DOE urges LGUs to partner with private firms for power projects

MANILA, Philippines - The Department of Energy (DOE) is encouraging local government units (LGUs) to partner with the private sector for energy projects under the Aquino administration’s Public-Private Partnership (PPP) program.

In a recent talk in Leyte on PPP opportunities, Energy Secretary Jericho Petilla urged LGUs to provide a conducive business environment for the private sector in their respective areas.

“The private sector will not partner with you unless you are performing,” Petilla said.

He also said that the government including LGUs should not go into business but should just partner with private firms.

“Government should never go into business. LGUs should not compete with the private sector. Instead, you should help the private sector do business,” Petilla said.

He also said that the private sector does business way better than an LGU.

However, Petilla said that PPP projects in general should move fast so that they succeed even beyond the term of the Aquino administration.

“We have to move fast. We need direction. It is not just a matter of partnering. PPPs will go beyond our term,” he said.

For his part, PPP Center Executive Director Ferdinand Tolentino urged LGUs to seize opportunities in PPP ventures.

“LGUs should seize the opportunity to exploit the knowledge and resources and help from the PPP Center,” he said.

The PPP Center has lined up various projects for this year.

These include the Daang Hari-SLEX Link Road Project, the PPP for School Infrastructure Project Phase I, the Ninoy Aquino Expressway Phase II project, the LRT Line 1 Cavite Extension, the Modernization of the Philippine Orthopedic Center and a project in the power sector, the Rehabilitation Project and & M of the Angat Hydro-Electric Powerplant Auxiliary Turbines 4 and 5.

The Aquino administration launched its PPP program in 2010 to help fund vital infrastructure projects needed to support growth and development.