Senator Sonny Angara expressed support for the recent call of President Marcos Jr. for local government units (LGUs) to work with the private sector in their projects.
Angara, chairman of Senate Committee on Finance, believed public-private partnerships (PPPs) will be helpful at a time when government collections remain slow due to economic hardships brought by Covid-19 pandemic.
For Angara, continuing the development of infrastructure projects is “crucial” during this period of economic recovery.
“These projects are key to generating jobs for our people and inducing more economic activity,” he said in a statement.
Thus, Angara supported Marcos’ call for public-private sector partnership, as it is one of the “creative but careful” ways to finance projects beneficial to the public.
Angara even cited as an example the lease agreement between SM Prime Holdings Inc. and the local government of Iloilo City for the redevelopment of its Central and Terminal Markets.
The city government recently entered into a 25-year lease agreement with SM Prime Holdings Inc. for the redevelopment of the two markets, which will benefit an estimated of 2,800 market vendors.
“A PPP that strikes a balance between public welfare and fiscal responsibility, and of bringing convenience to its users without bloating public debt that they might end up paying for in the end. Such type of financing will allow LGUs to leverage their resources and punch above their weight,” he said.
“Done right, PPPs will end up being a win-win for both the LGU beneficiaries and the private sector partner,” he added.