The Philippine Stock Exchange (PSE) and the government’s Public-Private Partnership (PPP) Center are considering issuing securities to raise funds for infrastructure projects under the PPP scheme.
In a forum last week, the PSE and PPP Center — with the support of the Asian Development Bank (ADB) — discussed the possibility of issuing PPP securities and the viability of PPP participants to tap the capital markets for financing the awarded projects.
The panelists, which included representatives from the Securities and Exchange Commission (SEC), listed firms, international and local legal counsels and investment advisors, explored the requirements of a successful PPP securities issuance, regulatory requirements and challenges, as well as the potential framework and mechanism to create a suitable environment for PPP investors.
“We believe the stock market can play an important role for PPP companies to raise capital similar to the experiences in other markets. We are working closely with our regulator [SEC], the PPP Center and other stakeholders to explore opening up the equities market for this purpose,” said PSE president and chief executive officer Hans B. Sicat.
If the proposal goes through, ongoing PPP projects may access funds from investments of retail or institutional market players, both local and foreign.
Since 2010, 10 PPP projects worth a combined P189 billion have been awarded. Some 13 PPP projects are also in different stages of procurement, four others are for rollout, two for government approval, and six with ongoing studies.
The awarded projects include the P1.72-billion Automatic Fare Collection System; P55.51-billion Cavite-Laguna Expressway; P2.01-billion Daang Hari-South Luzon Expressway Link Road (Muntinlupa-Cavite Expressway) project; P64.9-billion Light Rail Transit (LRT) Line 1 Cavite Extension; and P17.52-billion Mactan-Cebu International Airport Passenger Terminal Building.
The other awarded projects are: the P8.69-billion Modernization of Philippine Orthopedic Center; P15.86-billion Ninoy Aquino International Airport Expressway Project (Phase 2); P16.43-billion Phase 1 of PPP for School Infrastructure Project; P3.68-billion Phase 2 of PSIP; and P2.5-billion Southwest Integrated Transport System project.