Section 19Sec./Art. 19

Variation, Expansion, or Extension of an Existing PPP Project. - A contract variation, expansion, or extension of an existing PPP Project may be allowed subject to due diligence and recommendation of the Head of the Implementing Agency.

The following variation, expansion or extension of an existing PPP Project shall be approved by the appropriate Approving Body:

(a) Changes in the agreed schedule or parametric formula to calculate tolls, fares, fees, rentals, and other charges and adjustments thereof, as stipulated in the PPP contract, unless already regulated and publicly-disclosed;

(b) Decrease in the Implementing Agency's revenue or profit share derived from the project, except as may be allowed under a formula approved by the relevant regulatory or Approving Body;

(c) Change in the approved scope of works, decrease in the performance standards, deferment of committed service levels, or change in the contractual arrangement;

(d) Extension in the contract term; or

(e) Increase in the financial liabilities of the government under the PPP Project.

The Approving Body may establish limitations on allowable variations relating to items (c), (d), and (e), as part of the approved PTCs of the PPP Project during the approval process of the project. During project implementation, any proposed changes to the approved limitations to the aforementioned allowable variations shall be submitted to the appropriate Approving Body for decision. The Approving Body may treat the proposed changes as a new project. If the Approving Body treats the proposed changes as a new project, t he same shall be subject to the approval process under Section 7 of this Code.

All other variations not covered in items (a) to (e) above shall be approved in writing by the Head of the Implementing Agency, and reported to the PPP Center, also in writing.

Failure to secure the approval of the Head of the Implementing Agency and/or the appropriate Approving Body, as provided in this section, shall render the variation void. No variation shall be implemented before the variation is approved. The splitting of any proposed changes, for the purpose of circumventing the limitations and conditions prescribed in the PTCs set by the Approving Body, is expressly prohibited.

The provisions of this section shall apply prospectively to all exiting franchise and concessions granted for the financing, construction, operation, and maintenance of infrastructure facilities under previous laws and decrees: Provided, That such shall not impair the substantive rights of the Private Partner, and shall be governed by exiting laws, decrees, orders rules, and regulations at the time of application.