Banks are ready to come in with funding support for the Duterte Administration’s ambitious P7.74-trillion infrastructure projects, should they encounter any “funding delays” for these big-ticket undertakings.
Speaking as one of the private sector panelists in a business forum titled “Building for the future” hosted by CNN Philippines, BDO Capital and Investment Corp. president Eduardo V. Francisco said domestic banks are very much ready to provide support.
“BDO Capital fully supports the government’s infrastructure initiative. As a bridge, (government can) use banks for funding if there are delays, no matter what funding scheme is utilized,” said Francisco.
BDO Capital, the investment banking arm of BDO Unibank, provides diversified services that include trading and underwriting securities, loan syndication, financial advisory services, and project finance services.
It continues to dialogue with government and potential bidders on how the whole BDO group can help fund projects — from the advisory stage all the way to project financing.
Infrastructure is among the top priorities of the Duterte Administration with public spending targeted to reach P8 to P9 trillion from 2017 to 2022. Dubbed as the “Build, Build, Build,” this initiative involves 75 flagship projects, which include six airports, nine railways, three bus rapid transits, 32 roads and bridges, and four seaports that will help bring down the costs of production, improve rural incomes, encourage countryside investments, make the movement of goods and people more efficient, and create more jobs.
The government will rely on official development assistance, particularly from Japan and China, as its main sources of infrastructure funding, as well as expected revenues from the Tax Reform for Acceleration and Inclusion or TRAIN law, although it remained open to private-public partnerships or PPP funding scheme as well.
Moderated by CNN International correspondent Andrew Stevens and CNN Philippines chief correspondent Pia Hontiveros, the forum brought together the country’s economic managers to discuss the status of the government’s infrastructure development plan.
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