CITY Council's committee on ways and means chair City Councilor George Goking on Wednesday is now pushing for digitalization as he even urged local government units to be open to public-private partnership (PPP) as a mode of financing for projects.
“If possible, the proposal (Ordinance) cites that PPP projects should be feasible, affordable, and bankable and must also provide economic and social benefits,” Goking explained.
According to Goking, President Ferdinand “Bongbong” Marcos Jr., who made the call during a meeting with members of the League of Cities of the Philippines on Tuesday, said digitalization would play a big part in the PPP, especially in pushing for economic recovery and digital transformation.
In the previous administration, Goking said the 19th City Council was also set to act on the proposed city code pursuing a public-private partnership (PPP) approach towards development.
He said, the Council then, even endorsed the approval of the proposed legislation, which provides the procedure for selecting the private sector proponent by the then chair Councilor Ian Mark Nacaya on planning and development and laws and rules.
Meanwhile, City Hall information office head Ivy Guantero said the city government is agreeable and even supported Councilor Goking’s plan in seeking the public-private partnership plan.
"Yes, the city government is for that plan," said Guantero.
Citing that like the previous administration, the draft of the Cagayan de Oro Public-Private Partnership for the People (P4) is adopted from Annex 1 of DILG Memorandum Circular No. 2016-120.
The circular provides guidelines for private sector participation in the provision of public infrastructure and social services.
Goking said the plan legislation is in line with the policy of the city to advance public welfare and prompt the interest of the community and the city within the framework of sustainable and integrated development.
“It aims to provide an effective constructive engagement and meaningful participation of people in local governance,” said Goking.
President (Marcos) thinks this is the way the economy will forward, according to Goking.
“Pres. Marcos encourages local government units to be open to the possibilities of PPPs and to have private-public partnerships,” Goking said.
He said digitalization is going to be a very natural fit for something like PPPs, as explained by President Marcos Jr.
The President said that apart from the push for digitalization, the administration would also focus on infrastructure.
In seeking value for money, Goking said public-private partnerships (PPPs) are becoming an important modality for governments to attract private capital and expertise into infrastructure.
Accordingly, PPP projects can be structured so the demand risk, the risk of infrastructure usage, is retained by the investor (usually in transport) or by the government.
In an earlier study, Goking said that more than 80 percent of the PPPs that reached financial closure in Asia in the last two decades are in the transport sector, and these are usually structured so demand risk is retained by the project company through user fees.
Goking explained that to see the formidable challenges facing governments and investors in navigating the long-term contractual nature of operational PPPs.
“First, a focus on the infrastructure PPP challenges of the immediate,” he said.
Considerably, he also explained less revenue and significantly higher operating costs will force investors to dig into their reserves to keep critical infrastructure functioning.
COVID-19 is an opportunity for leadership to strengthen local governments so that cities, many of which are struggling to meet the social and economic challenges of the pandemic, can become frontliners in the recovery process.
He also emphasized that the legislation is in line with the policy of the city to advance public welfare and prompt the interest of the community and the city within the framework of sustainable and integrated development.
“It also aims to provide an effective constructive engagement and meaningful participation of people in local governance,” said Goking.
