Trade and Industry Secretary Peter B. Favila said the government will also try to raise additional funds from the Land Bank of the Philippines and the Development Bank of the Philippines to cover the planned P35 billion needed this year to pump prime the economy.
NDC is the investment arm of the Department of Trade and Industry (DTI).
Late last year, the NDC had to postpone a planned bond flotation to fund infrastructure projects of the Philippine Infrastructure Corp. (PIC) because of government’s reluctance to extend a sovereign guaranty for the NDC bonds.
Favila said the decision to tap the NDC, LBP and the DBP to raise funds would eliminate the need to borrow from foreign sources.
He said members of the economic team all agreed not to resort to foreign borrowings this year.
The Arroyo administration, Favila said, has identified five sectors for pump priming. These are education, housing, food, health services and public works.
The government, Favila added, wants to frontload most of the expenditures at the start of the year.
He said the government will fund projects that are already ready for implementation instead of lining up prospective projects that would still have to pass through a lengthy evaluation process.
The Department of Agriculture, in fact, Favila said, has identified an initial P3-billion project ready for implementation.