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.