|
THE
National Economic and Development Authority (Neda)
Investment Coordination Committee-Cabinet Committee (ICC-CabCom)
has approved P2.13 billion worth of cost increases for
two projects implemented by the National Irrigation
Authority (NIA) and the Development Bank of the
Philippines (DBP).
Neda
ICC-CabCom approved the NIA request for cost adjustment
and time extension for the Help of Catubig Agricultural
Advancement Project (HCAAP) and the DBP’s request for
supplemental financing and loan-validity extension for
the Rural Power Project.
In a
statement, the Neda said the NIA, on behalf of the HCAAP
steering committee, requested for the adjustment of the
cost of the HCAAP to P2.97 billion from P2.48 billion,
or an increase of P490 million.
The
HCAAP’s implementation period has also been extended
from June 30, 2007 to June 30, 2010.
HCAAP
steering committee chairman, governor Raul Daza,
requested for the said adjustment and extension due to
the increase in the prices of materials, diesel and
gasoline, as well as the costs of labor and rental of
various equipment.
“The
ICC-CabCom approved the cost adjustment on the condition
that the additional project cost shall be financed
through local funds within DA, NIA, DPWH and DOH budget
ceilings and accordingly subject to the issuance of DBM-certified
funding strategy for the HCAAP,” the Neda said in a
statement.
“Moreover, the ICC approval of the proposed changes is
with the understanding that the project implementation
shall be accelerated and completed earlier than the
extension period in 2010,” the agency added.
The cost
increase for the HCAAP is one of four foreign-assisted
projects of the NIA which are hounded by cost overruns.
Other
projects include the irrigation component of the
Casecnan Multipurpose Irrigation and Power Projects, and
the Stage II of the Bohol Irrigation Project, Banaoang
Pump Irrigation Project.
The
HCAAP, which is in Catubig and Las Navas, Northern Samar,
aims to increase agricultural production through
provision of irrigation and drainage facilities;
improvement and extension of road network and
construction of farm-to-market roads; improvement of
productive activities with the development of
agricultural support services and institution; and
enhancement of public health through schistosomiasis
control and provision of basic social services.
The
project is funded with assistance from the government of
Japan, through an official development assistance loan
from the Japan Bank for International Cooperation. As of
December 31, 2007, the total loan disbursement has
reached ¥1.38 billion.
Meanwhile, the DBP sought a $40 million worth of
supplemental financing to finance subprojects in the
pipeline and the approval of the extension of loan
validity by three years for the Rural Power Project to
ensure the implementation and completion of the
subprojects in the pipeline.
The ICC
approved the proposed supplemental financing of $40
million, or P1.64 billion at $1=P41, which will be
sourced from the World Bank, as well as the extension of
loan validity until December 2012 for the Rural Power
Project.
This
project is financed through the WB’s Adaptable Program
Loan. It involves the transformation of electric
cooperatives; installation of stand-alone
renewable-energy systems; small-scale energy generation
and minigrids; and development and implementation of
rationalized policies on subsidies, tariffs, regulation
and integration of renewable-energy technologies into
the Missionary Electrification Development Plan. |
