5 | PPP Cooperation

To ensure a synergistic environment for a PPP project, several elements need to be set in place. First, policies should strike a balance between public welfare on the one hand, and private investor interests and investment protection on the other. Second, risks should be identified and prudently allocated. Third, contracts should be crafted in such a way as to clearly delineate roles, responsibilities and deliverables between the parties involved and assign risk coverage. Lastly, the establishment and implementation of the PPP facility should be pursuant to the provisions agreed upon by both the LGU and the private investor. All of these are discussed in this chapter as prerequisites for effective cooperation between LGUs and private sector partners in a PPP arrangement.