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THE Association of Southeast Asian Nations ministers
are discussing a Malaysian proposal to create an infrastructure fund
that could sustain infrastructure developments in the region.
“The fund intends to support
infrastructure developments in the region but will not solely manage
by Asean governments since this will include private investors and
fund managers,” Finance Undersecretary Roberto Tan said.
To make disbursements more
efficient, participating Asean members are now considering tapping
the services of private third-party managers, Tan added, saying,
“There are already timeline on deliverables but the ministers
haven’t come up with a fixed target.”
Once the fund is in place and
starts to generate income, the profit will be reverted back to the
member contributions to widen the fund coverage.
Earlier, the finance department
reported a similar initiative after foreign investors set up a
$1.3-billion infrastructure fund that could be used to finance
infrastructure development projects in the Asian region.
The initiative is part of a
growing region-wide interest among investors to pour money in
infrastructure developments, as Asia experiences robust growth that
gives them more confidence in disposing huge capital in the region.
Finance Secretary Margarito Teves
said the two investor groups have set up the funds in Japan, one
amounting $300 million and the other amounting $500 million.
In the Philippines, a group of
investors has pooled $500-million infrastructure fund intended for
major development projects, not only in the Philippines but also in
other Asian countries.
Teves said the possibility of the
Philippines getting some funds would depend on the ability of the
country to set up the proper investment environment and assure good
rate of return for investing companies.
The government has already
identified 10 major projects, which are ready for investments. These
are: the Bicol power restoration project, Palawan south road,
Panguil Bay Bridge, Biñan-Sucat power transfer project, Light
Railway Transit (LRT) North extension project, LRT Line 6 from
Baclaran to Cavite, NorthRail-SouthRail linkage project from Alabang
to Calamba, Agno River integrated irrigation project, North Luzon
Expressway extension project and the Quirino Highway rehabilitation.
The government said the
improvement in the government’s fiscal position, low interest rate
environment, the downward trend in inflation and strong peso and
international reserves provide an encouraging environment for
investment.
--Angelo S. Samonte
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