One of the country’s leading conglomerates hopes that the next administration will pursue more public-private partnership (PPP) projects to sustain the construction of of critical infrastructures.
Aboitiz InfraCapital, a unit of Aboitiz Equity Ventures (AEV), believes that the country will be able to continue its growth and development through PPP.
Aboitiz InfraCapital president and chief executive officer Cosette Canilao said infrastructure projects have a massive multiplier effect.
Canilao, former executive director of PPP Center, said the private sector can help in infrastructure building through PPP, now that the government has limited fiscal space due to increasing debts incurred in the past years to fund “Build, Build, Build” projects and for coronavirus response measures.
“With the limited fiscal space that the government has, I think PPP is the way to go,” she said.
Canilao added PPP infrastructure projects have a great impact on society as these create more jobs for Filipinos.
AEV is allocating P69 billion for capital expenditures this year, 152 percent higher than the previous year. Of the total, 42 percent or P29 billion will be spent on infrastructure development.
This is the first time that the company will be spending a big chunk of its capex on its non-power business units. (PNA)