Australian Government Launched Partnerships for Infrastructure (P4I) in the PH

[Conrad Manila, Pasay City] 24 March 2023 - Australia partners with the Philippines on quality infrastructure through the Partners for Infrastructure (P4I) initiative. [Photo by Marcelle P. Villegas for Philippine Resources Journal]

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Last 24th of March 2023, the Australian Government’s Partnerships for Infrastructure (P4I) initiative was officially launched in the Philippines to drive sustainable, inclusive, and resilient growth through quality infrastructure.

Her Excellency HK Yu PSM, Australian Ambassador to the Philippines, hosted the event at Conrad Manila. Also present were Dr. Benjamin E. Diokno, Department of Finance Secretary, and Mr Nicolas Moore, Australia’s Special Envoy for Southeast Asia.

“Infrastructure was featured prominently in the Philippine Development Plan. And in true Australian style, we decided that the best way to assist the Philippines is to form partnerships – to share our own experiences in infrastructure and investment – both good and bad – and to bring people with the right expertise together to work on problems and issues,” said Ambassador Yu. “We want partnerships that build enduring relationships – not just between one country and another – but a multi country program that brings even more experiences, techniques, and skills to the table. So, P4I was born,” the Ambassador added.

For more than 75 years, Australia and the Philippines have a bilateral relationship and diplomatic ties. In her opening remarks, Ambassador Yu said that P4I will build on Australia’s enduring relationship with the Philippines. P4I also supports the government’s infrastructure commitment to ‘Build, Better, More’.

“Infrastructure was featured prominently in the Philippine Development Plan. And in true Australian style, we decided that the best way to assist the Philippines is to form partnerships – to share our own experiences in infrastructure and investment – both good and bad – and to bring people with the right expertise together to work on problems and issues,” she said.

“We want partnerships that build enduring relationships – not just between one country and another – but a multi country program that brings even more experiences, techniques and skills to the table. So, P4I was born.”

With the help of P4I, the Philippine Government can now access a range of experts to support infrastructure decision-making and practice, particularly in the early stages of the infrastructure lifecycle.

Mr Moore stated that building greater connections between businesses and people is essential to deepening our economic relationships.

He said, “Australia is strengthening links with the Philippines and the region by delivering a Southeast Asia Economic Strategy to 2040, which will set out a pathway to help unlock two-way trade and investment opportunities for business for the next two decades.”

Meanwhile, Finance Secretary, Dr Diokno mention in his speech that the opportunities available through P4I will build on the Philippine Government’s planned infrastructure expansion.

“The government has made investment in infrastructure a top priority. We look to Australia’s example in many of the infrastructure investments we seek to implement.” he said.

“Australia has been a responsive partner in helping the Philippines through knowledge-sharing, capacity-building, and other forms of assistance.”

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Additionally, a panel discussion, moderated by CNN Philippines senior news anchor and director, Mr Rico Hizon, featured representatives from the Philippine and Australian Governments and the private sector. The panel was composed of: Ms Catherine Fong (Undersecretary of Department of Finance), Ms Cosette Canilao (President and CEO of Aboitiz InfraCapital), Ms Chris Allen (Acting Chief Executive Officer, Infrastructure and Commercial Advisory Office, Australian Treasury), and Mr Timothy John Batan (Undersecretary of Department of Transportation - Philippines).

The group discussion tackled the new approaches to help bridge the infrastructure financing gap.

Even before the launch, P4I has been working with the Philippine Government to advance quality infrastructure through a range of initiatives. P4I advised on rail investment prioritisation and financing with the Department of Transportation.

Beginning the 22nd of March 2023, P4I has been working in partnership with the Australian Treasury’s Infrastructure and Commercial Advisory Office and the PPP Center.

P4I is also working with the Government Procurement Policy Board to update infrastructure procurement guidance.

With support from the World Bank, P4I funded studies analysing approaches to hybrid off-grid electricity systems for remote communities and energy efficiency, and project preparation to improve transportation systems in Mindanao.

Aside from the Philippines, P4I also supports others countries like Cambodia, Indonesia, Laos, Malaysia, Thailand, Timor-Leste, Vietnam, and the Association of Southeast Asian Nations (ASEAN).

“Partners can access flexible and responsive expertise in infrastructure planning and prioritisation, procurement, and sector policy and regulation across the transport, energy, utilities, and telecommunications sectors.” ^[1]

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Up close and personal

Later during the day, H.E. HK Yu PSM and Dr Diokno had a private press con with a small group of journalists from local and international news agencies. It was a meaningful and engaging Q&A session where they addressed different questions about P4I and Australian Government’s support for the Philippines.

Dr Diokno explained some of the ongoing projects of the Philippine government.

“As I've mentioned before, the advantage of this Administration is that there are many ready-to-implement projects to cover. Unlike before that we have to develop the projects...to do feasibility study, it takes a while.” 

“We already have 192 ready-to-implement projects which can be financed in many different ways and Australia has offered to help based on their experience.” 

Dr Diokno also talked about Australia’s plans to support the Philippine mining industry. He expressed his concern for communities and people who might be affected by the presence of mine sites in their province.

“They (Australia) will also help us with respect to mining. As you know, we have just recently opened mining. And they have a very long, comprehensive mining industry in Australia. [Let us] make sure that we seek the views of those who will be affected.”

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P4I Activities in the Philippines ^[1]

Australia is already working with the Philippine Government to address their infrastructure plans and priorities. How is this partnership done through P4I?

a) Financing strategies and inclusive transport – P4I is helping the Department of Transportation to develop a robust infrastructure pipeline by refining investment prioritisation and ensuring the appropriate mix of financing strategies across its portfolio.

b) Procurement and Public-Private Partnership (PPP) reform – P4I is working with the Government Procurement Policy Board to enhance the use of design and build contracts, strengthen life-cycle costing, and embed green procurement in procurement regulations.

Through government-to-government dialogue and capacity building, P4I is also supporting the PPP Center on reforming the Philippines’ PPP law and regulations. This will help the Philippine Government unlock more private investment in infrastructure.

c)  Energy transition – Philippine officials joined peers from around the region on P4I’s study tour to Australia to examine emerging green hydrogen technology. This is part of the Australian Government’s growing engagement with Southeast Asia on energy transition pathways.

P4I is also funding the World Bank to undertake studies on financing options for hybridizing off-grid energy systems.

For more information, please contact Juli Cardillo at Juli.Cardillo@dfat.gov.au.

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Reference:

[1] Media Release of the Australian Embassy in the Philippines