ED Council Approves P105.7-B PPP to Fast-Track Classroom Construction

Business | Economics Posted on 2026-01-10 16:21:02

MANILA – The Economy and Development Council (ED Council) has approved PHP105.7 billion in funding for the third phase of the Public-Private Partnership School Infrastructure Project (PSIP III), the Department of Economy, Planning, and Development (DEPDev) said Friday.

In a statement, DEPDev said the approval was made during the Council’s meeting on Thursday, chaired by President Ferdinand R. Marcos Jr., as part of the government’s efforts to accelerate inclusive growth and strengthen investments in human capital.

Under the supervision of the Department of Education (DepEd), PSIP III aims to construct around 16,459 new classrooms across 1,095 existing public schools in Luzon between March 2027 and March 2028. The project is expected to benefit at least 800,000 learners annually.

The program will adopt a solicited PPP modality using a Build-Lease-and-Transfer arrangement, designed to address delays commonly encountered under traditional procurement processes. PSIP III will complement DepEd’s plan to build approximately 25,000 classrooms funded under the current national budget.

“Addressing critical infrastructure gaps in education is central to sustaining growth and achieving our development targets,” DEPDev Secretary and ED Council Vice Chair Arsenio Balisacan said. “By investing in classrooms that strengthen learning outcomes, we are laying the foundation for higher productivity, stronger human capital, and inclusive growth.”

Mindanao highway project approved

Beyond education infrastructure, the ED Council also approved the PHP145.56-billion Central Mindanao High Standard Highway Construction Project – Cagayan de Oro–Malaybalay Section, an official development assistance project to be implemented by the Department of Public Works and Highways.

The project involves the construction of about 64.7 kilometers of four-lane highway traversing Tagoloan and Cagayan de Oro in Misamis Oriental, and Manolo Fortich, Sumilao, Impasugong, and Malaybalay in Bukidnon. It also includes 47 bridges, nine of which are long-span structures, expected to cut travel time between the two metropolitan centers from 6.5 hours to about 3.5 hours.

“Improving connectivity between CDO and Bukidnon is a welcome development as we continue to revitalize Mindanao’s regional economy,” Balisacan said, noting that the project is expected to generate jobs, stimulate local businesses, attract investments, and improve market access across the region.

Boost for agriculture and rural connectivity

The Council likewise approved the PHP28.24-billion Pang-Agraryong Tulay para sa Bagong Bayanihan ng mga Magsasaka (PBBM) Bridges Project, which seeks to enhance market access and rural connectivity for Agrarian Reform Communities (ARCs). The project targets improved productivity and incomes for at least 350,000 households through the construction of durable, modular steel bridges linking ARCs to growth centers and key value chain hubs.

In addition, the ED Council approved adjustments to the implementation timeline of the Farm-to-Market Bridges Development Program, moving it from fiscal years 2025–2028 to FY 2026–2029. The PHP27.69-billion program aims to build 300 modular steel panel bridges across 15 regions to support farmers, fisherfolk, and rural communities.

“The Marcos administration recognizes the crucial role of rural infrastructure in stimulating economic growth,” Balisacan said. “These projects go beyond engineering solutions—they are strategic interventions to transform subsistence farming and fishing into competitive and profitable enterprises.”