MANILA, Philippines — Local banks have expressed support for the government’s massive infrastructure program, saying they are ready to provide financing in case funding delays are encountered by the projects.
BDO Capital and Investment Corp. president Eduardo Francisco told participants of a business forum that banks are ready to provide support.
“BDO Capital fully supports the government’s infrastructure initiative. As a bridge, the government can use banks for funding if there are delays, no matter what funding scheme is utilized,” Francisco said.
According to the Bangko Sentral ng Pilipinas (BSP), assets of Philippine banks stood at P15.71 trillion as of March, 11.3 percent higher than last year’s P14.12 trillion.
The investment banking arm of BDO Unibank provides diversified services that include trading and underwriting securities, loan syndication, financial advisory services, and project finance services.
It continues to dialogue with government and potential bidders on how the whole BDO group can help fund projects — from the advisory stage all the way to project financing.
Under the Build Build Build program, the Duterte administration has
committed to spend up to P9 trillion for big-ticket infrastructure projects between 2017 and 2022. The 75 flagship projects include six airports, nine railways, three bus rapid transits, 32 roads and bridges, as well as four seaports.
The government said it would rely on official development assistance, particularly from Japan and China, as its main sources of infrastructure funding, as well as revenues from the implementation of the new tax reform law.
However, the government remains open to private-public partnerships or PPP funding scheme as well.
The government has made an assurance that it has the funds to implement its infrastructure program.
For this year alone, the budget for infra spending is equivalent to 6.3 percent of gross domestic product that would gradually increase to 6.8 percent in 2019 and eventually to 6.9 percent of GDP in 2020 and 2021.