Philippines: $106.2 billion worth of 'PPP' projects underway

Manila: With a whopping ₱6.01 trillion ($106.2 billion) in projects lined up, the country’s infrastructure game is getting a serious makeover, potentially supercharging the economy — all thanks to public-private partnerships (PPP).

From roads to railways and power generation, as well as airports, seaports and dialysis centres, the 7,641-island archipelago is in full-on build mode, driven by skyrocketing demand, especially in the transportation and energy sectors.

Everyone's invited

It's a nationwide makeover — and everyone's invited.

Under the Philippine law, public works projects considered as PPPs are funded by the private sector for the benefit of the end-users, the public.

RA 11966 updated the 1990-era Build-Operate-Transfer BOT Law and its amendments under RA 7718 (Revised Build-Operate-Transfer Law, passed in 1994).

Here's the big change: Part of the new legislation (RA 11966 was passed in 2023) include reforms that curb bureaucratic red tape, and tone down ultra-nationalist/protectionist language embedded in older laws. 

Latest PPP Law covers both national and local projects, including joint ventures.

Update from PPP Centre

The PPP (Public-Private Partnership) Centre just dropped an update: a total of ₱3.37 trillion worth of projects are currently “under implementation”.

Meanwhile, the PPP project “pipeline” just got bigger: We’re now looking at 187 PPP projects worth a whopping ₱2.64 trillion, up from last month’s 176 projects worth ₱2.60 trillion, according to the PPP Centre.

What’s new

Among the projects in the pipeline, 14 fresh projects just hopped on board — 3 national and 11 local — including a mix of unsolicited proposals and submissions from government agencies

Top of the list:

Others include:

Over in Palawan, the province is going green and tourist-friendly with projects like:

Off the list:

The Asian country is going full steam ahead on using PPPs to plug infrastructure gaps and supercharge the economy. 

The current $106.2 billion lineup does not include government-funded projects, such as those under the Department of Public Works and Highways.

PPP Projects operate under Republic Act No. 11966 (“Public-Private Partnership (PPP) Code of the Philippines”), signed into law on December 5, 2023, and effective from December 23, 2023.

​The legislation amends and improves on the Public-Private Partnership (PPP) Law, replaces the older Build-Operate-Transfer (BOT) Law (1990-era RA 6957, as amended by RA 7718). 

Key features of the updated PPP Code:

Unified Legal Framework: The PPP Code consolidates various laws and regulations into a single, comprehensive framework governing all PPP projects at both national and local levels, including joint ventures.

Expanded scope: It broadens the types of arrangements considered as PPPs, encompassing joint ventures, toll operation agreements, and lease agreements for the rehabilitation, operation, and maintenance of existing government-owned facilities for over a year.

Streamlined approval process: The law clarifies the approval procedures for PPP projects, reducing bureaucratic hurdles and promoting efficiency in project implementation .​

Predictable tariff regime: It establishes a tariff regime that balances investor returns with public interest, ensuring fair pricing for services delivered through PPP projects.

Strengthened Institutions: The PPP Code institutionalises the PPP Governing Board and enhances the role of the PPP Centre, providing them with clearer mandates and responsibilities in facilitating such projects.