IMF, ADB back govt’s PPP scheme

The International Monetary Fund (IMF) and the Asian Development Bank (ADB) on Wednesday lauded the Philippine government’s public-private partnership (PPP) initiatives, but noted that project implementation was expected to be delayed.

 

“PPP is good not just in mobilizing resources but also in mobilizing the private sector,” ADB president Haruhiko Kuroda told reporters during the 45th Annual Board Governors' Meeting of the multilateral institution held in Manila, which will run from May 2 to 5. 

“You should understand that PPP is not quite simple. It is complicated and it may take sometime before various projects be implemented,” Kuroda said, citing that ADB is assisting the government in utilizing the PPP scheme in infrastructure development.

 

For his part, IMF Deputy Managing Director Naoyuki Shinohara said the country is in the “right direction” by implementing the public-private infrastructure scheme.

“The Philippines is in the right direction in choosing PPP. However, it is not the only solution,” Shinohara said.

“PPP is one of the ways to get investments in this country and it is an important and effective instrument to promote infrastructure,” he claimed.

 

“It seems that government effort to promote PPP is bearing some fruits,” he added.

 

Still, he noted that direct investments will be the “most important” factor that will make the country’s economy booming.

 

“You have to have good business climate and the so-called good governance and sound fiscal position in the improvement and promotion of direct investment,” Shinohara said.

 

Currently, only one project – Daanghari-South Luzon Expressway Link Road – has been awarded by the government. The Ayala Corporation is set to build a 4-kilometer 4-lane toll road worth P1.956 billion.

 

In March, President Benigno Aquino III said that eight PPP projects including the rehabilitation of the Ninoy Aquino International Airport Terminal-1 will be rolled out this year. 

 

“We intend to roll out about eight of them this year but we want an accelerated program for the PPP program itself,” Aquino said. — Rouchelle Dinglasan/RSJ, GMA News