Gov’t woos US firms to invest in PH infra projects

The National Economic and Development Authority (NEDA) said the government needs the private sector in financing infrastructure flagship projects (IFPs) due to limited resources, according to a report by Manila Bulletin.

During the Philippine Economic Briefing in Washington D.C., NEDA Secretary Arsenio M. Balisacan emphasized the significant role of the private sector, describing them as “crucial partners" in the overall infrastructure drive.

The private sector is a vital partner in realizing game-changing infrastructure projects in the country, given the limited resources of the government, Balisacan pointed out.

“Despite the tight fiscal space resulting from the financing of our needs during the Covid-19 pandemic, the Marcos administration has made it a top priority to utilize Public-Private Partnerships or PPPs to support and complement its infrastructure drive,” Balisacan said. 

“Pursuing PPPs will enable the government to leverage the private sector’s substantial technological and managerial expertise, as well as its financial resources,” he added.

Balisacan then urged American businesses to invest in infrastructure projects in the Philippines, underscoring several factors which made the country a more attractive investment destination.

These include sustained economic growth, the country’s young, vibrant, and growing working-age population, and recent structural and regulatory reforms aimed at improving the business climate for international investors.  

“The Marcos administration has aggressively pursued several initiatives aimed at encouraging greater local and foreign investment and private-sector participation in infrastructure development,” the country’s chief economist said.

Balisacan also highlighted the significant scope for commercial participation and expansion of foreign companies.  

“Given the country’s numerous development and infrastructure needs, there are vast opportunities in sectors such as energy, water, logistics, transportation, agribusiness, manufacturing, tourism, health, education, and digital connectivity,” he explained.  

Balisacan also assured investors of the country’s commitment to infrastructure development by discussing the 194 IFPs recently approved by the President, which are worth a total of approximately $165 billion.  

“IFPs shall be prioritized in the government’s annual budget preparation and shall enjoy the benefits of expedited approval processes consistent with current legal frameworks,” Balisacan said.

“Notably, the majority of these infrastructure flagship projects focus on physical connectivity and water resources. We are committed to creating a more competitive investment environment,” he added.