"Local Chinese businessmen are very interested in the country’s BOT projects," Chua pointed out. Such interest, he added includes a whole range of projects and "not just railways."
However, Chua acknowledged that because of high-profile BOT failures, there is a need to refine the BOT Law to ensure that both investors and consumers are adequately protected.
A bill is currently pending in Congress that proposes the creation of a BOT Authority. The measure seeks to promote public-private partnership in integrating resources to boost infrastructure development in road networks, ports, bridges and information technology.
Albay Rep. Joey Sarte Salceda, the principal author of the BOT Authority bill, had explained that the proposed agency would be chaired by the President.
The BOT Authority would firm-up government’s commitment and full attention in identifying critical areas of private sector participation in infrastructure development to facilitate economic activities in urban and regional growth areas.
Chua also expressed optimism that the proposed BOT Authority would restore transparency and accountability to the BOT scheme. "The FFCCCI supports the creation of the agency as long as it would streamline the process and in the end support private sector initiatives," he said.
He suggested though that there should be private sector representatives in the proposed BOT Authority to protect investor and consumer interests.
Likewise, all investors in BOTs and variant schemes like build-lease-and-transfer, built-transfer, build-own-and-operate and built-transfer-and-operate should seek and provide their own financing and not ask for government support or guarantees, he added.
Salceda had observed that one of the loopholes of the current BOT Law allows collusion between the implementing agency and its private-sector BOT partners.
He said many of the big-ticket BOT fiascos were caused by unwarranted contract changes, including sovereign guarantees where there should have been none extended.
Salceda assured that his BOT Authority bill would make any collusion more difficult because a single body like the proposed BOT Authority would oversee and regulate amendments or supplements to approved BOT contracts.
The proposed BOT Authority would be under the direct supervision of the President and would be accountable to Congress.
The BOT Authority, under Salceda’s bill, must submit proposed contract amendments or supplements for review by Congress.
Salceda had pointed out that while the Philippine BOT model was copied around the world, the country is now a laggard in attracting BOT investments.
"The proposed BOT Authority should be able to bring international best practices in BOT contract setting and project implementation. We need a strong centralized authority if we are to restore investor confidence and to bring the Philippines back into the BOT investment map," Salceda stressed.