Manila, the Philippines, February 23, 2016
--IFC, a member of the World Bank Group, said at today’s PPP Conference that it will be important for the government to ensure continued continuity of its PPP program in order to maintain its position as a regional leader in private sector engagement.
“The Philippines has been a model for how to use public-private partnerships, or PPPs, to leverage the extensive expertise and resources of the private sector to meet the country’s growing infrastructure needs,” said IFC Director for East Asia and the Pacific Vivek Pathak. “By building on what it has already achieved, the Philippines can accomplish even more.”
Mr. Pathak said that the Philippines has been a leader in PPPs in Asia due to its high level of private sector participation and very effective tapping of private funding for infrastructure.
According to Pathak, institutionalizing the country’s PPP Center as a permanent institution, along with ensuring fairness and transparency in PPP projects – from planning, procurement, and award to implementation – will provide significant long-term benefits for the government, private sector partners, and the public.
“Fairness and transparency attracts more private sector firms to participate in PPP projects”, said Pathak. “More participation leads to competition and helps achieve better bids and more equitable terms for the government and the public.”
IFC acted as transaction adviser on two PPP projects awarded under President Aquino’s administration. The NAIA Expressway (Phase II) Project for the Department of Public Works and Highways is nearing completion, while the concessionaire of the LRT 1 Cavite Extension and Operations and Maintenance Project signed a PhP 24 billion ($505 million) loan agreement on February 12, reaching financial closure in a relatively short period considering the size and complexity of the project. In these successful PPP procurements, IFC used its global knowledge and experience to address local challenges and conditions.
Pathak praised the Philippine government and the PPP Center under its Executive Director, Cosette Canilao, for awarding 12 projects worth PhP 197 billion, or around $4.2 billion, with another 16 projects worth PhP 623 billion under procurement.
“The planned PPP projects require a significant amount of long-term funding and the domestic banks and investors alone won’t be able to solely finance all the projects in a sustainable way“, Pathak said.
“Multilateral institutions such as IFC can play a key role in bridging the gap, sharing the risk with domestic financiers, and mobilizing funding from international financers.”
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
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