Public - Private Partnerships

One of the main thrusts of the current Aquino administration are PPP Projects or Public-Private Partnership Projects. This is advantageous to a cash-strapped government, since the one who will build the necessary infrastructures is the private sector. It helps the government provide basic services to the public, stimulate economic growth while at the same time save costs for the government. The private sector, in turn, benefits from this arrangement since they can derive returns from such investments, generate more jobs and help improve the economic outlook in our country.

However, during the project implementation, this would be an added burden to the public, especially the ones availing of these services. In order for the private sector to achieve its projected rate of return, it has to charge users, the public, for the use of such service or infrastructure. It takes the nature of double taxation, since the main point of paying taxes is so that the government can provide us services, at most basic, in return. To be charged for using such service is indeed an added burden.

As to the long term effects of PPP projects, we still do not know. PPP is a recent concept, initially implemented during the Ramos administration. It remains to be seen on whether PPP's are indeed our shortcuts to success and development.