Korean mutual fund eyes local infrastructure projects

MANILA, Philippines - The mutual fund of the Korean military is interested in investing part of their $5-billion fund in infrastructure projects in the Philippines, the Board of Investments (BOI) reported.

In an interview, BOI Managing Head Cristino L. Panlilio said the Military Mutual Aid Association of Korea has expressed interest in investing in the country.

“We have given them a list of the PPP (Public Private Partnership) projects,” Panlilio said. He explained that the Military Mutual Aid Association is similar to the AFP RSBS (Armed Forces of the Philippines Retirement and Benefits Systems), the mutual fund of Filipino soldiers. Panlilio, who is also a Trade Undersecretary, said that their presentation before the officials of the mutual fund gained a very favorable response.

While in Korea, Panlilio said they also met with representatives from Korea’s water utility firm Korea Water Resources Corp (K-Water). K-Water won the bid to operate the 218-megawatt (MW) Angat-hydroelectric power plant last April 28 after it submitted the highest offer of $440.8 million.

Panlilio said K-Water was very disappointed with the constitutional issues being raised on the Angat water deal. “It was very discouraging and they are now looking at other options,” he explained. In spite of this, Panlilio said K-Water is still interested in investing in the water and power sector.

The Angat deal hit a snag after a number of civil society groups and lawmakers filed a petition with the Supreme Court to stop PSALM from awarding the country’s prime hydro facility.