The present Public-Private Partnership (PPP) projects in the pipeline will contribute to the country’s infrastructure development requirements from 2017 to 2020. Over 40 PPP projects worth USD 18.99 billion are in the current pipeline.
“PPP projects will contribute USD 24.97 billion or 36% of the total remaining required infrastructure spending from 2017-2020”, PPP Center Executive Director Cosette V. Canilao said during the Financial Executives Institute of the Philippines (FINEX) conference in Makati last October 2.
The event entitled “Capitalizing on Philippine Growth and Ensuring Sustainable Development” highlighted the latest developments in the country’s PPP program. The participants were also briefed by the PPP Center head on the present status of PPP projects in the Philippines.
Different panelists from the government, academe and private sector joined the different forum sessions with the agenda on future investment opportunities and state of the country’s business conditions in the country especially during election period. Executive Director Canilao was one of the panel members in the session on competitiveness and infrastructure spending.
One of the major highlights of the financing for public infrastructure session is the discussion on how to keep the current momentum of projects flowing through the amendments in the PPP Act and the support of the business community.
According to the Asian Development Bank (ADB) study, the country needs to invest at least $127.1 billion for the years 2010 to 2020 in domestic infrastructure to meet the needs of its growing population and rising incomes. From 2010 – 2014, the actual Philippine infrastructure spending totaled to USD 26.8 billion. The government is planning around USD 30 billion infrastructure spending for 2015 and 2016.
As of October, there are 14 PPP projects currently being tendered which include the five bundled airport projects, two rail projects, two water projects, a port modernization, two Information Technology (IT) projects, a road project and prison facilities. These projects have a total indicative cost of USD 11.46 billion. The government will also rollout two new rail projects: the LRT Line 4 and Line 6.
