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Infrastructure Governance of the Philippines: BBB (“Build, Build, Build”) and PPP (Public-Private Partnership) in Historical Perspectives
Individual Paper Presenter(s)
Chuo University, Japan
Infrastructure gap in the Philippines is one of the major development issues in the country. Given the magnitude of the gap, public-private partnership (PPP) is expected to play a role. PPP as a mechanism for financing and procuring infrastructure has been a provocative debate active in the Philippines twice in 2010s when a significant policy shift on the financing source of public infrastructure was announced by the government. The first was in 2010 when the Aquino administration announced to drastically expand PPP arrangements to develop infrastructure. The second time was in 2017 when the current Duterte administration launched a large-scale infrastructure development program called “Build, Build, Build” program mainly with public finance, especially Chinese government loans in the context of Belt and Road Initiative (BRI) by marginalizing PPP.
This paper assesses policy changes of infrastructure governance of the Philippines by mainly focusing on financing option between public finance and PPP. The paper discusses 1) the overview of PPP including its definition, characteristics, global trends, and theoretical backgrounds, 2) current status of infrastructure development and achievements in PPP in the Philippines, 3) policy changes of infrastructure governance over the last three decades in the Philippines with particular focus on the Aquino and Duterte administrations, and 4) assessment of the infrastructure governance in the Philippines and policy recommendations. Recent developments in infrastructure governance in the second half of Duterte administration including rise of unsolicited PPP and “low” utilization of financial assistance from China will also be analyzed.