INSIDER VIEW | Leveraging PPPs for flood control infrastructure

First of 2 parts

In his fourth State of the Nation Address on July 28, 2025, President Ferdinand R. Marcos Jr. denounced corruption in flood control projects. He ordered a list of failed or non-existent projects and warned that private contractors engaged in anomalous activities would face government sanctions.

Following his remarks, the Budget and Management Secretary conducted an inspection of these projects, while the House of Representatives launched a formal review.

Project implementation data

According to a Philippine Communications Office news release dated July 23, 2025, nearly 10,000 flood control projects were completed between mid-July 2022 and May 2025, all funded with public, not private, resources. 

Based on a Philippine Communications Office report news dated July 23, 2025, nearly 10,000 flood control projects were completed between mid-July 2022 and May 2025, all funded with public, not private, resources. 

These were implemented by the Department of Public Works and Highways (DPWH), the lead agency responsible for the construction and maintenance of flood control infrastructure.

At the time, the governing law was Republic Act No. 9184, or the Government Procurement Reform Act (GPRA), which has since been superseded by Republic Act No. 12009, the New Government Procurement Act (NGPA), enacted in 2024. Both laws permit the procurement of flood control and drainage infrastructure.

Traditional vs. partnership

Under the GPRA, government agencies define project specifications, conduct competitive bidding, and award contracts to the lowest bidder. The private sector’s role is limited to serving as a contractor executing government-specified infrastructure. The contractor is neither a partner nor an operator and holds no stake beyond its warranties.

None of the nearly 10,000 projects completed during the referenced period were implemented as Public-Private Partnerships (PPPs). As of Aug. 6, 2025, the PPP Center’s website shows no flood control projects were concluded, terminated, under implementation, or in the pipeline under PPP arrangements.

Flood control is explicitly listed in the Implementing Rules and Regulations (IRR) of Republic Act No. 11966, or the PPP Code, as a viable PPP project. It is classified as public infrastructure typically provided by the government and used by the general public.

Shift to PPP

In PPPs, the private sector is not merely a contractor but a partner. It may finance, design, build, operate, and maintain the project. The arrangement relieves the government of many responsibilities while retaining ownership, unless divestment is planned.

Experience has shown that PPPs can deliver greater value for money by leveraging the private sector’s efficiency, technology, and innovation. If the government lacks sufficient funds or if the private sector can deliver projects faster, PPPs may offer a more viable alternative than traditional procurement.

(To be continued )

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Alberto Agra
Alberto Agra

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