GSIS in talks to set up $750M infrastructure fund

The Government Service Insurance System (GSIS) is in talks with multilateral institutions on a planned infrastructure fund of up to $750 million, which would serve as a vehicle for investing in infrastructure projects.

Robert G. Vergara, GSIS president and general manager, said in a briefing Thursday that the pension fund also posted a net income of P57.5 billion in 2011, or an increase of 25 percent from P46 billion the previous year.

Regarding the planned infrastructure fund, Vergara said the GSIS was exploring possibilities of a tie-up with two multilaterals, although others may follow in signifying their interest.

“GSIS is committed to go ahead (and) we are looking at a launch by mid-year,” he said.

Vergara added that the planned fund would be in the range of $500 million to $750 million and that the GSIS has earmarked $300 million for it.

The GSIS explained that the kitty would be poured into public-private partnerships on infrastructure projects, which are expected to fully take off this year following an initial success in late 2011.

The National Economic and Development Authority has identified for bidding projects worth at least P170 billion.

These include the P70-billion MRT/LRT expansion project; P11.3-billion MRT Line 2 extension; P7.54-billion new Bohol airport; P36-billion Puerto Princesa airport; P21-billion NLEX-SLEX link expressway; P10.5-billion Cavite-Laguna expressway-Manila side section; and the P3.08-billion Daraga International Airport.

Also on the list are the development of a city terminal for Diosdado Macapagal International Airport, privatization of Laguindingan Airport operation and maintenance, and the supply of treated bulk water for Metro Manila, but costs for these are yet to be finalized.

Vergara said the proposed fund is different from the previously announced plan for the GSIS to contribute P50 billion to a P200-billion coffer that would come from government financial and social institutions.

“We are currently screening possible candidates for the selection of a fund manager,” he said.