LIPA CITY INTEGRATED

PPP CODE
SPECIAL ORDINANCE NO. 59-2015
OPERATIVE PRINCIPLES:
■ FISCAL AUTONOMY OF THE LOCAL GOVERNMENT
■ GENERL WELFARE OF THE PUBLIC, TRANSPARENCY, PUBLIC
ACCOUNTABILITY AND SOCIAL ACCOUNTABILITY MECHANISMS
■ GOVERNMENTAL AND PROPRIETRY CAPACITIES THE CITY
■ POWER TO ACQUIRE, DEVELOP, LEASE ENCUMBER, ALIENATE, DISPOSE,
REAL OR PERSONAL PROPERTY.
■ PARTICIPATION OF THE SANGUNIAN.
■ Lipa City’s autonomy in the exercise of proprietary functions as well as
necessary, appropriate or incidental for its effective governance.
■ Collaboration or cooperation with other Local Governments, National
Government Agencies, GOCC, Government instrumentality,
■ Implementation of a comprehensive multi-sectoral development plan.
OPERATIVE PRINCIPLES:
■ As partner in a PPP arrangement, provide equity, subsidy, or
guarantee and use of local funds and use thereof for public
use and purpose.
■ Enter into JOINT VENTURES with people’s and non-
governmental organizations to engage in the delivery of
certain basic services, capability-building and livelihood
projects.
■ Active participation of the private sector in local governance.
■ Full public disclosure of all its transactions.
RATIONALE FOR PPP
■ Better, affordable and timely services to the community guided by
the following reasons:
– Lipa City’s development and Physical framework.
– Overall infrascracture reform policy of Lipa.
– Pressing and urgent public need.
– Avoidance of cost and public borrowing.
– Technology transfer and improved efficiency and quality
service.
– Commercial viability.
– Value for money and economic value-for-money and good
economic value.
– Social benefits
RATIONALE FOR PPP
– Economic growth and sustainability.
– Procurement of PPP projects must be competitive and
undertaken through OPEN COMPETITIVE BIDDING.
– A duly executed and legal PPP contract shall be
respected and not impaired, and shall be binding ong
the SECCESSOR ADMINISTRATOR pursuant on the
provision of CORPORATE SUCCESSION
– Efficient public service.
AUTHORITIES

THE CITY MAYOR

subject to ratification by the
SANGUNIANG PANGLUNGSOD.
PPP PROJECTS AND PPP MODALITITIES
■ Including but not limited ■ Telecommunications ■ Solid waste management
to:
■ Railroads and railways ■ Information technology
■ Power Plants networks and data base.
■ Transport system
■ Highways ■ Infrasctructures
■ Land reclamation
■ Ports projects ■ Education and health
facilities
■ Airport ■ Industrial estates
■ Social services
■ Canals ■ Housing
■ Sewerage
■ Dams ■ Government buildings
■ Drainage
■ Hyropower projects ■ Tourism projects
■ Dredging
■ Water supply ■ Public markets
■ Prison
■ Sewerage ■ Slaughterhouses
■ hospitals
■ Irrigation ■ Warehouses
PRIORITY PROJECTS

■ No project may be undertaken employing any of the PPP

Modality without corresponding denomination in the
ANNUAL INVESTMENT PLAN.
■ Corresponding amendatory provisions in the AIP may be
subsequently adopted following the usual Legislative
Procedures, in the event of GRAVE URGENCY;
PPP MODALITIES
■ Build And Transfer ■ Develop-operate- ■ Lease Or
■ Build-lease-and- and-transfer Affermage
transfer ■ Rehabilitate- ■ Management
■ Build-operate-and- operate-and- Contract
transfer transfer ■ Service Contract
■ Buil-own-operate ■ Rehabilitate-own- ■ Dicestment Or
operate Disposition
■ Build-transfer-and-
operate ■ Concession ■ Corporization.
Arrangement
■ Contract-add-and-
operate ■ Joint Venture
GENERAL REQUIREMENTS
■ Approval of the Chief executive
■ Ratification of the Sanguniang Panglungsod
■ Projects in the List of Priorities Projects shall not be eligible for UNSOLICITED
PROPOSALS under any Business-Operate-Transfer (BOT). UNLESS involving a NEW
CONCEPT/TECHNOLOGY.
■ Other PPP Modalities, UNSOLICITED PROPOSAL MAYBE ACCEPTED even if included
in the LIST OF PRIORITIES .

■ Prohibition for extending Direct City Guarantee, Direct City Subsidy, and Direct City
Equity,
■ No event shall PPP Agreement subjecting Lipa City to pecuniary obligation of 20% of
the INTERNAL REVENUE ALLOTMENT
GENERAL REQUIREMENTS
■ for BOT variants that will be subject to bidding, the City may provide Direct
City Guarantee, Direct City Subsidy, and Direct City Equity, or viability Gap
Funding, PROVIDED that the City can use a portion of its GENERAL FUND, its
development fund comprising of 20% of its annual share in the Internal
Revenue Allotment.
■ For PPP Modalities, the city may provide CREDIT ENHANCEMENTS AND COST-
SHARING SCHEMES.
■ Official Development Funds may be availed for PPP projects where there is
difficulty in sourcing funds. ODA financing shall not exceed 50% of the
project cost.
■ Each PPP Modality adopted for a specific PPP Project MUST PROVIDE AND
ADOPT S TARIFF MECHANISM.
■ The rate of return on rate base shall be determined by laws, (12%)
GENERAL REQUIREMENTS
■ In case if project requires a Franchise or license to operate, the winning PSP
shall automatically be granted by the City.
■ Original franchise period shall not exceed 25 years.
EXTENDABLE: 15 years, thereafter 10 years.
MAXIMUM TOTAL FRANCHISE PERIOD: 50 years.
PPP PROCEDURES AND PPP CONTRACTS
1. SELECTION OF PSP BY COMPETITIVE SELECTION OR COMPETITIVE CHALLENGE
(preparation of FEASIBILITY STUDY)

COMPETITIVE SELECTION COMPETITIVE CHALLENGE

•Advertisement • Submission of unsolicited proposal with
•Issuance of instructions and tender Feasibility Study to the City.
documents
• Evaluation of proposal and
•Pre-bid conference determination of eligibility
•Eligibility screening ofprospective bidders
• Mayor, upon recommendation of PPP-
•Receipt and opening of bids
SC shall make issue CERTIFICATE OF
•Posting
ACCEPTANCE.
PPP PROCEDURES AND PPP CONTRACTS
2. Recommendation of the PPP Selection COMMITTEE shall be submitted to the
MAYOR for consideration and approval
Selection Committee shall be composed
of:
•Chairperson
•City Legal Officer
•City Treasurer
•City Planning and Development Officer
•Representative from the Sanguniang
Public consultation shall be conducted Panglungsod
during consideration. •2 Representatives from non-governmental
organizations who are members of the City
Development Council
PPP PROCEDURES AND PPP CONTRACTS

PPP CONTRACTS must be signed by the MAYOR

RATIFICATION by the SANGUNIAN PANLUNGSOD.

NOTICE OF AWARD to the PSP

PPP CONTRACT
■ Signed by the mayor
■ Ratified by the Sanguniang panglungsod
■ Direct benificiaries of the Contract are the constituents of the City
■ PPP Contract shall describe :
– the PPP project
– Rights
– Functions
– Obligations and responsibilities of and risks assumed by the
contracting parties,
– Dispute mechanisms
■ Other ancilliary contracts may include insurance contracts, loan
agreements, equity arrangement
PPP REGULATORY AUTHORITY
Shall be tasked with performing contract management functions,
such as partnership management, performance or service delivery
management and contract administration for all PPP Arangements
entered into by the city.
COMPOSITION:
– Mayor
– Vice Mayor
– 2 Representatives Of The Sangunian
– City Planning Development Officer
– 2 Representatives From And Chosen By Accredited Civil Society Groups
– City Legal Officer
– City Treasurer
CONTRACT MANAGEMENT MANUAL
■ Serves as the Guide to the City and its personnel in ensuring a
consistent, high quality contract monitoring process that is specific for
such PPP contract
■ Shall be submitted to the PPP-RA for approval within 21 days from
execution of contract.
■ PPP-RA may accept, reject or otherwise order the revision of the
contract management manual at anytime during the life of the PPP
Project.
■ Contract Management contract not approved within 7 days shall be
deemed issued and approved.
■ PPP-RA shall evaluate the contract management manual QUARTERLY.
CONTRACT MANAGEMENT MANUAL
CONTENTS
■ Description of the aparoject ■ Details of post-award
■ Summary of key terms conference
■ Roles and responsibilities of ■ Partnership management
each member of the PPP-RA procedures
and other city personnel and ■ Performance or service
contractors delivery management
■ Roles and responsibility of ■ Contract administration
key personels ■ Project closeout procedures
POST AWARD CONFERENCE
■ Notice shall be sent by the PPP-RA Chairperson at least 5
days before the scheduled date thereof.
■ Attended by by the members of the PPP-RA such as
employees and contractors of the City and the key
personnel
■ PPP-RA shall preside and shall appoint Secretary of the
conference from the City personnel
■ Minutes of the conference shall be sent to each participant
within 5 days of adjournment of the conference.
CLOSEOUT PROCEDURE
Formal, written closeout procedure shall be included in
the contract management plan to ensure that:

– All goods and services have been delivered

– All properties are disposed accordingly
– All city properties has been returned
– All amounts due under the PPP Contract have
been PAID.
ACCOUNTABILITY, INFORMATION,
EDUCATION AND MONITORING
In case of violation of:

■ CITY ELECTIVE OFFICIALS = ground for disciplinary action or

amount to loss of confidence,
■ LOCAL APPOINTIVE OFFICIALS = administratively liable.
■ REPRESENTATIVE OF THE PSP = liable for damages,
offenses and crimes depending on the nature of
participation.