Perceived promoters and deterrents in the implementation of public-private partnership as governance innovation among local government units in the Province of Iloilo

Abstract

This study was conducted to determine and explore the promoters and deterrents, and the extent of governance innovation in the implementation of a public-private partnership (PPP) among local government units (LGUs) in Iloilo Province. This study is a mixed-method - explanatory sequential design with pragmatism as the paradigm worldview. The target population consisted of the 42 LGUs and one component city of Iloilo Province, but the respondent population was the local chief executives and the planning coordinators, respectively. A three-part questionnaire was used to collect the data. A key informant interview (KII) was utilized to probe deeper into the quantitative findings. The study found that only 2 out of 43 local government units in the Province of Iloilo had both a PPP ordinance and project as mandated by MC No. 2016-120 “DILG Guidelines for the PPP Implementation.” Low compliance to this effect was observed. However, there were some LGUs that despite the lack of a PPP ordinance had engagement with the private sector, thus, a changing mindset toward more open and trusting governance was revealed in this study. Further, results indicated that the income classification of the LGUs and the lack of financial resources as a deterrent to PPP implementation were generally related. Also, the existence of PPP projects had a bearing on the extent of governance innovation. Overall, the extent of governance innovation in PPP implementation among LGUs was only innovatively- active. Findings revealed that it is likely due to local politics, unfavorable market factors, poor knowledge of PPP, a lack of PPP ordinance, and a lack of political skills, while good governance practices, strong market efficiency, and a stable institutional environment remain as promoters of PPP as governance innovation.