PPP seen critical to building green, resilient Phl economy

MANILA, Philippines — Public-private partnerships (PPP) are becoming increasingly crucial in creating a green and resilient economy for the country because of the scale of resources and expertise required, the PPP Center said.

In a new opinion piece on the center’s website, Lerma Advincula, PPP Center director for project development and monitoring facility services, said responding to the threats of climate change as part of the globally-committed Sustainable Goals (SDGs) entails the cross-cutting task of building resilient infrastructure and sustainable industrialization to support economic development.

Essentially, this would require a transition from conventional infrastructure development to low-carbon, climate resilient and sustainable development pathway.

“To attain this goal is indeed complex,” she said. “This in turn entails innovation, significant financing, and a major shift in a way that all stakeholders can work more effectively.”

Lerma said the private sector is now shaping up to be “an indispensable ally” in building climate-resilient infrastructure because it can both bridge the greater financing needs for infrastructure and implement innovative climate solutions. 

The Philippines, she said, now faces the double conundrum of needing to close the infrastructure gap and making these structure resilient to climate stress.

Rapid urbanization also necessitates pursuing infrastructure development in this direction. At the same time, rural development remains necessary to address wide income disparities across regions.

Lerma thus urges policy-makers to provide a supportive environment for PPPs.

“To help address this concern, PPPs will be critical. Under a well-designed regulatory environment, PPPs can be one of the most viable options to maximize the innovation and resources of the private sector, while the government orchestrates collective action through programs, projects, and policies,” she said.

In pursuing PPP projects, the center said these must be tailored to the local context.

Since 2017, the PPP Center has been pursuing its local PPP strategy as it shifts its focus to facilitating the promotion of the PPP mode of procurement in local government units.

Lerma said the private sector could help LGUs expand its pipeline of viable PPP projects as the strategy also incorporates the use of climate-conscious technologies.

International donors to the center’s project preparation fund, she said, also recognize the importance of providing assistance to LGUs for climate-resilient PPP projects as seen in the provision of additional funding to the Project Development and Monitoring Facility (PDMF) this year. 

“The PDMF, which is a revolving fund managed by the PPP Center, can now support more projects especially those coming from local government units, state universities and colleges, local government corporations, water districts, and economic zones, among others,” Lerma said.