BDO ready to tie up with other banks for PPP projects

MANILA, Philippines - Sy-owned Banco de Oro Unibank, the country’s largest bank, is prepared to tie up with other banks and raise up to $1 billion to finance various projects under the government’s Public-Private Partnership (PPP) program.

 BDO chairperson Teresita Sy-Coson said while the SM Group is not interested in directly participating in the PPP program, it intends to play an active role in financing the projects.

“The market here is very liquid. We can do a lof of these locally. We can do a syndication of up to $1 billion (peso-denominated). It will show confidence in the project,” Coson said during a PPP seminar held at the SMX Convention yesterday as part of the parallel activities of the 45th Asian Development Bank Board of Governors annual meeting.

She said that as a bank, BDO would be able to fund a lot of the companies that would be participating in the government’s PPP projects.

Asked which banks, BDO can partner with for the $1 billion syndicated loan, Sy said these may include the other big banks in the country.

“We’ve always partnered with other big banks such as Metrobank, BPI, Security Bank, Chinabank and RCBC. For the government banks, these are the Development Bank of the Philippines and the Land Bank of the Philippines,” Sy told The Star on the sidelines of the forum.

She said the terms of the loan could be as long as 15 years.

Public Works Secretary Rogelio Singson welcomed Sy’s offer, saying that this would help construction companies and many other private contractors.

The government’s PPP Center earlier announced that the Aquino administration plans to accelerate the implementation of its PPP program by bidding out eight to 16 projects this year.

The list of 16 projects includes the P900-million Vaccine Self-Sufficiency Program of the Department of Health; the P25-billion Metropolitan Waterworks and Sewerage System New Water Supply project; a P20.18-billion North Luzon Expressway-South Luzon Expressway Connector Road; a P10.15-billion Mactan Terminal 2 Airport Development; and the P8-billion New Bohol Airport.

Other projects include the P20-billion Balara Water Hub; P19.69-billion CALA (Cavite and Laguna Side) Expressway; P11.3- billion Light Rail Transit 2 East Extension and the first phase of a P10.4-billion PPP for School Infrastructure Project.

The Aquino administration has admitted PPP projects are taking longer to bid out because feasibility studies are taking longer than expected.