August 20, 2018 at 07:05 pm
Manila Standard Business
The Asian Development Bank said Monday its board of directors approved a $300-million, policy-based loan to support the Philippines’ efforts to strengthen the framework for the ‘Build, Build, Build’ infrastructure development program.
Government reforms supported by ADB under the Expanding Private Participation in Infrastructure Program subprogram 2 seek to create the enabling policy environment that will allow public-private partnership projects to flourish using private sector expertise and innovation.
“PPPs can raise the quality of life for citizens by providing reliable public services through efficient infrastructure. Reforms under the EPPIP program have been successful in stimulating the PPP market and improving the quality of infrastructure projects in the Philippines,” said ADB senior trade specialist Cristina Lozano.
The government aims to raise infrastructure investments to 7.4 percent of the gross domestic product by 2022 from 5.1 percent in 2016.
The BBB program, a part of the medium-term Philippine Development Plan, is estimated to require a $168 billion in investments for 75 high-impact priority projects nationwide. The government wants to use an optimal funding mix composed of government spending, official development assistance and private capital to finance the projects.
ADB said it supported reforms that helped ensure sustainable funding for government direct and contingent support to PPPs, improve long-term infrastructure planning, strengthen the government’s capacity to manage the PPP program and enhance the legal framework for PPP preparation, approval and implementation.
Reforms also helped facilitate the use of PPPs by local government units as an alternative in pursuing infrastructure development. The government-run PPP Center provided support to LGUs to develop and implement PPP projects in priority sectors such as water supply and sanitation, solid waste management and urban transport.
“The Philippines has made significant progress since the PPP program was launched in late 2010,” said ADB country director for the Philippines Kelly Bird.
“With a huge project pipeline being rolled out under the BBB program of President Rodrigo Duterte, leveraging public resources via private sector participation remains relevant,” Bird said.