Flagship infra projects cut down to P8.2 trillion

MANILA, Philippines — The flagship infrastructure projects of the Marcos administration have been reduced to P8.2 trillion, with more than half to be financed through loans.

In a briefing, Department of Finance Secretary Benjamin Diokno said the Economic Development Group, which he co-chairs with the head of the National Economic and Development Authority, recently held a meeting and updated the new list of 194 infrastructure flagship projects (IFPs) of the government.

The updated total investment value of IFPs now stands at P8.2 trillion, down from the P9 trillion earlier announced in March.

“There are 68 ongoing projects, 25 for implementation, nine for approval, 52 under project preparation and 40 under pre-project preparation – for a total of 194 IFPs,” Diokno said.

“We were able to look at some redundancies, that’s why it was reduced,” he explained.

The economic team of the Marcos administration has been putting infrastructure development in its growth strategy, with spending for the sector expected to be at five to six percent of the economy over the next six years.

Broken down, about 55 percent of the P8.2 trillion or P4.51 trillion will be funded by official development assistance.

ODAs are loans and grants administered to promote sustainable social and economic development and welfare in developing economies such as the Philippines.

ODA resources are contracted with the governments of countries with which the Philippines has diplomatic and trade relations or bilateral agreements, or which are members of the United Nations, UN agencies, and international or multilateral lending institutions.

About 30 percent or P2.51 trillion of the IFPs are expected to be financed via public-private partnerships (PPPs).

The government is hoping that PPPs will help speed up investments, ensure standards for quality infrastructure, and keep infrastructure spending within target without straining the country’s fiscal space.

Likewise, the administration will allocate at least P851 billion from its annual budget for infrastructure.

The remaining P273 billion is seen being financed by either PPP, ODA, or via the national budget. Funding source for another P24 billion has yet to be determined.

By sector, the majority or 83 percent of the IFPs P6.77 trillion will be for physical connectivity. This covers some 119 projects.

Other priority sectors include water resources, agriculture, health, digital connectivity, and power and energy.

Among the on-going IFPs and those approved for implementation, 19 projects are expected to be completed by the end of 2023.

Overall, 79 projects will be completed until the end of President Marcos’ term in 2028.