Amcham: PHL has no poverty alleviation plan

CEBU, Philippines -  The American Chamber of Commerce (Amcham) is calling on the Philippine government to do more planning to alleviate poverty noting that the country's per capita income is "something that it cannot be proud of" as it is lower than the income in Indonesia.

John D. Forbes, Senior Adviser on Investment Climate Improvement Project spearheaded by Amcham, said that the country has no plans until 2016.

"I'd like to see more planning. The per capita income is not to be proud of, it’s behind Indonesia. Sometimes, it is a too divided society," he said.

Forbes said that on the issue charter change to address foreign ownership structure, it does not matter who has the shareholding in a project for as long as the service is good.

The public-private sector projects (PPPs) he said needs to be informed to the public as to its bidding. "The DPWH (Department of Public Works And Highways) and the DOTC (Department Of Transportation And Communications) have not express on this bidding," he said.

Forbes stressed that investments will come mainly from the private sector. "The public-private sector project will develop overtime. There is money that was not there before," he said.

The next step will be for the Department of Transportation and Communication (DOTC) and Department of Public Works and Highways (DPWH) to express the bidding. Also, the National Economic Development Authority (NEDA) has to develop the capability of PPPs, Forbes said adding that the Asian Development Bank and Canadian agencies as well as the World Bank have cooperation to make these projects happen.

According to Forbes the country is expected to deviate from its past experience of engaging only in joint venture type of PPPs.

"They were lazy. They're just into joint venture," referring to the past projects of government. NEDA is into developing the capability of PPPs this present administration,” he said.

Amcham proposed for doubling of infrastructure spending to five percent (5%) of the Gross Domestic Product (GDP) in order to channel the funds to a pipeline of PPPs which are professionally bid and implemented.

Forbes echoed this recommendation identified in the Amcham's investment climate improvement project noting that the country has "to draw on international technical assistance to move forward nearly P200 billion in viable roads and rail projects." Further, it said that P1 trillion available local funds can be drawn for these viable projects.

"Legal and procedural reforms will be needed to revitalize PPP programs. Amend the Build-Operate-Transfer (BOT) laws and its IRRs (implementing rules and regulations). Amend or rescind the JVA EO. Assure that NEDA-ICC reviews all major projects,“ an Amcham report recommended.

Likewise, the Amcham report strongly discouraged all unsolicited projects. Remove foreign equity restrictions.

Forbes said that the recommendations, which were output of the collaborative efforts of some 300 foreign and domestic investors, identify also the need to speed up project approvals by using timetables and deadlines.

"Release DBM funds in a timely fashion. Use only CDF only for needed infrastructure. Create and follow a ten-year infrastructure master-plan. Implement the National Transport Plan. Increase transparency and reduce corruption and controversy over infrastructure projects. Protect investors from political risks (TROs, LGU interference, right of way problems),” Forbes concluded.