Private sector overwhelmed by gov’t infrastructure needs

Private sector participants to yesterday’s Government Infrastructure Forum were overwhelmed by the government’s infrastructure wishlist, noting a lack of focus and concrete assurance about the implementation of projects.

Former Finance Secretary Roberto F. de Ocampo who is now with the Asian Institute of Management (AIM) pointed out that the government’s wishlist is "too long" and needs "more focus."

Former Central Bank Governor Jose L. Cuisia Jr., who is now with Philamlife, noted that there were "too many details" but a lack of assurance about implementation which Cuisia stressed is the "make or break" factor.

Philippine Institute for Development Studies (PIDS) senior research fellow Gilberto M. Llanto likewise agreed that the government’s proposed infrastructure projects were simply a "long list and we don’t know which are the priorities."

The private sector, Llanto said, should have been given information that would convince them to participate in such infrastructure projects. Most of the infrastructure projects presented, Llanto said, offer low rates of return for private sector participants.

Government, likewise, Llanto explained, must also show to the private sector that it can complete outstanding vital projects such as the North Edsa linkage of the MRT and LRT as well as the connection of the South Luzon Expressway (SLEX) to the Southern Tagalog Arterial Road (STAR).

Lastly, Llanto advised, government must shore up its revenues.

Government, Llanto elaborated, needs to have a strong fiscal position to finance its part in its infrastructure program as it cannot rely on the private sector to finance missionary projects.

American Chamber of Commerce director John Forbes, for his part, acknowledged the challenges faced by the government in realizing its infrastructure program. However, Forbes stressed that putting up the necessary infrastructure is vital to the Philippines’ competitiveness.

The Government Infrastructure Forum held Wednesday afternoon was intended to bring together the various government agencies and the private sector to hopefully cooperate on various infrastructure projects.

The forum was hosted and participated in by several business organization such as the Amcham, Bishops-Businessmen’s Conference, Philippine Exporters Confederation, Makati Business Club and Federation of Filipino Chinese Chamber of Commerce and Industry and several others.