Marcos – LGU: touch PPP as a way to finance a project

PRESIDENT Ferdinand R. Marcos Jr. called on local governments to be open to public-private partnerships (PPPs) as a way to finance their projects.

“I think this is the way forward and I encourage all of our local governments to be open to PPP opportunities; have PPPs, especially in their areas,” the president said at a meeting with members of the League of Philippine Cities.

According to Markos, digitalization will also play a big role in PPPs, especially in the pursuit of the country’s economic recovery and digital transformation.

“Digitalization will be very natural for something like a PPP,” the president added.

At the same event, Marcos said he received offers to finance major projects as he called on local leaders to be the “drivers” of the country’s economic transformation. The President said that there is official development assistance, the private sector and a joint venture.

“You are a local government, you already know that. Local government, as a rule, cannot do this on its own. We must find partners, we must find local partners. We have to find investors,” he told local leaders. “Sanai on Cayo Diyan“. [You know that well.]

Treasury Secretary Benjamin E. Diokno said earlier that in a bid to expand its fiscal space without compromising infrastructure goals, the government is considering opening up about 90 public infrastructure projects to PPPs.

In his first State of the Union Address, Marcos said that PPPs would also be used for energy projects, especially small-scale nuclear projects, in addition to conventional infrastructure projects, to help the country achieve energy security.

The Marcos administration has pledged to keep infrastructure spending at 5 to 6 percent of gross domestic product as it expressed its willingness to expand the previous government’s “Build, Build, Build” program.