Government's PPP program seen as new economic driver

By Ehda M. Dagooc (The Freeman)
Updated December 28, 2010 12:00 AM

CEBU, Philippines - While 2010 is considered as a year of “restoration of confidence and credibility”, the promising 2011 will only hit its growth level if the government will seriously implement the Public-Private-Partnership (PPP) program.

Mandaue Chamber of Commerce and Industry (MCCI) president Eric Ng Mendoza said that the private sector is anticipating on what 2011 has to offer while the country goes with the flow of the global economic recovery.

Mendoza said the government should seriously implement the PPP at the earliest time in 2011 so that infrastructure projects can already start.

In Cebu, Mendoza said PPP is very important to maximize the tourism potential of the province.
Earlier, First Metro Investment Corporation president and vice chairman of Metro Banking Corporation Francis Sebastian said that for Cebu to take off as a legitimate global destination—for investments and tourism, it has to immediately fix its infrastructure otherwise it will be left behind by other destinations in the world.

With this, Mendoza said the private sector needs the government’s initiative in fixing the road network, water supply, and other needed infrastructure to make Cebu a truly world-class destination for tourism and investments.

For his part, Cebu Chamber of Commerce and Industry (CCCI) Samuel Chioson said unless the government will formalize the guidelines of the PPP, investors will have to wait, thus delaying the infrastructure building projects, which is seen to fuel the growth of the economy in the next few years.

Chioson added that the private sector in Cebu is ready to participate in the government’s PPP program, but they need the details such as on how they can avail of the incentives, and tariff cuts, among others.

Chioson said capitalists need the fast implementation of the program, as they are on their way to start planning for next year, and the PPP projects for instance need extensive capitalization and consultations from experts.

In Cebu for instance, Chioson said the private sector are desperate to work with the government in fixing its infrastructure to supplement the province’s robust growth in the next few years, otherwise, it is bound to lose prospects if the infrastructure is deteriorating.

In a recent dialogue between PNoy and the Cebu business sector, the latter emphasized seven priority issues that affect the economic development in Cebu and the Central Visayas as a whole.
The seven issues and concerns raised by the sector include; the appropriation of P4.404 billion infrastructure projects in Metro Cebu; the enhancement of tourism in Cebu and the region; reduction of fuel and power costs; modernization of the Mactan-Cebu International Airport, establishment of mass transit system, realization of the Panglao international Airport, and the possibility of pursuing the building of Cebu-Bohol bridge.

Reiterating his government’s thrust of promoting PPP, the President said that while the economy is growing the infrastructure bid of Cebu can be realized with the help of the private sector.
Aquino believes that while Cebu is getting the spotlight in the international market, with the regained confidence of the overseas investment community, “I’m sure there will be a lot of takers for these infrastructure projects from Cebu.”

Both Chioson and Mendoza hope that the national government will be able to produce the complete guidelines on PPP soon, so that the private sector could part its participation on different infrastructure projects specifically in Cebu.

Cebu is desperately needing infrastructure-fix as it is experiencing robust growth in the last few years, and is expected to double its growth starting next year because of the recovering economy, and strengthening foreign investor’s interest for the province.

If infrastructure is not immediately fixed, the province’s economy is bound to suffer, thereby losing opportunities for growth. (FREEMAN)