P399-B earmarked for 2014 infra projects

MANILA, Philippines – Some P399 billion was allotted for 2014 infrastructure projects that will help the country attain inclusive growth, the National Economic and Development Authority (NEDA) said Monday, August 12.

The amount is 35% higher than the P295 billion being spent this year, according to NEDA director general Arsenio Balisacan.

“The dramatic surge in infrastructure spending next year will lower the cost of transporting goods and people, support agricultural productivity, reduce risks from disasters, and generate economic investments and employment. The proposed projects will ultimately benefit the poor and vulnerable sectors,” he said in a statement.

The allocation represents 3% of the Philippine gross domestic product target for 2014.

By 2016, Balisacan said infra spending will amount to P820 billion.

Balisacan said most of the infra projects planned for next year will support the P180-billion Transport Infrastructure Development Program, which aims to establish an “integrated transport system” in Metro Manila.

P400-M for feasibility studies

NEDA also earmarked P400 million for a special purpose fund that will finance feasibility studies on infrastructure projects in the 2014 national budget.

Balisacan said projects to be covered by the fund are listed under the Public Investment Program, which identifies priority projects for implementation by government corporations and financial institutions.

Projects under the public-private partnership or PPP program are excluded, the NEDA chief pointed out.

“Because of the urgency to implement infrastructure projects, we need to speed up the project cycle without sacrificing quality. We want the government to have the flexibility to initiate the preparation of feasibility studies, so we can accelerate project implementation,” said Balisacan.

“With this fund, we need not depend on donor-driven feasibility studies. We can ultimately find the cheapest source of financing that best serves the interest of the Philippine government.” – Rappler.com