Saturday, December 06, 2008 [ manilatimes.net ]
By Ben Arnold O. De Vera, Researcher
THE Philippine Chamber of Commerce and Industry (PCCI) said it expects a joint public-private sector infrastructure war chest to be ready by January next year.
“We are still working out the details of this package. But we would be able to finalize and put it in place before this year ends” said Edgardo Lacson, PCCI president, during a yearend press briefing.
Sergio Ortiz-Luis, PCCI honorary chairman, said the fund, which would be called “Public-Private Investment Program,” would be used to finance big-scale infrastructure undertakings that may no longer be assisted by foreign funders and may be too big for local banks to subsidize.
Lacson said among the six to eight projects eyed for immediate support include expanding the coverage and interconnecting all the Light Rail Transit and Metro Rail Transit lines, connecting Skyway to Ninoy Aquino International Airport and connecting Star Toll in Batangas to South Luzon Expressway, among others.
He also said the fund is as well intended for initiatives in the agriculture and energy sectors.
Lacson said the sources of funding would set up a corporate vehicle that would manage the fund.
“There would be a corporation which would be created to oversee the Public-Private Investment Program, which would be run by people from both the public and private sectors,” he said.
President Arroyo first announced the P100-billion fund in a speech during the closing ceremonies of the 34th Philippine Business Conference in October.
The President and Donald Dee, PCCI chairman emeritus, said P50 billion of the said fund would be come from government financial institutions and the other P50 billion from private banks and financial institutions.
Dee said the Development Bank of the Philippines, National Development Co. and Social Security System has already pledged P10 billion each for the fund.
PCCI remains optimistic that the Philippine economy would pull off a relatively decent performance next year. “There would indeed be a slowdown in our economy, as the effects of this year’s global economic meltdown would be felt here by early next year. But we in the chamber still believe our country would not be hardly hit by the crisis,” Lacson said.
He said the negative effects of the crisis, such as the slowdown in exports, tightening of global financial markets and weakening stock market, could be mitigated by the sustained inflows of overseas Filipino workers’ remittances, the declining prices of steel, wheat and fuel, and the relatively stable local banking system.
PCCI officials refused to give their forecast, but said the government’s projection of economic growth next year between 4.1 percent to 4.6 percent would likely be attained.
Lacson said the government should focus on pump-priming the economy during these times, adding that pursuing charter change would be an untimely move.
“Charter change must happen when it happens. They must also first agree on when is the right time to amend the constitution and on the procedures to be done to effect the change. But right now, we don’t need another dilemma to add up to our current problems. Despite the good intentions of Charter change, we should instead channel our energies into something more productive. “Cha-cha” is a diversion during these times,” he added.
