Philippine banks can pool up to US$1B for PPP projects

MANILA -- Philippine banks can pool funds of up to US$1 billion to finance projects under the public private partnership (PPP) initiative of the Aquino administration, according to Banco de Oro chair Tessie Sy-Coson said.

Sy-Coson said Philippine banks were willing to provide funding because “this is how much confidence we have in the PPP” and because of the current high liquidity situation in the country.

“If we were to work together with the local banks I think we can put about US$ 1 billion. There's a lot of liquidity in the market right now,” she told reporters at the sidelines of the 2012 Philippine Energy and Infrastructure business meeting sponsored by BDO and SGV in Makati Tuesday.

Sy-Coson said contribution of each bank on the proposed fund depends on the banks’ single borrower’s limit (SBL) and on what they will agree on.

“It’s a matter of negotiations and working together,” she said.

Asked what PPP projects the banks want to fund, Sy-Coson said they were “not selective.” “As long as the proponent is good, the project is good, we'll go into it,” she said.

The government targets to roll-out eight PPP projects this year.

Two PPP projects have been awarded so far -- the Daang Hari-Slex Link road project, which involves the construction of four-km connector road from Daang Hari in Las Pinas to South Luzon Express Way (Slex), and the PPP for school infrastructure project, which involves the design, financing, and construction of about 9,300 one-story and two-storey classrooms, including furniture and fixture, in Region I, III, and IV-A.

Other PPP projects in the pipeline are the LRT Line 1 south extension and operation and maintenance, NAIA Expressway Project Phase II, Cavite-Laguna Expressway, North Luzon Express Way–South Luzon Express Way (NLEX-Slex) Connector Road, Mactan-Cebu International Airport Passenger Terminal Building, and Automatic Fare Collection System.

Also, the modernization of the Philippine Orthopedic Center, vaccine self-sufficiency project (phase II); rehabilitation, operation and maintenance of Angat Hydro-Electric Power Plant Auxiliary Turbines 4 and 5; enhanced operation and maintenance of the Panglao Airport; and operation and maintenance of the Laguindingan Airport in Cagayan de Oro City. (PNA)