PPP agency shifts focus to local gov’t units

The Public-Private Partnership (PPP) Center wants to make it easier for local government units (LGUs) to pursue infrastructure projects.

The PPP coordinating body is proposing that LGUs be required to submit only a detailed business case for their projects instead of a full-blown feasibility study that is costly in terms of time and money.

The move to create an LGU-focused alternative path comes as the Duterte administration pursues a policy to fund large, national-level projects with overseas development assistance (ODA) loans instead of through the PPP program.

“The LGUs, through their business case, can define their needs, the kind of performance that they expect from the private proponent, what they can contribute to the project and the obligations of the private sector,” said PPP Center Executive Director Ferdinand A. Pecson.

“This will give the private sector a reliable reference in building their feasibility studies and takes out the guesswork on what are the government’s preferred parameters for their project. They will have a basis for submitting a more focused proposal,” he added.

For its part, the PPP Center will provide local governments the technical assistance in coming up with a detailed business case.

“Having robust business cases from LGUs will help streamline the alternative selection process on PPPs for LGUs. As part of its mandate, the PPP Center will continue to assist in the tendering process, particularly in the preparation of bid documents and the conduct of the selection process,” the PPP Center noted.

It is likewise expanding its scope for the kinds of projects it will support. Apart from transport projects, it is also encouraging the development of water supply and sanitation, solid waste management and green infrastructure projects. It also cited social infrastructure projects in the areas of health and tourism.