Business groups press for swift passage of BOT law amendments

MANILA, Philippines - Foreign and Philippine business groups are pushing for the swift enactment of amendments to Republic Act 7718 or the Build Operate Transfer (BOT) Law in order to sustain investor confidence and ensure critical infrastructure projects are implemented here.

In a letter to Benguet Representative Ronald Cosalan, chair of the Committee on Public Works and Highways at the House of Representatives dated Feb. 18, the Joint Foreign Chambers (JFC) and Philippine business groups said they back the passage of the amendments to the BOT Law.

The letter was signed by the heads of groups making up the JFC as well as Philippine business groups Management Association of the Philippines and the Makati Business Club.

The JFC is composed of the American, Australian- New Zealand, Canadian, European, Japanese and Korean Chambers in the Philippines and the Philippine Association of Multinational Companies Headquarters, Inc.

The coalition represents over 3,000 member companies engaged in over $230 billion worth of trade and some $30 billion worth of investments in the Philippines.

“We call on government to swiftly enact the amendments to the BOT Law that will institutionalize the PPP (Public Private Partnership) Center and its processes, which we believe will further strengthen our PPP framework and prevent hindrances to the implementation of critical public projects,” the groups said.

The groups are pushing for the passage of the amendments to the BOT Law given the need for massive investments in infrastructure to support the country’s economic growth.

Given the need for more investments in infrastructure, the groups said the government’s PPP program is seen to provide a framework to accelerate infrastructure development and allow for projects to be properly tendered.

“While the PPP program encountered some difficulties in its initial stages, it has since begun to catch up, with high impact projects being steadily rolled out, catching the attention of domestic and international investors,” the group said.

Earlier, PPP Center executive director Cosette Canilao said amendments to the BOT Law through the PPP Act are being pushed to ensure that the PPP program would continue even after the term of President Aquino.

The PPP, a flagship program under the Aquino administration, seeks to accelerate infrastructure development to allow the country to attain inclusive growth.

The government has so far, awarded the following projects under the PPP program: Daang Hari – South Luzon Expressway Link Road, PPP for School Infrastructure Project (Phase 1), Ninoy Aquino International Airport Expressway Project (Phase 2), Modernization of the Philippine Orthopedic Center, Automatic Fare Collection System, Mactan-Cebu International Airport Passenger Terminal Building, Light Rail Transit Line 1 Cavite Extension and Operation and Maintenance, as well as the Integrated Transport System-Southwest Terminal Project.