Government urged to partner with more foreign, private investors for infrastructure

MANILA, Philippines — There is a need for the administration to explore partnerships with more foreign governments and private investors in infrastructure development to maximize the potential gains for the country, industry experts said.

In a forum, Dindo Manhit, president of local think tank Stratbase ADR Institute,  said more inter-governmental partnerships should be pursued, but still be guided by the Philippines’ independent foreign policy and national interests.

“The current administration must ensure that it safeguards the Philippines from potential economic, financial, and security risks….by ensuring that appropriate studies are conducted on the feasibility and sustainability of projects that it engages in,” he said.

Manhit said amid the current geopolitical landscape and the transition to post-pandemic recovery, the Marcos government must increase its efforts in building and modernizing the infrastructure network while further improving the ease of doing business and creating a more enabling regulatory development for both local and foreign investors to take part in.

Aboitiz InfraCapital president anCEO Cosette Canilao, the former head of the Public-Private Partnership (PPP) Center, said private sector participation in infrastructure projects provide a number of benefits such as increased financial capability, availability of technology, experts and managerial competence, and improved service efficiency, if public-private contracts are done right.

“[As] PPP investors, we look for projects that are bankable – where risks are fairly allocated between the government and us. And we prefer investing in a market where there is very steep commitment by the government to undertake an effective PPP program,” she said.

“What we are hoping for next is the speedy evaluation and approval of numerous projects in the pipeline. It will also augur well for the private sector if there is clear and consistent communication of directions and timelines when projects are expected to be evaluated or approved. A longer term, proactive and relevant infrastructure strategies are essential to maximize the capabilities of private institutions,” she added.

Show comments