PPPs and good governance in infra dev't

Revelations about the government’s flood control projects have elicited many reactions recently from various sectors. Recent flooding episodes have exposed faulty workmanship in such infrastructure.

In his last State of the Nation Address in July, President Ferdinand Marcos Jr. highlighted corruption in flood control projects, which often results in substandard infrastructure and severe flooding during heavy rains.

He directed the Department of Public Works and Highways (DPWH) to submit a list of all flood control projects from every region that were initiated or completed in the past three years. These projects will also undergo an audit and performance review to ensure that taxpayers’ money is properly spent.

In the past, infrastructure in the Philippines was durable and long-lasting. Notable examples include the Ayala Bridge, Jones Bridge and Quezon Bridge, all of which have stood for decades.

However, when storms recently brought heavy rains, many parts of the country were inundated by deep floods. While various causes were cited, much of the blame ultimately fell on the government’s flood control projects.

Interestingly, while flooding affects many parts of the country, Bonifacio Global City (BGC), a business district in Taguig City, Metro Manila, remains largely untouched. Even during heavy rains, the streets and buildings in BGC appear normal and unaffected.

BGC used to be a military base that was eventually converted into a commercial, business, and residential complex. The highlight came in the 1990s when Metro Pacific, which won the bid to transform the site, began planning a 21st century world-class central business district.

Fast forward to 2025, BGC is now developed by various conglomerates, all sharing resources and expertise in the project. Notably, amid all the developments in BGC, what makes it stand out is the absence of floods. This demonstrates that the private sector is capable of delivering superior infrastructure development comparable to the best in the world.

Ideally, flood control projects should be handled by the government through the DPWH, since the ultimate beneficiaries are the general public. However, given the challenges the government has recently faced, it may be worthwhile to explore the public-private partnership (PPP) scheme for flood control projects.

The PPP scheme was widely adopted during the administration of former President Benigno Aquino III. Since these infrastructure projects were funded and managed by private companies, their use was not free.

Users had to pay a toll to allow the companies to recoup their investments, while those who preferred not to pay could still use the regular transport routes. One notable PPP project is the Metro Manila Skyway, which is widely used today.

Just recently, the Stratbase Institute published a study by Atty. Alberto Agra, Professor of Law and Bar Reviewer at the Ateneo de Manila School of Law and a Non-Resident Fellow at the Institute, offering recommendations on “future-proofing” PPPs. 

He noted that a key concern for the private sector is successor risk, which refers to the uncertainty arising from a change in administration and the corresponding shift in policies. He explained that successor risk may take various forms, including the disruption of ongoing projects, refusal to honor contractual obligations assumed by a predecessor and realignment of development priorities.

A key insight from the study is that PPPs are “for the people, for the planet, and for the betterment of our collective lives.”

Indeed, development strategies like PPPs need to be holistic and inclusive, addressing not only the physical and financial aspects of a project but also its social, environmental, and long-term impacts.

They should ensure that the benefits reach all sectors of society, engage local communities in decision-making, promote sustainability, and create infrastructure and services that can continue to benefit future generations.

Hence, in addition to national government officials, we need leaders from local government units who advocate for transparency and accountability and who adhere to the principles of law to ensure that PPP agreements are fair and transparent.

Good governance goes hand in hand with economic development. It is equally important for the government to be open to strengthening partnerships with the private sector, to enable the mutual sharing of technology, skills, and capabilities.

Flood control is not quite the same as the PPP projects that have successfully supported Philippine development. However, given the current challenges faced by the DPWH, it may be worthwhile to adopt a few flood control projects under the PPP scheme.

Any such initiative must be carried out with transparency, accountability and strong governance to ensure that public resources are used efficiently and that the project genuinely serves the welfare of the community. 

Moreover, these investments should be designed and executed properly so that they continue to benefit future generations. Strong governance also means addressing ongoing allegations of corruption, establishing clear rules, enforcing compliance and maintaining public trust, so that the projects deliver long-term, equitable and sustainable outcomes. 

The Philippines’ private sector has demonstrated in no uncertain terms that it is a capable world-class partner for development. The government only needs to tap this sector effectively to get things moving in the direction that will lead us all to the right side of history.

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Venice Isabelle Rañosa is the research director of the Stratbase Group.