Philippines' GSIS eyes new infrastructure fund
Philippines' Government Service Insurance System (GSIS) has announced that it is in discussions with multilateral agencies to develop a new infrastructure fund.
According to GSIS President Robert G. Vergara, the social security system has already deployed approximately 50% of its existing $625 million infrastructure fund. The US$625 million infrastructure found was issued in 2012 with GSIS contributing around US$400 million. This infrastructure fund, which was issued alongside the Asian Development Bank, the Netherlands' Algemene Pension Groep and Macquarie Infrastructure and Real Asset, is set to be fully invested by mid 2016.
The new infrastructure fund would have a target size between US$300 million and US$350 million.
Mr Vergara, at the CFA Institute's Philippines Investment Conference in Manila, stated:
The GSIS and other pension funds and insurance companies, that are about long-term capital accumulation, have a role to play in building out infrastructure that the country needs.We will continue to look at this asset class for GSIS; I think when the infrastructure fund that we raised has been fully invested, then we'll probably look at a second round of capital
According to the Secretary for the Department of Works and Highways Rogelio Singson the Filipino administration aims to increase its infrastructure spending from 1.9% of GDP to 5% by 2016.
Ten PPP projects have been awarded under the government's flagship infrastructure PPP program., so far:
- Daang Hari-South Luzon Expressway Link Road;
- Ninoy Aquino International Airport Expressway;
- First phase of the PPP for School Infrastructure Project (PSIP);
- PSIP's second phase;
- Philippine Orthopedic Center modernization;
- Automatic Fare Collection System; and
- Mactan-Cebu International Airport Passenger Terminal Building.
- NAIA Expressway PPP project
- LRT Line 1 Cavite Extension Operation & Maintenance.
- PPP for School Infrastructure Project (PSIP) Phase II
Seven others have been rolled out:
