LGUs can; 10 reasons why; and why they should
(1) LGUs enjoy local autonomy. LGUs have the freedom to adopt their own PPP frameworks, and determine the requirements and procedures for the selection of the private-sector proponent (PSP), provided, no law is violated. They can undertake projects based on their priorities. They cannot be compelled to pursue PPPs and undertake a particular PPP project.
(2) LGUs have fiscal autonomy. They have the discretion to source additional revenues using the PPP approach, and to create fiscal space for other projects and activities. They have the power to allocate these revenues based on their priorities. Revenues generated from PPPs can be used for general or specific purposes.
(3) For as long as not prohibited by law. Under the liberal view of local autonomy, LGUs can, for as long as no law is violated, pursue PPPs for the general welfare even if there is no express statutory grant of power.
(4) LGU’s dual agency-role. LGUs as agents of the community and people must adequately provide for local necessities and promote the convenience for their respective communities. Addressing the needs of the community can be done through PPPs, among other financing and implementation options.
(5) All about the general welfare. Pursuant to the general welfare clause, LGUs can undertake infrastructure, development and social service-related projects via the PPP route for the preservation and enrichment of culture, promotion of health and safety, enhancement of the right of the people to a balanced ecology, encourage and support the development of appropriate and self-reliant scientific and technological capabilities, improvement of public morals, enhancement of economic prosperity and social justice, promotion of full employment among the residents, maintenance of peace and order, and preservation of the comfort and convenience of their inhabitants.
(6) Obey the Constitution. Being subdivisions of the State, LGUs must operationalize the constitutional policy that “recognizes the indispensable role of the private sector, encourages private enterprise, and provides incentives to needed investments”. PPPs operationalize this mandate.
(7) LGUs private powers. LGUs have full autonomy in the exercise of their proprietary or private functions. Thus, local projects, which are proprietary in nature, can be implemented through PPPs.
(8) LGUs are public corporations. Having their own juridical personalities, LGUs can enter into contracts with PSPs for local projects.
(9) Local legislation. LGUs, in the exercise of their legislative power through their respective local legislative councils or sanggunians, can enact ordinances and issue resolutions for the adoption of their PPP frameworks and execution of PPP contracts.
(10) Being responsive. LGUs in order to be more responsive to the needs of the people, being their agents, may enter into PPPs. PPPs would enable LGUs to attain their fullest development as self-reliant communities and make them more effective partners in the attainment of national goals. PPPs would also lessen the dependence of LGUs from the national government. PPPs entered into by LGUs also affirm the policy that local officials have superior competence in dealing with local matters.