Monday, May 19, 2008 WB okays $232M loan for road projects By Carlo P. Mallo
THE World Bank has approved the $232 million loan of the Philippine government, which will be used for the Second National Roads Improvement and Management Project (NRimp2).
Bulk of the funds will be used to address the road problems in the conflict- affected areas of Mindanao and the Visayas.
A report from the World Bank showed that the NRimp2 would focus on the improvement of the 450 kilometers of national arterial roads and bridges.
It will also deal with the comprehensive road maintenance program through long-term performance-based contracts and expansion of the national preventive maintenance program.
"The project includes reforms in the organization and the service delivery processes that will improve the effectiveness and the integrity of the Department of Public Works and Highways (DPWH) in managing the road system," the report added.
The $232 million loan was approved last May 14 after a thorough deliberation of the World Bank's Board of Directors.
Bert Hofman, World Bank Philippines Country Director said that beyond the construction of the physical road, the project will support long-term measures to help the government increase efficiency and address corruption in the roads sector.
"Improving the quality of roads will reduce transportation costs, which is important in attracting investments and creating jobs. Better roads also increase the price farmers receive for their produce," he added.
The total project cost is at an estimated amount of the 450-kilometer road network project is pegged at $576 million.
The Philippine government will pitch in $333.5 million while the Australian Agency for International Development financed an additional $10.5 million grant for the project.
Moreover, Finance Secretary Margarito Teves viewed the approval of the loan as a "reflection of their confidence in the Philippine Government's commitment to carry out road sector reforms".
Teves, however, stressed of the need for transparency, "We believe that greater accountability and transparency in government infrastructure projects... are necessary to ensure the efficient use of public resources and bring greater benefits to our people," Teves added.
In its first phase (2000-2007) NRimp put in place a modern, transparent and accountable national road management system.
Some 90 percent of the project goals were achieved: 382 kilometers of roads were built or upgraded in provinces across the Philippines and a further 975 kilometers of existing roads were resurfaced and maintained. (With reports from the World Bank)
