Public-Private Partnership

Overview

Infrastructure development for our country remains of critical importance to regain and sustain high economic growth, improve the social living standards of the people and remove the bottlenecks to international commerce and investment.  The new administration recognizes the Public-Private Partnership (PPP) as an approach to invest resources for adequate road infrastructure. The Government has less resources to invest on Expressways.  DPWH will undertake the reforms needed to create a more conducive environment for private business and help generate many more bankable projects.

PPP describes a government service or private business venture which is funded, constructed and operated through a partnership between the government and the private sector.  To make PPP projects more attractive to the private investors, the government contributions are in kind.  These include provision of capital subsidy; provision of revenue subsidies, including tax breaks; provision of guaranteed annual revenues for a fixed period or transfer of existing assets.  The private party provides a public service or project and assumes substantial financial, technical and operational risks in the project.

The Public-Private Partnership (PPP) Service is tasked to handle PPP projects in the Department.  The Office has come up with a short and long list of priority PPP projects proposed for implementation.  These priority projects are the outputs of the on-going JICA-assisted Preparatory Survey for Public-Private Partnership Infrastructure Development Project in the Philippines.

 

EXISTING SITUATION IN METRO MANILA AND NEARBY AREAS

  • Arterial road network which is composed of 6 circumferential and 10 radial roads was proposed in the late 1960s.  All radial roads are already completed; however, development of circumferential roads are still incomplete;
  • Three expressways, namely NLEX, SLEX with Skyway over it and the Manila-Cavite Toll Expressway, are presently functioning individually and expressways are not formed as a network yet;
  • Heavy traffic  is the norm in Metro Manila; and
  • Travel speed in most major roads in Metro Manila is quite low at less than 20 km/hr. It is even less than 10 km/hr in some major roads including Aguinaldo Highway in Cavite Province.