PPPs cited as better option for government infrastructure
MANILA, Philippines — Public-Private Partnerships (PPPs) are the preferred mechanism for delivering large-scale government infrastructure, according to two key public officials.
Ombudsman Jesus Crispin Remulla and Department of Public Works and Highwasy Secretary Vince Dizon (DPWH) cited the alleged failure of the DPWH to produce quality buildings for state agencies.
"Kaya PPP 'yan. 'Pag binigay mo sa DPWH, iba na naman hitsura niyan," Remulla said in his radio program on August 15, referring to the P9-billion UP-PGH Cancer Center Project, which he said failed to attract bidders.
He also pointed to the Bureau of Immigration (BI) building, where over P8 billion was spent and which has been underway for 10 years; and a Cebu flood control project where the proposed 63-meter waterway width was reduced to 25 meters.
Remulla urged the National Bureau of Investigation (NBI) to consider purchasing an existing private building instead of constructing a new one.
"Ang sabi ko nga kay (NBI Director) Melvin Matibag, huwag niyo na ituloy ang building ng NBI, bumili na lang kayo ng building… Ang pangit ng lalabas diyan," he was quoted as saying.
He compared old buildings sold in the private market with new government construction.
"I-compare mo ngayon 'yung mga buildings na pinagbibili kaysa sa mga ipapagawa natin. Hindi kayang gawin ng gobyerno 'yung quality. Mura pa, ang ganda ng building… Bumili ka na lang sa private sector. Parang PPP rin 'yan in reverse," he said.
"We have to take a cue from the quality of work that happens with government projects… As it is right now, wala tayong maasahan sa (DPWH)," Removal added.
Dizon, for his part, agreed with Remulla's stance.
“Until the internal systems and culture within the DPWH are thoroughly reformed, Public-Private Partnerships remain the far better option for large-scale, complex infrastructure like government buildings," Dizon said.
He added: "I have always been a strong, consistent advocate of PPPs whenever they are viable. Through PPPs, we can guarantee timeliness, high quality, and cost efficiency — standards that the public deserves."
Dizon also expressed dismay over the BI building project.
"In fact, nagalit talaga ako noong nalaman ko 'yung delay sa Bureau of Immigration building project. The design is so poorly executed that the driveway can barely accommodate normal-sized vehicles. This is unacceptable, and it highlights the exact structural problems," he said.
Regarding the NBI building, Dizon said he would personally speak with NBI Director Melvin Matibag.
"DPWH is more than willing to discontinue the current project so that the NBI can explore far better, more practical options for its headquarters," he said.
The Civil Aviation and Immigration Security Services (CAISS) project, a proposed border security project under the BI, is among the initiatives cited in several discussions on PPPs.
According to the BI, the project aims to modernize 11 international airports, among others, across the country using artificial intelligence, biometrics, and real-time data processing, criminal record search, and deception detection.
It is structured to be financed entirely through minimal user fees, with a guaranteed four-year technology refresh cycle to ensure that the system never falls behind global standards, eliminating the typical government procurement delays that render new infrastructure obsolete within years.
Amid the controversy, the proposed P10.74-billion CAISS project has been cited as an example of why other PPP advocates remain steadfast in their support for a partnership model.
Unlike traditional government projects bogged down by red tape and budget constraints, CAISS uses an International Civil Aviation Organization (ICAO)-compliant, cutting-edge technology.
ICAO is a UN specialized agency based in Montreal, Canada, that is responsible for establishing the standards and practices that govern international air navigation.
"Ang kagandahan po nitong proyektong ito ay end-to-end," BI spokesperson Dana Sandoval said in previous interviews, highlighting how the private sector's expertise in innovation and efficiency complements the government's regulatory mandate.
The CAISS project, if approved, would cover all major international gateways, including NAIA, Clark, Davao, Mactan-Cebu, Boracay, Iloilo, Kalibo, Laoag, Bohol-Panglao, Puerto Princesa, and Zamboanga airports.
The CAISS model demonstrates exactly what Remulla and Dizon envision — a partnership where the private sector assumes construction, operation, and maintenance risks, while the government focuses on policy, oversight and ensuring public welfare.
The fundamental argument championed by both officials is rooted in the concept of comparative advantage. The government, with its bureaucratic procurement laws, political cycles and rigid budget allocations, struggles to match the speed, innovation and cost-efficiency of the private sector.
As Remulla noted, even purchasing old private buildings often yields better results than constructing new ones through public funds.
While Dizon has committed to reforming the DPWH from within, both leaders agree that PPPs offer the most reliable mechanism for big-ticket projects in the interim.
An economist said that for the Philippines, a nation with immense infrastructure needs but limited fiscal space, PPPs are no longer optional but essential. They reduce the burden on the national budget, accelerate project delivery, transfer financial and operational risks to the private sector, and ensure that the public receives services that meet international standards.
When structured correctly, he said, PPPs can transform government services from liabilities into assets. (Contributed story)
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