P1.97-T ODA to fund PH projects

April 26, 2019 at 12:17

Loans and grants from the country’s development partners will finance the bulk of the flagship infrastructure projects to be rolled out by the Duterte administration under its ambitious “Build, Build, Build,” according to the state planning agency National Economic and Development Authority (Neda).

As of February, Neda estimated the indicative total investment requirement for the 75 big-ticket projects at P2.18 trillion, with 37 worth P1.56 trillion already granted the go-ahead by the Neda Board chaired by the President.

A third of the total number of projects, or 25 worth a combined P263.21 billion, will be finished by 2022, while 50 others worth P1.91 trillion “may commence implementation during the current administration,” Neda said.

The bulk or 46 projects worth a total of P1.56 trillion were already in the implementation stage, 24 projects worth P527.98 billion were undergoing development and five worth P84.29 billion were for review.

In terms of financing, 55 projects worth P1.97 trillion will be financed by official development assistance (ODA) from bilateral partners and multilateral lenders.

The funds to be sourced from ODA will account for 92.6 percent of the total financing requirement.

Meanwhile, the national budget will finance 11 projects worth P134.52 billion; public-private partnership (PPP), eight projects worth P71.89 billion, while a private venture will implement one project with a yet to be determined cost.

Of the 37 projects already approved by the Neda Board, loans and grants from China will finance 12 while Japanese loans were to be tapped for two projects. South Korea will finance two projects, the Asian Development Bank (ADB), six projects, and the World Bank, one project.

The government budget will be used to roll out seven projects while the PPP mode will be used for three.

Japan and the ADB will jointly finance two projects.

Two Neda Board-approved projects will also be financed by ODA.

The Build, Build, Build pipeline included 53 transport projects worth P2.04 trillion, including 34 road projects, nine railways, six projects for air transport and four for water transport.

The rest of the flagship projects will be in water resources (15), power/energy (four) and social infrastructure (three).

Only one project worth P3.06 billion is nationwide in scope, while 56 projects that cost P1.03 trillion are region-specific and 18 worth a combined P1.14 trillion are multiregional.