Very Good Economic Performance Continues
February 14, 2018
General Santos City Investment Code of 2015
April 10, 2018

PPP Engagement

NOT A FEW THOUGHTS ON (LOCAL) GOVERNMENT ENGAGING PPP

By its engagement, PPP aka Public-Private Partnership usually spread the expenses of procuring an asset and trigger the associated capital expenditure to have an effect on private sector instead of the government sectors’ balance sheet. The intention, in terms of the real circumstance, would be achieved by bringing about the procurement on the public infrastructure and essential services needed—that is to say, on “output”—in stark contrast on the compelling asset, or “input”. In almost all cases, where government sector budgets are limited, there appears evident reason in engaging a PPP to deliver public services that perhaps then unaffordable to the (local) government, as the case maybe in General Santos City.

All PPP has at the core the use of capital of the private sector, as such yielding in reasonably superior value for money for the government insofar as the risk factor transferred to the private sector, of which the latter is competent to assess the risk and meet its challenges inherent thereat, and persuasive private sector incentive for long span delivery of dependable and efficient public services. Considering the aforementioned, it is just appropriate to warrant that this mode of partnership regularly happened to be the preferred means of procurement, even granting less argument, where the government does not keep a tight rein on public expenditures. And underlining on the earlier statement of getting value for money is the one driving force employing PPP in the procurement of public services. All these years, the workings for value for money stems from another business acumen that when private capital is used on the long-term operation of public service deliveries, correspondingly the right decision is made about costing, budget, project identification, building design, operating arrangement, control, system, and other integral factors.

There is a borderline delineating the configuration of PPP being that either it is categorized as privatization or nationalization of public asset and services. It is another way matter-of-factly; the government rolls out public services for the constituents.

To all intents and purposes, PPP comes in a model of partnership whereby public and private sectors—bonded together working, could accomplish more in all probabilities given that working alone could not.

joaquin22tiongco@yahoo.com

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