ASEAN KEY DESTINATIONS
PPP projects foster “enabling environment”
Rolling out bankable infrastructure projects under the public-private partnership (PPP) scheme has fostered an enabling environment for business prospects in the Philippines, the Asian Development Bank (ADB) said in a report on Tuesday.
“The government’s commitment to introduce well-prepared projects is a key pillar to creating an enabling environment,” the Manila-based lender said.
According to the report "Meeting Asia’s Infrastructure Needs," developing a “robust” pipeline of bankable projects requires a regulatory and institutional framework that specifies details about the procurement contract, includes a dispute resolution mechanism and contains streamlined processes for environmental and other regulatory permits.
“The Philippines has been able to combine many of these elements,” it said.
Under the current administration, two public-private partnership (PPP) projects have so far gained ground – the P108-billion operations and maintenance of five regional airports and the P1.47-billion New Nayong Pilipino at Entertainment City Project.
A total of 14 PPP projects, worth P293.91 billion combined, have been awarded since the PPP program was launched by former President Benigno Aquino III in the third quarter of 2010.
The Philippines also ranked among the “developed” group of countries in the 2014 edition of the PPP Readiness index for Asia and the Pacific, from previously being classified as an “emerging” country in 2011.
“The Philippines was among those improving the most and had the most-improved score on regulatory and institutional frameworks. It also scored among the leading countries ‘for improved investment climate and financial facilities’,” ADB said.
In July 2016, the Duterte administration targeted to roll out up to 17 PPP projects by this year.
The government plans to spend some P8.2 trillion on infrastructure projects over the next six years, with P860.7 billion allocated to large-scale projects this year alone.
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