4 Benefits of Public-Private Partnerships in the Philippines’ Water Sector

Water is a shared resource, and in many cases, a shared responsibility between the public and private sectors. Public-Private Partnership (PPP) is a common approach that governments around the world use to finance the development, construction, and maintenance of infrastructure projects, including those that are meant to extract, clean, and distribute water. Using this strategy, public agencies form partnerships with private entities and pool their resources together to initiate projects that can ensure the country’s water security. 

In Metro Manila, for example, the government agency Metropolitan Waterworks and Sewerage System (MWSS) manages water resources alongside private water providers Manila Water and Maynilad Water Services. These entities work together on various water infrastructure Philippines projects to ensure that the communities they serve have equitable access to clean water and sanitation services. Through this arrangement, both parties and their customers are able to maximize the following benefits:

Quickly Implement Long-term Improvements in Water Quality and Service Coverage 

Water infrastructure development and expansion projects solely helmed by government agencies undergo rigorous and time-consuming checks and procedures prior to completion. Often, this includes obtaining licenses from local and national government agencies, consulting individuals and committees on various decisions, and dealing with bureaucratic obstructions that can take a long time to clear up. Tasking a private entity to head the development and maintenance of a water supply and management facility, for example, will not exactly eliminate these inefficiencies. However, a private company will want to minimize the cost and time such an undertaking will take and make significant efforts to work closely with concerned government agencies in order to complete the project as soon as possible. The speedy completion of a water infrastructure project will not only enable the company to recoup its investment quickly, but it will also benefit customers as they will have the option to use efficiently managed water resources sooner than later. 

Supplement the Funds Needed to Develop and Maintain Water Infrastructure Projects

The lack of budget is a common barrier to the development of new water infrastructure facilities and the continued improvement of existing water infrastructure. Water resources management agencies have their allocated funds, but it’s often not enough for their projects for the year. Such budgetary constraints can limit the level of development and improvement that these agencies can carry out. Private companies, on the other hand, have their own set of resources that they can use for PPP water infrastructure construction or maintenance projects. They have the means to raise the funds needed to complete or expand water coverage, and many are willing to do so if they can recoup their investments from a paying public later on. Through PPP, government agencies and private entities can sufficiently fund the development of quality water infrastructure projects that will benefit consumers for many years. 

Hasten the Introduction of Private Sector Technology and Innovation to the Public 

Another advantage that PPP projects bring to the forefront is the use of private sector technology in the development of water assets and facilities that the public can use. The private water sector is big on innovation. Making a continuous effort to improve water facilities is essential to ensuring that these businesses can stay ahead of their competitors and continue to meet the needs of their customers in a world where clean water is becoming scarcer. Through PPPs, private entities can put their innovative products and water systems to greater use and benefit more of their customers. Such efforts, in turn, can help elevate the quality of services that the public will come to expect from water companies and raise the standard for water service providers in the future. 

Increase the Level of Private Sector Participation in Other PPP Projects in the Long Run

For decades now, the Philippine government has expressed keen interest in working with private entities to bridge the infrastructure gap in the country. To this end, several laws have been passed over the last decades to further encourage the participation of private businesses in government projects. The positive impacts of these steps were apparent in the previous administration’s Build! Build! Build! program where a number of private companies eagerly took on infrastructure projects in partnership with the government. Every successful PPP project builds up the Philippine government as a reliable partner for private infrastructure developers, making it easier for the rest of the country to benefit from the fruits of such engagements. 

For many government agencies and private companies, PPP projects are proving to be a mutually beneficial and highly sustainable means of providing the public with the water resources they need. By working together, public and private entities can improve the quality of life in the communities they serve, fuel innovation, and make cutting-edge water systems more accessible to the everyday consumer. Leveragin PPPs to extensively develop water infrastructure in the Philippines is a win-win not just for the agencies and companies involved, but also for the people they serve.