OPENING STATEMENT
First Panel Discussion:
Economic Outlook and Strategies for 2024
Joseph J. Capuno, PhD
Undersecretary for Investment Programming
National Economic and Development Authority
Pilipinas Conference 2023 | Stratbase ADR Institute
“Path Towards Economic Security: Turning Global Risks into Opportunities”
22 November 2023 | 09:00 AM – 10:40 AM
Ladies & Gentlemen, good morning!
First off, my sincere gratitude to Stratbase for putting together this 2023 Pilipinas Conference.
Representing the National Economic and Development Authority, it is my pleasure to discuss some of the strategies employed by the Marcos Administration for attaining inclusive economic growth, focusing on updates on infrastructure development and public-private partnership projects, in particular.
As you know, all of the government’s programs, and policies are anchored on the Marcos Administration’s 8-Point Socioeconomic Agenda, which serves as the guiding framework of our Philippine Development Plan or PDP for 2023 to 2028. Among the PDP’s strategies for enabling socioeconomic transformation is to increase investment opportunities.
On the left side of the screen, the following measures are those that have been passed by Congress, while the critical reform and policy initiatives on the right are those being implemented by the Executive branch. Together, these initiatives aim to make the Philippines a more attractive destination for investors. We aim to address the economy’s chronic issue of low investment levels and create more and higher-quality job opportunities for our workers to raise incomes, sustainably reduce poverty, and improve quality of life.
The government has successfully revamped existing governing frameworks for high-impact public-private partnerships or PPPs. The Revised 2022 Implementing Rules and Regulations (or IRR) of the BOT Law will address the various concerns from private-sector stakeholders regarding financial viability and implementation ambiguity. The upcoming amendment to the BOT Law (or the PPP Code) will reflect the features of the revised IRR. It shall harmonize all legal, policy, and regulatory frameworks in developing, implementing, and monitoring PPP projects, with the aim of balancing public and private-sector objectives.
The Investment Coordination Committee Guidelines for PPP projects also outlines the approval process for these projects, while the 2023 Revised NEDA Joint Venture Guidelines aims to ensure the full participation of our partners in the joint construction and operation of infrastructure projects.
Lastly, the upcoming Executive Order (or EO) on Expediting the Processing of Documentary Requirements for the Infrastructure Flagship Projects (or IFPs) aims to simplify the requirements and clearances needed by implementing agencies for priority infrastructure projects. The EO will ensure the automatic approval of any pending application or request, provided all conditions and payments have been fully complied with. Currently, it is still being finalized by the Office of the President.
The now 197 Infrastructure Flagship Projects (IFPs) under the Marcos Administration’s Build-Better-More Program currently amounts to about 8.7 trillion pesos or 156.4 billion dollars. As the lead monitoring agency for IFPs, NEDA recently reported to the NEDA Board that one of the 197 IFPs, specifically the Samar Pacific Coastal Road Project by the Department of Public Works and Highways, has been completed, and more are on the way. If you have not seen it yet, I urge you to scan the QR code on the screen and check out our IFP Dashboard to view all the relevant developments on these projects.
As for PPPs, 106 PPP projects in the pipeline, where 36 are IFPs, most are found in the sectors of transport, road, property development, and information and communications technology, with some also being in the health and waste management sectors for social infrastructure.
Lastly, demonstrative of our commitment to realize IFPs and PPPs, NEDA Board meetings are held regularly – at least once a month – with the President chairing the NEDA Board.
Under the Marcos Administration, the processing period for the following PPP projects averaged only 40 days—half of the prescribed maximum working-day processing period—highlighting the effectiveness of our reforms and showcasing our institutions’ commitment to driving the Administration’s socioeconomic agenda. Expedited processes have allowed us to already approve five PPP projects, including the Ninoy Aquino Internation Airport, the Tarlac-Pangasinan-La Union Expressway Extension, and the newly approved Dialysis Renal Center for the Baguio General Hospital and Medical Center. As we move forward, the private sector remains our steady partner in realizing the completion of these high-impact projects.
NEDA, alongside the agencies that form the Economic Team, is ensuring the country’s steady progress towards achieving economic security. The Philippines is currently host to numerous investment opportunities in infrastructure and emerging growth drivers.
Thank you, and I look forward to having a fruitful and insightful discussion.
-END-