DOF Press Release
April 12, 2011
The Philippines will be luring Chinese investors in the second leg of its series of road shows to trumpet its public-private partnership (PPP) initiative as officials stressed that lessons have been learned from previous Chinese dealings tainted with corruption allegations.
“We want to encourage our Chinese investors to put their money in the Philippines and invest in our infrastructure projects. We want to deliver the message that the Aquino administration is committed to transparent negotiations with them unlike before when dealings have been veiled in backroom exercises,” Finance Secretary Cesar V. Purisima said.
The Finance chief, together with Secretaries Rogelio L. Singson and Gregory L. Domingo of the Public Works and Trade departments, respectively, led the Philippine delegation to China, which also include Transportation Undersecretary Ruben S. Reinoso, Jr., BangkoSentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr., BSP Investor Relations Executive Director Claro P. Fernandez and PPP Executive Director Philamer C. Torio
The four-day road show, which covers the towns of Beijing and Shanghai, started on Monday and will end on Thursday, April 14.
BSP’s Fernandez said the China road show will be similar to the first one held in Japan last December, with economic managers expected to “have meetings with investors interested in PPP projects.”
He noted that a number of Chinese investors have already shown interest in bidding for the first five PPP projects announced by the government last month, specifically for contracts for the operation and maintenance for the Light Rail Transit line 1 and Metro Rail Transit 3.
According to the programme, the Philippine delegation is expected to hold meetings with the China Contractors Association, power provider State Grid of China Corp. and China Railway Engineering, among others.
“There are a good number of one-on-one meetings with these interested companies. They want to understand better how they can participate in these projects,” Fernandez said.
Purisima said the delegation will also pay a courtesy call to China Vice Premier Wang Qishan in a bid to “boost our bilateral relations with China,” now the second largest economy in the world.
Fernandez said the economic managers will also hold “a briefing on the Philippine economy to give key agencies and investors an update on the economy.”
There is no schedule yet on where will the next PPP road show be held, he said.
The PPP, considered as the Aquino administration’s centerpiece economic program, aims to tap private sector participation in 80 large-scale infrastructure projects worth P740 billion that will be undertaken from 2011 and beyond.
In a meeting with the People’s Bank of China, BSP’s Tetangco said Asian central banks noted of the continued accumulation of foreign exchange reserves, and thus, all of them agreed to “look for new avenues for diversification.”
“Given, however, the traditional investment constraints of central banks, I suggest that the Chinese government may consider issuing more yuan-denominated bonds in going forward,” Tetangco said.
