The Philippine Institute for Development Studies (PIDS) is urging the government to lean heavily into public-private partnerships (PPP) to eliminate the chronic classroom shortage, provided the state overhauls how it handles land acquisition and project targeting.

In a position paper released this week, PIDS senior research fellow Adoracion M. Navarro backed Senate Resolution No. 252, which seeks a legislative inquiry into using PPPs to ease school congestion.

The state-run think tank has championed private-sector involvement in school infrastructure since 2022, arguing that traditional procurement methods lack the scale and speed required to meet the needs of the growing student population.

The think tank emphasized that financing arrangements should be tailored to local needs, draw on lessons from past PPP projects in the Philippines and abroad, and ensure that PPPs include measures to build pedagogical capacity within the education system.

The think tank also said the Department of Education (DepEd) has adopted some of its recommendations, including creating a dedicated PPP unit, engaging independent consultants early in program implementation, and tendering complete school infrastructure packages with classrooms, ICT, utilities, water, sanitation, and hygiene (WASH) facilities, and furniture.

To further enhance the design of the DepEd’s upcoming PPP for School Infrastructure Program (PSIP), PIDS recommended expanding the targeting criteria beyond classroom congestion to include projected classroom gaps and schools designated for demolition or replacement, particularly in Visayas and Mindanao. The move aims to address concerns that the current Luzon-focused system is too narrow.

PIDS also recommended that DepEd treat right-of-way (ROW) and site availability as a long-lead item requiring early preparation, including land searches, title checks, appraisals, negotiations, and, if needed, litigation or expropriation.

The think tank suggested making advance land purchases in fast-growing areas and establishing dedicated funding lines or escrow accounts to ensure sellers are paid promptly and to avoid delays or disputes.

The think tank highlighted the need to improve appraiser capacity nationwide, noting that appraisers are concentrated in some regions while other areas face shortages. Timely ROW acquisition, PIDS said, depends on fast, accurate, and defensible valuations to ensure just compensation and prevent project delays.

PIDS also noted that administrative coordination and judicial review can delay ROW acquisition. Project slowdowns often occur when contested valuations, title issues, or third-party claims go to court.

The think tank recommended assigning acquisition responsibilities early to the appropriate officers and engaging communities and local governments in negotiations to reduce resistance, prevent overpricing, and avoid lengthy expropriation proceedings.

Ultimately, PIDS said that the PSIP design should include a contingency fund for extraordinary ROW payments that exceed initial projections. Setting aside such funds would allow DepEd to make necessary ROW compensation adjustments without repeatedly seeking approval from the Investment Coordination Committee (ICC) of the Economic Development Council.

PIDS added that lessons from PSIP Phase 3 should guide the design of this contingency mechanism in future phases.