Government calls for more private investments in i

The government is turning to the private sector for help in an effort to meet its P1.2-trillion capital investment target under the Medium-term Development Program (MTDP).

According to the Coordinating Council for Private Sector Participation (CCPSP), an agency under the Office of the President, private sector participation in the government’s infrastructure program this year has amounted to only $26.3 million through the build-operate-transfer (BOT) program.

The CCPSP said government has expanded investment opportunities in the area of infrastructure development for the private sector.

Under the streamlined private sector participation program, other modes of BOT–such as joint venture agreements and concession agreements – are now covered.

The CCPSP said most of the BOT projects undertaken in the country were in the power sector. The government, is now looking into attracting private sector investments in other areas.

The CCPSP recognizes the need to encourage private sector participation in different investment programs in other development areas.

These include the construction and operation of the $525-million NAIA International Passenger Terminal 3 program and the $597-million Light Railway Transit Line 1 extension which will run from Baclaran to Cavite. The NAIA IPT3 did not require direct government subsidy or guarantee.

The project is being undertaken by the Philippine International Air Terminal Co., Inc. (PIATCO), a consortium composed of German airport operators Fraport AG Frankfurt Airport Service Worldwide, People’s Aircargo & Warehousing Co., Inc., Philippine Airport and Ground Services Terminals, Inc., Philippine Airport and Ground Services Inc., SB Airport Investments, Inc. and Nissho Iwai Corp.

PIATCO recently secured a loan facility from among others the Asian Development Bank, the International Finance Corp. and the German financial institution Kreditansstalt fur Wiederaufbau (KFW) of a maximum amount of $440 million for the NAIA IPT3 project.