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Business

PPPs to fast-track irrigation projects

Danessa Rivera - The Philippine Star

MANILA, Philippines — The National Irrigation Administration (NIA) has partnered with the Public-Private Partnership (PPP) Center to fast-track the country’s irrigation development.

The NIA and PPP Center have signed a memorandum of agreement (MOA) to formalize their collaboration to boost the utilization of NIA’s assets and irrigation projects.

Under the partnership, NIA aims to maximize the technical services of the PPP Center in terms of its capacity-building for the utilization of various PPP modalities for irrigation projects.

The collaboration will also allow NIA to obtain the optimal value of its resources through PPPs.

This will also allow NIA to engage other financial and revenue-generating activities that will strengthen its viability as a government-owned and controlled corporation (GOCC).

As of end-2021, NIA recorded 65.28 percent of the total 3.12 million hectares of irrigable land nationwide. This leaves around one million hectares to be developed.

As President Marcos aims to revitalize the country’s irrigation sector, NIA is eyeing PPPs to fast-track irrigation development.

By tapping the private sector, NIA will be able to further sustain the irrigation needs of greater Filipino farmers and will ultimately answer the President’s call to strengthen food security.

Based on data as of March 29, the agency has identified 50 potential projects for PPP with seven revenue streams, namely, hydroelectric power, solar power, aquaculture, wind energy, bulk water supply, water treatment, and carbon credits.

NIA earlier said funding was its biggest challenge in undertaking big-ticket multi-purpose projects.

The lack of budgetary support has led to slow irrigation development in the Philippines at two percent of the potential irrigable area of 1.3 million hectares annually.

The agency also pointed to the slow phase of project preparation due to failure of local consultants to deliver necessary outputs like feasibility study and detailed engineering design, as well as the conversion of developed irrigated areas to other land uses like residential, industrial, and other purposes.

Meanwhile, the PPP Center earlier said it hopes to include multipurpose irrigation projects in its pipeline amid the government’s revitalization of the PPP scheme and focus on agriculture development.

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