SBN-459: Build-Operate-Transfer (BOT)

An Act Encouraging More Public-Private Partnership (PPP) Projects, Creating the Public-Private ) Guaranty Fund, and for Other Purposes, Thereby Amending Republic Act No. 6957, as Amended By Republic Act No. 7718, Otherwise Known As The “Build-Operate-Transfer” (Bot) Law

  • The bill expands the coverage of the BOT Law and provides more incentives to the private sector who become partners of the government in infrastructure projects
  • Allows unsolicited project proposals to be submitted;
  • The project proponent of an unsolicited proposal accepted by the government on a negotiated basis shall not be entitled to any form of government guarantee or payments;
  • Classification of infrastructure projects as “Projects of National Significance” if the total cost of the project is at least P5 Billion and is located in or will benefit at least 2 provinces;
  • When classified as such, they will enjoy incentives such as exemption from real property tax, restrictions on imposable local taxes and automatic grant of business permits, among others;
  • Protects “Projects of National Significance” from being the subject of judicial reliefs such as temporary restraining orders, preliminary injunctions and preliminary mandatory injunctions, except those issued by the Supreme Court; and
  • Creates a “Public-Private Partnership Guaranty Fund” with an initial funding of P5 billion aimed at defraying the cost of compensation to project proponents in the event that the government agency or government-owned-and-controlled corporation (GOCC) concerned fails to comply or is prevented from complying with its obligations.


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