Phl on right path to growth - Belmonte

MANILA, Philippines - Speaker Feliciano Belmonte Jr. expressed optimism that the country would achieve its medium-term development objectives despite uncertainties facing the global economy.

“Qualitatively, the plan puts in place our strategy for inclusive growth – one that creates jobs, draws the majority into the economic and social mainstream, and continuosly attacks mass poverty,” Belmonte told a recent Investment Forum in Makati City, organized by the ATR KIM Eng Securities, Inc.

 The Speaker was referring to the Philippine Development Plan, which aims for a growth rate of seven to eight percent and reduce poverty by half to 16.6 percent in 2015.

“Government is working to increase investment-to-GDP ratio from 15.6 percent in 2010 to 22 percent in 2016, and create at least one million jobs a year,” he said.

He stressed the need for charting a common direction for the government and the private sector, even as he acknowledged the weaker than expected growth of the economy in 2011.

“Although our growth was weaker than expected at 3.7 percent in 2011, this was still relatively better compared to where we found ourselves during the 1997 Asian financial crisis and the economic crunch of 2008 to 2009,” Belmonte said.

With the sustained growth in remittances and in the business outsourcing industry, and consumption accounting for more than 70 percent of GDP, the country has registered 51 consecutive quarters of positive GDP growth since 1999, he said.

“With current governance reforms being instituted in government spending and revenue administration, the national government managed to contain its deficit at P197.8 billion representing 65.9 percent of the P300 billion full year (deficit) program for 2011,” Belmonte added.

He cited the government’s Public-Private Partnership program as a “spoke in the wheel of an investment-led and inclusive growth.”

“The present government has committed to implement PPPs conformable to an integrated infrastructure program, with no arbitrariness in project selection and implementation,” he said. 

He presented the investment-related bills in the congressional pipeline that seek to address gaps in infrastructure, particularly in transport and power supply; institute economic constitutional provisions; improve business environment; raise revenues; and eliminate corruption.

One of the bills in the priority list is the proposed amendment to the Build-Operate-Transfer, or BOT Law which seeks to institutionalize competitive bidding as the cornerstone in the awards of contracts, full public disclosure of all transactions, equitably allocate risk between government and the private proponent and   institutionalize the Project Development Facility and its availability to local government units for the preparation of project proposals that are technically, legally, and financially viable.

 Another is the bill consolidating the national railways system and the light transit system, which entails the creation of the Philippine National Railway Authority and the Railway Regulatory Board.

 “When a unified system shall have been established, expect sustained efficiency in the management and development of railway transport in the country,” Belmonte said.        

He said Congress is studying possible amendments to the mining laws, noting that natural resource extraction requires massive investments.       

“Understandably, given the stakes in this field, any proposed change in the law will generate widespread attention – and even opposition,” Belmonte said.      

He said there is also a need to harmonize the Mining Act with relevant laws, such as the Indigenous People’s Rights Act and the Local Government Code.        

“We must also ensure that the gains and benefits from mining are distributed equitably among the various stakeholders, especially the communities affected, and foremost, we must achieve the delicate balance between pursuing growth objectives and protecting the environment,” Belmonte said.