NEW CLARK CITY, Pampanga — Mindanao Development Authority (MinDA) Chairperson, Secretary Leo Tereso Magno, has urged Japan to move beyond aid-financed projects and enter co-invested, commercially structured public-private partnerships (PPPs) in Mindanao, describing the region as “an underserved market with confirmed demand.”
Speaking at the Japan–Philippines Business Dialogue on Infrastructure and PPP Opportunities on Thursday, April 24, Magno outlined the recurring challenges faced by local governments in bringing PPP projects from planning to implementation. “Most LGUs lack the in-house expertise to prepare feasibility studies, cost-benefit analyses, and risk matrices. Without these, projects cannot advance regardless of how compelling the opportunity is,” he said.
He added that institutional gaps and financing barriers continue to stall projects. “Many LGUs still have no dedicated PPP unit and no legal counsel capable of reviewing agreements. And the pre-investment costs—feasibility studies, advisory fees, legal preparation—are beyond most LGU budgets,” Magno said, noting that the Project Development and Monitoring Facility (PDMF) remains underutilized in Mindanao.
To address these constraints, Magno underscored MinDA’s PPP facilitation initiative, which includes the establishment of a dedicated PPP Desk that serves as a one-stop coordination and technical support platform for local governments. Through this mechanism, MinDA works with the Public-Private Partnership Center of the Philippines to help LGUs identify, structure, and package bankable projects, while linking them with potential private sector partners and financing institutions.
Magno also said that political cycles often disrupt PPP timelines. “A PPP project from identification to financial close typically spans six to ten years—well beyond a single term of local office. Without institutional continuity mechanisms, projects stall or restart with every change in leadership,” he said.
Despite these hurdles, Magno said that Mindanao is ready for investment. “Mindanao is not a frontier market in the speculative sense—it is an underserved market with confirmed demand, an improving regulatory environment, and a government actively building the conditions for private investment to succeed,” he emphasized.
Magno laid out four priorities to accelerate bankable PPP projects: fully operationalizing the PPP Code and PDMF, investing in LGU capacity, engaging private investors earlier, and unlocking finance mechanisms to de-risk early project costs. “What we are proposing now is to move the relationship upstream—from aid-financed projects to co-invested, commercially structured PPP projects where Japanese capital, technology, and operational expertise are brought in at the project development stage,” he said. PR
Magno’s message supports the infrastructure push of Ferdinand Marcos Jr. under the Build Better More program, which sets aside over ₱1.5 trillion for infrastructure in 2026, about five percent of the country’s economy.
The Marcos administration focuses on transport, renewable energy, and digital systems—areas that match the opportunities discussed in the dialogue. Mindanao is being positioned as a key area for these investments, in line with the President’s goal to spread development beyond Luzon.
The two-day event ended with business matching sessions and a site visit to New Clark City, highlighting opportunities in transport, energy, digital infrastructure, and tourism. PR
