[av_one_full first min_height=” vertical_alignment=” space=” custom_margin=” margin=’0px’ padding=’0px’ border=” border_color=” radius=’0px’ background_color=” src=” background_position=’top left’ background_repeat=’no-repeat’ animation=”]
[av_heading heading=’PH private sector laments limited role in infra push’ tag=’h3′ style=’blockquote modern-quote’ size=” subheading_active=’subheading_below’ subheading_size=’15’ padding=’10’ color=” custom_font=”][/av_heading]
[av_textblock size=” font_color=” color=”]
MANILA – There is enough money in the financial system to fund the massive infrastructure program, but the private sector said its role has been limited by the administration’s preference for official development assistance (ODA).
“In terms of the equity side, there is no funding problem. There’s a lot of liquidity, both locally and from overseas, available,” Michael Rodriguez, managing director at Macquarie Infrastructure and Real Assets, said during the AVCJ Private Equity and Venture Forum in Makati City on Wednesday.
“What most people find challenging right now are the projects they put their money into. There are mixed signals on that front. And for that reason, the funding is not coming as much as we’d like,” he said.
His sentiment was mirrored by Bonnie Banzon, head of project finance at BPI Capital Corp. “Money is available on the debt side. In fact, there’s so much liquidity in the system,” Banzon noted.
“Now that we’re having a shift towards ODA and traditional government procurement, private sector banks are being squeezed out because of the limited role we can play in that space,” he said.
The government is leaning towards tax revenues and ODA to fund infrastructure projects to hasten the pace of development.
The five regional airports project was scrapped from the public-private partnership (PPP) pipeline in favor of ODA, or fiscal spending.
Other projects removed from the PPP roster are the P255-billion PNR North Railway, the P270-billion PNR South Railway, the P225-billion Mega Manila Subway, and the P38-billion EDSA Bus Rapid Transit Line.
The private sector could participate in the infrastructure program, according to a government official.
“The government still believes there is a role for the private sector: Deliver infrastructure at a lower cost. Maybe better O&M (operations and management) cost in the long-term, better innovation for consumers,” Finance undersecretary for Privatization Karen Singson said.
“You don’t have any restrictions on procurement. You have more flexible development teams who will research innovations all over the world,” she said.
Singson said the administration is also interested in looking at proposals from the private sector. “We would be very welcoming to unsolicited proposals.”
The administration is encouraging private companies to submit unsolicited proposals, subject to a Swiss Challenge, or inviting other companies to make competing offers and giving the original proponent the right to match the best offer.
The government plans to spend over P8 trillion on the golden age of infrastructure over the next six years. (GMA News)
[/av_textblock]
[/av_one_full]
