The Australian Government launched its Partnerships for Infrastructure (P4I) initiative in the Philippines to foster inclusive growth through sustainable infrastructure, which is in line with the Marcos Jr. administration’s economic development agenda.
“This opportunity could not have come at a better time. Building on the back of the previous administration’s expansive infrastructure program, the Marcos Jr. administration is determined to reverse the Philippines’ decades-long pattern of underinvestment in infrastructure,” Secretary Diokno said during the P4I launch at the Conrad Manila, Pasay City on March 24, 2023.
P4I provides innovative and tailor-made services that address the needs of Southeast Asian countries. By strengthening financing strategies, regulatory frameworks, and technology choices––particularly in green technology––P4I helps ensure the development of quality and modern infrastructure among partner-countries in the region.
It is made up of five organizations: the Department of Foreign Affairs and Trade (DFAT), EY, The Asia Foundation, Adam Smith International, and Ninti One.
Investment in infrastructure is a top priority of the Marcos Jr. administration and is reflected in the 8-Point Socioeconomic Agenda, the Medium-Term Fiscal Framework (MTFF), as well as the Philippine Development Plan (PDP) 2023-2028.
“Today’s event signals greater cooperation between our two nations. For 77 years, Australia has been a strong ally and supporter of the Philippines in its pursuit of sustainable development. In fact, the Philippines is one of Australia’s longest-standing bilateral partners,” Secretary Diokno said.
From 2021 to 2022, total Australian official development assistance (ODA) to the Philippines amounted to US$130.7 million.
Furthermore, trade between Australia and the Philippines has expanded by over 125 percent since the ASEAN-Australia-New Zealand Free Trade Agreement gained effectivity in 2010.
Now, the Philippines has joined Australia and other Asia Pacific nations in the Regional Comprehensive Economic Partnership (RCEP) Agreement–– the world’s largest trade pact covering 30 percent of the world’s population, 29 percent of global gross domestic product (GDP), 29 percent of global trade, and 33 percent of global inward investments in 2020.
To pursue big-ticket infrastructure, the government will leverage private capital and expertise through the public-private partnership (PPP) mechanism.
PPPs will help speed up investments, ensure standards for quality infrastructure, and support the country’s efforts to keep infrastructure spending at 5 to 6 percent of GDP annually without straining fiscal space.
“To demonstrate our commitment, we amended the implementing rules and regulations of the Build-Operate-Transfer [BOT] Law within the first 100 days of the Marcos Jr. administration,” Secretary Diokno said.
Apart from this, the government also revised the Investment Coordination Committee (ICC) Guidelines on PPP approvals to ensure faster processing and approvals of PPP projects last December 2022.
Moreover, the recently revised 2013 NEDA Joint Venture (JV) Guidelines will enhance competition for projects under JVs, warrant the technical and financial soundness of projects, and ensure that guidelines are aligned with the recently amended Implementing Rules and Regulations (IRR) of the Build-Operate-Transfer (BOT) Law.
Secretary Diokno noted that these reforms were formulated to ensure that all investments in public projects comply with international best practices. These also ensure that investments are safeguarded from poor management practices during their implementation.
The President has already approved 194 high-impact Infrastructure Flagship Projects (IFPs) to augment the Marcos Jr. administration’s Build, Better, More Program.
Just last February 2, the National Economic and Development Authority (NEDA) Board approved the first PPP project under the current administration estimated to be around US$109 million.
The proposed Philippine General Hospital Cancer Center will help improve access to medical services and health outcomes through early diagnosis and treatment interventions.
Secretary Diokno also shared that the Philippines has received 9 PPP proposals for regional airports and a number of PPP proposals for railway systems.
“These investments are of paramount importance as they will help build stronger economic ties between countries, spur job creation, and provide efficient transport solutions,” he said.
Finally, Secretary Diokno emphasized the importance of sustainable infrastructure to enhance access to basic services, promote environmental sustainability, and support inclusive growth. According to him, delivering infrastructure to rural areas will minimize disparities between the regions and benefit local economies that have long been left in the margins.
“We hope that this event marks the beginning of a more fruitful collaboration in infrastructure development. Our revised PPP program takes much from Australian experience, after all,” Secretary Diokno said.
