Finance Sec. Details How Cebu Action Plan Facilitates APEC Participation in PPPs

Lapu-Lapu City — Finance Secretary Cesar Purisima has detailed how the Cebu Action Plan (CAP) makes it easier for companies in member-economies of the Asia-Pacific Economic Cooperation (APEC) to participate in the country’s public-private partnership (PPP) projects.

At the joint press conference of the APEC finance ministers last week, Purisima said the action plan seeks to address the weaknesses of the program, and make the participation of APEC companies in PPPs “much easier”.

Using the CAP’s fourth pillar, the Philippines has made a “sound policy framework” with the inclusion of the Contingent Liability Fund in the annual General Appropriations Act (GAA) and its support for the enactment of the PPP Act or the amendments to the Build-Operate-Transfer Law.

The Contingent Liability Fund was created to handle the unexpected cost for the government that might arise from infrastructure projects under the PPP, while the Build-Operate-Transfer Law is a scheme wherein a private entity will finance, design, construct and operate a facility, and then transfer it to the government at the end of the concession period.

“By creating a framework, it (Cebu Action Plan) facilitates sharing of best practices across economies of APEC…as well as the harmonization of terms and contract provisions can be done so we can cut short the negotiation process for PPP,” Purisima said.

The easing of requirements and the process for PPP projects can also fuel investments in the country, as foreign firms have shown particular interest in investing in the Philippines, so long as it solves problems in its infrastructure.

Even the government admitted that the Philippines is losing billions of pesos every day from lost productivity because of traffic jams, particularly in Metro Manila.

For its part, the Department of Foreign Affairs (DFA) said the APEC has placed particular importance on the quality of infrastructure for the growth of the region.

“The APEC recognizes the importance of quality infrastructure in economic growth of the Asia Pacific, not only in physically connecting the region but also in ensuring the efficient movement of goods, services, and people between and within borders,” the DFA said in a statement.

“Quality infrastructure directly supports efficient transportation and telecommunication services, air and sea ports, customs procedures, energy distribution, farm-to-fork logistics, among others,” it added.

Producers, such as farmers, are normally referred to as “farm”, while consumers are the “fork” in the supply chain.

The Cebu Action Plan is a development roadmap for the Asia-Pacific region that was drafted by the Philippines with inputs from other APEC member economies, multilateral organizations, and the private sector through the APEC Business Advisory Council (ABAC). It was launched here last Friday.

While a non-binding formation, APEC meetings are able to set domestic, regional, and industrial policies to achieve free and open trade and investment in the Asia Pacific.

The APEC’s 21 member economies are Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Russia, Singapore, Taiwan, Thailand, US, Vietnam, and the Philippines. (PNA) RMA/PND/SSC