BSP extends rule relaxing single-borrower-limit for PPP projects
MANILA, Philippines - Following delays in the implementation of the Aquino government's flagship public-private partnership (PPP) program, the Bangko Sentral ng Pilipinas (BSP) has extended its rule relaxing the lending limit to single borrowers involved in infrastructure projects.
In a statement on Thursday, December 20, the BSP said its Monetary Board "decided to extend for another three years...[the] period allowing a separate single borrowers loan (SBL) limit of 25% of the net worth of the lending bank...for undertaking infrastructure and/or development projects under the PPP program."
The BSP eased the 25% restriction on a bank's capital risk exposure to each borrower in December 2010. This was supposed to lapse on December 28, 2013.
The extension means higher loan limits for PPP projects will be available until December 28, 2016.
“The extension of another three years... is expected to encourage the financial sector's participation in the PPP program of the government,” the Bangko Sentral noted.
“Due to the long and complex process involved in the awarding of PPP projects, very few projects were awarded subsequent to said BSP issuance,” it added.
On Friday, December 21, PPP Center executive director Cosette Canilao announced that all 8 projects under the PPP program slated for 2012 would be "rolled out" before yearend. She announced the last two projects in the 2012 list.
However, rolling out involves only the publication of the invitation to bid -- one of the first of the many stages in seeing the project through completion. - Rappler.com