INSIDER VIEW | Enhancing results through co-grantorship in PPPs

Co-grantorship— or inter-agency arrangements in Public-Private Partnerships (PPPs) — has emerged as a strategic approach to infrastructure and service delivery, allowing two ormore public entities to jointly participate as grantors in a single PPP project. 

Under the PPP Code of the Philippines (RA 11966) and its Implementing Rules and Regulations (IRR), public-public collaboration is expressly recognized as a mechanism that enhances coordination, optimizes resources, and aligns mandates across levels of government.

How it works

Co-grantorship promotes project integration. Many infrastructure needs—such as transport, traffic management, water, digitalization, solid waste, disaster resilience, and social infrastructure—cut across jurisdictions. Joint grantorship ensures that sectoral and territorial mandates converge into a unified PPP structure.

Co-grantorship enables resource pooling. National government agencies (NGAs), local government units (LGUs), government-owned or -controlled corporations (GOCCs), government instrumentalities (GIs), and state and local universities and colleges (S/LUCs) may combine land, regulatory authority, funding capabilities, and technical expertise. This creates a more bankable project while reducing project fragmentation.

Co-grantorship reduces duplication and inconsistency in permitting, regulation, and oversight.  Instead of parallel approvals, a consolidated grantor cluster can streamline processes and provide clear, predictable guidance to private partners.

Co-grantorship expands project viability. Projects that would otherwise be too large for a single LGU or too localized for a national agency may proceed when responsibilities and risks are appropriately shared.

Alberto Agra

"By harnessing the collective capabilities of administrative agencies, the PPP ecosystem can deliver more integrated, resilient, and innovative solutions aligned with national, sectoral, and local development priorities."

Where it works best

Co-grantorship works best for cross-boundary, multi-sectoral, or integrated PPPs including:

• Transport and mobility systems: Intermodal terminals, integrated bus networks, urban rail feeder systems, airport or seaport modernization
• Water and wastewater projects: Bulk water supply, jointly operated sewerage systems, and watershed stabilization
• Solid waste and circular economy projects: Waste-to-energy, sanitary landfills, and materials recovery facilities involving several LGUs and a national regulator
• Digital infrastructure: Fiber backbone, e-government platforms, smart city systems, cybersecurity solutions
• Social and economic infrastructure: Regional hospitals, education hubs, sports facilities, housing and estate development, economic zones
• Climate resilience and disaster risk reduction: Flood control systems, river basins, coastal defenses, resilient power systems

Its various forms 

• NGA + LGU: The Department of Public Works and Highways and a province co- granting a flood control PPP; Department of Education and a city co-granting school infrastructure.
• NGA + GOCC/ GI: DOTr and Philippine Ports Authority jointly granting port modernization projects.
• GOCC + LGU: Water Districts and several municipalities jointly procuring a water Project.
• S/LUC + LGU + NGA: The Commission on Higher Education, S/LUCs and LGUs co-implementing a sports development program.
• Inter-LGU grantorship: Clusters of cities/municipalities pooling mandates and resources under a unified PPP. The 3rd bridge in Cebu which connects Cebu City and the Municipality of Cordova is an example of this.

What’s required to make it work

To effect a co-grantorship, the participating agencies must agree and give their consent. They must appreciate the benefit and impact of doing things with others. The collaboration can be embodied in a memorandum of agreement.

Co-grantorship is thus a powerful enabler of “PPP for the People, with the People, and Across Government.”

By harnessing the collective capabilities of administrative agencies, the PPP ecosystem can deliver more integrated, resilient, and innovative solutions aligned with national, sectoral, and local development priorities.