The Insurance Commission in the Philippines has issued a circular letter authorizing insurance and reinsurance companies to invest in government's infrastructure projects.
The circular that is part of the five-year project, Philippine Development Plan (PDP), gives the companies the opportunity to invest in debt and equity investments related to infrastructure projects.
It aims to stimulate the economy and contribute to the country's building. It also allows insurers to diversify their sources of income.
Insurance companies can henceforth invest in highways, railways, non-rail-based transit facilities, port infrastructure, airports, warehouses, environmental and solid waste management related facilities, and climate change mitigation and adaptation projects [4].
The government is currently undertaking 75 major infrastructure projects whose costs may reach 170 billion USD.