THE Department of Budget and Management (DBM) is seen releasing P490 million to the Department of Public Works and Highways (DPWH) for the road rehabilitation of Boracay Island during its six-month closure.
Budget Secretary Benjamin E. Diokno said in a news conference on Wednesday that the P490 million will be used to rehabilitate the Boracay Circumferential Road in Aklan.
“Actually, P50 million has already been released for the improvement of the Boracay Circumferential Road and this is part of the 2018 GAA [General Appropriations Act]. The P50 million will be augmented with the additional P490 million to fast-track project completion,” Diokno said.
Charged against savings generated by the DPWH in FY 2018, the fund will be used to accelerate the construction of the 5.2-kilometer road that will strictly follow the 6.10-meter carriageway standard on both sides.
The project will incorporate an improved drainage and sewerage system along the main road to contain in-land flooding, according to the DPWH.
It will be divided into three sections, with the first phase to start from Cagban Port to Rotonda (1.4 km), the second from Rotonda to Barangay Balabag (1.9 km) and the third from Barangay Balabag to Barangay Yapak (1.9 km).
Diokno said the DPWH request of P490 million funds for Boracay is now being processed by the DBM subject to the approval of the Office of the President.
“The DBM has also released P448 million to the Department of Labor and Employment [DOLE] on April 27 to cover the financial assistance to 17,735 affected residents and workers in Boracay,” Diokno added.
He said under the 2018 GAA, P13 billion was allocated for the country’s contingent fund, and the government can fund the total cost for the rehabilitation of Boracay Island with funds coming from the contingency and calamity fund.
“We can finance it from the 2018 budget, no need for a supplemental budget. [This will be] coming from the contingency and calamity fund,” he said.
In April the National Economic and Development Authority said the Philippine economy can lose around P1.96 billion during the closure of Boracay for six months.
Socioeconomic Planning Secretary Ernesto M. Pernia told financial reporters that the closure of Boracay will result to a reduction on the country’s GDP amounting to P1.96 billion for two quarters.
Boracay was closed on April 26 this year.
Image credits: AP/Aaron Favila