Duterte administration needs P10.66 trillon to finance medium-term goals

August 16, 2017 at 13:49

Duterte administration needs P10.66 trillon to finance medium-term goals

The Philippine government estimates that it needs to invest around P10 trillion to finance its medium-term goals under the Duterte administration.

Based on the draft 2017-2022 Public Investment Program (PIP) released by the National Economic and Development Authority (Neda), the initial estimates showed that the entire PIP will cost the government some P10.66 trillion.

The PIP contains a list of priority programs and projects to be implemented by the national government, government-owned and -controlled corporations (GOCCs), government financial institutions  and other national government offices.

“These programs and projects may be financed using national government funds, including internal cash generated by GOCCs, in partnership with the private sector or through official development assistance [ODA],” the Neda stated in a document.

Similar to the 2017 to 2022 Philippine Development Plan (PDP), the PIP is divided according to selected themes. Based on this, the bulk of the funds, around P7.76 trillion, will go to government’s efforts to accelerate infrastructure development nationwide.

The projects to be funded under this theme include those that seek to pave roads, build wharves and seaports, construct water-supply facilities and create ecotourism destinations, such as the Manila West Corridor, among others.

The theme on “Attaining Just and Lasting Peace” had the least public investment, which is estimated at P8.73 billion. Under this theme are two programs of the Office of the Presidential Adviser on the Peace Process.

The bulk of the amount will be invested in the 2018 Payapa at Masaganang Pamayanan program worth P8.61 billion and the remaining P114.04 million will be allocated for the program on the Implementation of the Normalization Program in the Bangsamoro.

Only one theme, “Ensuring Sound Macroeconomic Policy,” does not yet contain a list of programs and projects as of the latest update of the draft PIP.

The goal of increasing public investments in infrastructure will not only boost GDP but also address the infrastructure gaps nationwide.

“The PIP serves as a mechanism to improve resource mobilization by ensuring the linkage of the planning and budgeting processes toward the achievement of our goals,” Socioeconomic Planning Secretary Ernesto M. Pernia earlier said.

Recently, Neda Infrastructure Staff Director Roderick M. Planta said in a presentation that the infrastructure gap in paved provincial roads in terms of kilometers is 71.4 percent.

The infrastructure gap in barangays covered by municipal recycling facilities was also significant at 46.2 percent.

The Neda data also showed that the infrastructure gap in paved city roads was at 38.2 percent and barangays covered by solid-waste management facilities is at 36.1 percent.

Double-digit infrastructure gaps were also observed in Mindanao’s household electrification level at 27.6 percent; access to broadband in cities and municipalities, 23.6 percent; and access to irrigation service, 13.6 percent.

Planta told the BusinessMirror, however, that the assessment does not include the gap in the number of health facilities, classrooms, housing and other similar infrastructure needs.

He said apart from implementation delays and changes in project scope, these gaps are also due to challenges, such as institutional issues that pertain to weak regulation and poor project planning.  The challenges also include operational issues, such as unsynchronized planning, investment programming and budgeting.

Source: http://www.businessmirror.com.ph/duterte-administration-needs-p10-66-trillon-to-finance-medium-term-goals/

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