MANILA, Philippines – The Department of Justice (DOJ) said the Department of Energy (DOE) may enter into a joint venture (JV) to redevelop its 5.3-hectare property in Taguig City.
The DOE and the Philippine National Oil Company (PNOC) own the property, which is located in Bonifacio City. Energy Secretary Raphael Lotilla sought a legal opinion after receiving an unsolicited proposal from Megaworld Corporation for a joint venture to redevelop the property.
Justice Secretary Jesus Crispin Remulla said the joint venture is allowed under the Public-Private Partnership Code.
“It has long been recognized that government performs both public (governmental) and private (proprietary) functions,” Remulla said in a three-page legal opinion.
“The public (governmental) functions are those pertaining to the administration of government and as such, are treated as absolute obligation on the part of the state to perform, while proprietary functions are those that are undertaken only by way of advancing the general interest of society, and are merely optional on the part of the government,” he added.
Megaworld Corporation sent a proposal to launch another one of its mixed use townships.
According to PNOC’s website, the property giant aims to include condominium units and co-living spaces, on top of office and retail developments in the PNOC and DOE properties. The project cost is pegged at P83.2-billion.
Lotilla sought the DOJ’s guidance in considering the proposal, asking if the DOE entering a JV would still be consistent with its proprietary, regulatory, and supervisory functions.
The DOJ said that having proprietary functions is not a requirement to enter into a JV with a private entity as it would “unnecessary limit the number of agencies that can participate in joint ventures.”
The DOJ also emphasized Section 5 of the PPP Code of the Philippines (RA 11966), which authorizes implementing agencies to “identify, develop, assess, evaluate, approve, negotiate, award, and undertake PPP Projects.”
“It is therefore clear from the foregoing that all implementing agencies have the authority to undertake PPP Projects, regardless of whether their characters expressly provide proprietary functions or not,” the legal opinion read. – Rappler.com