ADB, Australia support PHL's drive for better infra

The Asian Development Bank (ADB) and the government of Australia are giving the Philippines a total of $8.5 million to fund programs that will attract more private sector investments. Grants of $1.5 million from the multilateral lender and $7 million from the Australian government will be used to "strengthen" the government's capacity to develop, competitively tender, and monitor implementation of the Aquino administration's public-private partnership initiative, the ADB said in a statement. "The government recognizes the need to improve the systems and capacity for preparing bankable PPP projects," said Neeraj Jain, ADB country director in the Philippines. "The goal of the project is to boost the public sector’s ability to promote and carry out successful PPP projects that will, in turn, provide better services to citizens and contribute to inclusive economic growth," Jain added. Underinvestment in infrastructure is a major development constraint in the Philippines, with private funding falling sharply in recent years due to insufficient public sector capacity to develop projects, the ADB said. An unpredictable policy environment, right of way land acquisition issues, financing gaps, and lack of clarity regarding government support have all undermined the development of PPP projects, the bank said. The ADB said the "technical assistance project will help the government develop a stronger policy and legal and regulatory environment for PPP projects." The grant will also support the government's "Project Development and Monitoring Facility," which has been set up as a revolving fund to support the government agencies and develop bankable and well-structured PPP projects, the bank also said. "The project will also help improve private sector access to long-term financing for infrastructure projects, and help pave the way for credible risk guarantee mechanisms to reduce uncertainty for private investors," according to the ADB statement. Jon Lindborg, PPP advisor at ADB's Southeast Asia Department, noted that "ADB welcomes this opportunity to support the government's PPP initiative and sees substantial scope to increase competitively tendered PPP projects in the Philippines over the next several years." The Manila-based bank is dedicated to reducing poverty in Asia and the Pacific through "inclusive economic growth, environmentally sustainable growth, and regional integration." — JE/VS, GMA News