Partnering for a flood of innovation: PPPs and disaster resilience

TAXWISE OR OTHERWISE JOELLE GARCIA

- JOELLE GARCIA

Disaster resilience is critical for developing nations, particularly for the Philippines, which has to endure frequent typhoons, floods, and other natural calamities due to its geographic and climatic characteristics.

The potential damage to life and property and the disruption cannot be dismissed. At this point, we need all hands on deck — both the government and the private sector.

In March 2024, an opportunity for tackling disaster-related challenges emerged with the enactment of the Public-Private Partnership (PPP) Code and its Implementing Rules and Regulations. At its core, PPPs are a partnership between a public agency and a private company, coming together to finance, design, construct, operate and maintain projects that are typically government responsibilities. What makes this arrangement particularly innovative is that both parties share the risks involved, and the private partner’s investment return depends on how well it performs.

Zeroing in on disaster resilience, the Code also required PPPs dedicated to creating infrastructure projects to consider climate change adaptation and mitigation, disaster risk reduction and management, and biodiversity conservation.

A significant mandate within the PPP Code is to integrate climate resilience and development policies and programs at every stage of a PPP projects — from planning and design to implementation. Climate change safeguards have become crucial criteria for approving PPP projects at the local and national levels.

The pressing issue is assessing the current status of climate change PPPs in light of the recently enacted PPP Code. Where are we now?

THE STATUS QUO