MANILA, July 6 — Socioeconomic Planning Secretary Ernesto Pernia on Thursday said the government would pursue infrastructure projects based on their need and readiness, assuring there would be no bias towards a particular financing mode.
“Financing will be evaluated depending on the conditions and circumstances that are most advantageous. We shall take into account each project’s nature, as well as economic, financial and technical considerations,” he said during the Infrastructure and Construction Forum.
Pernia cited for instance strategic but long-gestating projects wherein government might decide to build the structure through its own funds or through concessional official development assistance (ODA) financing.
It would then tap private sector efficiency and management skills in operations and maintenance, he said.
“Timeliness and speed of project delivery are likewise neutral to financing sources. It is largely determined by how well-prepared a specific project is crafted and not necessarily by how a project is financed,” stressed Pernia.
Pernia, also the Director-General of the National Economic and Development Authority (NEDA), said public-private partnership (PPP) and ODA projects could be implemented swiftly depending on the “procedural savvy of the private proponent, based on its own competence and track record.”
“For any given project, the government, along with its development partners, will strive to seek the best available methodologies or technologies that prevail in the market,” he added.
The NEDA chief said the Philippines and major ODA partners agreed to speed up the approval process and the implementation of projects by adopting a 24/7 implementation while ensuring quality and cost effectiveness.
Pernia bared that NEDA would set up a Project Facilitation, Monitoring and Innovation (PFMI) Task Force to closely track progress of these infrastructure projects and facilitate resolution of implementation problems.
The Duterte administration intended to focus on 75 flagship infrastructure projects, of which 18 were NEDA Board-approved that included the PHP211.43-billion Malolos-Clark Airport-Clark Green City Rail.
It would ramp up infrastructure spending to PHP8.44 trillion, or USD 168 billion, over the next six years as required by its “build, build, build” program.
This translates to increasing spending on public infrastructure from 5.32 percent of gross domestic product (GDP) this year to as high as 7.45 percent of GDP by 2022. (LDV/PNA)
