Government prepares RP firms for Iraq rebuilding deals

The Philippine Export-Import Credit Agency (PhilEXIM) has approved a guarantee facility for Philippine companies that would bag reconstruction contracts in Iraq, especially labor subcontracting.

The aftermath of the US-Iraq war is expected to open opportunities for Philippine companies and the government said it has readied a facility to make it more attractive for local businessmen to take advantage of post-war business opportunities.

Finance Secretary Jose Isidro Camacho said there are opportunities in essential infrastructure such as oil facilities, roads, ports, air and seaports, water, power generation, telecommunications and others.

"Aside from these structures, the program can also address labor or human capital demands," Camacho said.

He said the guarantee facility would function like a performance bond that would guarantee the completion of such projects by effectively lowering the risk of non-performance.

"This program is in response to help reconstruct and rehabilitate war-torn Iraq since a significant number of establishments, facilities and millions of dollars worth of properties were destroyed as a result of the war," Camacho said.

Since the war was won by the coalition forces, members would have first crack at the rebuilding process and Camacho said the Philippines could supply the manpower.

He said contractors availing themselves of the guarantee program would have to secure accreditation from the Philippine Overseas Employment Administration (POEA) while constructors would have to be accredited by the Philippine Overseas Construction Board.

"Through the program, PhilEXIM will have a major involvement in the government’s efforts toward helping rebuild Iraq, seizing opportunity for Philippine contractors and labor subcontractors," Camacho said.