ESPRESSO MORNINGS

By Joe Zaldarriaga

Mr. Joe Zaldarriaga, fondly called “Manong Joe”, is a distinguished figure in the country’s corporate communications landscape. Holding the position of Vice President and Head of Corporate Communications at Manila Electric Company (Meralco), he has orchestrated unparalleled success for the utility company, winning accolades for their brand of service communications.
Under his guidance, Meralco achieved unprecedented milestones, clinching a historic 3-peat Company of the Year title at the IABC Philippine Quill Awards, scoring the only PR Team of the Year trophy bestowed at the Anvil Awards, and securing numerous honors at international and local communication awards.
Manong Joe’s leadership also extends as a respected member of the Board of Trustees for the Public Relations Society of the Philippines (PRSP), concurrent with his role as Chairman of the International Association of Business Communicators Philippines (IABC Philippines) where he also served as its President.
Manong Joe is a distinguished awardee of the medallion of honor and scroll of commendation from the University of Manila, owing to his years in public service as a communications professional. He shares his insights through columns in renowned publications, including The Philippine Star’s The Z Factor, and Philippine News Agency’s ESPRESSO MORNINGS.

The Philippines for decades has relied on public-private partnerships (PPPs) as a cornerstone of infrastructure development and economic progress—fostering cooperation between the government and the private sector to enhance public services and stimulate growth.

When President Ferdinand R. Marcos Jr. took office, the significant contributions of PPPs to our country’s economy were further highlighted as part of his 10-point agenda for economic renewal and long-term growth. President Marcos Jr. emphasized the need to “encourage private sector engagement and investment for the benefit of the public above all” and “provide legal and regulatory support to public-private partnerships”—a laudable move to address infrastructure gaps and drive economic progress.

The Philippines pioneered the involvement of the private sector in public infrastructure and development projects in Asia. According to a report by the Asian Development Bank, around 116 PPP projects from different sectors from 1990 to 2019 have successfully achieved financial closure. The total investment made in these PPP projects is estimated to be around USD44 billion.

While we have repeatedly seen how PPPs have become instrumental in bringing to life large-scale projects, particularly in the fields of infrastructure, transportation, and social welfare—the contributions of these collaborations are facing a significant threat with the proposal to expand the Commission on Audit’s (COA) jurisdiction over private entities.

Senate Bill 2907 seeks to expand COA’s powers to audit private entities engaged in partnerships with the government as well. Aside from the fact that the proposal goes beyond the COA’s constitutionally prescribed limits, it also encroaches on the autonomy of private entities. These risks discourage key investors—local and foreign—threatening priority PPPs of the country.

At its core, the proposed amendment jeopardizes the very essence of PPPs.

While the intent of legislative oversight and transparency is laudable, the implications of such a proposal could adversely impact investments by the private sector and potentially stall developments in major infrastructure projects and key partnerships.

Moreover, PPPs clearly define the roles of the involved parties—the public and the private sector. Subjecting the private sector to government audits effectively blurs lines of distinction and creates an environment of uncertainty for both parties. This also creates a chilling effect on the private sector, potentially discouraging them from supporting the government’s agenda and thus derailing years of progress.

Private sector confidence is nurtured and sustained by consistent rules in a stable regulatory environment. Subjecting private entities to unwarranted and unnecessary scrutiny creates a discouraging environment for business and investment activity.

It has long been established that PPPs thrive in an environment of mutual trust and confidence. Under these partnerships, the public and private sectors take on complementary roles, working together to facilitate growth and development for the benefit of the public. By altering the framework under which PPPs operate, the proposed legislative amendment risks damage to years of progress and collaboration. Passing such an amendment also goes against the priority agenda of the Marcos Jr. administration, which has made significant strides in promoting PPPs.

On a global scale, this could also hurt the Philippines’ reputation as a lucrative and stable investment destination. Time and time again, we have seen how collaboration between the public and private sector has enabled national progress. With the Philippines aiming to become an upper middle-income country, such legislative amendments are not only discouraging for investors but also potentially damaging to the years of development and progress both the public and private sectors have worked so hard to achieve together.

I appeal to our policymakers to consider the broader implications of such amendments and ensure that legislative action works to enable nation-building instead of derailing it.