Source:   Manila Bulletin

MANILA, Philippines — Trade Secretary Gregory L. Domingo said yesterday delays in the implementation of the Aquino government’s private-public partnership (PPP) program will not pose concerns to economic development since the bottomline is that schedules for PPP projects for bidding this year remain on track.
Funding for these PPP projects, with the first five projects requiring investments of $1.08 billion, is also not a source of worry for government officials.

“Funding is not a problem,” said Domingo. “The market is very liquid and there’s a lot of cash floating around.” He explained that the process for the PPPs just take a while to implement including legal issues which ‘will really take a long time (to settle).”

The trade chief assures investors that the government is doing all it can to ensure the first batch of PPP projects will be started this year. “It takes a while to get the projects up but once you start one, the rest will follow.”

“(We’re) getting there slowly but surely,” said Domingo.

Domingo said once the PPP projects are initiated and started, this will support the government target of achieving a 7-8 percent GDP growth for 2011 as it would spike expansion in the construction sector. In the first quarter, there has been a slowing of constriction activities and have contributed to decline in GDP.

“We expect to catch up in the second half not only because of PPP but also because of government construction projects,” he said.
Philippine Chamber of Commerce and Industry President Francis Chua said the private sector proponents of the PPP are not disheartened about delays in the bidding and implementation.

“(Achieving) 7-8 percent growth this year could be a little bit hard because the PPP projects are still to be (implemented) but once it is on then you’ll be surprised how things will move very fast,” said Chua.

Chua added that investors are not worried about the PPP schedule and possible further delays. “We are not worried ‘ we just have a new government and we need more time. We don’t like to rush things. So, the government is doing it slowly but safely.”

Published on June 14, 2011