INSIDER VIEW | A tale of 2 PPP-ready cities: Naga and Pasig

June 16, 2025
10:25AM PHT

There are two fundamental principles that I wish to underscore. First, there can be no sustainable and integrated development without the participation of the private sector. Second, there can be no meaningful national development without the advancement of our local government units (LGUs), and vice versa.

These twin principles are the foundation of my ongoing series on Public-Private Partnerships (PPPs) for LGUs. The synergy between public governance and private sector engagement is not just ideal -- it is essential.  Local and national progress are interdependent, and PPPs offer a viable and strategic path to achieving both.

The good news? Pursuing these two principles together is doable. I chose two cities – Naga City and Pasig City – to highlight how strong and transformative leadership and a clear PPP agenda can reinforce this vision.

The author with former Vice President Leni Robredo

On June 30, Naga City, a first-class independent component city, will welcome a new mayor. Former Vice President Leni Robredo shall bring with her the Angat Buhay advocacy that seeks to uplift the lives of Nagueños through inclusive and people-centered governance.

Meanwhile, Pasig City, a first-class highly-urbanized city in Metro Manila, will continue to be led by Mayor Vico Sotto. His steadfast dedication to transparency, accountability, and public service has earned him a renewed mandate. His governance model remains a benchmark for urban innovation and civic trust.

In my interviews with these esteemed leaders, I saw a shared commitment: to make their cities PPP-ready, future-proofed, and people-first. With leaders like them at the helm, I am confident the country indeed has hope.

To our readers from the private sector, please take note of the priority projects identified by Mayors Leni and Vico.

Atty. Al:  How do you define or understand PPPs in the context of local governance?

Mayor Leni: PPPs offer a strategic avenue for government to collaborate with the private sector through long-term contractual agreements for the delivery of public assets or services.

In the context of local governance, PPPs help address common challenges faced by local government units, particularly in terms of limited resources and technical expertise. By tapping into the private sector’s capacity for financing, design, construction, operation, and maintenance, LGUs can pursue complex and capital-intensive projects that would otherwise be difficult to implement on their own.

Mayor Vico: PPPs are collaborations between government and the private sector to deliver infrastructure or services where risks, resources, and responsibilities are shared.

In local governance, it allows us to tap private sector expertise to address public needs more efficiently and sustainably. 

Atty. Al:  What are your priority infrastructure and development projects for your upcoming term?

Mayor Leni: Flood Risk Management System-Building, upgrading drainage systems, and other structural measures to protect communities from flooding; improvement of the Naga City General Hospital and setting up of primary care facilities for UHC rollout; new government center and business hubs; socialized housing for 4,000 beneficiaries; full automation of government processes; retrofitting and improvement of the biggest coliseum in Naga,  and solid waste management/ waste-to-energy plant.

Mayor Vico: Our priorities include the Pasig City Hall Complex redevelopment, socialized housing, and the modernization of our IT infrastructure, healthcare facilities, transportation systems, and tourism.

Atty. Al: Do you intend to implement any of these priority projects through a PPP arrangement? If so, which ones and why?

Mayor Leni: We are very much open to this possibility. We acknowledge that given our city’s current financial position, our aspirations for better infrastructure and services may require us to take this route.

Mayor Vico: Yes. We are very much open to opportunities presented by the private sector. We are also in the process of crafting our own PPPs through solicited proposals. 

(More in our next column)

About the author
Alberto Agra
Alberto Agra

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