The National Economic and Development Authority (Neda) on Thursday said the national government will spend P4.82 trillion for 4,095 infrastructure projects, which are expected to create 6.27 million jobs, until 2022.
In a presentation at the First Global Infrastructure Forum (GIF), Neda Undersecretary Rolando G. Tungpalan pegged the total budgetary requirement for infrastructure projects under the Public Investment Program at P7.74 trillion.
Of this amount, Tungpalan said 64 percent, or P4.97 trillion, will be channeled to transportation projects. Social infrastructure projects, he said, will require P1.1 trillion.
“Of the P7.74 trillion, the bulk of the projects will be financed by the national government at P4.82 trillion, which covers 4,095 projects, and P1.28 trillion will be funded via public-private partnerships covering 39 projects,” Tungpalan said.
A total of 68 projects to be funded by the Official Development Assistance (ODA) will require P1 trillion. Other projects costing P626.78 billion will be funded through private investments, corporate funds of state-owned firms and internally generated funds of financial institutions.
The source of funding for around 61 projects worth P5.54 billion has yet to be determined by the government.
Budget Secretary Benjamin E. Diokno assured that the government has sufficient funds for its infrastructure push. Diokno earlier said government spending for infrastructure would reach as much as 7.3 percent of the country’s GDP by 2022.
The government’s budget of P1.15 trillion for infrastructure this year is equivalent to 6.3 percent of GDP. This will steadily increase to 6.8 percent in 2019, and to 6.9 percent in 2020 and 2021.
“We recognize that infrastructure development is one of the requisites of real change and, accordingly, this is one of the top priorities of the Duterte administration,” Diokno said.
“Our 2018 national budget brings flesh and bone to the President’s promise of real change. It is a budget that reforms and transforms. A budget for the people and by the people. Our every allocation for infrastructure is proof that we mean what we say, that we are serious in achieving the promise of the President to bring growth and development throughout the whole country,” he added.
The entire public investment thrust of the government can create as much as 6.27 million jobs from its various public infrastructure investments between this year and 2022.
Tungpalan said the government aims to create the most jobs at 1.71 million in 2022, when most of its projects are already being implemented.
The Neda estimated that the government’s infrastructure spending will create 823,700 jobs this year; some 1.12 million jobs in 2019; 1.23 million in 2020; and 1.4 million in 2021.
As of January, projects approved by the Neda Board under the Duterte administration amounted to P1.2 trillion, covering 29 infrastructure projects. Of the amount, 87.9 percent, or P1.06 trillion, will be financed by the ODA, while the 94.84 percent, or P1.14 trillion, are for the transport sector.