Businessmen want BOT law fine-tuned to address flaws

The Philippines’ largest business management group is pushing for amendments to the Build-Operate-Transfer (BOT) law, which governs public-private partnerships (PPP) projects, with plans in place to form a new multisectoral committee to address issues with the said law.

Management Association of the Philippines (MAP) president Rogelio Singson said last Monday there are numerous problems with the BOT law, adding that the business group wants government to address lingering concerns from the private sector.

“We cannot have indefinite discussions on provisions of contracts just because there’s a new administration [which means] all the contracts will have to be reviewed again,” Singson said at the sidelines of the group’s annual membership meeting in Taguig.

Asked about the priority concerns of their group, the MAP official said that regulatory issues, as well as the government respecting past contracts were top priorities.

Singson cited in particular issues in the water sector that should be addressed promptly by the government.

“Who is the current regulator? It’s not clear. Is it the [Local Water Utilities Administration]? Is it the [local government unit] or the National Water Resources Board? Those have to be defined by the law,” Singson said.

“There are many things we could accomplish with PPP, but let’s clarify the roles, the responsibilities,” he added.

Singson said that the outgoing board has approved the proposed creation of a MAP-led committee to tackle PPP issues and concerns.

“This committee, as discussed and agreed with the PPP Center, will be multisectoral, which will include the PPP Center, MAP, the League of Governors, the League of Mayors and PPP industry players,” Singson said.

Earlier in September, a Cabinet-level committee approved revisions to the implementing rules and regulations (IRR) of the amended BOT law, paving the way for big-ticket infrastructure projects that could be pursued in partnership with the private sector.

Later, in October of this year, the government’s PPP Center said it was pushing for amendments that were left unaddressed in the latest revisions in the IRR.

PPP Center executive director Ma. Cynthia Hernandez said that among the issues they plan to address is the removal of the P300 million cap on projects that are evaluated by the Cabinet-level Investment Coordination Committee.

The removal of the cap will take away limitations on certain implementing agencies, according to Hernandez.