Philippine investment alliance for infrastructure fund by mario aguja


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Presentation by Dr. Mario Aguja, Government Service Insurance System, Philippines; at the "CSO Panel 3: Pension Towards Socially Responsible Investments"; organized by the Public Services International and other Global Union Federations on 3 May 2013 during the 46th Annual Meeting of the Asian Development Bank in Delhi, India.

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  • 05/23/13 03:57
  • 05/23/13 03:57
  • 05/23/13 03:57 One of the loans that you can apply for, through the kiosk, is the EMERGENCY LOAN. We improved the Emergency Loan Program to make it more responsive, particularly at a time when our members need the most assistance-- we reduced the interest rate to six percent, waived the one percent service fee and extended the grace period for the payment of the first amortization to three months. Last year, we granted nearly Php7 billion in emergency loan which benefited more than 390,000 members. We appropriated an additional 10 billion for the program last August. (Next slide --- no more ARAS…)
  • Philippine investment alliance for infrastructure fund by mario aguja

    1. 1. Dr. Mario “Mayong” J. AgujaTrustee, Government Service Insurance System (GSIS), Philippines“Pension Towards Socially Responsible Investment”May 3, 2013, New Delhi, IndiaThe Philippine InvestmentAlliance for Infrastructure (PINAI)Fund"The views expressed in this paper/presentation are the views of the author(s) anddo not necessarily reflect the views or policies of the Asian Development Bank(ADB), or its Board of Directors, or the governments they represent. ADB does notguarantee the source, originality, accuracy, completeness or reliability of anystatement, information, data, finding, interpretation, advice, opinion, or viewpresented, nor does it make any representation concerning the same."
    2. 2. •GSIS is a government –owned andcontrolled corporation (GOCC) createdby law under Republic Act 8291otherwise known as the GovernmentService Insurance Act of 1997 whichamended the 20-year old revisedcharter of the GSIS, known asPresidential Decree No. 1146.
    3. 3. •GSIS is a premium-based socialinsurance for government employees,withPremium Sharing defined by law•Govt. provides 12% of basic salary•Member provides 9% of basic salary•Total contribution = 21%•Benefits are fixed by law
    4. 4. 4MembershipCoverageThe GSIS covers all government workersirrespective of their employment status, except:•Members of the Judiciary and ConstitutionalCommissions who are covered by separatedretirement laws;•Contractual employees who have no employee-employer relationship with their agencies;•Uniformed members of the Armed Forces of thePhilippines and the Philippine National Police,including the Bureau of Jail Management andPenology and the Bureau of Fire Protection.(since 1997).
    5. 5. GSIS Membership (1,784,006)
    6. 6. Assets, Liabilities and Networthas of Dec. 31, 2012In USD*Total assets 17.7 BTotal liabilities .452 BTotal reserves 15.9 B (16.4 B)surplus 1.8 BTotal networth (17.7 B - .452) $17.3 B*USD 1=PHP 40.9
    7. 7. Loan and investment portfolioas of March 2013, in USD billion = USD17.8B
    8. 8. GSIS Investment PolicySec. 36, RA 8291“…That investment shall satisfythe requirements of liquidity,safety/security and yield in order toensure the actuarial solvency of thefunds of GSIS…”
    9. 9. The Phil. Investment Alliance forInfrastructure or PINAI FundA private equity fund for infrastructuredevelopment in the PhilippinesIts an investment alliance between ADB, GSIS,Algemen Pensionen Groep (APG) of TheNetherlands and Macquaire GroupMacquarie Infrastructure and Real Assets (MIRA),a global infrastructure asset manager, will serveas the investment manager
    10. 10. EquityContribution
    11. 11. Why the need for PINAI Fund?To help develop infrastructure financingsolutions in the PhilippinesFoster Philippine capital market development
    12. 12. What’s in it for GSIS?Invest in infrastructure projects which offershigher returns than Phil. governmentsecuritiesPartnership will increase the amount ofinvestible funds and spread out riskLeverage the multilateral organizationsexpertise and access their vast resources ofnetworksProvide comfort that the highest levels ofprofessionalism, corporate governance andinternational best practices will be followed.
    13. 13. Safeguards and social dimensionsThe investment is classified category F1for impacts on the environment,involuntary resettlement, and indigenouspeoples.The fund will apply ADBs prohibitedinvestment activities listAbide by applicable national laws andregulations and comply with ADBsSafeguard Policy Statement (2009)Establish an appropriate EnvironmentalSocial Management System (ESMS)satisfactory to ADB
    14. 14. The PINAI Fund’s ESMS includearrangements to comply with nationallabour laws and ADBs Social ProtectionStrategy to ensure adherence tointernationally recognized core labourstandards, including provisions toprohibit any discrimination againstwomen in hiring and to provide equal payfor men and women for equal work.
    15. 15. Includes appropriate provisionsprohibiting corruption, money laundering,and the financing of terrorism, andremedies for ADB in the event ofnoncompliance.