GMA invites Bahrain investors to join RP privatization program

President Arroyo has invited Bahrain investors to participate in the Philippines’ privatization program, particularly on the power and banking sectors, as she pushed for broader bilateral relations between the two countries.

The President issued the invitation to visiting Bahrain Prime Minister Sheikh Khalifa bin Salman Al-Khalifa during a free wheeling conversation at the Music Room in Malacañang yesterday.

"We want to invigorate our privatization program… first of all in our power sector where we are privatizing a number of power plants," Mrs. Arroyo told Sheik Khalifa. "We also plan to privatize our Islamic banks and other assets."

"There are many possibilities that your business community can tackle and start looking into," she said.

Sheikh Khalifa invited the President to visit Bahrain. Mrs. Arroyo said that she would make the trip on mid-December.

The visiting Bahraini leader arrived in Manila for a five-day visit that should have ended yesterday. Sheikh Khalifa however extended his stay for a day in order to personally meet the President, who was in the Vatican last week to attend the funeral rites for Pope John Paul II.

President Arroyo said Bahrain’s participation in the country’s privatization program would help broaden bilateral relations. She cited the investments of Saudi Arabia in Petron Corp.

The President also thanked Sheikh Khalifa for his government’s help in ensuring the welfare of Filipino workers in the Middle East, particularly in securing last year the release of Angelo de la Cruz, a truck driver held by hostage by Iraqi insurgents.

"They (overseas Filipino workers) deserve the best treatment," Sheikh Khalifa said in reply.

The visiting official asked for the Philippine government’s support for peace initiatives in the Middle East, to which the President said Manila is working hard to promote inter-faith dialogue and understanding.

The two leaders also shared concerns on security matters and promoting democracy. Mrs. Arroyo cited the Bahrain leadership’s efforts to promote democracy in their country.

The government has been pushing for the privatization of its power sector to help reduce the cost of electricity and fiscal deficit caused by bleeding state power firms.

Under the government’s infrastructure privatization program, 44 of the projects are power-related. Nine of the projects for bidding are hydroelectric power projects.

The government is also planning to privatize the Al-Amanah Islamic Investment Bank of the Philippines, a government owned and controlled corporation, created by and operating under Republic Act No. 6848.

Mindanao businessmen have reportedly asked Malacañang to allow the entry of more Islamic banks in Mindanao to make available more credit facilities to Muslim communities.

Mindanao business leaders said providing accessibility to financial facilities that respect Islamic beliefs and tradition is one option the government must consider in regards to the economic concerns in the region. 

At present, only Philippine Al-Amanah Islamic Bank exclusively caters to Muslim entrepreneurs and individuals. The bank reportedly has no liabilities and international debts making it attractive to foreign investors.

Bahrain is the Philippines’ 12th largest trading partner and the 12th largest source of imports, but it is only 66th in the country’s list of export markets.

A visiting business delegation from Bahrain earlier called for a bilateral free trade agreement.