The Philippines’ Government Service Insurance System (GSIS) isn’t averse to acquiring the government’s stake in the longest toll road in the Southeast Asian country, according to Jose Arnulfo “Wick” Veloso, head of the pension fund for civil servants.
Finance Secretary Ralph Recto recently floated the idea of the GSIS and its private sector counterpart Social Security System (SSS) buying the government’s 50% share in the 93.8-kilometre Subic-Clark-Tarlac Expressway to counter an offer from the private operator of the toll road. The government holds the stake through the Bases Conversion and Development Authority (BCDA).
“Maybe the SSS and the GSIS can buy them, so the pension funds will earn. I think it’s a good deal,” the Philippine News Agency quoted Recto as saying in a report on May 16.
Recto chairs the Social Security Commission, the governing board of the SSS. He also oversees the GSIS in his role as finance chief.
Veloso, president and general manager of GSIS, did not discount Recto’s suggestion.
“We are always open to review all opportunities for the GSIS to have a safe and profitable investment,” he tells Asia Asset Management (AAM) when asked to comment about Recto’s idea. He did not elaborate.
Earlier this month, local news media quoted Joshua Bingcang, president and chief executive officer of the BCDA, as saying that Metro Pacific Tollways Corporation, the toll road operator led by tycoon Manuel V. Pangilinan, wanted to buy out the government’s stake for at least 20 billion pesos (US$350 million).
SSS President and CEO Rolando Macasaet did not respond to questions from AAM.
Last month, Macasaet told AAM that all of the pension fund’s future co-investments will only be in brownfield projects such as existing toll roads in order to mitigate risks and protect pensioners’ money.