Finance Secretary Benjamin Diokno said an active private sector participation is key in pushing the economic recovery of the country.
Diokno said the private sector’s role is critical, particularly with the government’s recent revision of the implementing rules and regulations (IRR) of the Build-Operate-Transfer (BOT) Law.
“This will be key in our bid to unlock the many benefits of public-private partnerships (PPP),” Diokno said in a briefing with the Financial Executives Institute of the Philippines.
In the near term, he said, the BOT Law will allow the Philippines to sustain its momentum in infrastructure spending despite budgetary constraints.
“Over the medium term, it will reap high-multiplier effects for the economy,” he said.
The renewed commitment to PPPs and the newlyenacted economic liberalization laws will support the government’s infrastructure program, Diokno added.
“We have inherited a number of game-changing reforms that will help us build a more business-friendly environment for both domestic and foreign investors,” he said.
Diokno said President Marcos Jr.’s marching order to revise the IRR of the BOT Law has been accomplished within his first 100 days in office.
The revised IRR took effect yesterday, following its approval by the BOT Law IRR Committee during a meeting last September 15 and its publication on September 27.
“The revised Implementing Rules and Regulations of the Build-Operate-and-Transfer Law will allow us to mobilize private sector resources as an engine for capital and a catalyst for growth. This move will produce exponential returns for our country that will span generations to come,” Diokno said.
The amendments are intended to address stakeholder concerns about the financial viability and bankability of PPP projects, as well as clarify ambiguous provisions that might have caused delays in the PPP process.
Centered on transparency and accountability, the revised IRR determines the true cost of infrastructure or development projects to the government, consumers and taxpayers.
“This ensures that the benefits and risks of PPP projects are shared equitably among all parties while protecting national interests,” Diokno said.
He said the revisions empower various regulatory agencies by giving them the freedom to carry out their duties and responsibilities, while introducing new oversight mechanisms to safeguard compliance with PPP obligations by both implementing agencies and private sector applicants.
“Projects that fit into the approved master plans and connect regions would be given priority to ensure that all Filipinos benefit from economic growth,” he added.
Diokno also said government efforts to address pressing concerns on inflation, poverty and the lingering socioeconomic effects of the pandemic through PPPs will be strengthened.
At present, the government is pushing for the passage of the remaining tax reform packages of the previous administration, including the Real Property Valuation and Assessment Reform Bill and the Passive Income and Financial Intermediaries Taxation Bill.
“The Department of Finance stands ready to support and collaborate with the private sector in transforming the Philippine business landscape into one that is genuinely inclusive, sustainable, and future-proof,” Diokno said. — Ruelle Albert D. Castro
