Philippines Approves $3.7 bln worth of new PPP projects

Philippine President Benigno Aquino on Friday gave authorities the go-ahead to offer for tender 165.6 billion pesos ($3.7 billion) worth of new infrastructure projects under his flagship Public-Private Partnership program in line with efforts to upgrade ageing roads, airports and ports.

The country needs private funds to upgrade and modernise its dilapidated infrastructure as it aims to lift its growth rate upwards to 8 percent so it can catch up with its richer Southeast Asian neighbours.

To be included in the pipeline of projects that could be offered to investors soon under a PPP scheme are the following: operation and maintenance of the Puerto Princesa Airport (5.23 billion pesos; operation and maintenance of Iloilo Airport (30.4 billion pesos); operation and maintenance of Davao Airport (40.57 billion pesos); operation and maintenance of Bacolod Airport (20.26 billion pesos); Regional Prison Facilities (50.18 billion pesos; and Davao Sasa Port (18.99 billion pesos).

"These approved projects will significantly contribute to the infrastructure investment needed to sustain growth and make it inclusive," Socioeconomic Planning Chief Arsenio Balisacan said in a statement.

Since launching the PPP programme in 2010, the government has awarded eight infrastructure projects worth around 133 billion pesos. They consist of toll roads, schools, an automated fare collection system, a railroad and a hospital.

The government has faced criticism from investors over the slow pace of its infrastructure roll out, but argues it had to rework the deals to prevent the corruption that has plagued similar projects in the past.

Top conglomerates like Ayala Corp, San Miguel Corp , Aboitiz Equity Ventures Inc, JG Summit Holdings Inc, Metro Pacific Investments Corp and SM Investments Corp have been active in the PPP biddings.

(1 US dollar = 44.8300 Philippine peso)

(Reporting By Karen Lema and Erik dela Cruz; Editing by Robert Birsel)