The Mindanao Development Authority (MinDA) has called on Japan to transition from aid-financed projects to co-invested, commercially structured public-private partnerships (PPPs) in Mindanao, describing the region as an underserved market with confirmed demand.
Challenges Facing Local Governments
Speaking at the Japan–Philippines Business Dialogue on Infrastructure and PPP Opportunities on April 24, MinDA Chairperson Secretary Leo Tereso Magno outlined the recurring challenges local government units (LGUs) face in advancing PPP projects. He noted that most LGUs lack the in-house expertise to prepare feasibility studies, cost-benefit analyses, and risk matrices. Without these essential documents, projects cannot move forward, regardless of their potential.
Magno also highlighted institutional gaps and financing barriers that continue to stall projects. Many LGUs still lack dedicated PPP units and legal counsel capable of reviewing agreements. The pre-investment costs, including feasibility studies, advisory fees, and legal preparation, remain beyond the budgets of most LGUs. He pointed out that the Project Development and Monitoring Facility (PDMF) remains underutilized in Mindanao.
MinDA's PPP Facilitation Initiative
To address these constraints, Magno underscored MinDA's PPP facilitation initiative, which includes establishing a dedicated PPP Desk. This desk 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.
Impact of Political Cycles
Magno also emphasized 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.
Mindanao Ready for Investment
Despite these hurdles, Magno asserted that Mindanao is ready for investment. He described the region not as a speculative frontier market but as an underserved market with confirmed demand, an improving regulatory environment, and a government actively building conditions for private investment to succeed.
Four Priorities for Accelerating PPPs
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. He proposed moving the relationship upstream from aid-financed projects to co-invested, commercially structured PPPs where Japanese capital, technology, and operational expertise are brought in at the project development stage.
Alignment with National Infrastructure Push
Magno's message supports the infrastructure push of President Ferdinand Marcos Jr. under the Build Better More program, which allocates over ₱1.5 trillion for infrastructure in 2026, about five percent of the country's economy. The 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 concluded with business matching sessions and a site visit to New Clark City, highlighting opportunities in transport, energy, digital infrastructure, and tourism.
