MANILA, Philippines - Investors are keenly waiting for the Aquino administration to jumpstart its much-touted public-private partnership (PPP) program, ING country manager for the Philippines Consuelo Garcia said in a forum yesterday.
On the sidelines of a chief financial officers’ forum organized by ING, the Financial Executives Institute of the Philippines (Finex) and the Economic Journalists Association of the Philippines (EJAP), Garcia said investors are looking forward to investing in the Philippines through PPP projects.
She said that investors fully understand that the government is thoroughly studying the details of each PPP project so as not to repeat the mistakes in the past.
At the same time, however, Garcia said investors are keeping a close watch on when the projects would start.
“Investors understand that the government wants to be cautious and that it is done properly but money does not sleep and there might be other opportunities elsewhere,” Garcia said.
She said that a lot of ING’s clients remain excited over the prospects of the government’s PPP projects despite the delays.
Garcia also said that investors are ready to invest not just money but also their technology.
“There are investors who will provide not just money but also new technology,” she said.
The PPP program is the Aquino administration’s program for infrastructure development.
For next year, the government is setting aside P22.1 billion to finance the government’s share in the program.
The amount, which is part of the P1.816-trillion national budget for next year is almost double the P12.5 billion PPP budget for this year.
The amount would be used for right of way acquisitions, infrastructure and other related support needs. Of the P22.1 billion, the government will give P3 billion to the Department of Public Works and Highways, P8.6 billion to the Department of Transportation and Communications, P3 billion for the Department of Health and P5 billion for the Department of Education.
The government’s support to the PPP program is meant to make it easier for the private sector when they come in.
Last July, the DPWH already announced the start of the bidding for the contract of the Daang Hari-South Luzon Expressway project, making it the first scheduled PPP project.
Officials said that while the Daan Hari segment is relative small, it is an important infrastructure project that would help improve the investment environment in the area.
The contract to operate Metro Manila’s two railways, LRT 1 and MRT 3, was on the original list of PPP projects to be bid out first but newly appointed Transportation Secretary Mar Roxas said would study this project first.
The P1.6-billion Daang Hari-SLEX road project is a four-kilometer road linking Bacoor, Cavite to SLEx.