P105.7 billion PPP scheme OK’d to ease classroom shortage

MANILA, Philippines — President Marcos has approved a P105.7-billion public-private partnership (PPP) scheme aimed at addressing the country’s 165,000-classroom shortage, Education Secretary Sonny Angara announced yesterday.
Angara said the Economic Development Council, chaired by the President, approved Phase 3 of the Public-Private Partnership for School Infrastructure Project (PSIP), which forms part of broader reforms to speed up classroom construction and improve governance in school infrastructure.
The program complements nearly 24,000 classrooms already programmed for 2026 under the national budget, as well as initiatives allowing local government units to directly construct school buildings.
PSIP 3 is expected to generate more than 57,000 jobs and benefit up to 800,000 learners annually once fully operational, while easing congestion in more than 1,000 public schools nationwide.
Average class size is projected to drop to about 39 learners from the current 50 per class, improving safety, learning conditions and overall school operations.
Angara said the initiative is aligned with President Marcos’ directive to fast-track or “green lane” Department of Education (DepEd) PPP projects, with technical support from the economic team, the PPP Center and the Asian Development Bank. The project is also expected to result in government savings of P40.15 billion.
Under PSIP 3, the DepEd will initially build and maintain 16,459 classrooms in 1,095 schools across Regions 1, 2, 3, 4-A, 4-B, the National Capital Region and the Cordillera Administrative Region.
The program focuses on congested urban schools, while separate initiatives cover last-mile schools. Classroom buildings will range from low-rise to mid-rise structures to maximize space.
The DepEd said PSIP 3 strengthens infrastructure management through stricter performance standards and transparency measures, including Project Bukas.
Earlier phases of the program delivered 13,391 classrooms – 9,296 under PSIP 1 and 4,095 under PSIP 2.
Benguet Rep. Eric Go Yap has filed House Bill No. 5801, or the proposed Classroom-Building Acceleration Program Act, which seeks to fast-track classroom construction by allowing qualified local government units and private sector partners to help plan, build and finance school facilities, while maintaining DepEd oversight and standards.
Education officials have noted that construction delays and unfinished projects have worsened overcrowding, forcing many schools to operate on double or triple shifts and limiting the full implementation of the K-12 curriculum, which requires additional classrooms for specialized subjects and grade levels.
Region 4-A (Calabarzon) has the highest classroom shortage at 31,002, followed by the NCR with 24,847 and the Bangsamoro Autonomous Region in Muslim Mindanao with 13,237.
Luzon accounts for 54 percent of the national deficit, now estimated at 165,443 classrooms. Other regions with significant shortages include Regions 3, 7, 10, 11, 12, 5 and 9.
The proposed measure also seeks to address coordination bottlenecks and strengthen monitoring and auditing to ensure quality construction and proper use of public funds.
The DepEd plans to build 105,000 classrooms from 2026 to 2031 under a build-lease-and-transfer PPP scheme.
Bidding for PSIP 3 is expected to begin in March, with contract signing targeted by August. Construction is scheduled to start by March 2027, and all classrooms are expected to be completed within 19 months, or by March 2028.
Transparency
As the government accelerates efforts to expand education infrastructure through public-private partnerships, private education stakeholders are also moving to safeguard the integrity of existing education support programs amid concerns flagged by state auditors.
Various private schools yesterday pledged transparency and accountability to protect the integrity of the Senior High School (SHS) Voucher Program after the Commission on Audit (COA) flagged the inclusion of “ghost students” in the DepEd’s subsidy program from 2022 to 2024.
In a statement, the Private Education Assistance Committee (PEAC) said the SHS Voucher Program remains a cost-effective and vital mechanism for expanding access to senior high school education, particularly for learners enrolled in private institutions.
“Through established validation and monitoring mechanisms, inter-agency coordination and continuous system improvements, the PEAC will continue to implement these safeguards to address program issues while ensuring proper use of public funds and maintaining public trust in the subsidy program,” the PEAC said.
The statement was signed by Coordinating Council of Private Educational Associations chairperson Betty McCann, Catholic Educational Association of the Philippines president Fr. Karel San Juan, Philippine Association of Colleges and Universities president Marco Alfredo Benitez and PEAC executive director Rhodora Angela Ferrer.
In its 2024 annual audit report on DepEd, the COA cited several instances indicating that ineligible or non-existent students were included under the Government Assistance to Students and Teachers in Private Education (GASTPE)-SHS Voucher Program for school years 2022-2023 and 2023-2024.
“The SHS Voucher Program is a vital component to carry out the government mandate of improving access to quality senior high school education, particularly for eligible learners who choose to study in private schools,” the signatories said.
Private school officials said the voucher program currently supports 1.24 million learners enrolled in 4,338 private senior high schools nationwide for school year 2025-2026, adding that about 6.7 million learners have benefited from the program since its launch a decade ago. — Artemio Dumlao
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