Gov‘t sets aside P29.8 B for transport modernization

MANILA, Philippines - The government is allotting of P29.8 billion for the continued modernization of the country’s transport system .

The amount forms part of the P48.7 billion that will go to the Department of Transportation and Communications (DOTC) out of Malacañang’s proposed P2.268 trillion national budget for 2014.

The proposed allocation for the DOTC is 31 percent higher than the P37.1 billion programmed this year as the government aims to provide reliable, safe and affordable public transportation system nationwide.

The government is setting aside a total of P399 billion for public infrastructure projects in 2014. The amount, which is equivalent to three percent of the gross domestic product target for next year, is 35 percent higher than this year’s appropriated infra spending of P295 billion.     

More than half of the P29.8 billion or P16.32 billion will go to the improvement of the country’ rail transport system.

About P9.014 billion will go to the development of air transport facilities encompassing 37 domestic and international airports.

About P3.167 billion will be channeled to the country’s maritime transport development plan as part of the government’s medium-term goal of ensuring an integrated nautical network.  The budget will cover 44 ports, wharves, causeways and boatlanding areas.

Plans include the development of an integrated multi-modal logistics and transportation system which involves identifying and developing logistics corridors that will benefit not only large cities but also smaller towns and rural areas.

The DOTC is studying the possibility of establishing roro ports in isolated areas, developing the country’s cruise shipping industry, creating the Greater Capital-Region-Subic-Clark-Manila-Batangas transport and logistics corridor.

National Economic Development Authority director general Arsenio M. Balicasan said the surge in infra spending next year would reduce the cost of transporting goods and people, support agricultural productivity, reduce risks from disasters and boost economic investments and employment.

The government has allocated a P400 million special purpose fund for the preparation of feasibility studies on infrastructure to help meet the greater demand for sound and economically viable projects in the coming years.