INSIDER VIEW: Harnessing PPPs, public procurement for sports dev't

Sports is not just about sports. It is more than just games, medals, or championships.

Under the 1987 Constitution, sports has a noble purpose. It is meant to foster total human liberation and development, self-discipline, teamwork, and excellence — all directed toward building a healthy and alert citizenry.

This true north of sports can be realized by the state through two complementary approaches: procurement using public funds and Public-Private Partnerships (PPPs).

Government and private sector roles

Government agencies such as the Philippine Sports Commission (PSC), the Department of Education (DepEd), the Commission on Higher Education (CHED), and local government units (LGUs) may act as:

• Procuring entities under the New Government Procurement Act (NGPA)
• Implementing agencies and partners under the PPP Code.

The private sector, in turn, may participate as contractors, suppliers, or PPP partners. 

In addition, these government entities may collaborate with one another under agency-to- agency arrangements in procurement or through co-grantorship schemes for PPPs.

Illustrative example

For instance, under an agency-to-agency procurement set-up, the PSC may enter into a memorandum of understanding with the cities of Pasig, Manila, or Baguio for the rehabilitation of PSC-owned sports complexes, provided the cities possess the absorptive capacity and track record.

Under a co-grantorship for a PPP arrangement, the PSC and LGUs together can engage the private sector for the design, financing, construction, rehabilitation and operations and maintenance of sports facilities.

Types of projects

While sports facilities are not expressly listed in either the NGPA or the PPP Code, they may, however, fall under:

• “Other related construction projects of the government” (procurement); or
• Other Infrastructure or Development Projects and Services” (PPPs).

For PPPs, the sports facilities can be:

• Open to and used by the public (e.g., PSC or LGU complexes like track ovals and open tennis courts), in which case, the PPP Code must be followed.
• For the exclusive use of members or certain sectors (e.g., golf courses, padel courts, mall-based arenas), in which case, the government agencies can issue their own guidelines while LGUs can enact their own ordinances, as these are purely commercial ventures.

Ensuring viability

For financial sustainability, sports projects may be bundled with other infrastructure or development initiatives. For example, a sports complex can be integrated with a commercial mall, transport terminal, or government offices powered by solar energy where excess power can be sold to the public. 

Revenue-generating components can cross-subsidize facilities that are less financially viable but socially essential.

Available modalities

For PPPs, the PSC, DepEd, CHED, and LGUs, whether acting individually or jointly, may explore these modalities with the private sector:

• 1. Joint ventures where government makes cash or non-cash contributions
• 2. Lease of its properties
• 3. Corporatization which entails the creation of government corporations or foundations for sports
• 4. Donations, with or without conditions

These agencies can select their private partners through competitive bidding or challenge, with awards going to the most responsive and advantageous offer.

Sports for development and peace

We therefore need sports with a noble purpose. Let us all be heroes for sports for development and peace. 

Sports unites Filipinos across divides, fostering pride and solidarity. It generates jobs, tourism, and commerce. It instills discipline, teamwork, leadership, and resilience. It strengthens our country’s global presence.

Let us build better humans and communities through sports.