BSP: Enough funds available for PPP plans

MANILA—The additional 25 percent Single Borrowers’ Limit (SBL) available to banks and quasi-banks that can be tapped to finance publicprivate partnership (PPP) projects will expire today, Dec. 28, the Bangko Sentral ng Pilipinas said.

The Monetary Board (MB) decided to allow the lapse for the additional 25 percent SBL, a three-year regulatory relief in 2010 for PPP projects, which had already been extended for another three years.

According to the MB, “sufficient feasible funding alternatives” for PPP project proponents are already available in the market.

In June 2016, the BSP released Circular No. 914, which eased some restrictions on lending to subsidiaries and affiliates of banks to support the financing of priority programs under the Philippine Development Plan and the Public Investment Program.

“The same circular also exempts a bank’s or quasi-bank’s loans to its related parties for the purpose of project finance from the 30 percent unsecured individual ceiling during the pre-operational phase of a PPP project,” BSP added.

But now the entry of new foreign banks provides additional potential funding for PPP projects.

Funding arrangements are also possible through multilateral and international development organizations such as World Bank, the Asian Development Bank, and the newly formed Asian Infrastructure Investment Bank, and Japan International Cooperation Agency, which support PPP projects.