Local businessmen urged to enter into PPP projects with LGUs

MANILA, Philippines - Vice President Jejomar Binay urged yesterday local businessmen to enter into Public Private Partnership (PPP) with local government units (LGUs) in order to develop infrastructure and other projects.

In his keynote speech during the first day of the 37th Philippine Business Conference at the Manila Hotel yesterday, Binay said development oriented LGUs are looking for partners for their projects. Binay said that LGUs have their own money especially if they can collect their internal revenue allotment (IRA) by next year. Binay said the Congress estimates uncollected IRA to be at P500 billion. “I am sure they would want to invest in their own development. This is where they could use reputable partners,” Binay said.

Likewise, Binay urged members of the Philippine Chamber of Commerce and Industry (PCCI) to support the final introduction of zoning and proper land use project. “They could enter into a strong partnership with local government.”

Binay said the absence of a National Land Use and Zoning Law and a strategic Urban Development Plan for Metro Manila and other highly urbanized cities has stunted the country’s modernization and pushed the Philippines behind nearly all of its Asian neighbors by years and years.

Binay said the absence of the zoning law has resulted in population and building density. “The result is an overconcentration of high density high rise buildings with no adequate provision for water, clean air, sewerage, green or open space or road space for the cars of all the car owners residing in the high rise buildings,” he said.

“Perhaps we could begin to enforce our building code, traffic rules and shipping laws better. Perhaps we could begin replanning our cities, towns and countryside, instead of leaving everything to the real estate industry and private developers, which has been the case for years,” Binay said.

At the same time, Binay said that there are other areas for cooperation between the public and the private sector. “I would surmise that if the government could be persuaded to utilize its large gross international reserves of $75 billion for its development projects, the PPP could open up in various areas, giving a boost to business activity nationwide.”

By doing this, Binay said there could be a shift in the source of public borrowing from foreign financial institutions to the central bank, which could save the government from the fluctuations in the exchange rate.

Lastly, he said the government must ensure a level playing field for all. “Businessmen must not be made to speculate whether or not a rule or policy that is in effect today would still be the same tomorrow. Transparency, consistency, predictability, longevity must govern all such rules and policies.”