DOF’s Diokno woos Japanese investors with PH’s potential as investment hub in Asia

Finance Secretary Benjamin Diokno on Wednesday touted the Philippines’ potential as an investment destination in Asia among Japanese investors.

In a statement, the Department of Finance (DOF) said Diokno made a presentation to the Japanese business community during the Philippine Investment Opportunities forum on August 29, 2023 at the the Japan International Cooperation Agency (JICA) Office in Takebashi, Tokyo.

“Indeed, the Philippines today is primed more than ever to become a leading locus of investments in Asia and the Pacific. This is made possible through the establishment of a stable, predictable, and competitive investment environment,” the Finance chief said.

During the forum, Diokno presented the Philippines’ revised public-private partnership (PPP) policy framework, fiscal incentives offered under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law, and the recently legislated Maharlika Investment Fund (MIF).

The event was attended by over 130 representatives of Japan-based trading houses, financial institutions, Japanese government agencies, and multilateral development agencies, according to the DOF.

“To this end, the Philippine government has embarked on the aggressive implementation of reforms to create a conducive environment for PPP-related investments,” Diokno said.

The Finance chief said government has already revised the implementing rules and regulations (IRR) of the Build-Operate-Transfer (BOT) Law to strengthen the financial viability and bankability of PPP projects; improved the Investment Coordination Committee (ICC) Guidelines on PPP approvals to ensure faster processing and approval of PPPs; and enhanced the National Economic and Development Authority (NEDA) Joint Venture (JV) Guidelines to align with the revised IRR of the BOT Law and the proposed PPP Act.

Moreover, the government is also pushing for the passage of the PPP Act, which is nearing approval in the Senate, to simplify regulations and procedures on infrastructure projects.

“Our PPP reforms have already resulted in quicker approval of projects in the last seven months,” Diokno said.

Since the start of the Marcos administration, four PPP proposals with a total project cost of P212.8 billion or around $3.8 billion have been approved, the DOF said.

The Finance chief said that the solicited proposal for the rehabilitation of the Ninoy Aquino International Airport (NAIA) was evaluated and approved in around six weeks, while the unsolicited proposal for the Tarlac-Pangasinan-La Union Expressway (TPLEX) Extension Project was evaluated and approved within 11 weeks.

There are currently around 197 Infrastructure Flagship Projects (IFPs) approximately worth $155 billion available for partnership.

These include projects on energy, water, logistics, transportation, agribusiness, manufacturing, tourism, health, and education.

Also during the forum, JICA’s chief representative in the Philippines Takema Sakamoto gave a presentation highlighting the Philippines’ viability as an investment hub and development partner.

Sakamoto said the Philippines is a promising country with a demographic sweet spot, manageable debt levels, trustworthy public sector commitment to PPPs, and a slew of opportunities for development partnerships.

The Philippines is JICA’s second largest beneficiary in the world.

The agency is currently supporting the implementation of 28 ongoing loans with the Philippine government, among which are the North-South Commuter Railway Project (NSCR), NSCR Extension Project, and the Metro Rail Transit (MRT) Line 3 Rehabilitation Project. — RSJ, GMA Integrated News