With More Privatization, Aquino Uses Same Old Policies by Predecessors

MANILA - In his first State of the Nation Address (SONA), President Benigno Aquino III used the various cases of misuse of public funds by the Arroyo administration as a pretext to promote the so-called Public-Private Partnerships or PPPs. According to Aquino, PPPs will address the lack of resources due to a depleted government budget for the country's many needs.

Incidentally, PPPs were among the legacies of the first Aquino administration. It was during the term of Noynoy's mother, the late President Cory Aquino, that the first PPPs in the power generation sector were implemented. In 1987, she issued Executive Order (EO) No. 215 that allowed private corporations to construct and operate electric generating plants. Cory's privatization formed part of a wide-ranging package of structural reforms pushed by the International Monetary Fund (IMF) and the World Bank to supposedly address the country's fiscal crisis in the late 1980s.

Meanwhile, together with transnational corporations (TNCs) and other foreign firms, the country's richest families who are also perceived supporters of Aquino like the Lopezes, Ayalas, Cojuangcos and Pangilinans among others have been aggressively investing in PPP projects including in energy, water, toll roads and other vital infrastructures.

'Progressive and Creative'

Aquino said in his speech that he remains upbeat despite a budget of just 6.5 percent of the total with still six months remaining as private investors have expressed renewed interest and confidence in the Philippines. In fact, according to Aquino, one investor is proposing to construct an expressway connecting Manila and Cagayan Valley at no cost to the government.

Another investor is proposing to lease the lands occupied by the Philippine Navy headquarters along Roxas Boulevard and its Naval Station in Fort Bonifacio, disclosed Aquino. The unnamed investor will foot the bill of the Navy's transfer to Camp Aguinaldo, immediately pay US$100 million, and share a portion of profits from businesses it will establish on the leased lands.

"Sa madali pong sabi", said the President proudly, "makukuha natin ang kailangan natin, hindi tayo gagastos, kikita pa tayo". Aquino identified the most pressing needs of the country as education, infrastructure and health, as well as the needs of police and military personnel. He described PPPs as a progressive and creative way to raise funds and address the country's age-old problems.

Cory Legacy