Flagship project costing upgraded to P4.4 trillion

COST estimates for the government’s flagship infrastructure projects have been upgraded to P4.4 trillion from P4.2 trillion previously, with more works being considered for inclusion in the list of about 100 projects.

“There have been adjustments… this figure is now up to about P4.4 trillion,” Vivencio B. Dizon, the presidential adviser for flagship infrastructure projects, told a House of Representatives committee Monday.

Mr. Dizon said the additional P200 billion arose from revised costings for some projects, with the biggest portion coming from adjusted estimates for the Panay-Guimaras-Negros Island Bridges project, as approved by the National Economic and Development Authority’s (NEDA).

According to Mr. Dizon, several projects are also being reviewed for inclusion in the “evolving” flagship list. A copy of the updated list with revised costing has yet to be made available to the media.

“NEDA and the implementing agencies are ready with projects that we can start and significantly progress in the remainder of the President’s term. There will be projects that may be added to this list and there are several that are already in the pipeline currently being reviewed by the NEDA for inclusion in the list,” he said.

Of the flagship projects, 34 are ongoing, with contracts awarded; 44 will start construction in six to eight months; 15 are in the advanced stages of government approval and seven are in the advanced stages of feasibility study.

NEDA Secretary Ernesto M. Pernia remains confident that the government can sustain its infrastructure momentum as it enters various stages of project implementation while ensuring these big-ticket projects’ technical, financial, economic and social merits before endorsement for final approval.

“Since the start of the current administration, the NEDA Board has approved projects at a quicker pace. The economic and infrastructure team continues to process projects through careful analysis and thorough review,” Mr. Pernia was quoted as saying in a statement Monday.

The International Monetary Fund (IMF) has said that the country’s push to develop its infrastructure will be crucial in becoming an upper-middle income economy as well as in reducing poverty.

“When completed, these projects are expected to bring important benefits to the Philippine economy and to the lives of ordinary citizens,” the IMF said in a Feb. 6 report.

The IMF said considering the Philippines’ vulnerability to natural disasters, climate-resilient infrastructure, efficient irrigation systems and better water management could reduce the impact of calamities, boost agriculture and eventually “lift many people out of poverty.”

It noted that the government will have to “ensure its spending is well managed” as the Philippines still recorded a 23% efficiency gap compared with “best practices in translating public investment into infrastructure.”

“Closing this gap will require improving project appraisals, by identifying risk reduction measures early on and greater involvement of the public-for example, by publishing appraisal analyses for public comment. Moreover, more private-sector participation could help in executing the infrastructure investment push as long as financial risks to the government are well managed. Moreover, developing domestic capital markets could broaden the funding of the push,” the IMF said. — Beatrice M. Laforga