THE interagency Investment Coordination Committee (ICC) has approved a total of 55 flagship projects that will be completed or rolled out under the current administration, according to the National Economic and Development Authority (Neda).
Officials from the Neda recently told reporters in an interview that the total indicative cost of the flagship projects is P1.2 trillion. The Neda said this amount will fund projects that will further boost the country’s economic growth.
“We will change the landscape with game-changing infrastructure,” Neda Undersecretary Rolando G. Tungpalan said.
“Flagship projects [are] something that will generate [and] encourage other developments. These are catalytic project,” Socioeconomic Planning Secretary Ernesto M. Pernia added. This is not the first time that the Philippine government has identified “flagship” projects. Most notable are those undertaken during the Ramos and Estrada administrations.
In 1994 the Ramos administration even created the Presidential Committee on Flagship Programs and Projects, which was then chaired by Emilio M.R. Osmeña.
Meanwhile, the Estrada administration continued the committee, under the chairmanship of Roberto Aventajado, and identified a total of 128 ‘flagship’ projects for funding.
However, in 2000, reports revealed that the lack of counterpart funds and right-of-way problems caused the cancellation of 70 of these identified projects. The Neda assured this will not happen under the current administration, given the country’s financial position.
“Not this time, as we are also including in project-cost estimates for ROW and Resettlement Acquisition requirements. We also have relatively much less fiscal constraints than in the 1998-2001 period, to budget for both foreign and counterpart project expenditures,” Neda Public Investment Staff Director Jonathan L. Uy told the BusinessMirror.
Budget Secretary Benjamin E. Diokno told the BusinessMirror the ouster of former President Joseph E. Estrada was a major factor behind the cancellation of the government’s flagship projects.
Diokno also said projects, particularly flagship ones, take time to develop and plan. Given that the Estrada administration lasted only two years, there was not enough time to see these projects through. “Estrada’s term was truncated. [And] there’s a long lag time between project planning and project completion,” he said.
The Neda said it will disclose the flagship projects after the list has been presented to Duterte in April.
The list will already include the 15 projects that will be funded by Chinese loans. The Neda estimated these will cost $6.96 billion.
Three of these projects—the Chico River Pump Irrigation Project, New Centennial Water Source-Kaliwa Dam Project and North-South Railway Project—will be funded this year. The three projects are estimated to cost $3.44 billion, or some P172.42 billion.
The NSRP involves the construction of a 581-kilometer standard-gauge long-haul railway from Manila to Legazpi City in Albay province. The line will also have an extension to Matnog in Sorsogon.
Apart from the NSRP, Chinese loan financing will be used for the P18.724-billion New Centennial Water Source-Kaliwa Dam Project of the Metropolitan Waterworks and Sewerage System and the P2.696-billion Chico River Pump Irrigation Project of the National Irrigation Administration.
The Kaliwa Dam project involves the construction of a dam and conveyance tunnel to provide 600 million liters of raw water for Metro Manila and parts of Cavite and Rizal.
The Chico River Pump Irrigation Project aims to irrigate 8,700 hectares, and benefit some 4,350 farmers. It will serve 21 barangays in Tuao and Piat in Cagayan and Pinukpuk in Kalinga.