The National Irrigation Administration (NIA) and the Department of Public Works and Highways (DPWH) are asking the interagency Investment Coordination Committee (ICC) for more time to complete two infrastructure projects.
These projects are the P11.21-billion Jalaur River Multipurpose Project Stage II (JRMP II) and the P2.45-billion Samar Pacific Coastal Road Project, both funded by South Korea.
Data obtained by the BusinessMirror showed that the JRMP II has a physical accomplishment rate of only 14.5 percent. Also, its loan utilization rate is at less than 5 percent.
The NIA, an agency attached to the Office of the President, is asking the ICC to extend the project implementation for 46 months. The loan will close next year.
The loan agreement for JRMP II was signed in August 2012 and became effective in November 2012. Documents previously showed the project aims to provide year-round irrigation water supply to 22,340 hectares from the improved five existing river Irrigation systems (RIS) and 9,500 rainfed areas.
The total target irrigation service area for JRMP II is 31,840 hectares. This covers 7,000 hectares of farmland devoted to unmilled rice and 2,500 hectares for sugarcane.
The NIA estimated that around 60 percent, or P7.92 billion, of the total project cost will be financed by a foreign loan, while the remaining 40 percent, or P5.31 billion, will be financed by the national government as counterpart funding.
The main features of the project are the Jalaur High Dam and Reservoir; Jalaur Afterbay Dam and Alibunan Catch Dam; Hydroelectric Power Plant; High Line Canal; and Bulk Water Supply Connection.
The NIA allocated P5.22 billion for the construction of dams and appurtenant structures, and P2.32 for the construction of the high-line canal.
The agency will spend P1.2 billion for the new area-distribution system or connecting canal; P55.2 million for bulk water-supply connection; and P331.2 million for the rehabilitation, improvement and modernization of existing River Irrigation Systems (RIS).
The NIA will also fund social dimensions and institutional needs pegged at P119 million; resettlement, P167.04 million; initial environmental impact assessment, P11.04 million; and consultancy, P660.14 million.
Indirect project costs include general engineering supervision and administration, physical contingency, management fee, price contingency, taxes and bank charges amounting to P3.14 billion.
As for the Samar Pacific Coastal Road Project, the DPWH is asking the ICC for an extension of two years to construct the remaining 14.8 kilometers of the 109-km road.
The Samar Pacific Coastal Road Project aims to link the towns of Samar Island to enhance the potential of the agricultural lands and fishing grounds of Northern Samar and Eastern Samar. The project is also seen to facilitate the movement of goods and services by providing access to major arterial road links.
It has an approximate length of 108.4 km, which will traverse the Pacific coastal towns of Laoang, Palapag, Mapanas, Gamay and Laping in Northern Samar and Arteche and San Policarpio in Eastern Samar. This will include the replacement of one-lane temporary and permanent bridges with two-lane permanent bridges.
The financing cost for the project will include a P1.593-billion loan from Seoul’s Economic Development Cooperation Fund and a government counterpart funding of P858.04 million. The project was first implemented from 2010 to 2013but had been extended. The program generated 303 jobs during its implementation.
The ICC is composed of the secretary of finance as chairman and the Neda secretary as cochairman. It’s members include the executive secretary, Cabinet secretary, governor of the Central Bank and the secretaries of budget, energy and trade.
It evaluates the fiscal, monetary and balance of payments implications of major national projects, and recommends to the President the timetable of their implementation on a regular basis.
The ICC also advises the President on matters related to the domestic and foreign borrowings program and submits a status of the fiscal, monetary and balance of payments implications of major national projects.
Korean ODA
The Department of Finance (DOF) said it will meet with its South Korean counterparts to further discuss the “rolling” pipeline of projects that will be funded by official development assistance (ODA).
“We do have a rolling pipeline. We are scheduled to have a meeting with them to strengthen the pipeline, making sure that it is actually aligned with the priorities of the government,” Finance Assistant Secretary Maria Edita Z. Tan told reporters.
In July the DOF said one infrastructure project of the government has been approved for funding provided by the Export-Import Bank of Korea (Kexim), while seven more are being considered.
The seven projects under consideration for Kexim funding include the development of marine aids to navigation in Luzon and the Visayas; the new Dumaguete airport-development project; development of Hybrid Power Generation Systems; the establishment of Mindoro Multi-Grain Processing Center; the development of the national animal-identification and -traceability system; a drive-through portal-inspection facilities in international ports of entry; and the automated collection of slaughter data and issuance of meat-inspection certificates.
Rea Cu and Cai U. Ordinario