DESPITE the ill effects of the typhoon, the national government remains on track to complete nearly half of the flagship projects by the end of the President’s term, according to the National Economic and Development Authority (Neda).
In a presentation on Tuesday, Socioeconomic Planning Secretary Ernesto M. Pernia said of the 75 flagship projects, at least 32 projects are going to be completed within the term of the administration.
Forty-three projects will commence under the Duterte administration but will be completed after the President’s term. Pernia said that currently, 24 projects are undergoing pre-investment studies, 44 are already under implementation and seven are being reviewed.
“The government rigorously vets the viability of projects, and the government must work hand in hand with the private sector in implementing the ambitious “Build, Build, Build” program,” Pernia said.
However, if there are projects that would be affected by Typhoon Ompong, Finance Secretary Carlos G. Dominguez III said the government has sufficient funds to cover for the damage.
Dominguez nonetheless said, the economic team has yet to receive a “concrete” report on the damage brought by Typhoon Ompong to various infrastructure projects nationwide.
“We don’t have concrete report yet of the damage. I’m sure there are road projects and bridge projects that are affected by this typhoon.” He added he was waiting for the report on a damaged dam.
“We don’t have a report yet. And yes, if the costs go up, because of the damage, we can certainly handle the additional costs,” Dominguez added.
Bases Conversion and Development Authority (BCDA) President and CEO Vivencio B. Dizon said in the Clark Airport project, there was minimal damage except for some fallen trees.
The experience of the country with typhoons, Dizon said, only highlights the importance of sustainable development, particularly of cities.
He said Clark is very fortunate with its location since it is elevated and is surrounded by mountain ranges which protect it from typhoons.
“We have to look at those future developments and start planning because these weather disturbances are not going to get any weaker, they will get stronger and stronger,” Dizon said.
EIRR rates passed
Fast-tracking the government’s infrastructure push, Pernia said, does not mean that the government is willing to sacrifice quality for quantity.
Pernia said the government still maintains a 10-percent passing rate for the economic internal rate of return (EIRR), which many of the projects have successfully passed and exceeded.
He said the Mindanao Railway, for example, has an EIRR of 12.2 percent, while the Estrella-Pantaleon Bridge has 16.1 percent and the New Cebu
International Container Port, 20.1 percent.
Pernia added that the Panguil Bay Bridge Project, which aims to connect Tangub City in Misamis Occidental and Tubod in Lanao del Norte, has an EIRR of 21.4 percent and the Clark International Airport Expansion project has an EIRR of 20.6 percent.
“These infrastructure projects will be funded with the best possible funding sources, or an optimal mix of financing from public and private sources, besides official development assistance,” Pernia added.