DESPITE its recent pronouncement that no cost overruns will be approved, the interagency committee Investment Coordination Committee (ICC) Cabinet Committee (CabCom) has again endorsed to the National Economic and Development Authority (Neda) Board the approval of a $10 million worth “cost adjustment” for an agriculture project.

The ICC Cabcom met last week and decided to approve the proposal of the Department of Agrarian Reform (DAR) for additional financing of $10 million for the Agrarian Reform Communities Development Project (ARCDP II).

The ARCDP is funded by the World Bank and is an area-specific, multisectoral collaboration and an integrated development undertaking which provided assistance to selected agrarian reform communities (ARCs).

The DAR said the additional financing of $10 million will be used to finance the additional foreign-exchange requirements of the project due to peso appreciation and the expanded ARC coverage as committed in February 2006.

The interagency committee also approved the extension of the validity of the project’s loan to December 31, 2009 from December 31, 2008. 

Neda Project Monitoring Staff (PMS) director Roderick Planta said although this is the case, the DAR still needs to justify this cost increase to the Neda Board, chaired by the President.

“The DAR needs to defend this en banc to the Neda Board. This is part of the instructions made by the President last week,” Planta told the BusinessMirror.

In last week’s Cabinet meeting, the President approved the Neda’s recommendation to avoid approving cost overruns that are not accompanied by a budget strategy from the Department of Budget and Management (DBM).

Neda acting director general Augusto Santos also said that implementing agencies must also be able to ensure the Neda Board that projects are still economically viable even with cost overruns. Otherwise, he said, implementing agencies will be asked to downscale the projects.

These measures were brought about by the recent announcement that implementing agencies have already incurred P31.2 billion in cost overruns for various government projects in 2007.

Meanwhile, the ICC Cabcom also approved three new official development assistance projects, namely, the Pasig River Dredging Project by the Pasig River Rehabilitation Commission of the Department of Environment and Natural Resources and the President’s Bridge Program Mega Bridges for Urban and Rural Development Project and Flood and Hazard Mitigation Component of the Bicol River Basin and Watershed Management Project by the Department of Public Works and Highways.

FIRST Cagayan Leisure and Resort Corp. (FCLRC) would build a P4-billion airport in Cagayan province, which, when completed, would accommodate more casino-gaming players from the region.

DESPITE its recent pronouncement that no cost overruns will be approved, the interagency committee Investment Coordination Committee (ICC) Cabinet Committee (CabCom) has again endorsed to the National Economic and Development Authority (Neda) Board the approval of a $10 million worth “cost adjustment” for an agriculture project.

THE Board of Investments (BOI) vowed to address the concern of foreign business chambers that the 2008 Investment Priorities Plan (IPP) is not specific enough to be really effective in the guidelines that the agency is currently finalizing.

WHILE still trying to recoup their underrecoveries owing to the continuous increase in world oil prices, local oil companies gave public motorists a bit of relief from having to pay for expensive fuel by just increasing the price of diesel by merely P0.50 a liter over the weekend.

A CIVIC organization on Sunday urged Government Service Insurance System (GSIS) president Winston Garcia to “fully disclose” his alleged takeover plan of power distributor Manila Electric Co. (Meralco) to allay fears that the move “stands to favor several business interests.”