The Philippines’ infrastructure gap provides a great opportunity for the private sector, the Bangko Sentral ng Pilipinas (BSP) chief said on Tuesday.
Central bank Governor Amando Tetangco Jr., told the participants of The Manila Times 3rd Business Forum that the private sector — the engine of growth in the Philippines – had the edge over the public sector looking at their relative share of economic growth.
“The private sector can look at the opportunities through the needs of the economy. Let me cite, for instance, infrastructure. That is one clear gap that can really improve the long-term prospect of the economy,” he said.
Tetangco said private sector investments in infrastructure projects would expand the absorptive capacity of the Philippine economy, which will enable more growth in businesses and industries.
The BSP chief said that in particular, infrastructure required the participation not only of contractors but also of financiers.
“Banks for instance… They can participate, they can be more active in project finance,” he said.
Estimates by Asian Development Bank show that the Philippines’ infrastructure financing needs from 2010 through 2020 amounts to $127.12 billion, requiring an annual investment of $11.56 billion.
The government aims to raise infrastructure investment by 5 percent this year.