FASTER implementation of infrastructure projects is expected now that the government is proposing larger allocations to settle right-of-way disputes under the 2019 budget, Budget Secretary Benjamin E. Diokno said.
Compared with the previous year’s total right-of-way (ROW) budget provisions for the Department of Public Works and Highways (DPWH) and Department of Transportation (DOTr) at P36.7 billion, the 2019 ROW budget is P19.6 billion higher at P56.3 billion.
Diokno told the BusinessMirror the higher ROW budget allocations for 2019 were based on their best estimate of what’s needed for the 2019 and 2020 infrastructure projects.
“We’re implementing more infra projects in 2019, and we expect to have more in 2020, 2021 and 2022. This is consistent with our Build, Build, Build program,” he said a message.
Under the government’s massive infrastructure program, 75 infrastructure projects are expected to be rolled out with a total budget of around P8 trillion to P9 trillion to usher in what the Duterte administration calls the “golden age of infrastructure.”
For 2019, the DBM said in a a statement that it has allocated P29.4 billion for DPWH and P26.9 billion for the DOTr. This is higher than the 2018 ROW budget allocations for both agencies, which was posted at P20.6 billion for DPWH and P16.1 billion for DOTr.
In 2017, the ROW budget was also slightly lower at a total of P34 billion, with P19.6 billion going to the DPWH and P14.7 billion to the DOTr.
Moreover, the National Irrigation Administration’s right-of-way provision surged to 200 million in 2019 from P30 billion in 2017 and 2018.
Also, the National Housing Authority has been allocated an amount of P577 million for its Resettlement Program, part of which will go to the cost incurred from ROW acquisitions.
According to DBM, resettlement costs are already part of the ROW budgets for DPWH and DOTr.
Diokno also noted that projects have to be implementation-ready under the cash-based budgeting system.
“As a matter of policy, each project should have a feasibility study and detailed engineering and its ROW issue resolved for ease of implementation,” he said.
The government seeks to shift to a “revolutionary” cash-based budgeting system from multiyear obligations-based system in order to fast-track completion of projects.
As opposed to the multiyear obligations-based system, the annual cash-based budgeting system limits incurring obligations and disbursing payments for goods delivered and services rendered, inspected and accepted within the fiscal year.