CONCEPCION, CHERYLYN B.

Construction Management 2
BS Architecture 5-3 July 31, 2018-07-30

Public Private Partnership

Public and private partnership is an agreement (contractual) between a public

agency or government and a private sector entity. Assets of both sector will both be
used, therefore, both parties will be benefited. Understanding the public and private
partnership may be complicated. During the administration of Benigno Aquino III, PPP
projects have been started.

Why there is a need to have a public and private partnership? Aren’t the private
sectors of the Philippines have a way of returning their investments? Doesn’t the
Philippine government have enough funds for facilities?

Infrastructure underspending was one of the culprits why the Philippine economic
growth was lower. Public and private partnerships have been chosen as a way to save
the country’s economy. Most PPP projects consists of modernizations (e.g. Philippine
Orthopedic Center), improving powerplants (e.g. Mactan Powerplant), and improving
transportation systems (LRT, MRT). Foreign private sectors come from Japan, Korea,
America and Australia. Private sectors are chosen to either to build, operate, lease, and/
or transfer. This makes the construction and maintaining process more systematic,
attainable and more appropriately done.

The public sector’s law is to finance and guide the private sector. In this process,
there is money involved: most existing and proposed developments are being
privatized. This will help with the investments that the private sectors shall be receiving.
If there are social projects (which were plenty according to PPP Center Executive
Director Cosette V. Canilao), government funds will be the return of investment.