Under Philippine law, both land reclamation and development on reclaimed areas may be undertaken through public-private partnerships (PPPs), allowing private sector participation while ensuring public oversight and long-term public benefit.
PPP for reclamation
A key feature of the PPP landscape is that reclamation itself is expressly allowed under the PPP Code and its Implementing Rules and Regulations (IRR).
This means reclamation can be undertaken by the private sector, subject to the authority of the Philippine Reclamation Authority (PRA), environmental regulations, and national policies.
Under the 1991 Local Government Code, provinces and cities may enter into PPPs, with local government units (LGUs) as project owners and private companies as developers.
Approved reclamation projects have typically been pursued through joint ventures (JVs), under which both the government and the developer receive titled shares of the newly created land.
PPPs on reclaimed land
Once the land exists, vertical development on reclaimed areas—tourism complexes, commercial hubs, government centers, airports and seaports, climate-resilient districts, utilities, and transport-oriented developments—may also be pursued through PPPs.
This creates a continuum from land creation (reclamation) to land activation (development), allowing government and private partners to deliver sustainable, modern, and high-value urban environments.
The private proponent for the reclamation may be same or different from the private partner for vertical or horizontal development, giving the government maximum flexibility.
PPPs on reclaimed land provide multiple structuring options for both the PRA and LGUs. These include build-transfer and build-operate-transfer schemes, leases, and joint ventures, depending on whether the project is public, public-and-commercial, or purely commercial.
Different rules for commercial, public projects
When the nature of the project is public or public-and-commercial, like for a water system or government buildings with commercial complexes, the PPP Code and its IRR must be observed.
For purely commercial projects, like for a mall or hotel, the PRA and LGUs may adopt their own policies, allowing flexibility in structuring long-term leases, land use arrangements, and joint ventures for asset monetization purposes.
Under the Public Land Act, the PRA can enter into long-term leases with private individuals or private corporations for not more than 1,000 hectares through public bidding for 25 + 25 years, with an annual rental rate of not less than 4 percent. The requirement under the Public LandAct is not applicable for long-term leases by LGUs.
Reclaimed land also requires extensive horizontal infrastructure—bridges, monorails, utilities, fiber networks, waste facilities, government buildings—also suitable for PPPs.
Since these are for public use, the PPP Code is the governing law. Through PPPs, government accelerates delivery timelines, reduces fiscal pressure, and secures long- term operations and maintenance efficiencies.
Divestment options
Ownership and divestment rules continue to guide development pathways. PRA may sell its reclaimed land to private individuals of up to 12 hectares through public auction or to government agencies, while LGUs may sell directly to private parties and corporations, and government agencies.
These mechanisms create structured opportunities for monetization and responsible asset management.
Ultimately, whether for reclamation, horizontal infrastructure, or vertical development, PPPs provide a legally sound, economically strategic, and socially beneficial tool for maximizing the value of reclaimed land.
When designed well, PPPs transform reclaimed areas into engines of inclusive growth, resilience, and modernization.
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