Government needs P3.126 trillion to fund infra projects

MANILA, Philippines - The government needs an estimated P3.126 trillion worth of investments to finance various infrastructure projects from 2009 to 2013, the National Economic and Development Authority (NEDA) said.

The agency said around P400 billion would come from public-private partnerships, which is being pushed by the Aquino administration to ease pressure on the budget deficit.

Appearing before the Senate committee on economic affairs chaired by Sen. Manuel Villar Jr., Socioeconomic Planning Secretary and NEDA director general Cayetano Paderanga presented the Comprehensive and Integrated Infrastructure Program (CIIP) for 2009 to 2013 and beyond, which contains projects funded through official development assistance, corporate budgets, the General Appropriations Act and the public-private sector partnerships.

Total CIIP investment for 2009 to 2013 and beyond was pegged at P3.126 trillion with the biggest share going to power and electrification at 32.12 percent of total.

This was followed by investments in transportation at 26.94 percent; water resources, 16.46 percent; support to agrarian reform communities, 13.12 percent; social infrastructure, 7.86 percent; communications, 1.79 percent; and relending programs, 1.70 percent.

Public-private partnerships would finance P400.894 billion of the investments with P214.389 billion going to transportation, P112.285 billion for water resources, P70.721 billion for social infrastructure, and P3.5 billion for communications infrastructure.

A number of projects have already been identified and have gone through the engineering and feasibility studies, namely, the Cavite-Laguna Expressway, South Luzon Expressway Rehabilitation Project-Toll Road 4, Central Luzon Link Expressway, Balabac Airport Development Project, MRT Line 2 Phase 2, MRT Line 2 West Extension Project, 300 million liters per day treated bulk water supply project and the Kubulnan-2 Multipurpose Irrigation and Power Project.

Twenty three other projects are still in the feasibility study or concept proposal stages.

In terms of foreign direct investments, Paderanga said there has been a noted increase this year.

According to the Department of Trade and Industry, there was a surge in investments in the first half of the year, representing a 190-percent growth from the same period last year.

Trade Undersecretary Zenaida Maglaya noted that there has been a 29-percent average annual growth rate of investments from 2005 to 2009.

A total of 745,337 new jobs were also generated by these investments from 2005 to 2009.

Board of Investments executive director Felicitas Reyes noted that investments have already reached P231 billion this year and are expected to reach P345 billion by yearend.

The projected investment figure, however, is still lower than the P385 billion recorded in 2007 and the P464 billion in 2008.

However, Reyes said that the 2008 level of investments could be attained again between 2011 to 2012.

Paderanga said this optimism is buoyed by expectations of better governance under the new administration and renewed confidence by credit rating agencies on the Philippine economy.