President Rodrigo R. Duterte has approved the rollout of nine infrastructure projects worth over P171 billion barely 100 days since he assumed office as the administration wants to impress foreign investors whose interest may waver amid international bad press that the President has been getting, the country’s chief economist.
At the general membership meeting of the Chamber of Thrift Banks, Socioeconomic Planning Secretary Ernesto M. Pernia also announced that the National Economic and Development Authority (Neda) Board chaired by the President has come up with policy changes that will fast-track the implementation of vital projects aimed at filling the country’s infrastructure gap.
The nine projects approved by the Neda Board last Wednesday are as follows:
P74.6-billion Ninoy Aquino International Airport (Naia) public-private partnership (PPP) project;
P37.8-billion Metro Manila Bus Rapid Transit (BRT) in EDSA;
P23.5-billion first phase of the Metro Manila Flood Management Project;
P10.2-billion Inclusive Partnership for Agricultural Competitiveness project;
P8-billion second phase of the Maritime Safety Capability Improvement project for the Philippine Coast Guard;
P7.8-billion change in scope of the New Bohol Airport Construction and Sustainable Environment Protection project
P4.8-billion increase in area of Bicol International Airport’s passenger terminal building in Albay;
P2.4-billion modernization of Eastern Visayas Regional Medical Center in Leyte; and
P2.2-billion modernization of Gov. Celestino Gallares Memorial Hospital in Bohol.
The biggest project to be undertaken via the PPP route was “the Department of Transportation’s
(DOTr) medium-term solution (doable within three years) to improve safety and security, maximize capacity through ‘refreshed’ infrastructure (airside requirements such as air traffic management), and improve passenger service standards in the existing NAIA,” Neda said in a statement.
Pernia later told reporters that the faster approval of projects was one way that the Duterte administration was “showing results” in terms of rolling out infrastructure.
The Neda chief told the forum that to catch up with the Philippines’ richer ASEAN neighbors, economic growth should be sustained, ideally at double-digits, coupled with the “success of President Duterte’s peace and order campaign.”
Pernia admitted that “we need to counter adverse international press that will dampen the appetite of foreign direct investors.”
According to the Neda, among the new policies include “the updating of the economic hurdle rate from 15 percent to 10 percent, due to improved Philippine economic conditions, which have lowered the cost of domestic and foreign capital.”
“This will facilitate the economic justification for more projects (and therefore approval by government) that will help in spreading more public services to far-flung areas of the country, in support of reducing poverty everywhere, as committed by the President,” Neda explained.
Source: Inquirer
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