THE Management Association of the Philippines (MAP) proposes the conversion of some of the key infrastructure projects of the government into private sector partnerships (PPPs) to free up state funds that would be channeled instead to funding subsidies to workers, micro and small-medium enterprises (MSMEs) and the agriculture and fisheries sector.
Francis Lim, MAP president in a virtual briefing on Saturday said the huge amount of money – as much as P370 billion – needed to support the economy due to the new coronavirus disease 2019 (COVID-19) pandemic may require the rechanneling of some infrastructure funds in the General Appropriations Act.
By converting some of the infrastructure projects to PPPs under the build-operate-transfer, Lim said the private sector can invest in these projects and government money will be freed up.
Lim said infrastructure is a strong stimulus to the economy which creates jobs.
“It is important to revive infrastructure because a lot of sectors benefit, not just construction but other allied industries,” Lim said, citing the multiplier effect of the sector to other sectors that range from cement to retail.
Lim said the MAP has proposed other means to fund the government subsidies set up to support the economy in the fight against COVID.
He said the Department of Finance can increase the capital of Philguarantee to cover for loans of private sector.
He said banks should also be encouraged to lend to the private sector at this time.
Specific to MSMEs, Lim called for a one-year moratorium on the payment of interest and principal on loans obtained by the sector to allow them to recover.
