Section 13Sec./Art. 13

Issuance of Franchise and Regulation of Tolls, Fares, Fees, Rentals, and Other Charges. - All regulatory bodies charged with approval of initial tolls, fares, fees, rentals, and other charges and adjustments thereof, including, but not limited to, the Toll Regulatory Board, the Civil Aviation Authority of the Philippines, and the Land Transportation Franchising and Regulatory Board, shall:

(a) Within one hundred eighty (180) calendar days from the effectivity of the implementing rules and regulations (IRR) of this Code, issue and publish, in coordination with the PPP Center, guidelines, frameworks, or mechanisms for consultation, review, and approval of said initial tolls, fares, fees, rentals, and other charges and adjustment thereof, with provisions mandating that regulatory approvals be made prior to the approval of a PPP Project and that during the implementation period of the PPP Project, the Private Partner shall have the right to file an application for tolls, fares, fees, rentals and other charges and adjustments thereof.

(b) Approve the initial tolls, fares, fees, rentals, and other charges and adjustments thereof, on the basis of service quality, key performance indicators, the principles of fairness, transparency, predictability, and protection of public interest while providing for a Reasonable Rate of Return on capital or investment by the Private Partner, and other stipulation in the PPP contract; and

(c) Uphold the approved initial tolls, fares, fees, rentals, and other charges and adjustments thereof during the implementation of the PPP Project.

Where the Implementing Agency fails to implement the initial tolls, fares, fees, rentals, and other charges and adjustments thereof as stipulated in the PPP contract, the Private Partner shall be allowed to recover the difference through measures consistent with the PPP contract and applicable laws, rules, and regulations.

The approved initial tolls, fares, fees, rentals and other charges - or the maximum acceptable initial values of the toll, fare, fee, rental, or charge that may be proposed by bidders in the case of projects for public bidding where the bid parameter is the initial value of the toll, fare, fee, rental, or charge itself - and adjustments thereof shall be included in the final draft PPP contract that will be circulated to all bidders prior to the bud submission date to be set by the Implementing Agency.

In the absence of an appropriate regulatory body, the initial tolls, fares, fees, rentals and other charges and adjustments thereof shall be stipulated in the PPP contract. In the case of Local PPP Projects, the Implementing Agency may also opt to create and establish a local rate setting body: Provided, That the composition, powers, and responsibilities of such body shall be set forth in an ordinance or resolution approved by the local Sanggunian of the Implementing Agency.

The Implementing Agency and the PPP Center shall post in their respective websites the approved initial tolls, fares, fees, rentals, and other charges and adjustments thereof in a PPP Project.