As the basic political units of government, they stand at the frontlines of governance. Barangay officials live among their people, feel the pulse of their communities, and are directly accountable to them.
Justifying PPPs
Given their limited resources and technical capacity, forging partnerships with the private sector can accelerate barangay progress. Public-Private Partnerships (PPPs) at the barangay level can serve as catalysts for integrated and inclusive development. After all, there can be no genuine national, provincial, city, or municipal progress without the parallel development of barangays—and vice versa.
In the exercise of their local and fiscal autonomy and by virtue of their corporate powers, barangays may lawfully transact with the private sector.
Under the PPP Code, barangays, as local government units, are expressly authorized to enter into PPP arrangements. For transactions not specifically covered by the Code, such as joint ventures or leases for purely commercial undertakings, barangays may enact their own PPP ordinances to provide the legal framework.
The gains
Through PPPs, barangays can harness private capital, innovation, and technical expertise. Instead of depleting their limited funds, they can deliver better and more efficient services.
Revenues from lease rentals, profit-sharing schemes, and regulatory fees can supplement barangay resources, providing sustainable funding for basic services and community projects.
PPP initiatives at the barangay level can also serve as stimuli for local economic growth. Local enterprises can participate directly in development, ensuring that benefits are community-based. These investments increase property values, attract new businesses, broaden the local tax base, and energize the local economy.
Smaller-scale PPPs, in particular, are well-suited for barangays since they require lower capital and invite wider participation from local companies.
Moreover, barangay PPPs complement provincial, city, and municipal projects, easing the fiscal load on higher-level LGUs.
They contribute to addressing national backlogs in essential infrastructure thereby reducing pressure on the national budget, allowing the government to channel resources to other priorities.
Such initiatives help break the cycle of dependency and curb the prevalence of dole-outs, fostering a culture of sustainability and accountability.
Eligible barangay PPP projects
Barangays, with the private sector, can undertake infrastructure and development projects such as the following:
For public-use projects, barangays must strictly comply with the PPP Code. For commercial undertakings or projects not intended for general public use, barangays may enact their own PPP ordinances to provide the necessary legal framework.
PPP projects may be initiated either through solicited proposals or as unsolicited proposals from private proponents.
Enhancing viability
To enhance viability and attract greater private sector participation, barangays can also pursue inter-barangay PPP arrangements. By clustering together, barangays may bundle single-purpose or multi-purpose projects into larger, more integrated undertakings.
The 18 project types identified earlier can be combined under a single PPP contract with one private partner—allowing for economies of scale, increased revenues, and expanded community benefits.
It is high time to capacitate, empower, and entrust barangays with the tools and authority to harness PPPs as genuine instruments of grassroots development.
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