Is good governance essential? Is stakeholder and community participation indispensable?
And is it necessary to have a local PPP ordinance even with the recent enactment of the national PPP Code?
Regardless of the scheme—PPP, procurement, or by administration—a city must uphold and advance the twin principles that define local autonomy: being responsive to the needs of its constituents and being responsible for both action and inaction.
Local leaders must always be reminded that PPPs are not merely transactional arrangements — they must serve a higher purpose. These partnerships should improve lives, uphold public interest, and build trust between government and private actors. PPPs must be transformational.
City officials would do well to follow the example of the mayors of Naga and Pasig, who champion the true north of PPPs — PPP for the people, for a better quality of life, and a stronger more inclusive community.
Atty. Al: What makes your city an attractive destination for PPP investments?
Mayor Leni: Today, we continue to reap the rewards of good governance as an instrument for economic progress. We are the Most Competitive Component City in the Philippines, according to the Cities and Municipalities Competitiveness Index, where we excel in key indicators such as economic dynamism, government efficiency, infrastructure, resiliency, and innovation.
Naga has also been included in the Hall of Fame of the Most Business Friendly City award given by the Philippine Chamber of Commerce and Industry.
Mayor Vico: Pasig is fiscally sound, transparent, and committed to good governance.
Atty. Al: Would you say your city is institutionally- and operationally-prepared to enter into PPPs? Why or why not?
Mayor Leni: I acknowledge that there is still a lot for us to do in order to comply with institutional and operational requirements for PPPs. Currently, we have key mechanisms in place, such as an active Metro Naga Development Council, a responsive investment board, and the goodwill that our city has gained as a pioneer of good governance in the country.
To my point in the previous question, however, we are keen on establishing faster, simpler, and more transparent business processes. For PPPs in particular, we will work toward further capacitating our technical teams; aligning our local codes with the new PPP code; and institutionalizing a dedicated PPP unit to ensure smooth project development and implementation.
Mayor Vico: Yes. We have established internal mechanisms resulting in successful PPPs in the past like the Mega Dialysis Center, one of the largest dialysis centers in the country, and the construction of various telecommunication towers throughout the city to improve telecom services in all areas in Pasig City.
Atty. Al: From your perspective, what are the three most critical factors in ensuring the success of a local PPP project?
Mayor Leni: First, the capacity and readiness of the local government. The institutional and technical safeguards must be in place, such as the PPP unit and the Pre-qualification, Bids and Awards Committee. Second, the clear scope, feasibility, and benefit of the project. To that point, a robust feasibility study will help establish a balanced risk arrangement between both parties. In entering a PPP, there is an acknowledgment that one party will be best equipped to manage a certain risk.
Mayor Vico: Clear project objectives and deliverables; competitive and transparent procurement; and continuous public and stakeholders engagement throughout the project lifecycle.
To be continued
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