DILG urges LGUs to participate in PPPs to fund projects

ABS-CBN News

Posted at Jul 16 2022 05:07 PM

Pedestrians walk at a crossing in Makati City on July 12, 2022. Mark Demayo, ABS-CBN News/file
Pedestrians walk at a crossing in Makati City on July 12, 2022. Mark Demayo, ABS-CBN News/file

MANILA — The Department of the Interior and Local Government (DILG) on Saturday urged local government units (LGUs) to engage in public-private partnerships (PPP) to have their projects funded and raise income. 

Abalos said LGUs can look into a build-operate-transfer (BOT) scheme that they could "use in resource generation." 

This, the DILG said, will enable them to partner with the private sector for programs. 

“As local chief executives of their respective LGUs, governors and mayors should always think outside the box and explore ways and means on how to get things done with the help of the private sector and other stakeholders for the benefit of their constituents," said Abalos. 

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Aside from this, the interior chief told local officials to study their "broad taxing powers" based on the Local Government Code to "increase their resource base."

"Devolution is important because it would give LGUs the power and funds needed to effectively solve the issues of your constituents," he said. 

Finance Secretary Benjamin Diokno had said the Marcos administration is also planning to shift to PPP. 

The push for PPP will also enable the government "enlarge fiscal space" and spend less for projects.