Key projects must tap PPP
The government would use PPP to cut spending on such projects
Government must consider public-private partnerships in undertaking big-ticket projects once the contentious House-approved Maharlika Investment Fund bill becomes law, House leaders said.
They claimed that established techniques, such as the PPP, where the private sector takes on project risks, may be leveraged to better meet the SWF’s planned objectives in hopes that the creation of the multi-billion peso SWF will not jeopardize the PPP’s strength.
Go Negosyo founder Joey Concepcion, also Private Sector Advisory Council jobs group lead, told the Daily Tribune that the PPP and SWF are good if managed by the private sector, which has a stake in it.
“PPP can co-exist with Maharlika,” Concepcion said. “(For) Example, the NAIA modernization private sector funds and runs the airport but government still owns the land and structure after the period is over. In fact the fund can own a portion of this PPP not to exceed 10 percent,” he
explained.
Good idea if properly done
Despite the backlash leveled at the Maharlika bill even before it was passed on third and final reading, Concepcion expressed his support for the measure, saying he is not totally against the fund, which could be done through the PPP.
He earlier said that the creation of the Maharlika is a “good idea if done properly,” notwithstanding several business organizations’ reservations about the sovereign wealth fund due to concerns about financial mismanagement.
Concepcion likewise said that the investments should be made locally in projects awarded to conglomerates with experience and proven track records.
Previously, Economic Planning Secretary Arsenio Balisacan said the Maharlika is viewed as another vehicle for sources of financing for investments, just like the PPP scheme, official development assistance from other governments, and the national budget.
The President has been pushing for more PPP, and he even mentioned it in his first State of the Nation Address in July. He said that the government would use PPP to cut spending on such projects.
Aside from infrastructure, Marcos said PPPs will also cover energy projects, which are now in demand as the economy continues to expand.
The controversial Maharlika bill swept through the House plenary in its last session in December after being certified by the President as “urgent.”
It remains pending before the Senate.
The Chief Executive, who himself admitted that he floated the idea of creating a sovereign wealth fund to finance bigticket infrastructure projects, high-return green and blue projects, and countryside development, among others has expressed support for the House-approved bill.