In a virtual rountable discussion, Foundation for Economic Freedom president Calixto Chikiamco said the administration started of on the wrong foot with the private sector, which was seen as “greedy private parties” especially in infrastructure projects.
With the government scouring for resources to address the COVID-19 crisis, he said,
“it may have no choice but to see the private sector as valuable partners, rather than enemies to be demonized, in healing the damage to public health and to the economy that the pandemic has caused.”
Chikiamco said the PPP scheme could be tapped for public health and in public transportation under the new normal.
He cited as an example the possible privatization of government hospitals, including specialty facilities like the Philippine Heart Center and Philippine Orthopedic Center.
“Not only would privatization raise money for the government, but it would improve efficiency and reduce corruption in the delivery of hospital care,” the economist said.
In public transportation, Calixto said, “let’s accept the fact that government is a poor operator of public transport – MRT and PNR – and therefore these should be privatized.”
He said privatization may lead to salary-based drivers and innovations such as use of apps to gauge demand and dispatch.
In the same forum, Senate Committee on Public Services chairperson Grace Poe said should the private sector sway the government to fully embrace PPP, it should “behave in a socially responsible manner.”
“Play fair, play by the rules, and keep the public interest in mind,” she added.
Foreign investors
Poe said local capital may not be brought as every sector of the economy needs credit extensions and even bailouts. Recovering from the crisis, she added, may require opening up the country to more foreign investors.
“These investments will provide the capital infusion needed by several industries including manufacturing, transportation, logistics, and telecoms,” the senator said.
But since laws restrict foreign ownership in public services, Poe said she filed a bill that will open up the economy.
She said the entry of more players and capital investments “will enhance competition, leading to better consumer service.”
On fears that foreign ownership of vital industries could pose threats to national security, Poe said increasing foreign investments and promoting national security are not conflicting goals.
She explained under her bill, the National Security Council has the power to review. The President may also suspend or prohibit transactions that are a threat to national security.
Metro Manila (CNN Philippines, May 29) — As the local economy takes a hit from the COVID-19 pandemic, a think tank said Friday public-private partnership (PPP) deals are needed now more than ever.
