PPP securities in the works

MANILA, Philippines – The Philippine Stock Exchange (PSE), the operator of the local bourse, and the Public Private Partnership (PPP) Center are laying the groundwork for the possible issuance of PPP securities in the stock market.

PSE president Hans Sicat said the private sector proponents of PPP projects in the country can use the stock market to raise capital as what is being done in other markets.

“We believe the stock market can play an important role for PPP companies to raise capital similar to the experiences in other markets. We are working closely with our regulator, the PPP Center and other stakeholders to explore opening up the equities market for this purpose,” Sicat said.

The PSE and the PPP Center, which acts as the government’s one-stop center for PPP projects, recently held a forum on accessing the capital markets for PPP.

The PPP program is the Aquino administration’s flagship program for infrastructure projects such as roads, bridges and railways.

During the forum, the participants discussed opportunities in the issuance of PPP securities and assessed the viability of PPP participants tapping the capital markets for financing.

Sicat said the PSE is seeking the views of stakeholders such as potential issuers in coming up with the possible listing rules.

He said the discussions are meant to assess the appetite for the proposed fund-raising option.

Many believe that if there are more funding options for PPP projects, the program can be more viable.

The Securities and Exchange Commission (SEC), for instance, also said the Philippines is pushing for financial integration through the Asia Pacific Regional Funds Passport as this could provide funding for big-ticket infrastructure projects.

The Passport can create a bigger pool of funds that can be tapped for economies within the region.

The government has so far awarded $4.2 billion worth of projects under the PPP since it launched the program in 2010.

There are at least three PPP projects that are still in the immediate pipeline. These include the P74.5-billion Ninoy Aquino International Airport (NAIA) Development Project, the P50.15-billion Light Rail Transit (LRT) Line 4, the P64 billion LRT Line 6, the P122.8-billion Laguna Lakeshore Expressway Dike Project.