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MANILA, Philippines – As much as 40% of the Philippines’ infrastructure requirements from 2010 to 2020 could be public-private partnership (PPP) projects, thanks to the expected boost from the Cebu Action Plan for Asia-Pacific Economic Cooperation (APEC) economies.
PPP Center Executive Director Cosette Canilao made the projection in a media briefing in Quezon City on Thursday, September 3.
“With the Cebu Action Plan, we can attract more investors and contribute 30% to 40% of the infrastructure requirements through PPP, mainly transport, roads, and social infrastructure as there’s also a huge requirement to build new schools and hospitals,” she said.
Citing a study by the Asian Development Bank, Canilao added that the Philippines needs $127 billion worth of infrastructure requirements from 2010 to 2020.
“With the Cebu Action Plan, we can be able to hasten infrastructure deals, being the Philippines’ developmental goal, and in turn share our experiences in PPP to other APEC economies,” she said.
The action plan is a 4-pillar move to make economies more transparent, resilient, and integrated. It is expected to boost infrastructure financing, too.
It is a 10-year road map to help APEC economies reform and improve their approaches to infrastructure development and financing.
This is set to be approved by the finance ministers of the 21-economy bloc when they meet in Cebu on September 10 to 11.
To date, the Aquino administration has awarded 10 PPP projects worth around P189 billion ($4.17 billion).
For the Cebu Action Plan, the PPP Center, according to Canilao, will implement the standardization of PPP contracts across APEC economies, and a shared database, the Knowledge Management Portal.
“This (standardized contract) could lessen the cost of conducting due diligence and attract investments from the private sector,” Canilao said.
“Each jurisdiction has its own set of laws, so we can standardize the principles and provisions to be adopted by each economy, depending on its legal framework,” she explained.
For PPP Center’s part, the Knowledge Management Portal will show a list of consultants and transaction advisers, as well as a roster of interested investors in various sectors.
This database will allow APEC member-economies to share best practices “to have cohesive policies.”
“APEC economies can learn from one another, streamline their processes, and improve their regulatory frameworks,” Canilao said.
Asked about the reception of other APEC economies, she replied: “Indonesia, Taiwan, Korea, and Peru are very receptive to the plan. Most especially Peru because they have a very robust PPP thrust.” – Rappler.com