The Public-Private Partnership (PPP) Center of the Philippines has welcomed the approval by the Economy and Development Council (ED Council) of the PHP105.7 billion (US$1.78 billion) PPP for the School Infrastructure Project Phase III (PSIP III) in Luzon, Philippines.

To be carried out by the Department of Education (DepEd), PSIP III addresses the persistent shortage of classrooms nationwide and the pressing need to enhance learning environments in public schools. The project complements DepEd’s ongoing basic education facilities program and harnesses private sector efficiencies through a solicited PPP using a Build-Lease-and-Transfer arrangement, enabling faster delivery compared with traditional procurement methods. Beyond expanding classroom capacity nationwide, the project aims to enhance the learning environment by providing safe, secure, modern, and student-friendly school facilities; widen access to quality education, particularly in underserved communities; and contribute to improved long-term student outcomes, including greater social and economic mobility.

PSIP III aims to construct 16,459 new classrooms across 1,095 existing schools in Luzon between March 2027 and March 2028, benefiting at least 800,000 learners annually through improved facilities. It is expected to reduce the average class size from 50 to 39 students, create more conducive learning spaces, eliminate the multiple-shift schedules, increase student contact time, and reduce teacher workload.