The Australian government, through the Partnerships for Infrastructure (P4I) program, will help the Philippines to attract investments in key infrastructure projects.
At the launching of the P4I in Pasay City Friday, Australian Ambassador to the Philippines Hae Kyong Yu PSM said the P4I will provide infrastructure advisory support to the Philippine government especially in choosing what type of financing strategy should be used in a particular project, which projects should be prioritized and what technologies should be utilized.
The P4I will also help various government agencies in crafting regulatory frameworks that will make key infrastructure projects attractive for investments from the private sector.
“We know infrastructure investment requires a strong regulatory environment… The private sector definitely needs the right incentive to invest and innovate while the government needs to ensure that standards are met, that assets are managed efficiently,” Yu said.
Aside from providing advisory services to make infrastructure projects attractive to the private sector, the envoy said this partnership between Australia and the Philippines can facilitate potential financing from Australian companies and institutions.
“Australia has a compulsory superannuation system, which means 10 percent of everyone’s salary goes into superannuation fund, which is like a pension fund which is currently at AUD3.4 trillion level and is expected to grow to AUD9 trillion in the future. All that money needs somewhere to invest,” she added.
Yu said infrastructure projects in the Philippines can attract these funds from Australia when the government can provide the right policy and sound business environment to lure investments. (PNA)