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AT LEAST 5 MULTIBILLION-PESO PROJECTS TO BE ROLLED OUT FOR PRIVATE-SECTOR FUNDING IN 2018
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It’s back to center stage for PPP
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By Lorenz S. Marasigan
T least five multibillion-peso deals under the Public-Private Partnership (PPP) Program are expected to take center stage in 2018, as the government tries to accelerate infrastructure development via privatesector funding next year.
Ferdinand A. Pecson, who sits as executive director at the PPP Center, said his office has identified several projects that could “probably” be rolled out throughout 2018. These, he said, include unsolicited proposals that require competitive-challenge mechanisms before being implemented. “The PPP Center continues on its commitment to fast-track the delivery of quality infrastructure via three main strategies: pipeline
development, focus on local PPPs, and implementation and monitoring,” he said. PPP Director Lawrence G. Velasco listed the five projects as the operations and maintenance of the Clark International Airport, the San Ramon New Port, the East-West Railway, the Manila Bay Flood Control and the New Manila Airport. The last three are unsolicited proposals from various players in the private sector. They are currently in the Investment Coordi-
nation Committee (ICC) of the National Economic and Development Authority (Neda). “The unsolicited proposals are in the ICC level. They will seek the approval of the ICC and then go through negotiation, then Swiss Challenge—that is something that we will do next year,” Velasco said. East West Rail Transit Corp. submitted early this year its proposal for the financing, design, construction, operation and maintenance of the East-West Rail, a
mostly elevated 9.4-kilometer railway line from Diliman, Quezon City to Lerma, Manila. It is envisioned to have 11 stations and provide interconnecting facilities with neighboring rail systems. San Miguel Corp., on the other hand, submitted the unsolicited proposal for the P339-billion Manila Bay Flood Control deal, which involves the construction of a coastal sea barrier through the northern part of Manila Bay covering the Continued on A2
TRAIN impact won’t derail inflation from projected path
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By Bianca Cuaresma
lthough worries over inflation pressures surfaced after the signing of the first tranche of the tax-reform package, international think tank Capital Economics said the impact of the socalled TRAIN, or the Tax Reform for Acceleration and Inclusion, is not likely to derail inflation from its projected path next year. In Capital Economics’s most recent review of Philippine economic dynamics, the research firm said the signed tax-reform pack-
age—which will lower income taxes but increase a host of indirect taxes—will have minimal effect on the overall inflation direction,
PESO exchange rates n US 50.1940
as the introduction of new taxes will be gradual.
‘Revenue building’
ON Tuesday President Duterte signed into law the first tranche of the country’s tax-program overhaul, with its most salient feature being the exemption from income tax of all annual salaries worth P250,000 and below. Despite the lower personal taxes, the government still sees the tax package as “revenue building” for project funding, as it also raised levies on some sectors—including automobiles, sugary drinks, cosmetic procedures, coal and petroleum products. Capital Economics said Duterte’s move to encourage the speedy approval of the bill, as well as his signing of the bill into law, marked “his most important legislative achievement since coming to See “TRAIN,” A2
President Duterte leads the ceremonial signing of the 2018 General Appropriations Act and Tax Reform for Acceleration and Inclusion bill as members of Congress stand behind him at Malacañang in Manila on December 19, 2017. AP/Aaron Favila
n japan 0.4431 n UK 67.1947 n HK 6.4202 n CHINA 7.6219 n singapore 37.3690 n australia 38.6544 n EU 59.6255 n SAUDI arabia 13.3851
Source: BSP (22 December 2017 )