PPP and other dreams in the SONA

To jumpstart our economy so that it could grow at rates that would provide a better life for more Filipinos, the government of the 15th president of the republic zeroed in on public-private partnerships (PPP) as the solution. In his words, this is the new and creative approach to our long-standing problems.

After some discussion on how to set into operation this “novel” idea, the task — through an executive order — fell onto the lap of the National Economic Development Authority. Thus, we have a newly formed Public-Private Partnership Center.

If you think of the Department of Trade and Industry as action center go-go-go, you could describe NEDA as planning slow-slow-slow. With due respect to Secretary Cayetano Paderanga, being slow in this respect is not derogatory; it just tests our patience.

Executive Order No. 8 creating the PPPC aims to accelerate the financing, construction and operation of key government infrastructure projects. Those so far been lined up by NEDA for 2011 are the second phase of the NAIA expressway, a road linking Daang Hari and SLEX, and the privatization of the LRT 1 operation and maintenance.

Without doubt, these are solid projects, and their contribution to the economy cannot be debated. But to be the centerpiece of the current administration’s economic program to propel much-needed growth? Certainly not.

What happened?

So where are the specially mentioned priority projects? We were promised construction of needed infrastructure in order to help tourism grow. In agriculture, where is the access to grains terminals, refrigeration facilities, orderly road networks and post-harvest facilities.

At least, tourism-related projects (which had been previously lined up by the past leadership) are in the pipeline. Listed for roll-out during the remaining months of 2011 are the new Bohol and Legaspi airports and the improvement of the Puerto Princesa airport.

Don’t ask about agriculture-related projects. These seem to have been swallowed into a sink hole. The nautical highway, one which the past administration bandied as its flagship contribution to the economy, is no longer mentioned. Has it joined a taboo list?

Where are the quick projects that seemed to have been on the brink of finalization, even warranting several paragraphs in P-Noy’s inaugural State of the Nation address? Those certainly whetted our interest, especially since he said the government would not have to spend a single peso to build.

I don’t think we’ll hear from the president anything about that expressway from Manila that will pass through Bulacan, Nueva Ecija, Nueva Vizcaya until the end of Cagayan Valley. Well, at least not in today’s SONA.

Is it too much to ask what happened to that instant $100 million that would come with simply a sovereign signature to rent out the navy headquarters on Roxas Boulevard and the naval station in Fort Bonifacio? So are we kissing goodbye the modernization of our navy fleet?

Forgotten?

In strengthening private sector partnership, we were promised that build-operate-and-transfer projects would undergo a quick and efficient process. What used to take anywhere from a year to a decade would now only take six months. We hope this promise has not been forgotten.

We’re thankful that registering a business name, largely through computerization, has been drastically cut down to 15 minutes from a minimum of four to eight hours depending on the day. But this accomplishment is not technically creditable to P-Noy since this project has been in the works for some years now.

What we’d like to see is the simplification and streamlining of registration processes for new businesses. P-Noy has called on local government units to review their own procedures.

Unless this is successfully dealt with at the LGU level, improvements at the DTI and Securities and Exchange Commission levels will not matter much. A train with several engines can only move as fast as its slowest engine. Not only does it take a long time to get local permits, its cost has also been on the rise.

This is detrimental more so to new micro and small businesses that need more coddling to survive. It is a given fact that MSME growth continues to be anemic, often hampered by unnecessary local ordinances that are slapped extravagant rates.

Furthermore, micro and small businesses do not have the conduit to link up with medium and large businesses due to a lack in an effective and efficient government system. For so long, the state has been focusing on unlocking credit for new businesses.

New studies now point out that this may not be the problem since there has always been an abundance of capital in the economy but this remains locked in the banking system. Banks are willing to lend, but the business proposals are not often bankable.

More dreams in today’s SONA?

The contribution of the private sector to helping the Philippine economy to grow cannot be underscored, more so since the government is continuously cash-strapped because of inadequate collections and increasing costs of maintaining the bureaucracy and providing for fundamental services.

Until P-Noy is able to truly create a working and beneficial relationship between the state and business, all these dreams of improving the educational system, extending the infrastructure network, providing better health services, and upgrading our military and police capabilities will remain as dreams.

I quote P-Noy from his first SONA: “Once we implement these public-private partnerships, we will be able to fund public service in accordance with our platform,” and “From these public-private partnerships, our economy will grow and every Filipino will be the beneficiary.”

Does P-Noy remember saying this? Did he really mean it? Are we in for another SONA that promises the moon and the stars, but will simply be forgotten once the day is over?

Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. For a compilation of previous articles, visit www.BizlinksPhilippines.net.