Infrastructure Priority

29 April 2008

Philippines: The Philippines Government has allocated PHP 369 billion (US$ 7.17 billion) for infrastructure development under its “Super Regions” development programme, according to local news agency Balita.

Budget secretary Rolando Andaya announced the plan at the weekly “Kapihan ng Bayan” press briefing on 14 August, saying road construction will receive the bulk of the funds.

PHP 90.2 billion (US$ 1.75 billion) will be allocated for road construction, repair and maintenance. Airports are the next highest priority with a PHP 51.8 billion (US$ 1.01 billion) budget, followed by seaports, PHP 15.3 billion (US$ 297 million), bridges, PHP 5 billion (US$ 97 million), irrigation, PHP 12.6 billion (US$ 245 million) and railways, PHP 180 million (US$ 3.49 million).

The majority of the money will come from central Government funds. These will be augmented by funds from Government-owned and controlled corporations (GOCCs), local Government units (LGUs) as well as through build, operate, transfer (BOT) concessions.

Funding will start in 2007, with initial start-up capital from the Government of PHP 16.4 billion (US$ 318 million). Mr Andaya said without the funds from the GOCCs, LGUs and BOT schemes, the Government could still implement the development programme through an allocation of PHP 527 billion (US$ 10.2 billion) from its proposed 2008, 2009 and 2010 national budgets.

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