DOF: Revised joint venture guidelines to strengthen checks and balances between public and private sectors

The Department of Finance (DOF) lauded the approval and publication of the 2023 Revised Guidelines and Procedures for Entering into Joint Venture (JV) Agreements between Government and Private Entities.

The revised JV guidelines were approved by the National Economic and Development Authority (NEDA) Board on March 9, 2023 and came into effect on April 25, 2023.

“This is part of the Marcos Jr. administration’s commitment to simplify government processes and strengthen checks and balances between the public and private sectors,” said Finance Secretary Benjamin E. Diokno.

These changes include maximizing competition and strengthening safeguards to ensure the technical and financial viability of government projects.

The evaluation and approval of JVs are now aligned with the recently revised implementing rules and regulations (IRR) of the Build-Operate-Transfer (BOT) Law, which aims to streamline approvals and create a uniform and efficient procedure to process public-private partnerships (PPPs).

Among the measures that the DOF is pursuing to enhance the PPP mechanism is the proposed PPP Act, which is a priority bill of the Marcos, Jr. administration. The bill was approved by the House of Representatives on third reading in December 2022 and is now pending in the Senate.

This legislation will provide a uniform evaluation and approval process for various forms of PPPs through the national government and local government units (LGUs).

“The Department of Finance will continue to assist in harmonizing the numerous approval processes of PPPs and promote an environment that is conducive to investments,” Secretary Diokno added.