Small-scale PPP program proposed

The Department of Interior and Local Government (DILG) plans to engage in small-scale public private partnership projects that can be rolled out in less-developed provinces and municipalities.

“We will introduce what we call the smaller PPPs or the PPPP—the PPP for the People. We have big PPPs here in Metro Manila which are worth some hundreds of billions of pesos. We don’t have that in Visayas and especially in Mindanao. But we will not ask for big projects in the far-flung provinces of Mindanao and Visayas. We are talking about asking for smaller PPPs,” said DILG Secretary Ismael D. Sueno on the sidelines of the signing of a joint memorandum circular with DICT and the DTI.

According to Sueno, the government was looking at a range of projects—each worth a maximum of P100 million—in sectors such as renewable energy, irrigation systems, potable water, agriculture and transportation.

“For example, two weeks ago, mayors from Zamboanga Sibugay came to my office and they complained that they have no supply of potable water and irrigation water. I asked them if they have a big source of water in Zamboanga Sibugay and they told me there was a river in one of the municipalities that can provide potable water and irrigation to three to four municipalities. So I told them, why don’t we establish a PPP in this area and to provide not just potable water, but also electricity or hydropower?” Sueno explained.

He said the DILG had established a PPP unit and had hired a consultant.

The World Bank is providing help in the form of “giving assistance in capacitating our local governments, especially in the far-flung provinces to help in putting up (the PPP) projects.”

The International Finance Corp. (IFC), the private sector funding arm of the World Bank group, was also reportedly willing to help finance or provide loans, Sueno said. Amy R. Remo