06 September 2013 – The Philippines has the best legal, financial and institutional environment for Private-Public Partnership (PPP) schemes, according to speakers from the private sector at the Fourth ASEAN Connectivity Symposium recently held in Brunei Darussalam.

Ambassador Elizabeth P. Buensuceso, Representative of the Philippines to the ASEAN Connectivity Coordinating Committee (ACCC), wholed the Philippine delegation to the symposium, reported that speakers from the ASEAN Secretariat and economists from the Asian Development Bank (ADB), United Nations Economic and Social for Asia and the Pacific (UNESCAP) and the Japan International Cooperation Agency (JICA), cited several factors that place the Philippines in a leadership position among ASEAN countries in financing infrastructure projects through PPP schemes.

ASEAN Secretary General Le Loung Minh, noted in his opening remarks, that the Philippines has made great strides in creating a favorable climate for PPPs.  He cited the PPP Center in Manila for its Project Development and Monitoring Facility (PDMF) to fund early-stage PPP activities.

Atty. Alex Wong, a partner in Hogan Lovells law firm based in Singapore, which specializes in PPP projects, acknowledged that the Philippines has a well-established PPP legal infrastructure  and very active private sector companies led by San Miguel Corporation and Ayala Corporation, which support PPP projects.  Wong also noted that better enforcement of contractual obligations and improved regulatory framework, such as the land law and guarantee fund law, are the key elements underpinning an effective PPP legal and regulatory framework in the Philippines.

Mr. Ghislain Lorthiois, Samsung C&T’s General Manager and Head of PPP, gave credit for transparency in the Philippines’ PPP system.  “The Philippines should be regarded as a leader (in PPP) in ASEAN today.  We are ready to work with them,” he told the audience composed of government officials, business groups, researchers, and diplomats.

Mr. Koji Sakane, Senior Advisor, Southeast Asia and East Pacific Department of JICA, quoting the 2011 report of the Economic Intelligent Unit, stated that the Philippines slightly outranked Indonesia and Thailand in the overall score for PPP readiness, particularly in terms of financial facilities and regulatory framework.  JICA supports the “Mega Cebu Vision 2050” and the “Transport Sector Road Map” of the Philippine government.

The Jakarta-based Economic Research Institute for ASEAN and East Asia (ERIA), which is conducting a study of financing modalities and PPP in ASEAN, also acknowledged the advances achieved by the Philippines in pushing for PPP to support its own infrastructure development.

Indonesia, Malaysia and Thailand were also identified by the speakers as having good legal and financial infrastructure in support of PPP projects.