NEDA issues revised Joint Venture Guidelines

June 10, 2013

The National Economic and Development Authority (NEDA) has issued revised guidelines and procedures for entering into joint venture (JV) agreements between government and private entities, which were approved last 03 May 2013 and published last 11 May 2013. Under the revised guidelines, the NEDA Board Investment Coordination Committee (NEDA ICC) now acts as approving authority for the following, if the government contribution amounts to One Hundred Fifty Million (Php 150 Million) and above:

  • infrastructure projects as defined under Section 5.9 of Guidelines;
  • public utility projects as defined under Section 5.11 of the Guidelines;
  • private sector initiated JVs; and
  • projects that are not related to the primary corporate mandate of a government corporation or entity.

This is a significant change from the 2008 Guidelines where the head of the government entity concerned is the sole approving authority for all JV proposals. Nevertheless, the endorsement of the head of the government entity should be included in the submission of the JV proposal to NEDA ICC.

Another notable change is the increase of maximum Government Entity’s equity contribution in the JV Company to 50% of the outstanding capital stock. Previously, the government entity’s contribution is limited to less than 50% of the outstanding capital stock.

To view the full guidelines, please click on the following link:

Revised JV Guidelines.