GSIS Plans on Investing in Private and Public Infrastructure

The Government Service Insurance System (GSIS) is planning on investing in private and state infrastructure projects with equities and loans according to the new head.

Jose Arnulfo “Wick” A. Veloso, GSIS President and General Manager said that GSIS plans on investing in projects that add to economic development and nation building at the same time, grow their funds.

“Public sector or private sector, we will look at it. What’s important is the safety of our members’ money and the return that these investments would yield,” says Veloso. “We want to ramp up our funds while helping the country,” he adds.

“We need to be at the table for all discussions relating to infrastructure, specifically as the government pushes for infrastructure as part of the President’s agenda,” Veloso mentions.

The new GSIS head stated that the GSIS will review potential investment projects in food security, telecommunications, power, electricity, housing, transport, medical services, and digital infrastructure.

They plan on offering loans or buying shares to garner funds for these planned projects.

Veloso says that GSIS likewise is targeting joint ventures with private sectors for its 65 big-ticket real estate properties instead of outright selling them.

According to the GSIS Executive Vice President for Support Services Sector, Dionisio C. Ebdane Jr., the government-run pension fund is able to invest ₱104 billion in infrastructure and equities. Out of the allocated funds, it has only invested ₱35 billion while ₱16.8 billion goes into the Philippine Investment Alliance for Infrastructure (PINAI).

PINAI is a private equity fund partly funded by the Asian Development Bank and managed by Macquarie Infrastructure and Real Assets.

Source: Business World