This is an article repost.
CONSTRAINTS to private sector development (PSD) should be addressed by the administration as it prepares to formulate a new country partnership strategy (CPS) with the Asian Development Bank (ADB), according to a recently released ADB-commissioned study.
Published early this month under the title “Philippines: Private Sector Development — Challenges and Possible Ways to Go,” the study was conducted by Aziz Haydarov, country economist at the ADB Philippines Country Office, as a contribution to current consultations to formulate the CPS for the Philippines for the administration’s term until 2016.
Usually revised every three years,the CPS is the framework that guides the multilateral lender in providing assistance to the Philippines.
In his paper, Mr. Haydarov said the private sector should drive the country’s growth, noting that the ADB could help by providing support to the government’s “preparation and implementation of PSD-related reforms, in particular those on improving PPP (public-private partnership) rules and procedures to facilitate more entry of private sector into PPP projects at the national and sub-national levels.”
“Support could also be provided to facilitate long-term financing for infrastructure projects via currency swaps and establishing a dedicated infrastructure financing facility,” Mr. Haydarov wrote.
He cited two hindrances to increasing the private sector’s contribution to growth: inefficiency of institutional and legal frameworks in streamlining business registration processes and reducing corruption; and insufficiency of infrastructure and the limited access to finance, which largely affect small and medium enterprises.
Sought for comment, Rolando G. Tungpalan, deputy director-general for investment programming at the National Economic and Development Authority (NEDA), said reforms are being implemented in relation to the flagship PPP projects.
“From the [Philippine Development Plan] we have moved to defining what exactly are our public investment program priorities that are results-oriented,” he said in an interview yesterday.
He said the Investment Coordination Committee, which is tasked to evaluate the feasibility of major projects to be presented for approval of the NEDA Board, is also working on improving business processes.
“When you shall have determined how risk could be allocated between government and private sector, and you have better prepared feasibility studies, the market is likely to bid better,” he added.
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By: A. E. Barrameda
Source: Business World, Aug. 8, 2011
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To download the ADB study “Philippines: Private Sector Development — Challenges and Possible Ways to Go” by Aziz Haydarov in PDF format, click here.
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