Report: Philippines plans $10bn infra fund

The Philippine government is reportedly considering setting up a $10bn infrastructure fund in order to finance road, rail and port projects. The fund is part of the government’s plan to reduce the country’s budget deficit, which stands at more than $7bn.

The Philippine government is planning to launch an infrastructure fund worth $10 billion in order to finance its road, rail and port projects, local media are reporting.

Reports suggest that the fund is expected to be launched in October with investments from the private sector. Currently, the government is in the process of discussing its plans with investors and fund managers interested in financing infrastructure projects, the reports say.

In related news, President Benigno S. Aquino said in a speech in July that his administration will tap the private sector to help build infrastructure, as the budget deficit is expected to reach PHP325 billion (€5.7 billion; $7.2 billion) this year. The infrastructure fund, according to reports, is part of the administration’s plan to reduce the country’s budget deficit to 2 percent of GDP without raising taxes.

The government is currently in the process of drawing up a list of key infrastructure projects that the private sector can finance so that public money can be channelled to social services. It is also planning to raise spending on education, health care and tourism.