How the Philippines is Transforming Public Procurement

SUMMARY
Opening up public procurement processes can improve government efficiency and effectiveness. Yet governments publish open data on approximately less than three percent of the billions spent on public contracts, according to the Open Contracting Partnership. In the Philippines, the government is tackling this key issue in collaboration with civil society. Read on to learn about the country’s new commitment to improve data accessibility, interoperability, and public participation in public procurement.

The Philippines is undergoing rapid economic growth and has emerged as one of the fastest-growing economies in Asia. A driving factor is the Build Better More (BBM) program, an expansion of the previous administration’s Build, Build, Build initiative. Running from 2023 to 2028, BBM encompasses 198 high-impact infrastructure projects spanning transportation, energy, agriculture, health, and digital connectivity, with a total investment of USD 148 billion. These projects reflect the government’s commitment to enhancing regional connectivity, raising living standards, generating economic opportunities, and increasing the Philippines’ global competitiveness.

The Need for Transparent, Open Procurement

The success of BBM relies on open and efficient public procurement. Without it, the risk of delays, cost overruns, or even project failure remains high. Public procurement is prone to corruption, with the estimated cost of bribes ranging from eight to 25 percent of the value of goods, services, or works. Conflicts of interest pose another problem—in the case of the Philippines, the Pharmally controversy and other questionable public contracts likely hampered the country’s response to the COVID-19 pandemic.

Given the scale of government expenditure involved, competitive, public bidding processes alongside robust oversight mechanisms are critical to ensuring value for money and preventing corruption. Through its membership in the Open Government Partnership, the Philippines has taken encouraging steps to address these challenges, building on decades of work to reform public procurement processes.

Public Procurement Reform in the Philippines

In the early 2000s, the Philippines began modernizing its procurement system with the Philippine Government ElectronicProcurement System (PhilGEPS) , the central electronic platform for procurement data and transactions. Other reforms, including the Procurement Reform Act of 2003 introduced standardized procedures for bidding and awarding contracts, enhanced transparency measures, and public monitoring. However, challenges remained such as little to no access to procurement data and reasons for failed biddings, leading to the under-utilization of its e-bidding features.

While various reforms and updates were implemented over the years, a major milestone came in July 2024 with the passage of the New Government Procurement Act (NGPA). Focused on efficiency and digital transformation, the NGPA aims to address persistent challenges, including the lack of standardization across government departments, bureaucratic silos, data security concerns, complex regulations, inconsistent data quality and limited interoperability.

Acknowledged by the World Bank as a leap forward, the NGPA has been described by Genmaries Entredicho-Caong, Executive Director of the Procurement Service at the Department of Budget and Management (PS-DBM), as “an anti-corruption measure in view of the transparency tools and mechanisms introduced, one of which is the requirement to disclose the beneficial owner. With this beneficial information, we will be able to identify if there is collusion or conflict of interest in the contracts awarded by the government.”

Ushering in a New Era of Transparency in Public Procurement

To further operationalize the NGPA, the PS-DBM is partnering with the Open Government Partnership (OGP) beyond the scope of its national action plan through the recent submission of its Open Gov Challenge commitment: Improving Data Availability, Interoperability, and Public Participation in Procurement.

Entredicho-Caong explains that “we submitted this challenge because we would like to maximize this opportunity while fulfilling our expanded mandate and responsibilities under the NGPA.”

This initiative aims to enhance transparency throughout the procurement process, ensuring a fair, competitive, and accountable environment which will enable the successful implementation of projects such as BBM.

In alignment with the NGPA, key features of the commitment include the following.

The Role of Civil Society Organizations (CSOs)

But what role does civil society play? CSOs are critical for ensuring accountability throughout the procurement process. When systems are more open and accessible, CSOs are better equipped to monitor procurement activities, help detect and prevent fraud, and contribute to cost-saving measures.

Prior to the NGPA’s enactment, the government demonstrated its commitment to working with CSOs. In June 2023, the president issued Executive Order No. 31 to institutionalize the expansion of the Philippines’ multi-stakeholder forum, signaling strong support for CSO involvement in governance and reform initiatives.

One such CSO, the WeSolve Foundation, collaborated with the PS-DBM and Open Contracting Partnership through the OCP Lift Impact Accelerator program to study the government’s procurement processes. Kenneth Isaiah Ibasco Abante, President of WeSolve Foundation notes that “opening up data means that ordinary citizens can see where taxpayer money is spent.”

Lyonel Tanganco, former Managing Director of the WeSolve Foundation, who collaborated with PS-DBM in developing the Open Gov Challenge commitment, emphasizes the importance of implementation to deliver on the promise of this reform. “The policies and frameworks are just the beginning,” he notes. “The real work ahead is making sure these principles are properly implemented and lived out by government agencies.”

Access to high-quality, reliable procurement data empowers not only CSOs, but also journalists, auditors, and watchdogs like the Commission on Audit to identify red flags, investigate corruption risks, and propose meaningful reforms. Over time, this will help strengthen the integrity and effectiveness of public procurement.

“There are innovative ways for the government to engage civil society,” Tanganco explains. “By leveraging tools like the Open Contracting Data Standard and using data-driven red flags to highlight high-risk transactions, the government can strategically identify areas where deeper civil society participation is most needed. In this way, partnerships can be more targeted and impactful, making collaboration not just symbolic, but truly effective.”

Looking Ahead: Economic Growth and Global Recognition

The Philippines’ commitment builds on the PS-DBM’s 12-Point Agenda, which centers around fairness, transparency, and competition in public procurement. These reforms are essential for improving citizen trust and supporting the ambitions of BBM through both public and private sector funding. PS-DBM also has ambitions for PhilGEPS to become a national and globally recognized source of procurement data through its ability to eliminate warning signs, strengthen accountability, and make procurement data truly open and accessible.

To ensure that the NGPA and this new commitment are implemented effectively, CSOs like the Right to Know Right Now Coalition emphasize the need for this reform to be workable, practical, and aligned with open government principles of transparency, accountability, and public participation.

As the Philippines experiences sustained economic growth, these reforms position the country as an attractive destination for global investment, aligning with international initiatives such as the EU’s Global Gateway, which seeks to promote trusted partnerships for infrastructure and development worldwide.