March 24, 2023
Australian Ambassador to the Philippines, Her Excellency HK Yu; Australia’s Special Envoy for Southeast Asia, Mr. Nicholas Moore; Chief Executive Officer of the Infrastructure and Commercial Advisory Office, Mr. Chris Allen; Executive Director of Partnerships for Infrastructure, Ms. Elena Rose; panel discussants; distinguished guests; ladies and gentlemen: magandang umaga po sa inyong lahat.
I am honored to welcome you all to the launch of Australia’s Partnership for Infrastructure here in the Philippines.
Today’s event signals greater cooperation between our two nations.
For 77 years, Australia has been a strong ally and supporter of the Philippines in its pursuit of sustainable development. In fact, the Philippines is one of Australia’s longest-standing bilateral partners.
During this period, Australia has supported the Philippines through programs that target poverty reduction and raise living standards for all Filipinos.
Over the years, this relationship has grown to cover trade, investment, security, tourism, and cultural exchange.
Since the ASEAN-Australia-New Zealand Free Trade Agreement entered into force in 2010, trade between Australia and the Philippines has expanded by over 125 percent.
Over 300 Australian companies employing 44,000 Filipinos have set up shop in the Philippines, tapping its young, educated, English-speaking talent pool.
The Philippines is a top destination for many Australians, with Australia being our third largest source of tourists from February to December 2022.
From 2021 to 2022, total Australian ODA to the Philippines amounted to 130.7 million US dollars.
Just recently, the Philippines joined Australia and our Asia-Pacific neighbors in the world’s largest trade pact – the RCEP, the Regional Comprehensive Economic Partnership.
With RCEP, we are optimistic that our strong relations with Australia will only continue to grow in the years to come.
Partnerships for Infrastructure, or P4I, is designed to be an effective vehicle for driving inclusive and sustainable growth in Southeast Asia.
By strengthening financing strategies, regulatory frameworks, and technology choices, particularly in green tech, P4I helps ensure the development of quality and modern infrastructure among partner-countries in the region.
More importantly, it recognizes that Southeast Asia’s prosperity is Australia’s prosperity. This principle is vital in an increasingly fragmented world.
This opportunity could not have come at a better time. Building on the back of the previous administration’s expansive infrastructure program, the Marcos Jr. administration is determined to reverse the Philippines’ decades-long pattern of underinvestment in infrastructure.
The government has made investment in infrastructure a top priority, as reflected in our 8-Point Socioeconomic Agenda, the Medium-Term Fiscal Framework, as well as the Philippine Development Plan 2023 to 2028.
To demonstrate our commitment, we amended the implementing rules and regulations of the Build-Operate-Transfer Law within the first 100 days of the Marcos Jr. administration.
This signifies our commitment to modernizing the Philippine economy through increased private sector participation from local and foreign investors.
In December 2022, we also revised the Investment Coordination Committee or ICC Guidelines on PPP approvals. This is to ensure faster processing and approvals of PPP projects. And just this March, we have revised the NEDA Joint Venture Guidelines.
These reforms were thoughtfully and deliberately designed to ensure that all investments in public projects comply with international best practices.
These also ensure an effective framework under which investments can be safely made without any disruption due to inadequate oversight or poor management practices during the implementation of these initiatives.
The Marcos Jr. administration recognizes that the PPP mechanism is a powerful instrument for unleashing the many benefits of private finance to prepare our economy for sustainable growth.
By leveraging private capital and expertise, PPP will help speed up investments while upholding the highest standards for quality infrastructure development.
These measures will support efforts to keep our infrastructure spending at 5 to 6 percent of GDP annually without constricting fiscal space.
On that point, the Lower House has approved on third and final reading the Public-Private Partnership Act. This bill seeks to foster the growth of public-private partnerships for infrastructure and development by simplifying regulations and procedures on infrastructure projects and enjoining local government units to develop and implement local PPP projects.
We are also happy to report that the National Economic and Development Authority Board has greenlit or approved 194 high-impact Infrastructure Flagship Projects to augment the Build Better More Program of the Marcos Jr. administration. These projects are worth 9 trillion pesos.
Moreover, the NEDA Board’s approval of the first PPP project under the current administration last February 2nd serves as a major victory for Philippine healthcare.
The proposed Philippine General Hospital Cancer Center, with an estimated cost of 109 million US dollars, will help improve access to medical services and health outcomes through early diagnosis and treatment interventions.
In addition, we have received nine PPP proposals for regional airports and numerous other PPP proposals for railways. These investments are of paramount importance as they will help build stronger economic ties between countries, spur job creation, and provide efficient transport solutions.
If we want an inclusive economy for generations to come, we must build sustainably.
Sustainable infrastructure will enhance access to basic services, promote environmental sustainability, and support inclusive growth.
In pursuit of our climate change commitments, the Philippines has established the Sustainable Finance Framework in 2022.
This Framework sets out how we intend to raise Green, Social, and Sustainability Bonds, Loans, and other debt instruments.
In turn, these sustainable financing instruments will fund eligible social projects including affordable basic infrastructure. This will help us contribute to the attainment of Sustainable Development Goals 6 and 11.
In addition, delivering infrastructure to rural areas will minimize disparities between the regions and benefit local economies that have long been left in the margins.
We look to Australia’s example in many of the infrastructure investments we seek to implement.
Australia has been a responsive partner in helping the Philippines through knowledge-sharing, capacity-building, and other forms of assistance.
There are many new and exciting opportunities for investment in the Philippines that could further reinforce the complementary nature of our economies.
We hope that this event marks the beginning of a more fruitful collaboration in infrastructure development. Our revised PPP program takes much from Australian experience, after all.
Together, let us do the hard, generational work of building an inclusive and sustainable regional economy that is more connected and prosperous than ever before.
Thank you very much.
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