Government urged to include digital infrastructure in list of priority projects

MANILA, Philippines — The Aboitiz and Ayala groups have asked the Marcos administration to include digital infrastructure  in the government’s list of priority projects in line with   the President’s push for universal connectivity.

In dialogues with the government, the Aboitiz and Ayala groups have conveyed their interest to invest in public-private partnerships (PPPs) on digital infrastructure if the Marcos administration decides to include these projects in the government’s priority list.

Aboitiz InfraCapital Inc. president and CEO Cosette Canilao said the government has enabling laws, particularly the Build-Operate-Transfer (BOT) Law, promoting the use of PPP in financing the delivery of digital projects.

The BOT Law lists telco infrastructure as one of the potential areas wherein the government and investors can work together. The law also allows PPPs to be conducted in the construction of information and communications technology networks, as well as database facilities.

Canilao said the government has to put up as many backbone infrastructure as it can—whether they may be in land, air or sea—to provide connectivity service even in remote areas. Given the budget constraints, she pitched that private funding be tapped in undertaking digital projects.

In exchange, Canilao asked the government to clear its policy framework on digital PPPs and to come up with fiscal incentives to encourage private participation.

“To enjoin the private sector and establish more players to develop much needed passive digital infrastructure, the government should issue effective policy directives and it can offer additional incentives,” Canilao said.

On the other hand, Ayala-led Globe Telecom Inc. wants the government to review its priority list under the Build Build Build program given the demand for digital assets.

Globe network technology innovations manager Derick Dimla said PPPs for digital infrastructure should be included in the Build Build Build projects of the Marcos administration.

He said allocating a yearly budget for their completion ensures that connectivity services would reach even the underserved areas.

According to Dimla, the government should make permanent the provision of the Bayanihan to Recover as One Act on telco permitting. The second Bayanihan law, signed in 2020, suspended for three years the need to secure clearances and permits in building telco infrastructure.

The Private Sector Advisory Council working with President Marcos is led by the Aboitiz Group, while Globe serves as a member of the digital infrastructure group.