By Roy Pelovello

THE P100-billion government-private cooperation fund that is supposed to be part of the P330-billion economic stimulus package is still up in the air.

Socio-economic Planning Secretary Ralph Recto admitted before the House economic affairs committee that the private sector has yet to firm up its commitment to contribute P50 billion to the fund. It?s up in the air but it doesn?t mean it will not be carried out, according to Recto.

"When you announce something that you intend to do, a plan, it doesn?t mean you do it right away. That?s not how things work?there?s a bureaucracy, you have laws to follow,? Recto said.

Representatives of the Social Security System told the panel that the pension fund?s board has yet to pass a resolution authorizing its contribution of P12.5 billion for the stimulus package.

But Recto expressed confidence the P100-billion government-private cooperation fund will eventually materialize, noting this was the idea of the private sector.

Upon questioning by Cagayan de Oro Rep. Rufus Rodriguez, Recto said many banks have signified interest (to invest) but want to see the list of projects and how these will be implemented. ?This all depends on the market; once the projects are identified the investors would act accordingly depending on the market environment,? Recto said.

SSS senior vice president Edgar Solipasi said the pension fund board members are weighing their options on the proposed package.

The National Economic and Development Authority said possible sources for half of the P100 billion, apart from the SSS, are the following: Development Bank of the Philippines, Government Service Insurance System, and the Land Bank of the Philippines, each of which is expected to contribute P12.5 billion.

?Maybe we should not call this a stimulation package. Maybe we should call it a simulation package,? said Bayan Muna Rep. Teodoro Casi?o as he noted that the P160 billion of the ?stimulus? fund in the P1.415-trillion 2009 budget is just the projected budget increase even before the global financial meltdown occurred.

Rodriguez said in the next hearing, Recto should be able to provide the committee with ?firm commitments? to back up the government?s announcement of the P330-billion economic stimulus package.

But Recto said the lawmakers should look at the government?s announcement of a P330-billion economic stimulus package as a ?plan? to counter the ill effects of the global economic crisis.

?But naturally you can?t get 100 percent, that everyone will agree,? he said. Recto said that it?s natural for opposition lawmakers to question the economic stimulus package.

He also said it?s not correct to say that just because there is no definite commitment yet on the P100-billion government-private cooperation fund, it won?t happen.

?For the same thing, I?ll tell you that in the US the $835-billion [economic stimulus] package is still up in the air because it is still being discussed by Congress,? Recto said.

Investments safe

Recto also allayed fears that if the SSS or the GSIS would put up their share in the P100-billion fund, services for their members would be affected.

Yesterday?s hearing of the House committee was also intended not only to look into the economic stimulus package but also into the propriety of the supposed SSS decision to invest P12.5 billion of its money to government-private cooperation fund.

But Recto said it might actually be a good idea for them to invest their money in government securities where they would be ?risk-free.? ?SSS has P200 billion in investible funds. Are they losing money in the stock market? Can they invest it in other investments where they can make money and at the same time fulfill their patriotic duty? Same thing with GSIS.?

Recto said that based on the Neda planning, there are roughly P1.5 trillion worth of infra-structure projects that should be done nationwide and the idea of putting up the stimulus package is to fund the critical projects.

?Should we look at our own domestic resources, or should we borrow everything from foreign sources? If we have an opportunity to borrow it domestically... including our social security institutions, why not? And for as long as their money is protected, why not?? Recto said.

Gabriela?s Liza Maza questioned the use of SSS and GSIS funds saying many of the members of these institutions are already complaining they couldn?t get loans and avail of their benefits. She also said SSS and GSIS might lose money invested in infrastructure projects because of corruption.

Under the Neda plan, the P50 billion from social security institutions will bankroll the following projects:

? LRT Line 1 extension

? MRT 3 capacity expansion

? LRT Line 2 East Extension to Masinag

? LRT line 1 South Extension Project

Projects that would tap private sector financing include: Tarlac-La Union Expressway, Manila-Cavite Toll Expressway Extension, Daanghari-SLEX Link Road; SLEX extension project; Southern Tagalog Arterial Road Project; Circumferential-6; Diosdado Macapagal International Airport; and Grand Central Station in Edsa.