The procurement of a Public-Private Partnership (PPP) project may follow either a single-stage or two-stage bidding process, as deemed appropriate by the Implementing Agency and approved by the relevant Approving Body. The process differs depending on whether the project is solicited or unsolicited and may be conducted manually or electronically.
Following project approval, the Implementing Agency must publish the Invitation to Qualify/Pre-qualify and Bid (for solicited projects) within 90 days or the Invitation for Comparative Proposals (for unsolicited proposals) within 7 days. These must be posted on the websites of both the Implementing Agency and the PPP Center. Publication in newspapers is now optional. For unsolicited proposals, the original proponent must submit a bid bond on the first day of publication, in an amount and form equal to that required of challengers.
Once invitations are issued, tender documents must be made available to prospective bidders, either manually or electronically. These include instructions to bidders, draft contracts, bid and performance security forms, agency requirements, and other necessary materials. Bidders must have at least 30 days from the final bid bulletin or supplemental notice to submit proposals. For unsolicited projects, the challenge period must be at least 90 days and may extend up to one year.
A freeze period applies 30 days before the bid deadline, during which no new documents or bulletins may be issued. A pre-bid conference must be held at least 45 days prior to submission.
In unsolicited proposals, the instructions must indicate if the draft contract is non-negotiable or subject to clarifications. Only those who have paid the participation fee may submit bids. In consortia, purchase by one member suffices.
The qualification or prequalification process is designed to prevent shell companies and ensure stricter controls on majority shareholders in consortia. This process must be completed within 20 days and may be extended up to 30 days.
For projects in industries with nationality restrictions, if the Private Partner and Facility Operator are the same entity, at least 60% Filipino ownership is required. If they are separate, only the Facility Operator must meet this requirement.
If the Private Partner is a consortium, its members must be disclosed and must undertake joint and several liability if awarded the contract. They may also be required to certify under oath that they are not blacklisted, have not been found liable under the Anti-Money Laundering Act or similar laws, and have no pending case against or involving the government.
In terms of experience, the Private Partner must show a successful track record in similar or related projects, and key personnel must have relevant expertise.
Financially, the Private Partner must demonstrate sufficient equity based on its latest net worth and prove its ability to raise project financing through debt, supported by a current testimonial from a financial institution. After qualification, the PBAC (Pre-Bid and Awards Committee) evaluates the technical and financial proposals within 30 and 15 days, respectively. The technical bid must include a bid security based on project cost.
For solicited projects, the PBAC must submit its award recommendation to the head of the Implementing Agency within 7 days. The head has another 7 days to decide. If approved, the Notice of Award must be issued within 3 days and posted on the websites of the PPP Center and the Implementing Agency within 7 days.
The winning bidder has 20 days to submit all post-award requirements. Failure to do so results in revocation of the award. Once requirements are complete, the contract must be signed within 5 days. For unsolicited proposals, if a challenger submits a superior financial offer, the original proponent has 30 days to match it. If not, the project is awarded to the challenger. The PBAC then submits its recommendation to the agency head for final action.
