Infra buildup through the PPP mode

J. Albert Gamboa l June 16, 2023 l Business World

OSAKA, Japan — This second-biggest Japanese city is the birthplace of the Nomura Group, which began as a money exchange business founded by Tokushichi Nomura in 1872. It expanded through the efforts of his eldest son and namesake who established Osaka Nomura Bank in 1918 and Nomura Securities in 1925. Today, it has become Japan’s largest investment banking and securities brokerage conglomerate or “keiretsu” — listed on the stock exchanges of New York, Tokyo, Osaka, Nagoya and Singapore with more than 25,000 employees worldwide.

Nomura Global Markets Research’s latest report said infrastructure development in the Philippines would continue to accelerate in the coming years due to increased public-private partnership (PPP) projects. In March, the government of President Ferdinand R. Marcos, Jr. approved 194 flagship infrastructure projects worth P8.2 trillion, P2.5 trillion of which are expected to be funded by PPPs.

The Philippines’ renewed commitment to PPPs, which were started by the administration of President Benigno S.C. Aquino III, as well as recently passed liberalization laws will support the country’s robust infrastructure, according to Metro Pacific Investments Corp. (MPIC) head of government relations and public affairs Michael T. Toledo. He spoke at the annual Nomura Investment Forum Asia on June 7 about MPIC’s game-changing PPP projects such as the Cebu-Cordova Link Expressway, NLEX Connector Road and the Cavite-Laguna Expressway.

One example of a successful Japanese PPP project is the Osaka Bay regeneration program, which has been pursuing initiatives to restore what was once a bountiful fish garden into the nation’s seafood kitchen where there is a harmonious coexistence between the city and the bay. The project is also dealing with water pollution arising from high economic growth in the Osaka Bay region, whose population is now 20 million.

In another development, the world’s largest financial newspaper has lately taken a keen interest in Philippine business news. Last week, Nihon Keizai Shimbun’s news magazine Nikkei Asia reported that Mitsui & Co.’s plan to acquire MPIC’s core infrastructure assets was “facing delays after the Philippine Stock Exchange raised concerns over the impartiality of the adviser on the tender offer price.” It also published a story titled “Philippine company linked with Marcos ally strikes business deals” about RYM Business Management Corp., which is described as “a once-little known privately held company (that) has emerged as one of the most active deal makers (with) bets in media, banking and infrastructure.” RYM is the holding company owned by House Speaker Ferdinand Martin G. Romualdez, a first cousin of Mr. Marcos.

This came to light amidst the intramurals between the camps of Mr. Romualdez and Vice-President Sara Duterte-Carpio regarding the speakership. Camarines Norte Rep. Luis Raymund F. Villafuerte, Jr., president of the National Unity Party (NUP), recounted that Ms. Duterte’s “involvement with the House of Representatives began long before she assumed her current role.” He cited two instances of alleged meddling in the speakership issue by the erstwhile presidential daughter when she was still Davao City mayor during her father’s presidency: the sudden replacement of Pantaleon D. Alvarez by former President Gloria Macapagal-Arroyo in 2018, and Alan Peter Cayetano’s ouster by Lord Allan Q. Velasco in 2020 despite their term-sharing agreement.

“Her involvement in the legislative process, especially with regard to determining the Speaker of the House, raises questions about the preservation of democratic values,” Mr. Villafuerte said. Cavite Rep. Elpidio Barzaga of NUP thinks Ms. Duterte’s “vicious insinuations against Speaker Romualdez have added a new layer of complexity to the ongoing controversy.” For their part, Senior Deputy Speaker Aurelio D. Gonzales, Jr. and Surigao del Sur Rep. Johnny T. Pimentel, both from the PDP-Laban party, expressed their support for Mr. Romualdez, who is also the president of the Lakas-CMD party.

As members of the ruling coalition, the four congressmen are of the same mind that “a consistent disregard for the checks and balances embedded within the Constitution raises significant concerns” and “would undermine the very foundations of our democratic system.” They likewise agreed that “democracy thrives when there is a balance of power and a mutual respect among the branches of government.”

Hopefully, this issue will soon be resolved and harmony will prevail for the sake of unity that was the main pillar of the incumbents’ campaign platform in 2022. They should emulate the ruling Liberal Democratic Party here in Japan, which has forged an amicable solution with one of its junior partners that was planning to bolt the coalition in their own House of Representatives ahead of the next parliamentary elections.

*** J. Albert Gamboa is the chief finance officer of the Asian Center for Legal Excellence and vice-chairman of the FINEX Ethics Committee. The opinion expressed here does not reflect the views of these institutions.

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