PHL beefs up investor interest in PPP program

(Updated 5:51 p.m.) The Philippine government intends to sway more global investors toward its public-private partnership (PPP) projects by hosting a business conference on Nov. 17-19. The government will introduce a revitalized PPP framework that covers project financing, risk assessment, and project monitoring, Finance Secretary Cesar Purisima told reporters in a briefing Thursday. The government would also ensure a level-playing field among prospective investors, he said. “There’s a new sheriff in town and the private sector knows that he means business," Purisima referring to President Aquino. “No secret deals, no under the table transactions. Everything will be done in broad daylight." The Department of Public Works and Highways (DPWH) and the Department of Transportation and Communications will present infrastructure projects in the pipeline that would need the private sector’s participation, he added. Purisima said there are about 10 PPP projects worth hundreds of billions of pesos that will be ready for bidding by 2011 when feasibility studies are completed. "As you know infrastructure is expensive, that is why we need to mobilize private capital and expertise. Not just their money, but their skills in running things," he said. In the same press briefing, DPWH Secretary Rogelio Singson said potential PPP projects are expressways and new alignments that include the construction of the C-6 road, a road dike along the Laguna Lake. For the PPP conference, the DPWH will be presenting two PPP projects: the Ninoy Aquino International Airport Expressway link that will connect from Andrews Avenue all the way to Coastal Road, and the Cavite-Laguna expressway that will "connect the coastal side of Cavite all the way to the skyway and the South Luzon Expressway." The two projects are part of the initial 10 PPP projects that will be ready for bidding next year. Purisima said that PPP is a “tried-and-tested formula" in many parts of the world. “The PPP agenda is a strategy to address the lack of infrastructure in the country. [This] is a strategy used all over the world to augment and complement public investments in infrastructure," he said. The conference — to be held at the Manila Marriott Hotel in Pasay City — will examine domestic investment opportunities, profiles of PPP projects in the country, and the concerns on policies, regulations, and legal aspects in advancing the infrastructure sector. Purisima pointed out that the PPP project would enable the government to provide funds for other areas and sectors in need. “The new government is faced with decade-old problems which have discouraged private sector investments in infrastructure. We’re not saying this will be fixed overnight but we’re saying that we know the problem and the entire economic team is aggressively finding ways to solve these problems soonest," he said. “We are committed to build the institutional framework that will allow government to smoothly undertake PPP transactions," he added. — With additional reporting by Jam Sisante/JE/VS, GMANews.TV