The government’s economic officials invited Japanese businessmen to invest in over $12.28 billion worth of public-private partnership (PPP) infrastructure projects to be rolled out within the next 12 months.
In the economic road show hosted by the Philippines in Tokyo on Wednesday, the government invited Japanese fund managers and investors to tap the Philippines’s comparative advantages as an investment destination.
“The Philippines is looking north to Japan, and hopes that Japan will look south to the Philippines,” Finance Secretary Cesar V. Purisima said in his statement to open the road show at the Shangri-La Hotel in Tokyo.
“The Japanese and Filipino economies are heavily complementary. Japan has an abundance of investible capital and manufacturing prowess, while the Philippines has a young and talented labor force,” he said.
Aside from the Philippines’s work force, Purisima said the country’s large population provides a huge market for Japanese investments. He said the strategic geographical location of the Philippines and its role in the Asean Economic Community also makes the Philippines an attractive investment destination.
Socioeconomic Planning Secretary Arsenio M. Balisacan said investing in the Philippines would be a prudent move because of its favorable economic prospects. The National Economic and Development Authority expects gross domestic product to grow by at least 6.5 percent this year, between 7 percent and 8 percent next year, and between 7.5 and 8.5 percent in 2016.
PPP Center Executive Director Cosette Canilao said the $12.28 billion worth of PPP deals consist of 13 infrastructure projects to be rolled out within the year. There would be three more PPP projects to be rolled out within the short term, but the costs of these deals have yet to be determined.
The PPP projects are the following: New Centennial Water Supply Source ($416 million); Enhanced Operation and Maintenance of Panglao Airport in Bohol ($52 million); O&M of Laguindingan Airport ($353.8 million); O&M of Puerto Princesa Airport ($116.2 million); O&M of Davao Airport ($901.6 million); O&M of Bacolod Airport ($450.2 million); O&M of Iloilo Airport ($675.6 million); Davao Sasa Port ($377.8 million); Regional Prison Facilities ($1.115 billion); Motor Vehicle Inspection System ($428.9 million); North-South Railway Project-South Line ($3.927 billion); Mass Transit System Loop ($3 billion); San Fernando Airport ($464 million). Energy Undersecretary Raul Aguilos also presented investment opportunities in the Philippines’s indigenous energy resources, such as hydroelectric and natural oil and gas development.
He said the Department of Energy aims to nearly triple the country’s installed renewable-energy capacity from the current 5,438 MW to 15,304.30 MW by 2030.
On oil and natural gas, he said there are 16 sedimentary basins all over the Philippines with combined potential of 4,777 million barrels of fuel oil equivalent of oil and gas reserves. Moreover, he said, there are 13 coal basins in the country with a total resource potential of 2.4 billion metric tons.
Tourism Secretary Ramon R. Jimenez Jr. also promoted the tourism industry, saying the increasing tourist arrivals in the country will result in a room gap in hotels by about 50,000 by 2016.
On the regulation side of business, Internal Revenue Deputy Commissioner Nelson Aspe and Securities and Exchange Commission Chairman Teresita Herbosa talked about tax-related matters and securities registration in the Philippines, respectively, to assure the government’s support to make it easier for foreigners to invest in the Philippines.
BSP Assistant Governor Johnny Noe E. Ravalo presented the favorable inflation and banking-sector outlook for the Philippines for the medium term. He cited growing resources of the Philippine banking sector that will help fund the economy’s investment requirements.
The law liberalizing entry of foreign banks, which was passed earlier this year, is expected to further boost the ability of the country’s banking sector to service the growing credit requirements as economic activities rise. Purisima said more foreign banks in the country should also bode well for attracting foreign direct investments because they can serve as good channels of information about the Philippine economy.
The latest road show was organized with assistance from Japanese banks, including Bank of Tokyo Mitsubishi, Daiwa Securities Group Inc., Mitsubishi UFJ Morgan Securities Co. Ltd., Mizuho Bank Ltd., Mizuho Securities, Nomura Holdings Inc., SMBC Nikko Securities Inc. and Sumitomo Mitsui Banking Corp.
The following Japanese government agencies, likewise, helped organize the event: Ministry of Finance, Japan Bank for International Cooperation, Japan International Cooperation Agency and Japan External Trade Organization.