DILG's Abalos urges LGU-private sector partnerships for local project funding

Department of the Interior and Local Government (DILG) Secretary Benjamin Abalos Jr. urged local chief executives to consider partnering with the private sector to generate funding for local projects.

"You must be creative in generating resources for your local government units (LGUs). There is always strategic planning. If you want to make a difference, maraming paraan," Abalos said in a Saturday statement.

“As local chief executives of their respective LGUs, governors and mayors should always think outside the box and explore ways and means on how to get things done with the help of the private sector and other stakeholders for the benefit of their constituents," he added.

Among the specific actions LGUs could take for resource generation would be the Build-Operate-Transfer (BOT) initiative under the Private-Public Partnership (PPP) program.

Abalos defined BOT as a project delivery mechanism in which government entities enter into a partnership with the private sector to implement projects.

Aside from utilizing the BOT, LGU's could also lease "air rights."  Abalos recounted that as Mandauyong City mayor, his LGU allowed a mall to construct a “connector building” between two structures. However, the mall paid for the "air rights" between the two structures since the space between them was owned by the LGU.

Abalos also said that local officials could make use of the broad taxing powers given to LGUs by the Local Government Code of 1991  to increase resources.

He pointed out that the Code, as well as decentralization, granted LGUs the ability to exercise these powers - police powers, eminent domain, and taxation.

"Devolution is important because it would give LGUs the power and funds needed to effectively solve the issues of your constituents," Abalos said. — DVM, GMA News