European Commission President Jose Manuel Barroso, right, ushers Benigno Aquino III, President of the Phillippines, upon arrival at the European Commission headquarters in Brussels, Monday, Sept. 15, 2014. AP
BRUSSELS—President Aquino played salesman on Tuesday and invited European businessmen to invest in various private-public partnership (PPP) projects underway, urging them to “contribute to the rise of Asia’s next tiger.”
In a gathering of potential investors at the Sofitel Hotel here, the President described a new business climate under his watch, one that claims to offer a “clear potential for profitability” and “a level playing field.”
“Today, I am confident in telling you: Take a look at what we have to offer,” he said.
“There is indeed a wealth of opportunity in the Philippines, and we hope to forge partnerships with you in the near future—partnerships where all parties involved will benefit, and will contribute to the rise of Asia’s next tiger.”
The President’s sales pitch came with a glossy booklet detailing investment opportunities in the Philippines and with the words, “Now is the best time to invest” there.
Robust pipeline
“Under the hallmark of good governance, the Philippine government guarantees that the private sector will be able to do business in an environment that nurtures fair and transparent transactions,” it said.
It outlines a “robust pipeline of PPP projects” such as the P122.8-billion Laguna Lakeshore Expressway Dike Project, the P35.4-billion Cavite Laguna Expressway Project, and the P64.9-billion Light Rail Transit Line 1 Cavite Extension Project.
“Under our administration, we get the infrastructure we need quicker than if we remained reliant on our budget process,” Aquino said.
“On top of that, investors can see a clear potential for profitability, so much so that they provide incentives for government in the form of premiums. The state is thus afforded the best possible bid because of a level playing field, which engenders fair competition among interested parties.”
Easy to set up shop
Aquino said business permits could now be obtained in three days, compared to the three-month, 10-step process before he took office.
“Streamlining the process of setting up shop in the Philippines eliminated opportunities for corruption and redounded to savings in the time and energy of companies,” he said.
“Unfortunately, for the past three administrations, the scales were unbalanced: Every incentive was seemingly put on the table just to be able to attract investors—from commercial development rights, to subsidies. Not to mention the fact that only six solicited projects were awarded in the 18 years before we entered office in 2010.”
From December 2011 until this month, he said his administration had either awarded or signed off on eight solicited PPP projects worth P62.6 billion.
In a speech on Tuesday at a forum organized by Egmont Institute, a think tank based in Brussels, Aquino declared, “I am proud to say to all of you: The Philippines is well and truly back in business.”
The President said the Philippines, with its economic resurgence, was now playing an “increasingly prominent role” as Southeast Asia builds a community working to achieve “security, peace and prosperity for its peoples.”
“I invite all like-minded people, communities and nations to join us,” he said. “Let us combine our strengths with yours; let us share lessons with one another, and together, accelerate our pursuit of the goal of improving everyone’s lives.”
Just getting started
Aquino said the Philippines, one of Asia’s fastest-growing economies, was just getting started.
“This is only the beginning,” said Aquino, who trumpeted government investments in health, education and other social services.
“These programs were designed with the long term in mind. They pave the way to a populace that is healthier, more educated and more equipped to take advantage of the opportunities that are becoming increasingly available,” he added.
“These are only a few of our accomplishments, but from these alone, it is clear: Good governance is making waves across the archipelago.”
In parading the gains of his administration, the President assailed his predecessor, former President Gloria Macapagal-Arroyo, before his international audience at the Château of Val-Duchesse.
Aquino described his election in 2010 as a “resounding statement” of voters that the “systemic pillaging of state coffers must end, and government must go back to serving its true bosses—the Filipino people.”
He made as exhibits of his anticorruption campaign the plunder case filed against Arroyo, the removal of former Chief Justice Renato Corona, and the impeachment of then Ombudsman Merceditas Gutierrez.
“My predecessor… is under hospital arrest as she faces two serious unbailable charges, with another one still being reviewed by the Ombudsman,” he said.
Investment driven
The 6.3-percent average economic growth from 2006 to 2009, the final years of Arroyo, was driven mainly by consumer spending with a bulk of the money coming from remittances from abroad.
“This meant that our economy was highly vulnerable to shocks not just in our own country, but in the host and receiving countries as well,” he said.
“This is why, over the course of our administration, we have worked to regain control of our economic destiny. We have made early strides in making Philippine growth more investment-driven, which is more sustainable,” he added, noting that the economy grew by an average of 6.3 percent from 2010 to 2013.
Prior to his term, Mr. Aquino said the Philippines was “mired in a vicious cycle of corruption, deceit and negativism.” He described Arroyo’s term as a “lost decade,” a period where “massive opportunity [was] squandered by a government that, instead of laying foundations for growth, focused on political self-preservation.”
“Some people had grown so apathetic that it seemed that the only ambition for them was to leave the country to look for better opportunities,” he said.
“Despite this, the previous administration had the temerity to claim credit for continued growth, which was actually fueled by Filipinos who were working abroad.”
Mr. Aquino said the Philippines was now enjoying “newfound vitality” that “can be felt in the optimism of the common Filipino.”
Originally posted at 6:39 pm | Wednesday, September 17, 2014