A SINGAPORE-BASED Filipino executive has pressed on the government to reconsider public private partnerships (PPP) to speed up and support the Duterte administration’s goal of a golden age of infrastructure.
During the 43rd Philippine Business Conference and Expo yesterday at the Manila Hotel in Quezon City, Asia Pacific Credit Suisse Group AG vice chair Jose Isidro Camacho said infrastructure projects and their implementation starting in 2018 to 2020 is vital to support the country’s strong economic fundamentals.
“I think the government today is very focused on pure public infrastructure, utilizing ODA (official development assistance). I think that’s a good thing. (But) there’s no reason why one (private) sector will be excluded from contributing to a faster build-up of infrastructure,” Camacho said.
The investment banker said he wants to hear from Finance Secretary Carlos Dominguez the rationale of the government’s decision to build most infrastracture projects through government funds or ODA loans.
Last May, the Department of Transportation (DOTr) canceled plans to bid out PPP contracts to modernize, operate and maintain five regional airports in Davao, Bacolod, Iloilo, Laguindingan and New Bohol.
Meanwhile, the DOF had pitched “hybrid PPP” proposals, where it eyes to build the infrastructure projects and later bid out the operations and maintenance to the private sector. However, this received concern among several business owners who questioned government’s capacity to execute large-scale projects and the long-standing debts the government would incur.
“The Philippines is growing at six to seven percent growth with not much intervention from the government. (Now,) the government is in the position to really turbo- charge the economy so that we can grow faster,” said Camacho, who also functions as chairman of Sun Life of Canada Philippines Inc.
Similar to the power sector that has been divested to private players with the Electric Power Industry Reform Act (EPIRA) Law 15 years ago, Camacho underscored the role of the private firms to uplift and sustain infrastructure projects. “The government, not only has less financial resources, but also less credibility in project management,” he observed.