State-run pension fund Government Service Insurance System (GSIS) is looking at investing $400- million in a new fund to be used in financing infrastructure projects.
GSIS president and general manager Robert G. Vergara said he was enjoining the pension fund’s finance group to recommend to the incoming board the earmarking of money for another infrastructure fund which, he said, “looks to be a promising area of investment.”
Vergara was appointed by President Aquino to head the GSIS in 2010, with his six-year term co-terminus with the President.
In 2012, the GSIS and three investor partners shelled out $625 million to put up the Philippine Investment Alliance for Infrastructure (Pinai), the largest-ever infrastructure fund set up for the Philippines.
The GSIS contributed $400 million while the remainder was infused by the Asian Development Bank, Dutch pension fund asset manager Algemene Pension Groep and Macquarie Infrastructure and Real Asset.
In case the next GSIS board would approve the creation of what could be “Pinai 2,” Vergara said he would recommend a similar $400-million investment in core infrastructure projects, such as power, transportation and bulk water supply.
“If we were to earmark another $400 million, it would not be that difficult to deploy given the needs of the country for these types of infrastructure,” the GSIS chief said.
The GSIS has already fully deployed its Pinai commitment through two solar power plant projects that were inaugurated in Negros island two weeks ago, he said.
The Pinai has also invested in other renewable power projects in Luzon and Visayas, a coal power project in Mindanao, as well as an oil storage land farm. The fund is also part of the consortium that will extend Light Rail Transit Line 1 to Cavite.