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World Bank's IFC to increase RP investment
(Business World (Philippines) Via Thomson Dialog NewsEdge)The International Finance Corporation (IFC), the World Bank's investment unit, plans to increase its Philippine outlay by as much as 32% this year.
Expected to benefit are private firms engaged in the infrastructure, tourism, information technology, business process outsourcing and electronics business, said Vipul Bhagat, IFC Philippine country manager.
Mr. Bhagat said IFC is looking at investing $125-150 million in the country this year, up from the $102 million in 2005.
Depending on the level of private sector interest, Mr. Bhagat said IFC investments could increase to $2-5 billion in the coming years.
Javed Hamid, IFC Director for East Asia and the Pacific said private sector involvement has been very good given that the investment climate in the Philippines has improved.
"I think investor sentiment today is better than a year ago. You have a government that is focused on key issues necessary to help create the right climate," Mr. Hamid said.
He stressed that the private sector plays a crucial role in helping the government make "significant inroads" in alleviating poverty and growing the economy.
Mr. Bhagat said IFC is expected to continue its participation in infrastructure projects in the Philippines. Specifically, IFC expects to play an important role as source of long-term funds, advisor in utilities and services and privatization.
He said that since the 1960s, IFC has invested in companies such as Private Development Corp. of the Philippines, Manila Electric Co. and Philippine Long Distance Telephone Co..
"To date, we have invested at least $2 billion in various companies in this country. And we are willing to invest another $2 billion, or even $5 billion, in the coming years, given the right opportunities, and with willing and motivated partners from the private sector," Mr. Bhagat said.
IFC's main goal is to encourage the private sector to invest in developing countries, which it hopes will result in poverty reduction and a general increase in the standard of living. IFC's funds are sourced mainly from international financial markets where it leverages the AAA credit rating of the World Bank to gain access to cheap funds.
Along with the World Bank, IFC also sponsors programs aimed at improving corporate governance in the country's business sector, as well as programs to improve standard in the banking system and the securities market.
"IFC remains committed to supporting the Philippines, and will continue to forge long term partnerships with the private sector. We will continue to invest in projects that create jobs, improve people's lives while addressing environmental, social and gender concerns," Mr. Bhagat said.
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