Source: Business Mirror, 15 December 2011
MANILA, Philippines – The government estimates that infrastructure projects to be undertaken next year will amount to around P832 billion, according to the National Economic and Development Authority (Neda).
Neda Director General Cayetano W. Paderanga Jr. told reporters that these projects are part of the still-to be published 2011 to 2016 Public Investment Program (PIP).
The PIP will amount to around P4.2 trillion under the term of President Aquino. The Neda estimated that close to P3.8 trillion will be composed of infrastructure projects alone or those that require construction while the remaining will be for the government’s on-lending program.
“These are still rough numbers. These are programmed expenditures so it will depend on the actual implementation but we’re confirming the increase because in 2011, the initial amount estimated was only about P500 billion so we’re romping it up to around P832 billion,” Paderanga explained.
Paderanga said that the list of projects, to date, has not yet been completed because a “significant part” has not yet been included. This will likely increase the amount of projects included in the PIP.
He added that more than half of these projects will be implemented by the national government. The list also includes some projects to be submitted for public private partnership (PPP) and Official Development Assistance (ODA) funding.
Earlier, the Neda said the remaining part of the PIP, amounting to around P5 billion, will be for lending programs extended by government financial institutions to the private sector, particularly small and medium enterprises until 2016.
However, the Neda said the cost of the PIP may still increase since many of the projects that were identified have not undergone detailed feasibility studies. This means the cost of many of the programs and projects were only ballpark estimates.
The PIP translates the Philippine Development Plan into a core set of priority programs and projects to be implemented by the national government, government-owned and -controlled corporations, government financial institutions and other offices from 2011-16.
The report is expected to have three parts, public investment projects including PPP projects; the on-lending programs extended by government financial institutions to small medium enterprises; and other administrative items like new buildings or government offices, which are part of what public investments are all about
In drawing the list of priority programs and projects for the PIP, each government agency shall be guided by the approved and relevant major final outputs that it is mandated to deliver under its Organizational Performance Indicator Framework.
Meanwhile, it can be noted that the 2004 to 2010 PIP required an estimated P2.13 trillion. The lion’s share of the amount went to investments for the economic growth and job creation theme which amounted to P1.49 trillion.
Under this theme, some P82.8 billion was earmarked for trade and investment; Agribusiness, P357.1 billion; Environment and Natural Resources, P198.5 billion; Housing Construction, P264.6 billion; and Infrastructure, P571.7 billion.