Bringing Private Sector Power to the Province

Local governments in the Philippines have undertaken successful PPP projects in the water sector. Photo credit: ADB.
Local governments in the Philippines have undertaken successful PPP projects in the water sector. Photo credit: ADB.

How local governments in the Philippines are successfully forging multi-million dollar public-private partnership deals.


Statement of Issue

The Philippine infrastructure gap is prominent at the local government level. In the Philippine Development Plan for 2011-2016, the public-private partnership program was identified as the main mechanism through which infrastructure development can be accelerated and inclusive economic growth can be attained.

Drawing on lessons of the successful revival of the Philippine public-private partnership program, the study examines past experiences of public-private partnership projects of local government units in the Philippines and provides solutions for:

  • Helping local government units prepare bankable public-private partnerships
  • Ensuring efficient project procurement
  • Enhancing financial viability of public-private partnerships
  • Strengthening local government unit’s public-private partnerships legal and institutional frameworks to enable leveraging more private investment in local economic and social infrastructure


Lack of technical and financial resources for project preparation, monitoring, and implementation has always been cited and continues to be a major impediment to local government units undertaking public-private partnership projects.

To successfully implement public-private partnerships, these needs should be addressed simultaneously and comprehensively via technical assistance and financing facilities


Lessons learned from the study can be found in the following areas:

National Government Level

At the national level, the success of public-private partnerships involve the President setting the policy direction, cabinet members providing the technical and financial resources and the regulation and clear definition of the role of the private sector in public-private partnerships.

Local Level

Factors for success at the local level include strict adhesion to a build operate transfer law and other relevant laws involving transparency, projects that are viable and attractive enough for the private sector, and a reasonably large number of potential investors with managerial, technical and financial capabilities.

Technical Assistance

Recognizing the need for technical assistance to identify viable partnerships, to help prepare and bid out projects successfully, and in monitoring, implementing and evaluating projects contribute to overall success of public-private partnerships.

Financing Facilities

Success factors include offering low interest rates to make financing attractive to local government units, regular monitoring, and financially viable projects.


ADB. 2016. Philippines: Public-Private Partnerships by Local Government Units. Manila.

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Ask the Expert

  • Aziz Haydarov
    Infrastructure Economist, Indonesia Resident Mission, Asian Development Bank

    Aziz Haydarov became an ADB Public-Private Partnerships Specialist in 2013 wherein he covered the Philippines, Indonesia, Viet Nam, Lao PDR, and Malaysia. In March 2015, he assumed the position of Infrastructure Economist at ADB's Indonesia Resident Mission where he leads ADB's support on raising the level and quality of public and private infrastructure investments in Indonesia. Prior to joining ADB, he was Country Officer at the World Bank's country office in Tajikistan.

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   Last updated: March 2017


The views expressed on this website are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

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