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12 April 2011

Philippines meet with Chinese Investors for PPP

MRT Train in between the EDSA-Quezon Avenue Fl...Image via Wikipedia
An April 12, 2011 press release by the Department of Finance
The Philippines will be luring Chinese investors in the second leg of its series of road shows to trumpet its public-private partnership (PPP) initiative.
“We want to encourage Chinese investors to put their money in the Philippines and invest in our infrastructure projects. We want to deliver the message that the Aquino administration is committed to transparent negotiations with them, unlike before when dealings have been veiled in backroom exercises,” said Finance Secretary Cesar V. Purisima.
The Finance chief, together with Secretaries Rogelio L. Singson and Gregory L. Domingo of the Public Works and Trade departments, respectively, led the Philippine delegation to China, which also included Transportation Undersecretary Ruben S. Reinoso, Jr., Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr., BSP Investor Relations Executive Director Claro P. Fernandez and PPP Executive Director Philamer C. Torio.
The four-day road show, which covers the cities of Beijing and Shanghai, started on Monday and will end on Thursday, April 14. They are expected to meet with investors interested in PPP projects.
BSP’s Fernandez said the China road show will be similar to the first one held in Japan last December.
He noted that a number of Chinese investors have already shown interest in bidding for the first five PPP projects announced by the government last month, specifically for contracts for the operation and maintenance for the Light Rail Transit line 1 and Metro Rail Transit 3.
According to the program, the Philippine delegation is expected to hold meetings with the China Contractors Association, power provider State Grid of China Corp. and China Railway Engineering, among others.
“There are a good number of one-on-one meetings with these interested companies. They want to understand better how they can participate in these projects,” Fernandez said.
Purisima said the delegation will also pay a courtesy call to China Vice Premier Wang Qishan in a bid to “boost our bilateral relations with China.”
Fernandez said the economic managers will also hold “a briefing on the Philippine economy to give key agencies and investors an update on the economy.”
The PPP initiative, considered as the Aquino administration’s centerpiece economic program, aims to tap private sector participation in 80 large-scale infrastructure projects worth P740 billion, which will be undertaken from 2011 and beyond.
In a meeting with the People’s Bank of China, BSP’s Tetangco said Asian central banks noted continued accumulation of foreign exchange reserves, and thus, all of them agreed to “look for new avenues for diversification.”
“Given, however, the traditional investment constraints of central banks, I suggest that the Chinese government may consider issuing more yuan-denominated bonds in going forward,” Tetangco said.