MANILA – Albay Rep. Joey Salceda on Friday vowed to push for a stronger and attractive framework for public-private partnerships (PPPs) in the 19th Congress.
In a statement, Salceda said such agreements will be crucial in building modern and efficient public services during "a time of tough fiscal conditions".
“We have ongoing fiscal constraints, but we also have ongoing public needs. Infrastructure and social services will always be good, and necessary investments. So, sourcing from outside the public sector will be very crucial,” he said.
Salceda, who chairs the House committee on ways and means, said during his meeting with incoming Public Works and Highways Secretary Manuel Bonoan, they discussed ways forward with PPPs, especially given the tight room for funding major projects.
"Sec. Manny appears to be quite bullish about Philippine infrastructure development over the next six years. I think PPPs stand a very strong chance of playing a major role again in this new administration. Sec. Manny has been with both the public and private sectors for a long time. And PBBM (President-elect [Ferdinand] Bongbong Marcos) has, in many interviews, made very cogent observations on the need for more flexible PPPs,” he said.
Salceda expressed hope that PPP reforms would also have a stronger chance of passing this incoming 19th Congress.
He noted that the private sector can fund infrastructure development "many times over", if the government opened participation to even more companies.
“The private sector, especially the large conglomerates, are awash with cash for PPPs. San Miguel has PHP301.7 billion, Aboitiz Equity Ventures has PHP107.5 billion. Ayala Corporation has PHP99.6 billion. SMIC has PHP93.9 billion. JG Summit has PHP292.6 billion. LT Group has PHP390.1 billion," he said. “That’s a total of PHP1.285 trillion in cash for just these conglomerates alone. For perspective, ‘Build, Build, Build’ received just a PHP1.180 trillion budget for 2022."
Salceda said he also discussed with Bonoan how to modernize the infrastructure and transport sector.
“I discussed with Secretary Bonoan today how I hope to help his department with sourcing the necessary fiscal space for infrastructure. It is absolutely crucial that we maintain infrastructure as a spending priority," he said.
He said the first budget of the incoming administration should revolve around three key priorities or principles– maintaining productive spending and keeping it higher than the deficit as a share of the gross domestic product; ensuring that personnel spending growth is contained; and making sure that public spending would have higher economic multiplier effects and should be useful for longer periods.
“But, we really need to expand fiscal space, either by collecting existing taxes better, or by imposing new taxes. Because PPPs do entail the need for some fiscal space in the future. Basically, a PPP is advancing public welfare but deferring public costs. But the costs will come,” Salceda said. (PNA)
