnership Municipal Solid Waste Projects Reaching Financial Closure

COMPARE

DOWNLOAD

PPP = public–private partnership.

PPP Projects with Foreign Sponsor Participation

Public–Private Partnership Municipal Solid Waste Projects with Foreign Sponsor Participation

COMPARE

DOWNLOAD

PPP = public–private partnership.

Note: Only active and concluded projects are considered.

Government Support to PPP Projects

Government Support to Public–Private Partnership Municipal Solid Waste Projects

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered.

Payment Mechanism for PPP Projects

Payment Mechanisms for Public–Private Partnership Municipal Solid Waste Projects

COMPARE

DOWNLOAD

UA = Information unavailable

Note: Only active and concluded projects are considered. User Charges and Government Pay (off-take) data are unavailable.

Typical Risk Allocation for PPP Projects

No information on the risk allocation for the municipal solid waste sector is available.

Financing Details

Parameter	1990–2021	1990–2022	1990–2023
PPP projects with foreign lending participation	UA	UA	UA
PPP projects that received export credit agency/international financing institution support	UA	UA	UA
Typical debt: equity ratio	UA
Time for financial close	UA
Typical concession period	15 years (municipal solid waste management); 25–40 years (WTE)
Typical financial internal rate of return	UA

UA = Unavailable

PPP = public–private partnership, WTE = waste-to-energy.

Sources: PPP Center. Corporate Planning and Development Division. Projects List (provided 9 August 2024); Municipality of Malay Ecological Solid Waste Management Project; Joint Venture Agreement for the Cebu City Waste to Energy Project; Tagum City Waste-to-Energy Plant Project; World Bank. 2023. Infrastructure Finance, PPPs, and Guarantees. Country Snapshots. Philippines. Custom Query (accessed 29 August 2024); Tavidell Law.

Other Sectors

Tariffs

No information on the tariffs for the municipal solid waste sector is available.
Other Sectors

Challenges

A very low percentage of LGUs have adopted ordinances with respect to their solid waste management.1
There is a huge volume of waste generated in the country, almost one-third coming from Metro Manila. However, only 39% of all barangays are served with material recovery facilities and only 29% by sanitary facilities.2
The segregation of solid waste is not strictly implemented. Mixed waste still enters waste disposal facilities in the country despite the issuances of the DENR-NSWMC.3 Thus, solid waste diversion (i.e., recycling, composting, etc.) remains low at 54%.4
LGU credit risk is also an issue for PPPs in the sector.
1NEDA. 2023. Philippine Development Report 2023.
2NEDA. 2023. Philippine Development Report 2023.
3NSWMC. 2021. Resolution No. 1452, Series of 2021.
4NSWMC. 2021. Resolution No. 1452, Series of 2021.

Sector-specific PPP landscape

Roads

Road Network Length

Road Infrastructure Quality

Philippine Road Functional Classification Criteria

Philippine Road Network

Roads

Contracting Agencies

Roads

Sector Laws and Regulations

Foreign Investment Restrictions

Roads

Sector Laws and Regulations

Standard Contracts

Roads

Sector Laws and Regulations

Roads

Sector Master Plan

Public–Private Partnership Priority Road Projects, as of August 2024

Projects under Preparation and Procurement

Roads Public–Private Partnerships under Preparation and Procurement

Roads

Sector Master Plan

Pipeline Public–Private Partnership Road Projects, as of October 2024

Pipeline Public–Private Partnership Road Transport Projects, as of October 2024

Roads

Features of Past PPP Projects

Procurement of PPP Projects

Roads Public-Private Partnerships procured through various modes

PPP Projects Reaching Financial Close

Roads Public-Private Partnerships reaching Financial Close

PPP Projects with Foreign Sponsor Participation

Roads Public-Private Partnerships with Foreign Sponsor Participation

Government Support to PPP Projects

Government Support for Roads Public-Private Partnerships

Payment Mechanism for PPP Projects

Payment Mechanisms for Roads Public-Private Partnerships

Typical Risk Allocation for PPP Projects

Financing Details

Roads

Tariffs

Tariffs for Toll Roads

Roads

Challenges

Railways

Railway Network Length

Number of Passengers

Freight Volume

Quality of railway infrastructure

Philippine Railway Network

Railways

Contracting Agencies

Railways

Sector Laws and Regulations

Foreign Investment Restrictions

Railways

Sector Laws and Regulations

Standard Contracts

Railways

Sector Laws and Regulations

Railways

Sector Master Plan

PPP Priority Projects in the Railway Sector

Projects under Preparation and Procurement

Railways Public-Private Partnerships under Preparation and Procurement

Railways

Sector Master Plan

Pipeline Public–Private Partnership Railway Projects, as of October 2024

Railways

Features of Past PPP Projects

Procurement of PPP Projects

Railways Public-Private Partnerships procured through various modes

PPP Projects Reaching Financial Close

Railways Public-Private Partnerships reaching Financial Close

PPP Projects with Foreign Sponsor Participation

Railways Public-Private Partnerships with Foreign Sponsor Participation

Government Support to PPP Projects

Government Support for Railways Public-Private Partnerships

Payment Mechanism for PPP Projects

Payment Mechanisms for Railways Public-Private Partnerships