The Department of Finance (DOF) said the Australian government will provide technical expertise in rolling out infrastructure projects under the public private partnership (PPP) in the Philippines.

On Friday, March 24, Australia launched its Partnerships for Infrastructure (P4I) initiative in the country, which aims to foster inclusive growth through sustainable infrastructure.

“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,” Finance Secretary Secretary Benjamin E. Diokno said.

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.

From 2021 to 2022, total Australian official development assistance (ODA) to the Philippines amounted to $130.7 million.

Investment in infrastructure is a top priority of the Marcos 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,” Diokno said.

To pursue big-ticket infrastructure, the government will leverage private capital and expertise through the PPP mechanism.

Diokno said PPPs will help speed up investments, ensure standards for quality infrastructure, and support the country’s efforts to keep infrastructure spending at five percent to six percent of the economy 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,” 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.

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.

Last Feb. 2, the National Economic and Development Authority (NEDA) Board approved the first PPP project under the current administration estimated to be around $109 million.

“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,  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,” Diokno said.