PPP proponents gain access to capital markets to finance projects

MANILA, Philippines - The country’s securities regulators are preparing the framework that will allow companies engaged in public-private partnership (PPP) projects to raise funds through equities and bond issuances.

Philippine Stock Exchange (PSE) president Hans Sicat is hopeful the framework would be ready by next year.

“We are pleased to take part in this continuing initiative with the PPP Center, SEC, and the ADB. Now that we have covered the opportunities and risks for capital raising through securities and bond issuances, we hope that the actual framework for both will be forthcoming,” Sicat said.

During a forum entitled “Accessing the Philippine Capital Markets for PPPs,” the speakers and panelists from the government and private sector discussed the ideal structure for PPP project bonds as a source of financing.

During the same forum, the SEC presented the current government initiatives towards encouraging PPP project bond issuances.

The PPP initiative is the Aquino administration’s flagship program for infrastructure projects such as roads, bridges and railways.

Sicat said the PSE is seeking the views of stakeholders such as potential issuers in drawing up the possible listing rules.

The government has so far awarded $4.2 billion worth of projects under the PPP program.

There are at least three PPP projects in the pipeline. These include the P74.5 billion Ninoy Aquino International Airport  development project, the P50.15 billion Light Rail Transit  Line 4, the P64 billion LRT Line 6, the P122.8 billion Laguna Lakeshore Expressway Dike project.