The Securities and Exchange Commission approved the proposed easing of listing rules on companies engaged in infrastructure projects under the government's public private partnership program.
SEC chairperson Teresita Herbosa said the approval of the PPP listing and disclosure rules would enable the public to participate and invest in the PPP projects.
“This is a good step to involve the public in PPP projects. The rules will govern projects that are already completed and now will be in the earning stage, which could provide some sort of assurance that investors will have steady stream of returns in their investments,” Herbosa said in an interview.
Herbosa is confident companies involved in PPP projects would take advantage of the new rules and tap the stock market for their fund requirements.
The Philippine Stock Exchange earlier submitted to the SEC a draft public private partnership supplemental listing and disclosure rules to support infrastructure growth in the country
The salient items in the proposed rules include the easing of the track record and operating history requirements. The earlier rules required a PPP contract to have at least 15-year remaining period of effectivity, set a minimum project cost of P5 billion and and called for additional disclosures applicable to PPP companies.
Contracts for 13 PPP projects cumulatively worth P357.22 billion have been awarded since the infrastructure program was launched in third quarter of 2010. These projects include Mactan-Cebu International Airport Passenger Terminal of Megawide Construction Corp. and GMR Infrastructure Ltd. and the Cavite-Laguna Expressway bagged by Metro Pacific Investments Corp., and the LRT Line 1 Cavite Extension of Metro Pacific and Ayala Corp.