MANILA, Philippines - The Aquino administration plans to announce by end-March the bidding dates of up to five projects under its public-private partnership (PPP) program for infrastructure.
The government also plans to tap the National Development Co. (NDC), the state-owned investment arm, to raise funds for the different infrastructure projects.
“The infrastructure bonds will be run through the NDC,” Finance Secretary Cesar Purisima said during the weekend.
The infrastructure bonds are peso bonds to be issued in the domestic market and with a tenor of at least 25 years. “The longer the tenor, the better,” Purisima said.
Proceeds of the bonds would help fund solicited projects within the next three years.
At least 10 projects are in the pipeline this year and another 12 for next year. The bidding dates for at least three of the projects may be announced as early as end-March, Purisima said.
The idea is for the government to create a pool of funds to support solicited projects.
The implementing agency can then tap into the funds to be raised from the sale of infrastructure bonds.
Last November, the government launched its PPP conference and trumpeted projects under the program.
These are in different areas such as food supply chain, food security, water, transport and other key areas.
Purisima believes that if the government is able to attract enough investors for infrastructure project then it can expect a significant improvement in economic growth.
The government is projecting growth to hit seven percent to eight percent this year but officials said actual growth could exceed the higher end of the target range because of hefty inflows from dollar remittances.
Faced with a budget deficit that is projected to hit P290 billion this year, the Aquino administration wants to use government funds mainly for social services and tap private sector help for needed infrastructure projects.
Last year, the deficit hit P310 billion or below the ceiling for last year of P325 billion.