PPPs critical for climate-resilient, inclusive growth

As the Philippines faces development challenges like lack of infrastructure and vulnerability to climate change effects, the government is turning to public-private partnerships (PPPs) to achieve inclusive and climate-resilient economic growth.

- By LOUELLA DESIDERIO

Given the government's limited resources, it cannot address development challenges on its own and will need support from the private sector.

National Economic and Development Authority Secretary Arsenio Balisacan said PPPs are crucial in the government's overall economic gameplan, with the private sector seen as a key partner in undertaking both physical and social infrastructure projects.

PPPs are contractual agreements between the government and a private firm involving the finance, design, implementation and operation of infrastructure facilities and services traditionally provided by the public sector.

This arrangement distributes the risk and benefits to both the government and private sector.

In particular, PPPs address the limited funding resources for government infrastructure or development projects, enabling the allocation of public funds for other priorities.

PPPs also ensure the private sector are able to get a reasonable rate of return on its investment.