President Aquino promised fair rules and predictability in the business environment as well as an end to backroom deals. For its part, the House of Representatives vowed to pass legislation that would level the playing field for investors. The promises were made as the Aquino administration wooed local and foreign participants in the PPP or public-private partnerships in improving the country’s infrastructure and in development projects. The PPP projects are mainly big-ticket, requiring massive infusions of funding that most local companies cannot provide entirely on their own.
Hundreds of foreign investors attended the first PPP gathering, which ended yesterday. The general mood was bullish, with officials of both local and foreign chambers of commerce saying the messages were encouraging and the President and his Cabinet spoke as one. The country’s top businessmen expressed interest in several major projects.
The administration should not lose the momentum or show signs that it cannot deliver on its promises, some of which seem ambitious, such as a guaranteed reasonable return on investment. Many of the other promises can be fulfilled, given the political will. These include the President’s commitment not to change business policies in midstream - a major complaint in the past - and to make investment rules fair, clear and equally applied to all. The President also promised no midnight contracts or demands for fat commissions.
There are still many hurdles along the way, including certain provisions in the Constitution that are unlikely to be changed in the near future. The President needs the cooperation of the two other branches of government in his effort to attract job-generating investments. The judiciary in particular has handed down orders and rulings in the past that have turned away investors. Lawmakers have harassed investors, and vested interests in Congress are partly responsible for the absence of a level playing field in the business environment. The PPP initiative is a promising start, but for it to succeed, the President will need to have all concerned sectors on board, working for Team Philippines
