Build-Operate-Transfer (BOT)

Port Infrastructure for BOT

In general, only projects included in the government’s Medium Term Public Investment
Program (MTPIP) may be allowed for implementation under the BOT law

Projects not listed in the MTPIP may, however, be allowed under the “unsolicited
proposal” provisions of the BOT law, provided such proposals are consistent with national and
individual port master plans.

In either of the above cases, the PPA’s decision to allow projects for implementation
under BOT shall take into consideration the overall cost of preparing pre-feasibility or
feasibility studies in relation to the total port project financial and economic cost.

Specific projects which may be considered for BOT implementation are:

1. New port projects intended to cater to vessels and cargoes that require specialized
servicing and handling facilities, e.g., dry or liquid bulk terminals, roro facilities, container
berths and equipment requirements, cement silos, coal and other mineral products
terminals, and other port –related infrastructures that are not available but in demand in a
particular location.

2. Port facilities heavily damaged by natural calamities such as earthquakes, typhoons,

floods and the like.

3. Improvement, expansion, modernization of existing infrastructures, including supply of

equipment and machines.

4. Land reclamation, dredging, and establishing of port industrial estates and other port
development facilities.

BOT Incentives

1. Fiscal Incentives - Projects registered with the Board of Investments costing more
than one billion pesos are entitled to the incentives provided under the Omnibus
Investment Code. Local government units (LGU) may give additional incentives,
exemption or relief subject to the provision of the local Government Code.

2. Direct or Indirect Government Support or Contribution – The government agency or

LGU may provide support through cost sharing or credit enhancement.

Qualifications of BOT Contractors/Investors

1. Compliance with the requirement as to Filipino equity in the BOT corporation and
registration with the Securities and Exchange Commission.

2. Experience or track record of the firm and it’s key personnel.

. Financial and organizational capability to undertake the project

Procedures for BOT Project Proposals

The procedures for undertaking BOT projects are shown in Figure 1 and Figure 2 entitled
Public Bidding Process under the BOT Law, and Procedure for Unsolicited Proposals under
BOT.
 FIGURE 1

The Public Bidding Process Under

RA 7718 (BOT Law)

FIGURE 2

The Unsolicited Proposals Process

Under RA 7718 (BOT Law)