Under PPP Code, unsolicited bids get longer challenge period

MANILA, Philippines — The government is adopting a longer comparative challenge period for unsolicited proposals for public-private partnership (PPP) projects to get the best offers from prospective proponents.

PPP Center deputy executive director Jeffrey Manalo told reporters in a press conference that the new PPP Code provides a longer comparative challenge period for unsolicited proposals.

“On unsolicited proposals, we made it more competitive to protect public interest ,” Manalo said.

The new code that takes effect on Dec. 23 amended the rules on unsolicited proposals submitted by the private sector for a PPP project to the government.

In particular, the comparative challenge period for unsolicited proposals has been extended to 90 days to one year from only 60 days previously.

“The idea was 90 days will be short enough for a public market or a transport terminal, but it is definitely not enough for a P100-billion airport project. So the law provides that flexibility up to one year to determine the appropriate challenge period,” he said.

According to Manalo, 60 days is not be enough to come up with a competing proposal.

“The extension makes it more competitive,” he said.

Under a comparative challenge, the original proponent would have the right to match offers by other firms for the project.

Manalo also said unsolicited proposals now have to be submitted to the PPP Center first for a completeness check within 10 calendar days from receipt.

If determined to be complete, the unsolicited proposal would be endorsed by the PPP Center to the appropriate implementing agency.

Manalo said the provision on having unsolicited proposals submitted to the PPP Center first is an offshoot of the discussions among the legislators as some projects have faced delays.

“Part of the delay is that LGUs (local government units) would give OPS (original proponent status) only to realize in the end, the project is incomplete because they lack the technical capacity to do so. The idea was to let the PPP Center do it within 10 days,” he explained.

President Marcos signed into law the PPP Code, which seeks to provide a more competitive and enabling environment for PPPs, last Dec. 5 and takes effect on Dec. 23.

Meanwhile, the implementing rules and regulations of the PPP Code are expected to be issued by March 23, 2024 and to take effect by early second quarter of next year.

There are 181 PPP projects worth P2.6 trillion being implemented in the country.

Of the total, 121 are at the national level and 60 are local PPPs.