Implementation of PPP projects seen to boost ’12 growth | Inquirer Business

Implementation of PPP projects seen to boost ’12 growth

/ 09:39 PM October 18, 2011

HSBC sees the Philippine economy growing at a faster pace next year on expectations that the government’s priority infrastructure projects, which have been delayed, would finally push through and cause a sudden spike in investments.

The bank estimated that the domestic economy would grow 4.8 percent next year from a projected 4.3-percent expansion in 2011.

Frederic Neumann, managing director and co-head of the bank’s economic research unit for Asia, said in a press briefing Tuesday that implementation of infrastructure projects and private investments that could come in would provide a significant boost to the economy.

Article continues after this advertisement

The government’s priority infrastructure projects—which include airports and major roads under the Public-Private Partnership (PPP) program—were announced last year, but a single project has yet to be bid out.

FEATURED STORIES

Under the PPP, the government is inviting private companies to invest in public infrastructure projects. The objective of the program is to meet the country’s infrastructure needs despite the limited resources of the government.

The administration, which is being criticized for delays in implementing the projects, claimed it was only making sure proper procedures were being observed and safety nets against corruption adopted before the projects were to be implemented.

Article continues after this advertisement

HSBC said it was optimistic that several of the projects would start almost simultaneously next year, thereby causing a sudden increase in overall investments.

Article continues after this advertisement

Neumann said the strategy of President Aquino of pursuing good governance and transparency in public service, while it might be causing delays in implementation of some projects, has its benefits.

Article continues after this advertisement

“If the President succeeds in fully implementing his approach of good governance, this can generate much more confidence from the private sector and increase investments,” HSBC’s visiting economist said.

A 4.8-percent growth next year, although faster than the projected 4.3 percent this year, is lower than the government’s bullish target. The government wants the economy to grow by at least 7 percent a year over the short to medium term.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

TAGS: Government, Infrastructure, Philippines, PPP projects, public-private partnership

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.