THE Philippine Stock Exchange and PPP Center are bent on listing at least one public-private partnership (PPP) project before the Aquino government steps down next year.
A proposal by the PSE and PPP Center centers on the creation of PPP securities to raise funds for PPP projects by listing the securities on the exchange.
“This will be like [the listing considerations for]mining [companies]. Even without a track record, we will allow these to be listed,” Roel Refran, PSE chief operating officer, told reporters over the weekend.
This means crafting a special rule particularly for PPP securities.
Mining companies are allowed to conduct an initial public offering (IPO) and the shares of stock listed on the PSE through a special rule indicating certain conditions miners must meet.
Normally, companies must be operating for at least three year before it can go public.
Refran said the PSE and PPP Center are in talks on drafting the special rule for PPP securities.
“Before the second quarter next year, we hope to have a regulatory submission of the draft rule for public comment,” Refran said.
He said the goal is to list “at least one” of the PPP securities before the administration ends.
At present, publicly listed companies must comply with the 10 percent minimum public ownership rule for investors to have a say in corporate decisions.
Finance Secretary Cesar Purisima is pushing for a 30-percent public float which is hard to attain, Refran noted.
“We cannot do a forced timing… It’s not something that we can [implement], say in the next six months. It’s more like longer than a year. It took us two years to achieve the 10 percent float, coming from 0 from the time we started,” Refran said.
“Every industry has its own public float. For example, banks have a higher average float of 40 percent to 45 percent because of the requirement by the Bangko Sentral ng Pilipinas. It really depends on the industries,” he added.
To date, there are 10 PPP projects awarded, with a combined value of P189 billion. Thirteen PPP projects are also in different stages of procurement, four others for roll-out, two for government approval and six being evaluated.
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); 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 (Phase 2); P16.43-billion Phase 1 of PPP for School Infrastructure (PSIP); P3.68-billion Phase 2 of the PSIP; and P2.5-billion Southwest Integrated Transport System.