Japanese investors urged to participate in infrastructure projects

The country’s economic managers urged Japanese investors to participate in infrastructure projects which the government has lined up as part of its Economic Resiliency Plan.

In a no-deal roadshow in Japan held from Jan. 19 to 22, Finance Secretary Margarito Teves, Trade and Industry Secretary Peter Favila, Socioeconomic Planning Secretary Ralph Recto and Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. met with Japanese business leaders to discuss the government’s plan in wake of the global economic crisis.

Recto told Japanese businessmen that the Philippines offers tremendous opportunities for Japanese investors, particularly in the area of infrastructure development.

“One area of our Economic Resiliency Plan that offers significant investment opportunities for Japanese companies is infrastructure development,” Recto said.

He said that while the government is channeling considerable resources into infrastructure, it is also inviting the private sector to invest in priority infrastructure projects.

“We believe this will significantly contribute to our development efforts and at the same time provide attractive investment opportunities to Japanese businessmen. Priority areas that have been identified for public-private partnership are transportation, water, and energy,” Recto said.

The government has allotted a P330 billion stimulus package aimed at pump-priming the economy in the wake of the global financial turmoil. The P330 billion funds are intended to finance infrastructure projects which would help keep the economy afloat.

Teves, for his part said that “at a time when many countries are in recession, strong bilateral relations, such as those between the Philippines and Japan, present important investment and trade opportunities to support economic growth in both our countries.”

“Investors in Japan recognize that the challenges that we are facing are broadly external and that the Philippines has remained resilient amidst the global economic downturn,” the Teves said.

The visit by government officials to Japan was part of an annual no-deal roadshow to Asian financial centers to promote the Philippine economy and trade and investment opportunities.

It is the first visit of the country’s economic team to Japan since the entry into force of the Japan-Philippine Economic Partnership Agreement (JPEPA) in December 2008.

Agreements under the JPEPA include the elimination of tariffs on  89 percent of industrial and agricultural Philippine exports to Japan  and the creation of employment opportunities in Japan for world-class Philippine workers, such as nurses and caregivers.