Gov't plans to issue bonds for infra projects
Manila (11 November) -- Finance Secretary Cesar Purisima recently said that the Aquino administration is planning to sell 25-year debt papers next year to help the government in building the country's badly needed infrastructure.
Purisima explained that the bonds will be issued to match the length of the proposed projects, and if some projects are under 25 years, the bond maturity would be adjusted accordingly.
"We will create a pool of funds to support solicited projects and we will issue bonds as necessary. So there will be no outstanding money. If committed a certain amount to a project, then we will issue a bond and re-lend it to a project," Purisima said.
"The key is to do feasibility study, then we hire financial adviser so we can properly bid these out," Purisima said referring to President Aquino's Public-Private Partnerships initiative.
The finance chief, meanwhile, assured that all transactions under the PPP's will be transparent.
"That's one of the lessons we've learned from the past where the focus was unsolicited, less transparent and more prone to irregularities," Purisima said.
To date, the government is preparing for the launching of the PPP next week, beginning November 18 to 19.
The government has already listed down P128 billion worth of infrastructure projects to be prioritized in 2011. These are the extension of the Light Railway Transit, new airports and terminals in Bohol, Pampanga, Puerto Princesa, and Daraga.
Also, the government plants to build a road linking the North and South Luzon tollways and a water supply project in Metro Manila. (PIA-MMIO) [top]