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Philippine PPPs are now allowed to float

Companies with projects valued at more than $101m may apply for a listing to access financing from the country's equity and bond markets.

The Philippines’ Securities and Exchange Commission has approved rules enabling the listing of PPP companies on the country's stock exchange. 

The measure aims to help sponsors of PPP projects tap capital markets so as to broaden their financing options.

Under the new arrangements, companies with project contracts worth at least 5 billion Philippine pesos ($101 million; €94 million) are eligible for a listing that gives them access to the equity and bond markets. PPP companies may apply to float once they have completed the construction work or a phase of the project they oversee. 

The PPP Centre of the Philippines said this was a positive development as it would allow substantial funding to be channelled towards more complex and bigger PPP projects in the future. 

The Philippine government proposed the rules in June in an effort to diversify financing options available in the market. The PPP Centre is currently developing a legal and commercial framework in partnership with the UK government that it hopes will attract more foreign investors to support its infrastructure projects.   

The PPP Centre has awarded 14 projects since its inception in 2010. There are 11 projects currently under procurement and two projects recently approved for procurement in the PPP Centre’s pipeline. 

Some of these projects with an investment cost of over PHP5 billion include the regional airport packages, the 50 billion pesos Regional Prison Facilities, the 65 billion pesos LRT Line 6 project and the recently approved 75 billion pesos Ninoy Aquino International Airport upgrade project.