A FORMER National Economic and Development Authority director general urged the government to focus on local government units (LGUs) as they may hold the key in allowing the country to move forward and achieve higher and broader-based economic growth.

Ateneo de Manila economist Prof. Cielito Habito said given the present issues and problems being faced by the national government, focusing on developing LGUs would do the government some good.

“Maybe the future is in the hands of the LGUs because there is so much good happening there. [consider them the] bright ray of hope for the country,” Habito said in his speech during the Fifth Development Policy Research Month in Makati City on Monday.

Habito said the government should be more supportive in helping LGUs with policy research, particularly those that will help them become more financially independent from the Internal Revenue Allotment (IRA).

He said that many LGUs still rely solely on the IRA and do not get other revenue sources in the form of business permits and real property taxes, which are supposed to be the main sources of revenue of LGUs and not the IRA.

League of Cities of the Philippines   president and Mandaluyong City Mayor Benjamin Abalos Jr. admitted this and said that some municipalities book their IRA as their revenues. This was the reason why the League has filed cases against 12 emerging cities.

“We’re trying to have an advocacy of promoting grassroots development and make [municipalities] more IRA-independent,” Abalos said in his speech.

Meanwhile, the World Bank Group and the International Finance Corp.  (IFC) expressed support for select local governments for possible financing through its subnational finance department.

The IFC said in a statement that LGUs are in a unique position to participate in public-private partnerships, particularly for subnational infrastructure projects. Through this initiative, the IFC can directly finance local development projects and promote commercialization of subnational utilities.

“In a decentralized environment like the Philippines, local governments can determine the type and level of financing needed for infrastructure projects in their locality, evaluate potential private- sector partners and help implement complex projects. Therefore, they are able to make better decisions, leading to superior outcomes,” IFC investment officer Valentino Bagatsing said in a statement.

Bagatsing cited several examples of public-private partnerships with local government involvement, including the Golden Gate Bridge in San Francisco, the Chicago Skyway Toll Bridge and the Shanghai Pudong district.

The IFC said it estimates that there could be up to $1 billion worth of potential projects in the Philippines that can be implemented at the subnational level.

“This presents both an opportunity and a challenge for local governments. Local chief executives need to become more adept in understanding and structuring public-private partnerships, particularly for infrastructure projects,” Bagatsing said.

The IFC said that the lack of adequate infrastructure is a constraint to investment and business growth in the Philippines. To accelerate infrastructure development, the government recently announced plans to increase total investment in the sector to 4.45 percent from the current 2.2 percent of total gross domestic product.

A FORMER National Economic and Development Authority director general urged the government to focus on local government units (LGUs) as they may hold the key in allowing the country to move forward and achieve higher and broader-based economic growth.

COMBINED fresh investments approved by the Board of Investments (BOI) and the Philippine Economic Zone Authority (Peza) from January to August increased by 26 percent to P158 billion from only P126 billion in the same period last year. 

SUBIC BAY FREEPORT ZONE—With Subic’s much-awaited hosting of this year’s 20th Philippine Advertising  Congress only two months away, Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza is orchestrating the preparations for what is billed to be the “gathering of the most brilliant minds in advertising” from November 21 to 24.

ENVIRONMENTALISTS on Monday cautioned the government from committing itself to the China-led biofuels rush, saying that biofuel plants could have adverse effect on the local food security, as well as the ecosystems.

LOOKING at providing a leveled playing field for all stakeholders before coming out with a final decision, Pampanga Rep. Juan Miguel “Mikey” M. Arroyo said Monday that the House Committee on Energy will listen and consider all sides on House Bill 1889 that seeks to amend the Electricity Power and Industry Reform Act (Epira).

ZAMBOANGA CITY—The Regional Development Council (RDC) has approved the proposed Zamboanga Peninsula (Zambopen) Growth Corridor, the framework for accelerated development where the region will have to strengthen its linkage within itself, its neighbors, the country and the world.

LEGAZPI CITY—At least two international airports are proposed in the Bicol Region, but only one will materialize soon.

One has started acquisition of land in Daraga town in Albay province. The other is being proposed in Libmanan, Camarines Sur.