IFC open to participation in PPP projects, investment in local banks

MANILA, Philippines - The International Finance Corp. (IFC), the private sector investment arm of the World Bank, said it is prepared to participate in the government’s Public-Private Partnership (PPP) projects, as well as initiate investments in local banks.

IFC resident representative to the Philippines Jesse Ang likewise said they are willi8ng to be involved in the bidding process for the Ninoy Aquino International Airport (NAIA) 3.

Ang said the IFC is particularly interested to participate as transactional advisor from the pre-bidding to the bidding process. “There are a lot of domestic banks and international lending agencies that are prepared to lend money for the PPP projects,” he added.

However, the IFC official lamented that the project selection process is “not robust” and that the government must subsidize the early selection processes.

The Philippines suffers from an unpopular image when it comes to enticing foreign investments into projects, especially in infrastructure.

Ang said the Aquino government must make the program attractive to both domestic and foreign investors. “The government must do things right, and must create the impression that the Philippine is sincere, and that it will end the virtual cycle of corruption or inefficiency,” he added.

The IFC ‘s role would be to ensure the foreign and domestic investors that a project is above board, and that all investors or prospective bidders are consulted, and that there are assurances that the entire bidding process is proper.

Meanwhile, the IFC official said they are also prepared to invest million of dollars in Philippine banks and other non-bank financial institutions.

“We would like banks or other institutions with access to a large base,” Ang said.

The IFC said it is open to the middletier thrift banks rural banks, and non-bank financial institutions that are specialized, such as lending to small and medium enterprises (SMEs).