Edison L. Baddal
(Last part of a series)
BONTOC, Mountain Province -- On the other hand, despite the passage of RA 9485 (aka the Anti-Red Tape Act of 2007), which aims to cut red tape by lessening the number of signatories in official transactions in government offices to help fast-track such transactions, the expected speed for such leaves much to be desired.
Undoubtedly, this is a huge setback in luring foreign investments in our shores. There is a need to enforce the law more vigorously in order to attract the attention of prospective investors who may be observing the extent of the law’s enforcement. Transactions may have been speeded up a bit as a result of the law but still much has to be done to expunge unnecessary delays in the processing of official documents in government offices.
By promoting Public-Private Partnership as a strategy to speed up and achieve socio-economic advancement of the nation, it is believed that the Philippines will catch up rapidly with its more progressive neighbors in due time. This is notably true in the prosecution of infrastructure projects.
As envisioned under the program, infrastructure PPAs will be left to the private sector to enable the government to focus more on the delivery of social services. If this partnership will be managed well on mutually advantageous terms and conditions, the desired annual GDP growth of 7-8% for the remaining five years of the Aquino administration will not be far-fetched. This will greatly impact the lives of the poor, particularly on the D and E income brackets, especially if power costs will be reduced to a socialized range.
It should be noted that the entry of more IPPs in the electricity generation industry will go a long way in reducing power costs as competition will force those investors in the industry to strategize by effectuating cost-effective measures like the use of cutting-edge technology and installation of state-of-the-art facilities.
Having virtually neutralized the commission of graft and corruption in public work projects as part of his good governance campaign, President Aquino has set a high moral ground in his governance style. He manisfested his passion and integrity on this by scrapping big ticket projects like the Php 18-billion Belgian lake dredging project of the Laguna de Bay after a review by current officials discovered that it was rigged. The project was among those in the pipeline for implementation by the previous dispensation.
Though the Philippines may be politically weak compared to its Southeast Asian neighbors, the strong moral environment that Aquino is anchoring his government may yet be the “propulsive force” (to borrow the words of Claro Recto, a first-rate nationalist) that will speed up the socio-economic advancement of the country. In fact, this high moral tone of the Aquino incumbency is enough to build a wellspring of trust that will encourage the private sector to join his Public-Private Program even as it will build goodwill between local and foreign investors.
Way back in September, 2010, it was reported that the financial system in the country has enough excess funds parked at the BangkoSentralngPilipinas (BSP) such as Special Depository Accounts (SDA). This amount could have reached 100 billion pesos by now (as it has already amounted to 909 billion in August, 2011) and presumed to be sufficient to bankroll big-ticket projects. The Special Depository Accounts is among the facilities given to the central for liquidity management which consists of fixed-term deposits for banks, trust entities of banks and even nonbank financial institutions.
Instead of being parked as SDAs for its high yields or otherwise being subjected to Reverse Repurchase Agreements (RRPs) to siphon off such liquidity from the financial system, these funds should be diverted to finance major infrastructure projects for public convenience. It goes without saying that it is more worthwhile for the moneyed to invest in longterm public works than just parking their money as SDAs to accumulate high interests in the vaults of the central bank which is mainly for self-gratification.
Somehow, it is the moneyed’s way of paying back to the public the oodles of money they gained from their huge businesses which may never have thrived without patronage of the masses. It is their way of plowing back to the public their excess liquidity as assistance to the government in realizing the palpable effects of effective governance.
For the LGUs, it will provide them the opportunity to have more choices in seeking external funding for their PPAs (Programs,Projects and Activities) aside from the traditional PDAF of congressional members and project shares from higher LGUs. On the other hand, opportunities for graft and corruption will be much lessened as prosecution of public works financed from private (to be counterparted with local funds), will be subject to stringent monitoring and evaluation aside from strict application of audit policies, rules and regulations. It will surely enhance the efforts of the LGUs to engage the services of the CSOs as reliable partners in development as envisioned in the Code and enshrined in the constitution. The public-private partnership program of the Aquino dispensation is in sync with the relevant provisions of the Local Government Code regarding more involvement of NGO/Pos/PS in local governance.
Undoubtedly, this is a huge setback in luring foreign investments in our shores. There is a need to enforce the law more vigorously in order to attract the attention of prospective investors who may be observing the extent of the law’s enforcement. Transactions may have been speeded up a bit as a result of the law but still much has to be done to expunge unnecessary delays in the processing of official documents in government offices.
By promoting Public-Private Partnership as a strategy to speed up and achieve socio-economic advancement of the nation, it is believed that the Philippines will catch up rapidly with its more progressive neighbors in due time. This is notably true in the prosecution of infrastructure projects.
As envisioned under the program, infrastructure PPAs will be left to the private sector to enable the government to focus more on the delivery of social services. If this partnership will be managed well on mutually advantageous terms and conditions, the desired annual GDP growth of 7-8% for the remaining five years of the Aquino administration will not be far-fetched. This will greatly impact the lives of the poor, particularly on the D and E income brackets, especially if power costs will be reduced to a socialized range.
It should be noted that the entry of more IPPs in the electricity generation industry will go a long way in reducing power costs as competition will force those investors in the industry to strategize by effectuating cost-effective measures like the use of cutting-edge technology and installation of state-of-the-art facilities.
Having virtually neutralized the commission of graft and corruption in public work projects as part of his good governance campaign, President Aquino has set a high moral ground in his governance style. He manisfested his passion and integrity on this by scrapping big ticket projects like the Php 18-billion Belgian lake dredging project of the Laguna de Bay after a review by current officials discovered that it was rigged. The project was among those in the pipeline for implementation by the previous dispensation.
Though the Philippines may be politically weak compared to its Southeast Asian neighbors, the strong moral environment that Aquino is anchoring his government may yet be the “propulsive force” (to borrow the words of Claro Recto, a first-rate nationalist) that will speed up the socio-economic advancement of the country. In fact, this high moral tone of the Aquino incumbency is enough to build a wellspring of trust that will encourage the private sector to join his Public-Private Program even as it will build goodwill between local and foreign investors.
Way back in September, 2010, it was reported that the financial system in the country has enough excess funds parked at the BangkoSentralngPilipinas (BSP) such as Special Depository Accounts (SDA). This amount could have reached 100 billion pesos by now (as it has already amounted to 909 billion in August, 2011) and presumed to be sufficient to bankroll big-ticket projects. The Special Depository Accounts is among the facilities given to the central for liquidity management which consists of fixed-term deposits for banks, trust entities of banks and even nonbank financial institutions.
Instead of being parked as SDAs for its high yields or otherwise being subjected to Reverse Repurchase Agreements (RRPs) to siphon off such liquidity from the financial system, these funds should be diverted to finance major infrastructure projects for public convenience. It goes without saying that it is more worthwhile for the moneyed to invest in longterm public works than just parking their money as SDAs to accumulate high interests in the vaults of the central bank which is mainly for self-gratification.
Somehow, it is the moneyed’s way of paying back to the public the oodles of money they gained from their huge businesses which may never have thrived without patronage of the masses. It is their way of plowing back to the public their excess liquidity as assistance to the government in realizing the palpable effects of effective governance.
For the LGUs, it will provide them the opportunity to have more choices in seeking external funding for their PPAs (Programs,Projects and Activities) aside from the traditional PDAF of congressional members and project shares from higher LGUs. On the other hand, opportunities for graft and corruption will be much lessened as prosecution of public works financed from private (to be counterparted with local funds), will be subject to stringent monitoring and evaluation aside from strict application of audit policies, rules and regulations. It will surely enhance the efforts of the LGUs to engage the services of the CSOs as reliable partners in development as envisioned in the Code and enshrined in the constitution. The public-private partnership program of the Aquino dispensation is in sync with the relevant provisions of the Local Government Code regarding more involvement of NGO/Pos/PS in local governance.
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