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CN2012-03: Perusing the TWG Proposed Amendments to the Build-Operate-Transfer (BOT) Law as Amended / Learning from the Public-Private Partnership Experience in the North Luzon Expressway (NLEX) Project

A consolidated draft bill prepared by a TWG, jointly created by the Committee on Public Works and Highways and the Committee on Government Enterprises and Privatization, seeks to amend certain provision of the BOT Law (R.A. 7718). The proposed amendments aim to promote competition, strengthen the capacity of concerned government agencies, promote greater transparency and accountability of parties concerned, increase the certainty of recovering investments, and provide mechanisms for dealing with risks and unforeseen events.

Lessons from the PPP experience in the NLEX project are critical in view of the ongoing efforts to amend the BOT Law (R.A. 6957 as amended by R.A. 7718) and its IRR. The key success factors cited include: (a) competent and reputable project proponents, (b) fair and appropriate allocations of risks and obligations between government (i.e., right-of-way acquisition, and implementation of agreed toll rates) and the project company (i.e., funding, construction and market risks), (c) strong project economics, and (d) a comprehensive communication program for public acceptance.



Congressional Policy and Budget Research Department
Authors Keywords
Gutierrez, Elsie; BOT Law; Build-Operate-Transfer Law; PPP; Committee on Public Works and Highways; PPP Public-Private Partnership; NLEX Project Expressway;
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Published in 2012 and available for Downloaded 304 times since October 12, 2015
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