Military optimistic on P40-billion modernization fund

MANILA, Philippines -  The military is optimistic that the P40-billion modernization fund for 2012 to 2016 would be completed even if only P5 billion has been allotted for its upgrade program for next year.

Armed Forces deputy chief for plans and programs Brig. Gen. Roy Deveraturda said the P5-billion outlay for 2012 only covers funds from the national budget but does not include those from other sources.

“The appropriation for 2012 may be P5 billion but the expected other source component like BCDA (Bases Conversion Development Authority) contribution, among others, is not yet included,” Deveraturda said.

“The fund has other component amount not from the general appropriations act,” he added.

Among the non-budget funding sources are the proceeds from the privatization of military camps in Metro Manila remitted by the BCDA.

The BCDA is a state-owned corporation tasked to convert former US military base lands and military camps based in Metro Manila into productive civilian economic growth centers.

Another possible source of funding is the proceeds from the Malampaya gas project in Palawan, Deveraturda said

“Next year, it (budget for modernization) may vary again but the goal is to source at least P40 billion for the next five years,” he added.

Deveraturda said the funding can be adjusted to complete the P40 billion modernization requirement for the medium-term.

“I am confident (that the funding would be provided). We hope our economic conditions would continue to improve. If it does, there is possibility that the funding would increase,” Deveraturda said. 

“The figure (modernization funding) is not written in granite. It may increase. Our situation would dictate the appropriation, of course, in relation to the other demands on the revenues to be generated by the government,” he added.

Earlier, Budget Secretary Florencio Abad said the government would implement a P40-billion military modernization project over the next five years starting in 2012.

Abad said the government would allot P8 billion annually over the next five years for the Armed Forces’ modernization program. The P8 billion annual funding for 2012 to 2016 is higher than the current modernization budget being allotted to the Armed Forces of the Philippines (AFP) that stands at P5 billion.

However, the proposed budget for 2012 only allotted P5 billion for the military’s upgrade program.

The Armed Forces Modernization Act, enacted in 1995, gave the military the opportunity to modernize in 15 years with a total fund of P331 billion.

More than16 years have passed since the law was enacted but critics said the military is still suffering from ageing and obsolete equipment. The delay in the implementation of the law has been attributed to lack of state funds.

The Aquino administration has vowed to support the armed forces’ modernization program to boost its territorial defense capabilities.

The government aims to acquire lead-in jet trainers, surface attack aircraft, air defense radars, long-range patrol aircraft and closed air support aircraft for the Air Force.

It seeks to buy new assault rifles, armor assets, tanks, armored personnel carriers, force protection equipment like helmets, and bulletproof vests, night-fighting equipment and radios for the Army.

The Navy would be provided with strategic sealift vessels with amphibious vessels, offshore patrol vessels, naval helicopters, coast watch stations, and weather-heavy endurance cutters.