This study proposes an analyticalframework to determine the extent to which Public-PrivatePartnership (PPP) is a viable and effective business optionfor developing and modernizing the irrigation sector in thePhilippines. It focuses on: (a) assessing and providingrecommendations to address the policy, regulatory andinstitutional constraints that limit the recourse to PPP asa tool to support the development of the irrigation sector;and (b) if PPP is proven to be a viable option, develop thecapacity within the Department of Agriculture (DA), NationalIrrigation Administration (NIA) and National EconomicDevelopment Authority (NEDA) PPP Center to identify andassess potential projects. The TA was meant primarily toproduce a simple and practical analytical framework for theGovernment to build on, rather than a full-blown study on anirrigation PPP project. Adopting the PPP scheme inirrigation will require specific answers to the followingquestions: (1) how PPP contractual arrangements can help toaddress the usual problems in public irrigation (e.g.,maintenance problems due to budget restriction and decisionmaking processes); (2) how PPP can ensure financialviability of the irrigation system; (3) how PPP can avoidpolitical interference in setting irrigation fees; and (4)how PPP can increase the useful life of irrigation systemsand break the vicious cycle of low collection of irrigationfees, poor maintenance, network degradation and expensiverehabilitation. The PPP scheme has to make the case that thefinancial costs of privately-funded projects are on a parwith those of publicly-funded projects.
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