PRIVATIZATION and environmental legislation

Environmental privatization

1. PUBLIC PRIVATE PARTNERSHIP(PPP) PROJECT Partnerships between the public and private sector are known as PPPs and are used to finance, build, and rug government services and private business venture.

2. The government may aid a firm in a variety of ways, including by granting capital subsidies, tax cuts, or guarantee of annual revenues for a certain period of time. While providing a public service or undertaking, the private party takes a on significant financial, technological, and operational risks.

3. LEGAL BASIS OF PPP

4. The legal basis for Public-Private Partnership (PPPs) in the Philippines , including DENR projects under PPP, primarily relies on Republic Act No. 6957, as amended by Republic Act No. 7718, commonly known as the “Build-Operate-Transfer(BOT) Law. This legislation provides the framework and guidelines for implementing PPP projects across various sectors, including infrastructure, utilities, and environmental management.

5. Under the BOT Law, the government agencies, including the Department of environment and Natural Resources (DENR),can engage in PPPs by entering into agreements with private entities for the financing, construction, operation, and maintenance of projects related to environmental conservation, protection, and management. These projects may include initiatives such as ecotourism development, conservation programs, reforestration efforts, waste management facilities, and other environmental sustainability projects.

6. Key Provisions & Mechanisms for Implementing PPP Projects 1.Project Selection and Approval 2.Contractual Arrangements 3.Risk Allocation 4.Financial Arrangements 5.Regulatory Oversight

7. 1.The law provides procedures for the selection and approval of PPP projects, including the submission of project proposals, feasibility studies, and other requirements to the appropriate government agencies for evaluation and approval 2.Contractual Arrangements 4.Financial Arrangements 3.Risk Allocation 5.Regulatory Oversight

8. 2.PPP projects are typically implemented through contractual arrangements, such as build-operate-transfer(BLT), and other variants. These contracts specify the roles, responsibilities, rights,and obligations of the government and private sector partners throughout the project lifecycle. 1.Project Selection and Approval 3.Risk Allocation 4.Financial Arrangements 5.Regulatory Oversight

9. 1.Project Selection and Approval 2.Contractual Arrangements 3.The BOT Law delineates the allocation of risks between the public and private sectors involvesd in PPP projects. Risks related to construction, operation, revenue generation, regulatory changes , and force majeure events are apportioned to the party best equipped to manage them efficiently. 4.Financial Arrangements 5.Regulatory Oversight

10. 4.PPP Projects involve complex financial arrangements including project financing, revenue streams, cost recovery mechanisms, and profit-sharing agreements.The law provides guidelines for structuring financial arrangements toensure the financial viability and sustainability of PPP projects. 1.Project Selection and Approval 2.Contractual Arrangements 3.Risk Allocation 5.Regulatory Oversight

11. 1.Project Selection and Approval 2.Contractual Arrangements 3.Risk Allocation 5.PPP projects are subject to regulatory oversight by relevant government agencies, such as the PPP Center, Department of Finance (DOF), and other regulatory bodies. These agencies monitor project implementation, compliance with contractual obligations, and regulations, and adherence to applicable laws and regulations to protect public interest and ensure project success. 4.Financial Arrangements

12. DENR PROJECT under PPP

13. DENR Project under PPP 1.Ecotourism Development 2.Waste Management Facilities 3.Biodiversity Conservation 4.Environmental Education and Awareness

14. 2.Waste Management Facilities 1.PPPs could be established to develop and manage ecotourism destinations within protected areas under the jurisdiction of DENR. Private partners could invest in infrastructure developments, visitor facilities, and marketing initiatives to promote sustainable tourism while preserving the natural environment. 3.Biodiversity Conservation 4.Environmental Education and Awareness

15. 2.PPP projects are typically implemented through contractual arrangements ,such as build-operate-transfer(BOO), build-lease-transfer(BLT),and other variants. These contracts specify the roles , responsibilities , rights, and obligations of the government and private sectors partners throughout the project lifecycle. 1. Ecotourism Development 3. Biodiversity Conservation 4.Environmental Education and Awareness

16. 1.Ecotourism Development 2. Waste Management Facilities 4. Environmental Education and Awareness 3.PPPs could support biodiversity conservation initiatives, such as habitat restoration, species protection , and wildlife conservation programs. Private partners could contribute financial resources, technical expertise species and ecosystems., and conservation expertise to implement projects aimed at preserving endangered species and ecosystems.

17. 1.Ecotourism Development 2.Waste Management Facilities 4.PPPs could be formed to support environmental education and awareness campaigns aimed at promoting sustainable practices and foresting environmental stewardship. Private partners could sponsor environmental education programs, workshops, and outreach activities to raise public awareness about conservation issues and encourage behavior change. 3.Biodiversity Conservation

18. COMPANIES THAT ARE ENGAGED IN DENR PROJECTS UNDER PPP

19. 10 PRIORITY PPP PROJECTS

20. 1.Central Luzon Link Expressway (CLLEX) Phase 1 The Central Luzon Link Expressway (CLLEX) Phase I, Tarlac to Cabanatuan City Expansion, which would link Cabanatuan City with San Jose City, is a four-lane, 35.70-kilometer project.The project will traverse through the towns of Talavera and Llanera in Nueva Ecija and will offer a free-flowing alternative route to decongest traffic on the Pan Philippine(PPH) between those cities and Tarlac Province. It is also involves the development of the CLLEX Phase I Toll Facilities.

21. 2.Improvement, operation, and maintenance of Kennon Road It is under the jurisdiction of the La Union 2 nd District Engineering Office, Benguet 1 st DEO, and the Baguio City DEO to maintain the important national route known as Kennon Road. A 12.495 km. asphalt pavement and 21.196 km. concrete pavement make up the total length of the roadway.Also on Kennon Road, there are 12 steel bridges. Ten-ton capacity is the standard for the most of the bridges, which were built in 1968. Project cost: Php 11.9 Billion for Civil works cost and Php 550 Million for ROW cost

22. 3.North Luzon Expressway East Phase II . Segment 1: Bigte -San Miguel-Jct. Biak na Bato Road 30.91 kms . Segment 2: San Miguel-Jct. Biak na Bato Road- Gapan City-Jct. Fort Magsayasay Road 30.56 kms Segment 3 : Gapan City-Jct. Fort Magsayasay Road-Cabanatuan City-Jct. Palayan City Road 17.64 kms Segment 4: Cabanatuan City-Jct. Palayan City Road-Central Luzon Link Expressway (CLLEX) 11.99 kms

23. 4.Mindoro-Batangas Super Bridge (Floating Bridge) As part of the proposed 15 kms super bridge linking Mindoro Island to the province of Batangas , two or four lanes with an optional pedestrian/bicycle lanes are planned. From Mindoro Island to Verde Island, the bridge will span 8.5 kms . And then 6.5 kms , from Verde Island to Batangas , across a sea depth of between 10 to 300 meters.

24. 5. Pacific-Eastern Seaboard Expressway A 226.5km.highway that will begin in Atimonan , Quezon, going through and connecting the town of Mauban and the Real Section of the Mauban-Tignoan Road, as well as the Family-Real- Infanta - Dinahican Fort Road in Infanta , Quezon, before ending in Dingalan , Aurora. Project Cost: To be determined

25. 6.Pangasinan-Nueva Ecija Expressway A 180-kilometer expressway that would link Bolinao , Pangasinan , to San Jose City, Nueva Ecija .

26. 7.Dingalan-Capas-Botolan Expressway Botolan , Zambales to Dingalan , Aurora through Capas , Tarlac , and the other way will be made easier with the construction of this 190-kilometer east-west toll road.

27. 8.Metro Cebu Expressway More that 56.94 kilometers of high-grade arterial toll road are planned for Metro Cebu to suit its current and future traffic needs. This project also aims to significantly reduce traffic congestion in Metro Cebu’s metropolitan core and CBDs by providing a direct link between Naga City and Danao City across the mountain slopes of Cebu Province.

28. 3 SECTIONS TO THE PLANNED METRO CEBU EXPRESSWAY (MCE) PROJCET . 3 SECTIONS TO THE PLANNED METRO CEBU EXPRESSWAY (MCE) PROJECT Segment 1: Minglanilla -Cebu City- Mandaue / Consolacion Bdry . (Proposed for PPP) 25.20 kms Segment 2: Mandaue / Consolacion Bdry.to Danao City(For future expansion) 23.36 kms . Segment 3A: Naga City- Minglanilla (Ongoing implementation by DPWH Region VII Office) 4.20 kms . Segment 3B: Remaining portion proposed for PPP 4.18 kms

29. Project Cost: Segment 1+ Segment 3B, DPWH & USAID-DELIVER Estimate is Php 52.5 Billion for Civil Works Costs – 6 lanes, Php 18.1 Billion for Right-of-Way Cost, and Php 97.07 Billion Indicative Project Cost

30. 9.Iloilo-Capiz-Aklan Expressway An expressway that would connect the provinces of Iloilo, Capiz , and Aklan . This elevated expressway will work like the South Luzon Expressway (SLEX) and the North Luzon Expressway (NLEX) according to the National Economic and Development Authority (NEDA) 6 and (Western Visayas ).

31. 10.Naawan-Opol-Cagayan de Oro City-Villanueva Expressway The major infrastructure project is consist of the 34-km. Villanueva-Cagayan-de Oro- Opol Expressway as well as the 41.9km. Opol -Naawan Expressway Project. Project Cost: Php 11.9830 Billion for construction and Php 0.6282 Billion for ROW cost

32. THANK YOU!!!