With the Philippines set to be the leading investment hub in Asia, government officials yesterday pitched to Japanese officials and investors public-private partnership (PPP) projects, including the Ninoy Aquino International Airport (NAIA) and two major railway projects with total cost of over P450 billion.
Finance Secretary Benjamin Diokno presented the Philippines’ improved PPP policy framework, fiscal incentives offered under the Corporate Recovery and Tax Incentives for Enterprises law and the recently legislated Maharlika Investment Fund to an audience of over 130 representatives of Japan-based trading houses, financial institutions, Japanese government agencies and multilateral development agencies during the Philippine Investment Opportunities forum on August 29 held in Tokyo.
“Indeed, the Philippines today is primed more than ever to become a leading locus of investments in Asia and the Pacific. This is made possible through the establishment of a stable, predictable and competitive investment environment,” he said in his presentation.
“The Philippine government has embarked on the aggressive implementation of reforms to create a conducive environment for PPP-related investments,” he added.
The government has revised the implementing rules and regulations (IRR) of the Build-Operate-Transfer (BOT) Law to strengthen the financial viability and bankability of PPP projects; improved the Investment Coordination Committee Guidelines on PPP approvals to ensure faster processing and approval of PPPs; and enhanced the National Economic and Development Authority Joint Venture Guidelines to align with the revised IRR of the BOT Law and the proposed PPP Act.
The government is likewise pushing for the passage of the PPP Act, which is nearing approval in the Senate, to simplify regulations and procedures on infrastructure projects.
“Our PPP reforms have already resulted in quicker approval of projects in the last seven months,” Diokno said.
JICA’s chief representative in the Philippines Takema Sakamoto also gave a presentation highlighting the Philippines’ viability as an investment hub and development partner.
According to him, the Philippines is a promising country with a demographic sweet spot, manageable debt levels, trustworthy public sector commitment to PPPs and a slew of opportunities for development partnerships.
The Philippines is JICA’s second largest beneficiary in the world. The agency is currently supporting the implementation of 28 ongoing loans with the Philippine government, among which are the North-South Commuter Railway Project (NSCR), NSCR Extension Project and the Metro Rail Transit Line 3 Rehabilitation Project.
In the same forum, Secretary Jaime Bautista of the Department of Transportation (DOTr) invited Japanese companies to bid for the operations and maintenance contracts of the Metro Manila Subway Project (MMSP) and the North-South Commuter Railway (NSCR) and for rehabilitation of NAIA.
Bidding for the O&M of the two PPP projects are programmed to start within the fourth quarter of 2023 to the first quarter of 2024 while the auction for the NAIA PPP project has commenced last August 23 following the publication of instructions to bidders.
The contract for the P76.89-billion MMSP includes operations and maintenance for subway trains, stations, depot and other systems infrastructure, as well as a concession period of 15 years of full operations.
The 147-km NSCR system, worth P204.6 billion also includes operations and maintenance of trains, stations, depot and other systems and infrastructure, and a concession period of 15 years of full operations in addition to partial operations period.
The DOTr is also seeking private firms interested to bid for the contract to rehabilitate, operate and expand the NAIA, as well as connect it to the subway project.
The P170.6 billion NAIA project aims to address the “longstanding challenges” plaguing the airport, which serves as the country’s “primary international gateway.” – Angela Celis and Myla Iglesias
