Focus on Public-Private Partnership (PPP)

During the break after the presentation on Public-Private Partnership (PPP) by Atty. Alberto Agra at the Bohol Tropics yesterday afternoon, I had an informal huddle with Atty. John Vistal, Bohol provincial planner, and Ms. Imelda Borromeo, economic sector head. All three of us agreed it was a brilliant and comprehensive briefing that the internationally certified PPP specialist did for more than one hour before representatives of the provincial LGU and its development partners from sectoral agencies, business and civil society groups, including the academe and NGOs.

Atty. Agra used comparison of his proposed PPP Code to the Davao City Public-Private Partnership and the PPP Manual for LGUs prepared by the PPP Center at national level. He showed the similarities and differences among the three codes and, in the process, clarified issues to enable participants to move towards crafting a framework for the formulation of a relevant PPP Code for the Province.

Some key ideas from the PPP orientation:

-Build-Operate-Transfer (BOT) scheme is not the only modality available for PPP. The other modalities are:

• Concession
• Joint ventures 
• Service contract 
• Management contract 
• Lease or affermage 
• Corporatization 
• Disposition/divestment

-The BOT Law and the Government  Procurement Reform Act provide the legal basis for service and managment contracts, while the Commission on Audit Circular No. 89-296 governs the divestment/dispossesion modality. In the absence of legislation on the PPP, LGUs can proceed to formulate their own PPP Code as long as its provisions do not violate existing laws.

-A local PPP Code can provide a framework for bringing in the strengths of the private sector in the overall development goal of decentralizing and strengthening LGUs. The PPP modalities can:

• provide funding to make possible cost-efficient delivery of services; 
• ensure better and affordable services; 
• contribute to  general welfare;
• facilitate the maximum use of existing government assets;
• provide for the sharing of risks that can lead to efficiency and lower costs of service delivery.

-The conduct of feasibility studies can lead to projects that are:
 technically feasible;

• legally acceptable; 
• environmentally compliant; 
• socially acceptable;  and 
• economically viable. 

 -The PPP Code should include regulatory provisions to ensure compliance with the overall development agenda and policy framework of the provincial government.

In my view, the PPP supports decentralization of authority to LGUs and enables them to address common constraints to local development planning and implementation. The private sector, on the other, hand is given the opportunity to contribute to the public good in ways that also ensure the financial sustainability its projects.

I suggest that the PPDO, headed by Atty. John Vistal, re-echo the orientation to the municipal LGUs and other sectors so that all of us in Bohol can fully support this initiative to put in place a strategy which can further strengthen local governance in the pursuit of poverty reduction and sustainable development.

NMP/05 Oct