New momentum for PPPs in infrastructure development

**media[28064]**The recent greenlighting by the Department of Economy, Planning, and Development (DEPDev) of the Operations and Maintenance (O&M) component of the North-South Commuter Railway (NSCR) under a Public-Private Partnership (PPP) arrangement is a promising signal that the country is once again embracing a proven pathway to fast-track infrastructure development.This move not only revives a key initiative that defined the infrastructure thrust of the Aquino administration but also brings into sharp focus the capacity of the private sector to complement government efforts in delivering efficient, high-impact public services.The NSCR project, one of the most ambitious railway systems ever undertaken in the country, will cover a total of 147 kilometers from Clark in Central Luzon to Calamba in Laguna. Spanning 35 stations across 28 cities and municipalities, the elevated rail system will serve up to one million passengers daily and is expected to transform daily commuting across Metro Manila and its surrounding regions.The decision to engage the private sector in the NSCR’s operations and maintenance under a PPP structure signals a shift in infrastructure policy that aligns with the principle of leveraging private sector efficiency, capital, and expertise. Pre-operational activities are slated to begin in March 2026, with full operations projected by July 2027.It may be recalled that the administration of President Benigno S. Aquino III revitalized the use of PPPs, approving 12 major infrastructure projects—including the Mactan-Cebu International Airport, NAIA Expressway, and the School Infrastructure Project. These ventures were hallmarks of a governance framework that promoted transparency, risk sharing, and innovation.While some of these Aquino-era PPPs were shelved or delayed under the succeeding administration, their revival under the current government bodes well for addressing persistent infrastructure gaps. Among the projects with strong revival potential are the Laguna Lakeshore Expressway-Dike (LLED)—a vital flood control and transport project around Laguna de Bay—and the Regional Prison Facilities Project in Nueva Ecija, which sought to modernize the country’s correctional system. The NLEX–SLEX Connector Road, initially approved as a PPP in 2015, was eventually implemented as a government-led project under the Department of Public Works and Highways (DPWH), proving that while PPPs are valuable, timely delivery also hinges on consistent policy direction.President Ferdinand R. Marcos Jr.’s administration has a robust pipeline of projects under its “Build Better More” banner. The approval of the NSCR O&M project suggests a welcome openness to once again tapping into PPPs not just for construction, but for long-term operations and systems management.One particularly promising area is the Department of Education’s School Infrastructure Program, which had previously enabled the construction of thousands of classrooms nationwide. With classroom shortages still looming and the urgency to decongest schools increasing amid post-pandemic recovery, PPPs could once again be tapped for rapid and quality delivery.As the country moves toward upper middle-income status, institutionalizing a strategic and transparent PPP framework will be vital. The DEPDev’s endorsement of the NSCR O&M project rekindles the spirit of partnership and pragmatism. It reminds us that sustainable progress calls for all hands on deck—public and private—working together for a faster, fairer, and more connected Philippines.