PCCI calls for revival of PPP projects

To hasten implementation

Some members of the private sector are convinced that if only the government would allow certain Public-Private Partnership (PPP) projects to move forward, the implementation of the country's infrastructure program would have gone so much faster that how it is doing now.

In an interview, Philippine Chamber of Commerce and Industry (PCCI) President George Barcelon said this is something that several infrastructurerelated companies will make a formal appeal on with the government moving forward.

He also said that despite the government's decision to heavily rely on Official Development Assistance (ODA) in financing the country's major infrastructure projects, he remains optimistic about more PPP projects taking place within this administration.

This, as the government's "slower than expected" rollout of public infrastructure projects is already becoming too apparent, even causing World Bank to trim its growth projections for the Philippines for this year and next year.

"In terms of infrastructure, they (the projects) are on-going but one area that they (government) have to review is maybe revive the PPP. We should continue with the PPP. We should be aware of the factors that can make things happen faster," Barcelon told reporters on the sidelines of the 43rd Philippine Business Conference being held in Manila.

Barcelon said several companies-including Ayala Group, Megaworld Corp., JG Summit Holdings, Inc., SM Group, and the International Container Terminal Services, Inc. – are now planning to meet with the government to formally air their concern about the administration's slowly moving infrastructure program.

"They were there (when we talked to the government). They heard Finance Secretary Carlos Dominguez said 'we have nothing against PPP and we are not closed to it but tell us and give us proposals'. If some of these projects can be handled by the private sector, it's their money, they want to take the risk, why not?" Barcelon said.

"So the thinking is there. The problem is the perception. At the start, we saw in the trips of the President that he's been getting a lot of commitments, in terms of ODAs. Somehow, it drowned the private sector," he added.

As a start, Barcelon said that a potentially new PPP project may be designed for the rebuilding efforts at the war-torn Marawi City in Mindanao.

"I'm quite optimistic. Look at Marawi, I don't think we should be looking at ODA to rebuild the city. It should be a private sector initiative," Barcelon said.

"There would be assistance like that from World Bank, they've been voicing out about helping us, but they (government) have to realize that to rebuild, you need (internal) financing. I would think that the government is aware that when they talk about this rebuilding, it's going to be private sector led," he added.

Barcelon's statement came a couple of days after President Rodrigo Duterte declared the liberation of Marawi City, after the military troop killed the top two notorious terror suspects nearly five months since terrorists took over the area.

The World Bank was then quick to reiterate its commitment to work with the Philippine government in helping Marawi City rise from devastation.

Dominguez emphasized the country's need for World Bank’s technical advice and expertise in reconstructing the entire city of Marawi as the Philippines has very limited experience in handling a rehabilitation program of this magnitude.