Home arrow Philippine News arrow Guidelines on public-private sector joint venture agreements take effect today
Guidelines on public-private sector joint venture agreements take effect today Print E-Mail
Written by Philippine Embassy Webmaster   
Thursday, 15 May 2008

 

The National Economic and Development Authority (NEDA) announced that the Guidelines and Procedures for Entering into Joint Venture Agreements between Government and Private Entities take effect today after having been published in the Philippine Star on April 17, 2008.


Under the Guidelines, the head of the government entity concerned is given the authority to approve the proposed joint venture agreement regardless of amount. Clearances from the Departments of Finance and Budget and Management shall only be obtained when the joint venture agreement requires national government undertakings, subsidies or guarantees.


The Guidelines provide for two modes of selecting a joint venture partner: Open Public Solicitation and Negotiated Agreements. In both modes, the government entity shall ensure that all activities during the selection, award and final approval are conducted in a transparent and competitive process that promotes accountability and efficiency. Likewise, the competitive selection parameters are clearly defined. These shall include the parameters as approved by the head of the government entity.


The Guidelines were formulated to provide for a transparent and clear procedures for entering into joint venture activities that would encourage pooling of resources and expertise between government and the private sector as a viable, efficient and practical alternative in pursuing the government’s development goals.

The Guidelines shall apply to all government-owned and/or controlled corporations, government corporate entities, government instrumentalities with corporate powers, government financial institutions, state universities and colleges which are expressly authorized by law or their respective charters to enter into joint venture agreements. Local government units and transactions of government financial institutions in the ordinary course of business as part of their normal and ordinary banking, financial or portfolio management operations are not covered by the provisions of the Guidelines.


The Guidelines underwent review by the NEDA Board Committee on Infrastructure, the Government Procurement Policy Board, and the Office of the Government Corporate Counsel. A public consultation forum was conducted on February 8, 2008 to solicit the views of the private sector such as, among others, the Philippine Constructors Association, Philippine Chamber of Commerce and Industry, and the American Chamber of Commerce of the Philippines.