The Philippines’ private sector is expected to receive funding from the United States’ (US) $205-billion financing program under the International Development Finance Corp. (DFC) to advance the development of big-ticket projects.

In a virtual briefing on Wednesday, July 8, DFC Chief Policy Officer Caroline Vik said the country is among the potential beneficiaries of the US’ international investment arm, which has already identified a pipeline of potential investments.

During its recent trip to the Philippines, Vik said DFC was able to gauge the government’s priorities in securing investments for infrastructure and energy projects.

Private sector companies, on the other hand, are interested in receiving funding for other high-value projects such as subsea cables, mineral processing, and energy grid modernization.

“DFC is also very excited to work closely with our interagency partners on other major initiatives, such as Pax Silica and the Luzon Economic Corridor (LEC), which we heard a lot of enthusiasm about in the Philippines,” said Vik.

Under LEC, she said DFC has already identified “a bunch of potential projects for financing” and is planning to explore more.

LEC is an economic partnership among the Philippines, the US, Japan, and other countries aimed at boosting economic activity in Subic Bay, Clark, Manila, and Batangas province through coordinated investments.

For the Pax Silica partnership, which is highlighted by a planned artificial intelligence (AI) industrial hub at New Clark City in Tarlac province, Vik said DFC is open to partnering with its US counterparts on the project.

“When the time is ready, DFC stands ready to help the State Department advance the Pax Silica economic zone,” she said.

DFC also held talks with the National Security Council (NSC), state-run Bases Conversion and Development Authority (BCDA), and sovereign wealth fund (SWF) manager Maharlika Investment Corp. (MIC) to evaluate other projects during its recent visit to Manila.

As the US’ development finance institution, DFC deploys funding for private sector projects to promote the US’ diplomatic and economic interests.

In support of private sector-led development projects, DFC offers assistance in the form of debt, equity, political risk insurance, loan guarantees, and project development funds.

While it coordinates with governments to understand their priorities, DFC mainly works with private sector companies to execute shared investment priorities.

Vik said there is no specific quota or ceiling on how much funding a project can receive, as long as it is determined to be commercially viable.

“Provided we can find bankable deals that align with both of our governments’ priorities, there’s no cap to how much we can invest,” said Vik. “It’s a high priority for us to engage very heavily, so we’re building out a strong pipeline.”

Apart from the Philippines, DFC also visited neighboring Southeast Asian countries such as Vietnam, Cambodia, Laos, Malaysia, and Indonesia.

Vik said DFC’s goal is to be the region’s “best partner and first call” if there are high-priority projects that countries in the region want to pursue.