European businessmen are beginning to look at the Philippines again despite some soured investments in the past, the latest one a $200-million aviation equipment supply of a French firm that has been put on hold.
But according to Michael Raeuber, president of the European Chamber of Commerce of the Philippines (ECCP), the landmark visit this weekend of French Prime Minister Jean-Marc Ayrault, the first European leader to come to the country in a long time, will hopefully put the Philippines back on the European investors’ map.
“The visit of the French prime minister changes the equation,” Raeuber said.
Raeuber said while the Philippines has made good progress in the ease of doing business and good governance, “a lot is work in progress.”
“We have a feeling we are on the go, on the move. The perception of business is optimistic,” Raeuber said
European companies that are in the Philippines, like Continental Temic, STEAG. Lufthansa Technik and Nestlè, are expanding their investments here.
ECCP vice president Henry Schumacher said while the infrastructure projects under the private-public partnership (PPP) program are delayed, a lot of European companies are keen on participating in these projects on a transparent and level playing field.
Raeuber said the eurozone crisis is an opportunity for European businesses to look at Asia and the Philippines not only as a production base but as a market for their products. “Where else would they want to go?” he asked.
But Schumacher said European business cannot continue looking back at the unresolved issue involving NAIA Terminal 3, which German firm Fraport AG built.
“While trying to get a solution, there is no choice but to move forward,” he said.
Schumacher said while a downpayment has been made on the expropriation, there is yet to be closure because the matter has not been settled with finality.
Another soured European investment is the P18.7-billion dredging contract of Belgian firm Baagerwerken Decloedt En Zoon.
Schumacher said this issue is less confrontational but said going to court or arbitration is ill-advised.
Schumacher said just recently, the Department of Transportation and Communication has ordered a review of a $200-million aviation equipment supply contract with Thales of France despite the fact that contract has been signed.
Raeuber urged the government to come to conclusion on the project, whose review has dragged on as this is of great importance to ensuring safety to, as well as to increasing frequencies at, the country’s premier airports.
“We stand by our statement that contracts should be honored,” Raeuber said.
Raeuber added that the “whole world is watching the Philippines” on what would come out of the Bangsamoro framework agreement but stressed that for investments to flow into Mindanao, local laws should adhere to and respect national laws.
Source: Malaya; Business; 17 October 2012
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