Diokno to Japanese private sector: PH primed to be leading investment hub in Asia
Finance Secretary Benjamin Diokno expressed his confidence that the Philippines all set to be a leading investment destination in Asia owing to its favorable policy environment during the Philippine Investment Opportunities forum on August 29 at the Japan International Cooperation Agency (JICA) Office in Takebashi, Tokyo.
“Indeed, the Philippines today is primed more than ever to become a leading locus of investments in Asia and the Pacific. This is made possible through the establishment of a stable, predictable, and competitive investment environment,” he said in his presentation.
Diokno presented the Philippines’ improved public-private partnership (PPP) policy framework, fiscal incentives offered under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law, and the recently legislated Maharlika Investment Fund (MIF) to an audience of over 130 representatives of Japan-based trading houses, financial institutions, Japanese government agencies, and multilateral development agencies.
The Philippine government is guided by the Marcos administration’s 8-Point Socioeconomic Agenda and the Philippine Development Plan (PDP) 2023-2028.
“To this end, the Philippine government has embarked on the aggressive implementation of reforms to create a conducive environment for PPP-related investments,” Diokno said.
The government has revised the implementing rules and regulations (IRR) of the Build-Operate-Transfer Law to strengthen the financial viability and bankability of PPP projects; improved the Investment Coordination Committee Guidelines on PPP approvals to ensure faster processing and approval of PPPs; and enhanced the National Economic and Development Authority (NEDA) Joint Venture Guidelines to align with the revised IRR of the BOT Law and the proposed PPP Act.
The government is also pushing for the passage of the PPP Act, which is nearing approval in the Senate, to simplify regulations and procedures on infrastructure projects.
“Our PPP reforms have already resulted in quicker approval of projects in the last seven months,” Secretary Diokno said.
Since the start of the Marcos administration, four PPP proposals with a total project cost of P212.8 billion or around $ 3.8 billion have been approved in record time.
Diokno said that the solicited proposal for the rehabilitation of the Ninoy Aquino International Airport (NAIA) was evaluated and approved in around six weeks, while the unsolicited proposal for the Tarlac-Pangasinan-La Union Expressway (TPLEX) Extension Project was evaluated and approved within 11 weeks.
There are around 197 Infrastructure Flagship Projects (IFPs) approximately worth $ 155 billion available for partnership.
These include projects on energy, water, logistics, transportation, agribusiness, manufacturing, tourism, health, and education.
JICA’s Chief Representative in the Philippines Takema Sakamoto also gave a presentation highlighting the Philippines’ viability as an investment hub and development partner.
According to him, the Philippines is a promising country with a demographic sweet spot, manageable debt levels, trustworthy public sector commitment to PPPs, and a slew of opportunities for development partnerships.
The Philippines is JICA’s second largest beneficiary in the world. The agency is currently supporting the implementation of 28 ongoing loans with the Philippine Government, among which are the North-South Commuter Railway Project (NSCR), NSCR Extension Project, and the Metro Rail Transit (MRT) Line 3 Rehabilitation Project.
Philippine Ambassador to Japan Mylene J. Garcia-Albano and JICA Senior Vice President Nakazawa Keiichiro delivered the opening and closing remarks, respectively. DOF Communications Group
