The Economy and Development Council (ED Council), chaired by President Ferdinand R. Marcos Jr., has approved the PHP105.7-billion Public-Private Partnership for School Infrastructure Project Phase III (PSIP III), a landmark initiative aimed at closing classroom gaps and creating better learning environments, alongside other high-impact projects to enhance market and transport connectivity. The decision was made during the Council’s meeting on Thursday (January 8), according to the Department of Economy, Planning, and Development (DEPDev).
These initiatives highlight the administration’s commitment to accelerating inclusive growth and investing in human capital development under the Philippine Development Plan (PDP) 2023-2028.
PSIP III: Delivering Solutions for Better Learning
Under the supervision of the Department of Education (DepEd), PSIP III is a flagship initiative designed to provide quality classrooms, addressing long-standing shortages and improving learning conditions. The severe shortage of physical infrastructure in the Philippine education sector has forced schools to adopt multiple-shift schedules and resulted in overcrowded classrooms—averaging 50 students per class—conditions that undermine effective learning.
Phase III of the PSIP aims to leverage private sector efficiency through a solicited PPP modality and a Build-Lease-and-Transfer contractual arrangement, overcoming delays often associated with conventional procurement. This approach will complement DepEd’s construction of nearly 25,000 classrooms as allocated in the 2026 General Appropriations Act, which now allows DepEd to partner with local government units in building new classrooms.
With an estimated project cost of PHP 105.69 billion, PSIP III will deliver 16,459 new classrooms across 1,095 existing schools in Luzon between March 2027 to March 2028, benefiting at least 800,000 learners per year from improved facilities. Beyond infrastructure delivery, the project will:
- Lower the average class size from 50 to 39 students, creating more conducive learning environments.
- Eliminate multiple-shift schedules, transitioning schools to single-shift operations. This will increase student contact time and reduce teacher workload.
“Addressing critical infrastructure gaps in education is central to sustaining growth and achieving our development targets. By investing in classrooms that strengthen learning outcomes, we are laying the foundation for higher productivity, stronger human capital, and inclusive growth,” said DEPDev Secretary and ED Council Vice-Chair Arsenio M. Balisacan.
Major Transport Infrastructure
The Council also greenlit the Central Mindanao High Standard Highway Construction Project (CMHSHCP) – Cagayan de Oro-Malaybalay Section of the Department of Public Works and Highways (DPWH). The PHP 145.56-billion ODA-funded project will span approximately 64.7 kilometers of four-lane road traversing the Municipality of Tagoloan and the City of Cagayan de Oro in the Province of Misamis Oriental, as well as the Municipalities of Manolo Fortich, Sumilao, Impasugong, and Malaybalay in the Province of Bukidnon. It also involves the construction of 47 bridges, nine (9) of which are special long-span bridges. Once completed, travel time between the two metropolitan centers will be cut from 6.5 hours to 3.5 hours.
“Improving connectivity between CDO and Bukidnon is a welcome development as we continuously revitalize the Mindanao’s regional economy. Beyond reducing travel time, this project is expected to generate jobs during construction and operation, stimulate local businesses, and attract new investments. By enhancing market access and mobility, it will help reduce poverty, raise incomes, and boost overall economic activity in the area, creating long-term benefits for communities across the region,” the country’s chief economist said.
Agriculture Connectivity Projects
The ED Council also approved the PHP 28.24-billion Pang-Agraryong Tulay para sa Bagong Bayanihan ng mga Magsasaka (PBBM) Bridges Project, which will enhance market access and rural connectivity for Agrarian Reform Communities (ARCs), boosting the productivity and incomes of at least 350,000 households. The project involves the construction of better and well-designed durable, permanent modular steel bridges to link ARCs with growth centers and key value chain nodes.
In addition, the Council approved adjustment to the Farm-to-Market Bridges Development Program (FMBDP) implementation period, moving it from Fiscal Year (FY) 2025-2028 to FY 2026-2029. With a total project cost of PHP 27.69 billion, the program involves the construction of 300 modular steel panel bridges across 15 regions, helping farmers, fisherfolk, and rural residents access markets, reduce poverty, and raise household incomes.
“The Marcos administration recognizes the crucial role of rural infrastructure in stimulating economic growth. These projects go beyond engineering solutions—they are strategic interventions to transform subsistence farming and fishing into competitive, profitable enterprises,” Balisacan added.
