To help spur investor interest in projects being offered under the public-private partnership (PPP) program, the government will be putting up a dollar-denominated equity fund from which winning bidders may draw upon whenever the need arises.
In an interview with reporters on Thursday, Trade Undersecretary and Board of Investments managing head Cristino Panlilio said an initial amount of $150 million would be set aside for the fund to be managed by the Investment House Association of the Philippines.
“This equity fund will be focused on PPP projects…. [It] is being put in place to attract more foreign investors to bid for the projects,” Panlilio said. “We’re just working out the documentation. There’s already an agreement in principle.”
Government financial institutions and pension funds, such as the Development Bank of the Philippines, Land Bank of the Philippines, Social Security System, and Government Service Insurance System, would be asked to provide the required amount for the equity fund, Panlilio said.
Winners of the auctions for PPP projects will then be allowed to tap the fund “if they need more money.”
The PPP program is still on track despite the delay in the bidding for the operation and maintenance contracts for the Light Rail Transit 1 and the Edsa Metro Rail Transit 3—the first projects to be placed on the auction block under the program, Panlilio said.
Five projects will be auctioned off in the second semester, the first being the construction of the P1.6-billion Daang Hari-South Luzon Expressway link road project, he said. The project is set to be auctioned off next month.
The Daang Hari-South Luzon Expressway link involves the construction of a 3.68-kilometer, four-lane paved toll road, plus two overpasses, four local roads, an undercrossing, a rotunda, and drainage structures.
Next in line is the P10.6-billion Ninoy Aquino International Airport Expressway Phase 2, and the P21-billion North Luzon Expressway-Slex connector road.
Other projects to be placed on the auction block this year are the P8.4-billion LRT 2 East Extension and the 23-kilometer MRT 7 that will connect Quezon City to Caloocan City and Bulacan.