This CPBRD Policy Brief looks into the progress and performance of the Philippines’ PPP program over the years. PPPs continue to be an important pillar of infrastructure development providing a viable option for infrastructure financing apart from the traditional procurement using the national budget and official development assistance (ODA). Improvements in the country’s overall PPP framework are indeed a work in progress that needed to be sustained especially in tackling key issues on contingent liabilities and unsolicited proposals which weighed heavily on the country’s fragile fiscal position in the past.
Notwithstanding the gains in developing the country’s PPP market heeding the important lessons in the past PPP experiences, as well as the global best practices, much still needs to be done in attracting foreign direct investments (FDIs) in critical infrastructure to sustain inclusive economic growth. Key challenges remain not only in attaining economic resilience, but also in institutionalizing reforms on good governance towards creating a more favorable environment for PPP investments in the country. At the legislative front, there is much to be desired in updating the country’s 27-year old BOT Law to make it more attuned with the needs of the time.