Section 18Sec./Art. 18

Investment Recovery Scheme. - In undertaking PPP Projects, the Private Partner shall be allowed to recover its investments and earn reasonable profit through any of the following schemes or a combination thereof:

(a) Revenue-based - refers to a scheme where the Private Partner is authorized to charge and collect, in whole or in part, from the users, reasonable tolls, fares, fees, rentals, and other charges subject to appropriate regulation in accordance with Section 13 of this Code. Where applicable, the Private Partner may likewise be repaid in the form of a share in the revenue of the PPP Project; and

(b) Availability-based - refers to a scheme where the Implementing Agency commits to make predetermined payments, which do not take the form of charges paid by the users of the works or of the service, but of regular payments by the Implementing Agency in exchange of delivering an asset or service in accordance with the PPP contract.

Other investment recovery schemes, such as commercial development rights, or the grant of a portion or percentage of a reclaimed land, subject to the constitutional requirements on land ownership, may also be allowed to supplement the foregoing schemes: Provided, That such investment recovery schemes involving the grant of a portion or percentage of a reclaimed land shall be subject to fair valuation.