City adopts public-private partnership as development approach

BAGUIO CITY  – The city council approved an ordinance adopting the public-private partnership development approach for implementing the city’s projects.

Ordinance No. 61 series of 2017 or the Baguio City Public-Private Partnership for the People Initiative for Local Government Code or the Baguio City LGU P4 Code authored by Councilors Elmer Datuin, Leandro Yangot Jr., Edgar Avila, Benny Bomogao and Michael Lawana spells out the guidelines on joint ventures that the city will pursue with the private sector.

Councilor Datuin said the measure adopted the PPP template provided by the Department of Interior and Local Government (DILG) in Memorandum Circular No. 2016-120 dated September 7, 2016, and would complement the city’s Investments and Incentives Code, the implementing rules and regulations of which were approved just last month by the city council.

“Having a (PPP) framework in ordinance form will ensure and facilitate consistency, integrity, reliability, sustainability, accountability and transparency and enforceability,” the authors said.

As decreed, the LGU P4 mode will be pursued by the City consistent with its infrastructure, development, investment, environmental, and governance framework, embodied in relevant policies, plans, ordinances, and codes.

The development projects that can be subjected to LGU P4 mode are energy and power, renewable energy, waste-to-energy, roads, bridges, causeways, waterways, highways, ports, wharfs, terminals, airports, community airports, canals, dams, desilting, dredging, mining and exploration, hydropower projects, water supply and distribution, sewerage, irrigation, drainage, water conservation such as impoundment areas and rainwater harvesting, telecommunications, railroad and railways, short-haul transit services such as monorail, guided bus, bus services and trams, intermodal and multi-modal transit systems, transport systems, traffic control and management, parking facilities, reclamation projects, platform settlements, industrial estates or townships, central business and industrial park development, hotels and resorts, socialized housing, non-conventional low-cost housing, settlement or resettlement and relocation facilities, residential subdivisions, parks and open space development or redevelopment, pocket parks, public art, libraries, heritage conservation, government buildings, sustainable or green public buildings, sports facilities, wellness establishments, tourism such eco-tourism, wellness tourism and agri-agro-tourism, public markets, commercial buildings, slaughterhouses, storage buildings, warehouses, cold storage, solid waste management, sanitary landfills, meeting and convention centers, information technology networks and database infrastructure, education-related, classrooms, health facilities, hospitals, social services-related, prisons, agriculture-related, post-harvest facilities, environmental management and protection, climate change adaptation, disaster risk reduction, among others.

The measure requires that the determination of the appropriateness and viability of the P4 mode be specified, explained and justified in the feasibility or project study.

In undertaking an LGU P4 project, the City may adopt and pursue any of the following modalities:

Build-and-Transfer (BT); Build-Lease-and-Transfer (BLT); Build-Operate-and-Transfer (BOT); Build-Own-and-Operate (BOO); Build-Transfer-and-Operate (BTO); Contract-Add-and-Operate (CAO); Develop-Operate-and-Transfer (DOT); Rehabilitate-Operate-and-Transfer (ROT); Rehabilitate-Own-and-Operate (ROO); Rehabilitate-Lease-and-Transfer (RLT); Rehabilitate-and-Transfer (RT); Rehabilitate-Transfer-and-Operate (RTO); Concession Arrangement; Joint Venture (JV); Lease or Affermage; Management Contract using City Funds; Management Contract without using City Funds; Service Contract using City Funds; Service Contract without using City Funds; Divestment or Disposition; Corporatization; Incorporation of a Subsidiary with Private Sector Proponent equity; Onerous Donations; Gratuitous Donations; and any other modality akin to any of the above or features which fall under the alternative definition of a P4 mode.

The measure spells out the general requirements for the City in entering into a P4 venture; procedures for the different modalities; rules and processes for competitive selection, limited and competitive negotiations, competitive challenge with three stages namely unsolicited proposal, detailed negotiations and competitive or Swiss challenge proper; schedule and timelines; rules and processes government the LGU P4 contracts and regulation and contract management; post-award conference; personnel and training requirements; partnership management; performance or service delivery; contract administration; close-out procedures; post-contract review; document control;

Code of conduct; disciplinary action; liability; social accountability; transparency and right to information; capability-building program; monitoring and governance audit program; technical and financial assistance; and confirmation of executed P4 contracts.

It also provides for the creation of a LGU P4 selection committee composed of a chair, the city secretary, treasurer, city planning and development officer, five representatives from the city council and two representatives from the non-government organizations who are members of the City Development Council to undertake the selection of a private sector proponent for a specific project and the LGU P4 regulatory authority composed of the city mayor, the city vice mayor, four representatives of the city council, the city legal officer, city treasurer, city planning and development officer and two representatives from the NGOs to oversee the implementation of the P4 ventures.

A contract management manual will be framed for each executed P4 contract with the following information:  a description of the project and its history;       a summary of the key terms of the contract; roles and responsibilities of each member of the LGU P4 regulatory authority and other City personnel and contractors involved and also those of the private sector proponent; details of the post-award conference; partnership management procedures; performance or service delivery management; contract administration; and project closeout procedures.

The implementing rules and regulations of the Code may be issued by the city mayor.

By Aileen P. Refuerzo

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