PPP-ULAP accord: Any progress?

In 1990, the passage of Republic Act 6957 entitled, “An Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector, and for other Purposes,” also known as the Build-Operate-Transfer (BOT) Law brought the participation of the private sector into the frontline of development efforts.

As usual, a lot of changes were made in the succeeding administrations along the way.  Then on September 9, 2010, President Benigno Simeon C. Aquino III made a meaningful change via Executive Order No. 8 entitled “Reorganizing and Renaming the Build-Operate-and-Transfer (BOT) Center to the Public-Private Partnership (PPP) Center of the Philippines and Transferring its Attachment from the Department of Trade and Industry to the National Economic and Development Authority and for Other Purposes.”

Under President Noynoy, the PPP flourished and was tagged as a powerful machinery to help push forward the country’s development. To make it more relevant, he clearly defined the private sector participation in the country’s economic agenda as his “social contract” with the Filipino people.

To those who may not be aware of it, PPP “is a long-term agreement between a government and a private sector entity to deliver a public service or project.” These are “characterized by a contractual agreement that defines the roles and responsibilities of each party, and a sharing of risks and rewards.” Among others, these can be used for an assortment of infrastructure and development projects through Build Operate Transfer or BOT (which is so common in the country), Build Operate Own (BOO), Design-Build (DB) and Buy Build Operate (BOO). 

Cebu is no stranger to this kind of an arrangement. The Mactan Cebu International Airport (MCIA) is one good example of it. Metro Manila has more of these types of projects though, the recent one being the Ninoy Aquino International Airport (NAIA) which was bagged by San Miguel Corporation last year. Notably, at this early, improvements can already be felt in NAIA 3. Supposedly, therefore, this is one good piece of legislation that shall truly benefit the country. 

Yes, supposedly. Why? Obviously, PPPs are only prevalent in major cities or urban areas. While it is better than nothing, it created a serious problem too in the urban areas.  Congestion has become unbearable as rural exodus obtained. Consequently, productivity in the countryside diminished.

Rural exodus simply means, farmers, farm workers or fisher folks left their farms or livelihood and tried their luck in highly urbanized areas. The main reason-abject poverty.

Notably, majority of those in dire strait are in the agriculture sector. In fact, if examined closely, those who are mired in poverty in the highly urbanized cities’ slum areas are rural migrants. These are offshoots of the continuing rural exodus on account of the feeling and perception of helplessness in the countryside. 

So prevalent for decades now, rural exodus or rural flight refers to migratory patterns that normally happen in a depressed region or province. Due to limited opportunities, there tends to be a movement of people from the rural areas to the urban areas. The search for better lives has always been their common denominator.

But wait. Isn’t it that the PPP Center has teamed up with the Union of Local Authorities in the Philippines (ULAP) to strengthen work with local government units (LGUs) in the “promotion of financially viable infrastructure PPP projects?” To recall, signed last December 19, 2023, both agreed “to promote the PPP program to encourage local economic development.”  The PPP Center said “it would continue to help LGUs develop and implement bankable projects in the regions.” Additionally, it will “continue to provide assistance to ULAP’s constituent members in building their capacity to develop and implement PPP projects.”

Yes, this accord is in place, yet, we don’t hear any local politicians (whether lawmakers or mayors) promoting it or even talk about it. They are more concerned on national budget insertions, TUPAD, AKAP and other social spending programs.  The main reason, to breed parasites among the majority of their constituents to perpetuate their hold of their respective turfs.

Fortunately, it is election year and we have all the chances to change for the better. So, go for candidates who will embrace this accord. By doing so, all of you who have patiently remained where you are shall benefit. Help yourself make your own well-being doubly better than those who left you. That way, those relatives of yours who are currently settling down in the urban areas will just return on their own and your respective families will be whole again.