LGUs eye PPP mode for projects
Local government units (LGUs) are seeking more private sector participation in the rollout of their health, information technology (IT) and tourism projects to fast-track recovery from the COVID-19 pandemic, the Public-Private Partnership (PPP) Center said.
During a webinar organized by Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) and Singapore’s Infrastructure Asia on Friday, PPP Center deputy executive director Mia Mary Sebastian said the agency was currently overseeing a pipeline of 57 projects worth P7.17 trillion.
The bulk of upcoming PPPs are national in scope involving 40 projects worth P7.11 trillion.
The balance of 17 projects worth P54 billion will be rolled out by local governments.
Among the forthcoming national PPP projects, 27 will be in transportation such as airports, railways, roads, sea ports and terminals—majority of them unsolicited proposals “showing the interest and enthusiasm of the private sector to participate in infrastructure development,” Sebastian said.
Six national PPPs will be health facilities such as hospital buildings and specialized services; five projects will be in vertical infrastructure or government property development, and two IT systems.
Among the growing pipeline of local PPP projects, there will be five government property developments, which include public markets, slaughterhouses as well as university properties to maximize the value of their public and commercial assets; four in water supply and sanitation, and three in solid waste management.
“We do have a bigger, greater push right now when it comes to decentralization and devolution of services at the local government level,” Sebastian said.
The “new normal” wrought by COVID-19 also jacked up demand for emerging sectors in local PPPs such as two upcoming projects in transportation, specifically local roads, bus rapid transport and terminals to address congestion; two in sustainable tourism, and one IT system.
Health and renewable energy are also attracting interest in the local PPP space.
“The Philippines is very keen to continue to benefit from investments and technology transfers from our partners, especially in the region,” Sebastian said.
