Salceda vows to push for more PPPs in 19th Congress

Albay Representative Joey Salceda on Thursday vowed to push for a stronger framework for public-private partnerships (PPP) in the 19th Congress as he believes that these agreements would be necessary in building modern and efficient public services.

"We have ongoing fiscal constraints, but we also have ongoing public needs. Infrastructure and social services will always be good, and necessary investments. So, sourcing from outside the public sector will be very crucial,” Salceda said in statement.

Salceda had a recent meeting with the incoming chief of the Department of Public Works and Highways, Manuel "Manny" Bonoan.

"We talked about how to move forward with PPPs, especially given the tight room for funding major projects. Sec. Manny appears to be quite bullish about Philippine infrastructure development over the next six years," Salceda said.

"I think PPPs stand a very strong chance of playing a major role again in this new administration. Sec. Manny has been with both the public and private sectors for a long time. And PBBM (President-elect Bongbong Marcos) has, in many interviews, made very cogent observations on the need for more flexible PPPs," he added.

The Bicolano lawmaker, who is the principal author of the proposed PPP Reform Law in Congress, expressed hope that PPP reforms would have a stronger chance of being passed in the coming 19th Congress.

"The private sector, especially the large conglomerates, are awash with cash for PPPs. San Miguel has 301.7 billion, Aboitiz Equity Ventures has 107.5 billion. Ayala Corporation has 99.6 billion. SMIC has 93.9 billion. JG Summit has 292.6 billion. LT Group has P390.1 billion," he said.

"That’s a total of 1.285 trillion in cash for just these conglomerates alone. For perspective, Build, Build, Build received just a 1.180 trillion budget for 2022. So, the private sector can fund infrastructure development many times over, if we open participation to even more companies," Salceda added.

Incoming Socioeconomic Planning Secretary and National Economic and Development Authority (NEDA) chief Arsenio Balisacan has said he is planning to "reinvigorate" PPP projects under the Marcos administration.

Balisacan said Marcos "believes that the private sector plays a very strong role in economic development."

Further, Salceda said he discussed with Bonoan the possible ways on how to modernize the country's infrastructure and transport sector. He said he mentioned to the incoming DPWH Secretary his thoughts about the "vertebral infrastructure system" that would link major infrastructure projects as one intermodal transport system.

Salceda also discussed with Bonoan the reforms in funding and preserving the infrastructure program as well as making public works more "economically beneficial."

He said the Marcos administration's first budget should revolve around three important priorities and principles.

"First, we must maintain productive spending and keep it higher than the deficit as a share of GDP. Second, we must ensure that we contain personnel spending growth, which has ballooned to around a third of the budget by now. Third, our public spending must have higher economic multiplier effects, and should be useful for longer periods," Salceda said.

"But, we really need to expand fiscal space, either by collecting existing taxes better, or by imposing new taxes. Because PPPs do entail the need for some fiscal space in the future. Basically, a PPP is advancing public welfare but deferring public costs. But the costs will come," he added. — Anna Felicia Bajo/RSJ, GMA News