Moody’s cites accelerating PPP deals in Phl

MANILA, Philippines - Moody’s Investor Service has cited the accelerating infrastructure  projects under the public private partnership (PPP) program of the  Aquino administration.   

Moody’s associate managing director Patrick Mispagel cited the  expanding PPP market in the Philippines in a 21-page report.   

Mispagel noted the accelerating deal flow for PPP projects despite the constraints on regulatory framework in the  region.   

“Despite these constraints, Moody’s report notes that the PPP markets  in the Philippines and China are expanding, with deal flow  accelerating in the Philippines under the current administration and  its PPP center,” Mispagel said.

The Moody‘s report said that emerging regulatory frameworks and a  need for consistent risk allocation between governments and private  sectors constrain the market for public-private partnerships, or P3s,  in Asia Pacific.   

According to the report, P3s have been slow to develop in the Asia Pacific region  with the exception of Australia and India.   

“Emerging regulatory frameworks may be subject to an elevated risk of  political interference, and strong legislative frameworks to enforce  P3 contracts are still developing in some countries,” it said.   

China has recently started to promote P3s, with 80 projects to be  offered to the private sector in this format.   

The report further points out that P3 projects are more common in  Australia and India, with a trend in Australia toward larger project  sizes, but fewer projects. Projects range from social infrastructure,  such as schools, hospitals and rail stations, to toll roads.