BMI flags poor PPP environment

The poor environment in undertaking public- private partnership (PPP) projects may spoil investor appetite towards state construction deals despite the doubles infra spending by the new administration, analysts at BMI Research said.

“[D]espite the Philippines’ strong PPP regulations, the country’s subpar business environment continues to hold back key infrastructure projects,” the BMI cited lapses in the rollout of big-ticket PPP dear

“[D]espite the Philippines’ strong PPP regulations, the country’s subpar business environment continues to hold back key infrastructure projects,” the Fitch unit said in a report released yesterday as it cited lapses in the rollout of big-ticket PPP deals.


“Although the World Bank ranks the Philippines’ PPP regulations as among the best in the world as it has clear and well-defined laws, transparency requirements and an independent dedicated agency, our Project Risk Index shows that the operating environment for infrastructure projects is still far behind,” BMI reported citing lapses in the PPP processes.

“Although the World Bank ranks the Philippines’ PPP regulations as among the best in the world as it has clear and well-defined laws, transparency requirements and an independent dedicated agency, our Project Risk Index shows that the operating environment for infrastructure projects is still far behind,” the report said.

BMI, a Fitch Group unit, also believes that good PPP regulations are important in bringing private finance and expertise to the infrastructure sector and that improvements in a country’s fundamental operating environment must be made.
 

“Difficulties and delays facing public-private partnerships in the Philippines, including an apparent lack of interest in many projects, highlight the gap between robust regulation and effective implementation of PPPs,” the research group said.

 

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SOURCE: Business World Online