Fortun Proposes Guidelines For PPP Joint Ventures

Fortun Proposes Guidelines For PPP Joint Ventures

Butuan : Philippines | Feb 16, 2012 at 12:26 AM PST
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BUTUAN CITY, Philippines - Butuan City Vice Mayor Lawrence “Law” Fortun recently filed an ordinance prescribing the guidelines and procedures for entering into joint venture agreements with private entities consistent with the National Economic and Development Authority (NEDA) guidelines on joint venture agreements. Among the reasons cited by Fortun in filing the said ordinance is the Executive Order issued by City Mayor Ferdinand M. Amante, Jr. creating the Public Private Partnership (PPP) Executive Team that would advocate, conceptualize, initiate, coordinate, direct and oversee the planning, implementation, monitoring and evaluation of the different PPP programs, projects and activities of the City government.

Fortun also cited the following basis for filing the said ordinance: a) the natural and economic resources of Butuan City present enormous potentials for rapid economic growth and sustainable, equitable development; b) there is an impetus to develop and implement a comprehensive economic agenda to maximize and convert these potentials into concrete economic and environmental gains; c) the public-private partnership (PPP) as advocated by the national government is seen as the pivotal and kety strategy in the implementation of the economic agenda; d) there is a need to strengthen the local government unit’s systems to be able to efficiently and effectively orchestrate, respond and support PPP undertakings; e) the Local Government Code of 1991 (RA 7160) vests upon the LGU the prerogative to enter into contracts involving its properties, subject to limitations imposed by law, and provides LGUs with wide ranging authority to undertake major infrastructure improvements and to seek financing for this purpose; and f) the National Economic and Development Authority (NEDA) Guidelines are being issued pursuant to Section 8 (Joint Venture Agreements) of Executive Order (EO) No. 423 dated April 30, 2005, which mandates NEDA, in consultation with the Government Procurement Policy Board (GPPB), to issue the necessary guidelines on Joint Ventures

The proposed measure, which is anchored on the policy of the City government to promote the participation of the private sector as active partners in the pursuit of genuine and meaningful autonomy in order to attain the fullest economic development and self-reliance, is aimed at laying down the groundwork for the City government in entering joint venture agreements and such other cooperative arrangements with the private sector for the development of local enterprises designed to improve productivity and income in order to enhance economic and social well-being of the people. The proposed ordinance also set forth principles on all joint venture agreements entered by the City government with the private entities and these are: a) the creation of the joint venture should not prevent potential players from profitably entering into business venture/market; b) the cost of producing the particular product, activity or service should be efficient or potentially efficient towards earning potential profits for government and the market player/private sector partner; c) there should be no barriers for the City government’s withdrawal of its contribution to the joint venture investment; d) the role of government as regulator of the business of the joint venture should be clearly and explicitly delineated from its role as implementer of the business to avoid conflict of interest; and e) accountability for the joint venture project ultimately devolves on the City government being deeply involved in the joint venture agreement and the implementation of the joint venture agreement project. The private parties dealing with the City government are similarly held accountable for their actions relative thereto.

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Butuan City Vice Mayor Law Fortun
Butuan City Vice Mayor Lawrence "Law" Fortun
jhazzme is based in Butuan, Caraga, Philippines, and is a Stringer on Allvoices.
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