Philippines: Public-Private Partnerships by Local Government Units
This paper was prepared by a team comprising Aziz Haydarov, public–private partnership (PPP) specialist, Southeast Asia Department, Asian Development Bank (ADB), and staff consultant Cecilia Soriano, international public sector management specialist.
As local government units (LGUs) have strived to carry out the responsibilities and activities devolved to them by the 1991 Local Government Code, they have explored and availed of various financing options including grants, loans, bonds, and public–private partnership (PPP) arrangements. The Local Government Code specifically authorized LGUs with financially viable infrastructure projects to enter into build–operate– transfer (BOT) agreements subject to the 1990 BOT Law and its Implementing Rules and Regulations (IRRs). The first PPP project of an LGU was the construction of a seven-story commercial building-cum-public market in Mandaluyong City in 1991. Other PPP projects that soon followed were some public markets, a slaughterhouse, a city hall, information and communication technology projects, and joint ventures for electric power distribution and water supply. Some other PPP projects were also contracted or attempted but were not started or completed for various reasons, including two public markets, an administrative and commercial center, regional government centers, several information and communication technology projects, transport terminals, and hospitals
