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Government economic executives on Wednesday fleshed out the Aquino administration’s plans for public-private sector partnerships, saying projects have been lined up to encourage development in the next six years.

National Economic and Development Authority (NEDA) Secretary Cayetano Paderanga Jr. said his agency is already working on projects to “strengthen the legal, institutional and governance framework" of these public-private partnerships (PPPs).

“We are starting to really work on projects that we hope will encourage the private sector to work with the government to accelerate development in the country," Paderanga said during the Philippine mid-year economic briefing in Makati City.

The NEDA chief cited the ongoing review of the country’s joint venture guidelines, as well as Republic Act 7718 or the Philippine Build, Operate and Transfer (BOT) law. “We are looking at these to streamline the processes for PPP and make them faster, but making sure that the safeguards are there."

Government expects the gross domestic product to grow by 5 to 6 percent this year, and a 7 to 8 percent in the next five years largely through employment opportunities from PPP projects, he added.

President Benigno “Noynoy" Aquino III highlighted in his State of the Nation Address (SONA) last month the need to harmonize the public and private sectors to spur economic growth.

Aquino also vowed in the same speech that BOT projects from the private sector would undergo quick and efficient processes under his administration.

Final list in October

The Finance Department, in coordination with NEDA and other agencies, is still drawing up the list of projects in which the government will solicit help from the private sector, Finance Secretary Cesar Purisima said.

He said that the list of PPP projects, to be launched in a conference this October, would focus on three sectors: tourism, agriculture, and general infrastructure.

“The opportunity for the country is there. It is really up to us to take advantage of it, but we cannot do it alone. We need your help," Purisima said in the same briefing attended by about a hundred representatives of the business sector.

Trade and Industry Secretary Gregory Domingo meanwhile said he would also propose tapping the private sector in power and transportation projects, especially in local government units.

“We will also help facilitate investments in infrastructure by revitalizing the promotion of PPP investments in power and transports. A total approach that makes our services flow seamlessly from the national government to local government units and back, strengthens the sense of a government that is accessible and within reach," he said.

Challenges

Representatives from the private sector described the plans presented by the country’s economic managers as “a promising agenda" while laying out challenges to make sure that the projects get positive results.

Makati Business Club chair Ramon del Rosario Jr. said the private sector is more willing to invest now in the country due to the new administration’s high trust ratings.

“I think it is fair to say that the private sector is much more hopeful now that such an enabling environment for investments can be put in place successfully because the new administration enjoys very high credibility rating," he said.

Del Rosario, however, advised government to work hard in solving the country’s governance problems, especially corruption, to be able to sustain the private sector's confidence.

“The Cabinet, in my humble opinion, will be well advised to focus substantial energies in setting the tone early for a more attractive environment for private investments," he said.

Jon Lindborg, Asian Development Bank advisor for PPPs, said that the biggest challenge for the Aquino government is implementing its plans in tapping the private sector’s help.

“The challenge for the Philippines is being able to execute these plans, meeting the goals and keeping the focus on implementation," he said. —VS, GMANews.TV