Less than a year after Philippine president Benigno “Noynoy” Aquino III launched an ambitious private-public partnership (PPP) programme hoping to tap investors to build key infrastructures quickly, his officials are shifting gears. Finding that private money is neither cheap nor readily available for some key projects, they are rediscovering the merits of official development assistance.

Two light rail systems due for upgrading in Manila, with a combined cost of $1.8bn, will now be likely built by the government itself. It will use low-cost and long-term loans from multilateral lenders or countries such as Japan or Korea, according to Manuel Roxas II, the transport and communications secretary. Continue reading »