The government’s rollout of 12 big-ticket infrastructure projects, which would create more jobs and spur consumption, would allow Philippine GDP to expand by 7 percent next year, the National Economic and Development Authority (Neda) said on Thursday.
In a news briefing, Socioeconomic Planning Secretary Ernesto M. Pernia said these 12 projects include the Clark International Airport Expansion Project, which will be breaking ground on December 20; the Metro Manila Subway Project; and the Mindanao Railway Project Phase 1 Tagum-Davao-Digos Segment.
The last time Philippine GDP reached 7 percent was in 2013, when GDP expanded by 7.1 percent. This was largely due to the 7.9-percent growth in the second quarter of 2013 and the 7.6 percent posted in the first quarter of that year.
“I think we will enter the 7 [percent] territory next year,” Pernia said. “If the global economy will stay buoyant, that will be a plus to our exports and then government spending will surely be ramped up.”
The 12 projects are part of the 36 approved policies and projects by the National Economic and Development Authority (Neda) this year. Of the 36 approvals, around 20 were considered “hard infrastructure projects.”
Pernia said the Neda expects the Neda Board, the highest policy-making body of the agency which is chaired by the President, to approve another 15 hard infrastructure projects in 2018.
During the briefing, Neda Assistant Secretary Jonathan L. Uy said the interagency Investment Coordination Committee (ICC) Cabinet Committee (Cabcom) has proposed to the Neda Board six other projects for approval this year or early next year.
Of the six projects, three are new—the P20.313-billion Safe Philippines Project; the P11.369-billion Bridge Construction and Acceleration Project for Socioeconomic Development project; and a project to improve the capacity of the Philippine Coastguard.
The Safe Philippines project entails the construction of 18 integrated operations and command centers that are complete with video surveillance systems and a remote backup data center.
The Bridge Construction and Acceleration Project involves the construction of five iconic and 25 truss bridges. These will be constructed in nine regions of the country and will be completed by 2022 and have a collective length of 2,848 lineal meters.
The project to improve the capacity of the Philippine Coast Guard involve the acquisition of six helicopters that will be used for marine disaster response.
“We are moving forward to complement the Philippine Coast Guard not only in terms of sea-based coastguard operations but air. There are about six operational areas in the entire Philippines that will be supported,” Uy said.
Apart from these three projects, the ICC Cabcom also approved the changes in cost for the new Bohol-Panglao International Airport project; the Samar Pacific Coastal Road; and the second stage of the Jalaur River Multi-purpose Project, encountered implementation delays.
The Bohol airport project is expected to be completed by June 2018. The project is funded by the Japan International Cooperation Agency, which provided a P5.77 billion worth loan for the project. The project was approved in September 2012.
The Samar road project is a 109.3-kilometer road under the Arterial Road Network, which will link towns facing the Pacific and eventually complete the circumferential loop for Samar Island.
The JRMP involves the construction of dam and irrigation facilities, including a high dam and reservoir with afterbay and catch dams in Iloilo and its neighboring towns.
For 2017 Pernia said Philippine economy is projected to grow between 6.7 percent and 6.9 percent.
Growth drivers for this year were government spending, export earnings growth and strong consumer spending. He added agriculture performance was not significantly affected by issues, such as bird flu.
Pernia said the Philippines is considered one of the fastest-growing economies in Asia. Philippine GDP growth is the second fastest after Vietnam as of the third quarter this year.
The Neda chief said GDP growth in January to September averaged 6.7 percent. He added the Asian Development Bank projects a full-year growth of 6.7 percent vis-à-vis Vietnam’s 6.5 percent, China’s 6.4 percent and India’s 7.4 percent.
“It is with pride that we close this year strong, seeing a string of successes, especially lately,” Pernia said.
“We’ve seen robust domestic consumption and government spending, and there has been recovery in external demand. With this, we can say that we are well on the way to reaching our full-year growth target of 6.5 [percent] to 7.5 percent,” he added.
Apart from these, Pernia said the country’s hosting of the 31st Asean Summit and Related Meetings, contributed to the country’s stellar year. He added that the government’s economic briefings abroad seemed well-received and fruitful.
The briefings allowed the government to introduce its economic blueprint, dubbed as “Philippine Development Plan 2017-2022,” and its ambitious infrastructure program called “Build, Build, Build.”
Image credits: Nonie Reyes
1 comment
Duterte bashers.. anu? Galit pa din kayo sa programa ng adminsitrasyon?