No govt guarantees in PPPs

A senator correctly pointed out that big ticket projects undertaken by private contractors under the Public Private Partnerships (PPPs) do not need government guarantees that will amount to several billion pesos per year per project. See the news, Recto backs call to end state guarantees in big-ticket projects.

Companies should enter those big infrastructure projects because they will earn substantial profit from regular commercial operation, not because they are assured of huge government guarantees and subsidies. At nearly P300 billion per year average budget deficit the past few years, it is not advisable for the government to enter into contracts that might further bloat the deficit and the overall public debt stock.

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