Aquino creates Public-Private Partnership Center to stir infrastructure development
President Benigno Aquino III has issued an executive order reorganizing the Build-Operate-Transfer Center in fresh efforts to accelerate the financing, construction and operation of key government infrastructure projects through public-private partnership.
In issuing Executive Order No. 8, the President renamed the Build-Operate-Transfer (BOT) Center to Public-Private Partnership (PPP) Center of the Philippines, whose functions will now be supervised by the National Economic and Development Authority. The BOT Center was previously under the wings of the Department of Trade and Industry.
“There is a need to fast-track the implementation of the Public-Private Partnership programs and projects as a cornerstone strategy of the national development to accelerate the infrastructure development of the country and sustain economic growth,” President Aquino said.
The executive order was issued ahead of the President’s trip to the United States that is expected to stir renewed interest from potential investors to partner with the Aquino Administration.
Since the new administration came into power two months ago, business confidence has been upbeat as recently validated by the resounding success of the first ever Global Peso Bonds that raised US$1 billion for the cash-strapped government.
The order, which was signed by the President on September 9, also earmarked P300-million working fund for the studies and activities of selected PPP programs and projects.
During the 30-day transition period, the current executive director of the BOT Center will lead the agency until a new head is appointed by the President upon the recommendation of Socioeconomic Planning Secretary Cayetano W. Paderanga.
Among the functions of the PPP Center is to extend assistance to all local government units and other government instrumentalities in the implementation of the projects, provide advisory services in PPP project preparation and development, recommend policies with regard to program implementation, monitor all government PPP projects and programs, and manage and administer the revolving fund to be called the Project Development and Monitoring Facility.
The EO likewise mandated the PPP Center to complete within six months the processing of qualified solicited proposals subject to existing laws, guidelines, and rules and regulations.
“Things are looking bright for the county despite problems like the deficit, but we are already working on solutions,” said Executive Secretary Paquito N. Ochoa Jr.
“This executive order is just the first of many steps this administration will take to provide our people with the infrastructure they need, the infrastructure required to make our country more attractive to investors,” Ochoa added.(PCOO)
Palace lauds successful peso-denominated global bonds sale
Malacañang expressed elation over the international community’s favorable reception to the Philippines’ first-ever peso-denominated global bonds sale which it said shows that confidence in the country remains strong.
“The success of the peso bond float is a quantifiable and real vote of confidence in the country and the government, particularly our economic managers,” President Benigno Simeon Aquino III said in a statement.
The government issued on Friday the 10-year, peso-denominated global bonds priced at 99.607 percent with a coupon of 4.95 percent and a yield of 5 percent.
The sale, which was participated in by a mix of Asian, American and European investors, netted for the country $1-billion (P44.1-billion) after only 16 hours upon its issuance with bids reaching over 13 times the offer.
In an interview aired over dzRB this afternoon, Presidential Communications and Operations Office Secretary Herminio Coloma (PCOO) Secretary Hermino Coloma said, “We are ecstatic over the overwhelming reception of our peso-denominated bonds which have posted a record of sorts for having been over-subscribed.”
This, he added, “is a sign that international community confidence in our country, our economy and our President remains high.”
Coloma quoted Finance Secretary Cesar Purisima who called the sale “a landslide vote of confidence for our country.”
In a statement, National Treasurer Roberto B. Tan said the offering would "enhance the government's debt investor profile while paving the way for greater participation by offshore investors in the Philippine capital markets."
It added that of the total peso-denominated global bonds sold, 37.1% was bought by Asian investors, 32.6% went to those in the US and 30.3% were taken up by Europeans.
The bonds, which are registered with the US Securities and Exchange Commission, are denominated in pesos but will be settled offshore in dollars. (PCOO)
