Source: Manila Bulletin, 07 April 2012
MANILA, Philippines — The government has disbursed P141.8 billion for infrastructure projects under the enacted General Appropriations Act of 2012.
Socio-economic Planning Secretary Cayetano Paderanga, Jr. said the 2012 budget is 25.6 percent higher than the 2011 allocation and represents 1.6 percent of the country’s gross domestic product (GDP) compared to the 1.4 percent last year.
Speaking at the LGU Public-Private Partnership forum in Iloilo City, Paderanga noted that despite this increase, government spending will not be enough to make up for the deficiency in infrastructure spending.
“The government is promoting broader participation of the private sector in developing and taking on infrastructure projects in partnership with government, not only through investments but also implementation of the projects, operations and maintenance.”
Paderanga stressed that local governments are considered a major player by developing and implementing its own infrastructure projects using public-private partnerships as an alternative scheme.
“Now is the time to take advantage of the positive conditions of our financial standing in the global financial community.”
. Paderanga also noted that the Philippines is currently enjoying improved ratings from international financial institutions.
“Our peso is much stronger, we have lower interest rates, and have enhanced our long-term peso-bond market. This makes us very attractive to financial institutions that are willing to lend longer for housing and infrastructure financing.”
“With this keen interest from the private sector, financial institutions and the banking sector, local governments are now afforded with the opportunity to jumpstart its own infrastructure projects.”
“This in turn will boost the competitiveness of our productive sectors and generate massive employment for our fellow citizens.”
However, Paderanga pointed out that public-private partnerships can only be a qualified success if projects are undertaken through transparent and responsive governance.
“Public-private partnerships should be used as a tool to attain inclusive growth for all Filipinos. Good governance is the principle which we will use to guide our decisions and actions in undertaking our strategies for development.”
“There is no room for fraudulent transactions, exploitation or maneuverings. Public-private partnerships are built upon the foundations of transparency, trust, and accountability. This is the only way this can succeed,” Paderanga added.
