ASEAN KEY DESTINATIONS
Philippines investment road show planned
Finance Secretary Cesar Purisima said investor interest was overwhelming, citing the 700 conference participants, which were more than the 400 who initially signified for the event.
He said the government would hold road shows in key countries such as Japan, Europe, China and the Middle East within the first semester of 2011 to complement the just-concluded conference, during which at least 10 infrastructure projects were offered to potential investors.
“We are crafting several executive orders to provide financing options to support PPP projects and these will be finalized in the next week or so,” Purisima said.
He clarified that only solicited projects may enjoy financing from government financial institutions.
The official said the Palace directives would include the possible creation of an infrastructure fund to make available a pool of cheap funds that proponents of PPP projects can tap.
So far, state-run Government Service Insurance System, Social Security System, Development Bank of the Philippines and Land Bank of the Philippines have committed to make available P50 billion each, or a total of P200 billion, over the next five years to bankroll government’s counterpart fund for the PPP projects.
Trade Undersecretary Cristino Panlilio said prospective PPP investors could avail of tax perks so long as a project costs at least P1 billion.
Projects costing lower than that threshold can still get incentives provided they qualify under the Investments Priorities Plan of the Board of Investments, Panlilio, who is also BOI managing head, said. “Definitely, we will bid out 10 projects next year if not more,” Purisima said.
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