DBCC: Gov't owes P424 B for PPP projects

Amid the Marcos Jr. administration's push for public-private partnerships (PPPs) in infrastructure development, contingent liabilities arising from projects funded by tycoons’ deep pockets further rose to P424.22 billion as of end-2024, according to the Cabinet-level, interagency Development Budget Coordination Committee (DBCC).

- By BEN ARNOLD DE VERA

The DBCC’s Fiscal Risks Statement for fiscal year (FY) 2026 showed that the latest contingent liabilities amount represented the total foreseeable and definite financial liabilities of implementing agencies (IAs) to their private partners in 40 out of 52 PPP contracts with a combined project cost of P2.06 trillion, based on data from the Public-Private Partnership Center of the Philippines (PPP Center).

In the DBCC’s FY 2025 Fiscal Risks Statement last year, end-2023 contingent liabilities from PPP projects amounted to P406.3 billion for 37 out of the then 47 contracts worth a total of P1.84 trillion.

“The P17.92-billion increase from the previous report is due to updates in the total amount of some liabilities under one contract such as payment for right-of-way (ROW) acquisition, light rail vehicle procurement, and depot works, among others,” the DBCC explained.

“Of the total amount of foreseeable and definite liabilities, at least P188.36 billion has been confirmed paid,” the DBCC added.

Since its FY 2026 Fiscal Risks Statement was based on PPP Center documents as of Dec. 31, 2024, the DBCC conceded that “the actual liabilities could be higher.”