The Asian Development Bank (ADB) has recently released a statement confirming a US$ 300 million loan that it would provide in support of Philippines’ efforts towards improving the framework for public-private partnership (PPP) infrastructure projects. Under the framework, the policy-based loan will be used to help private sector companies take part in the government’s infrastructure development program.
Sources claim that through the PPP infrastructure projects, the Philippines government will be able to capitalize on the innovations and expertise provided by the private sector. PPPs can also facilitate higher quality of life and offer reliable public services to citizens by providing a more efficient infrastructure, the sources mentioned further.
According to The Philippine Star, the Philippine government is seeking to raise investments in infrastructure to 7.4% of the gross domestic product (GDP) by 2022, taking advantage of its rising population, rapid urbanization, fast-emerging economy and archipelagic geography. As of 2016, the infrastructure investments in the country supposedly constituted about 5.1% of the GDP.
Sources with knowledge of the matter informed that the “Build, Build, Build” program, which is part of Philippines’ medium-term development plan, would require an anticipated US$168 billion in total investments for completing 75 significant priority projects across the nation. The government aims to employ an optimal mix of government expenditure, official development assistance and private investments for funding the projects.
For the record, the Philippine government has allocated 16 PPP projects nationwide since 2010, valued at nearly US$6.2 billion. Over the program period, feasibility studies related to six projects were also recorded to be completed.
Further records show that in 2011, Philippines was categorized as an emerging nation in terms of being PPP ready. Referring to The Economist Intelligence Unit’s recent report, Philippines is now ranking seventh overall, joining the group of developed PPP markets which includes countries like India, Japan and South Korea.