We also aim to develop thriving airports and seaports, promote people-centered commercial development, generate higher revenues, and ensure the timely delivery of public services – all to enhance the quality of life in our communities.
These are the aspirations of the electorate who voted for our local officials last May 12. On June 30, at noon, newly elected officials will commence their terms – and they will either rise to the occasion or fall short.
Governors, mayors, and members of local legislative councils are being given a fresh mandate and an opportunity to do better for the people.
Fulfilling aspirations
One key strategy these officials can adopt to fulfill these aspirations is Public-Private Partnership (PPP). Through PPPs, local government units (LGUs) can collaborate with the private sector to implement infrastructure and development projects. As co-owners and co-developers, the public and private sectors can work jointly to achieve shared goals and deliver lasting impact to communities.
While LGUs may undertake projects through traditional procurement using public funds, PPPs provide a viable alternative — especially when resources are limited. Even well-funded LGUs can benefit from PPPs due to key value drivers such as faster service delivery, innovation, operational efficiency, and better value-for-money.
PPP as a key strategy
Under the PPP Code of the Philippines, enacted into law in December 2023, LGUs must follow the Code and its Implementing Rules and Regulations (IRR) when entering arrangements such as joint ventures and leases for purely public and those with mixed public-private involvement, as well as Build-Operate-Transfer (BOT), Build-Own-Operate (BOO), and similar schemes.
For arrangements excluded from the Code — such as purely commercial joint ventures and leases, donations, corporatization, and the formation of LGU-controlled subsidiaries— LGUs may craft their own PPP ordinances.
PPP is not new to local governments. Many LGUs have already implemented successful PPP projects in areas such as bridge construction, water supply, land development, socialized housing, healthcare, public markets, and waste management.
Risks and challenges
That said, PPPs are not without risks. Transitions in local leadership, such as the upcoming change on June 30, can result in the unilateral cancellation of contracts. Projects that fail to address community needs may face protest or public opposition. Bypassing procedural clearances can trigger regulatory hurdles. External risks such as natural disasters, shifting market behavior, and foreign exchange volatility also pose significant challenges.
These risks can be mitigated if PPPs are designed to be future-proof, people-centered, legally-compliant, environmentally-sustainable, and economically-viable.
There is no one-size-fits-all approach to local PPPs. Choosing the right strategy for a particular LGU project or PPP initiative is both crucial and critical to success. In my “Menu for Local PPPs – Casa Agra,” I outline over 222 options drawn from 22 key considerations to guide LGUs in making informed, strategic choices.
Contributor
