PRESIDENT Rodrigo Duterte has given his go signal for the implementation of nine infrastructure, health and agricultural projects with an estimated cost of P171.14 billion, the National Economic and Development Authority (Neda) said Thursday.
Neda Director General Ernesto Pernia said the approval of the projects was made during the first meeting of the Neda Board under the Duterte administration on Wednesday.
“Once implemented and completed, these approved projects will help attain our medium- and long-term development goals of making the agricultural sector competitive, improving mobility by making our transport system safer and more efficient, increasing disaster resiliency, and improving health services,” said Pernia, also Socioeconomic Planning Secretary.
The projects include the Inclusive Partnership for Agricultural Competitiveness (IPAC) of the Department of Agriculture; Eastern Visayas Regional Medical Center Modernization (EVRMC) Project and the Modernization of Gov. Celestino Gallares Memorial Hospital Project, both of the Department of Health (DOH); Metro Manila Flood Management Project, Phase I of the Department of Public Works and Highways (DPWH) and the Metro Manila Development Authority (MMDA); and Metro Manila Bus Rapid Transit (BRT) – EDSA of the Department of Transportation (DOTr).
Others include the increase in Passenger Terminal Building (PTB) Area of the Bicol International Airport of the DOTr and the Civil Aviation Authority of the Philippines (CAAP); Change in Scope of the New Bohol Airport Construction and Sustainable Environment Protection Project also of the DOTr and CAAP; Ninoy Aquino International Airport (NAIA) PPP Project of the DOTr and the Manila International Airport Authority; and Maritime Safety Capability Improvement Project for the PCG, Phase II of the DOTr and Philippine Coast Guard.
The Neda Board also adopted new policies to improve and streamline the government’s approval processes of major public investment projects, Pernia said.
He said there is the updating of the economic hurdle rate from 15 percent to 10 percent, due to improved Philippine economic conditions, which have lowered the cost of domestic and foreign capital. This will facilitate the economic justification for more projects (and therefore approval by government) that will help in spreading more public services to far-flung areas of the country, in support of reducing poverty everywhere, as committed by the President.
Another is raising the Investment Coordination Committee (ICC) project cost floor from P1 billion to P5 billion to declog the pipeline of projects for ICC approval and to promote greater decision flexibility and accountability of line departments in implementing their priority projects. Approval of projects worth less than P5 billion will be delegated to heads of agencies, but will be reported by these agencies to the ICC prior to implementation. The NEDA Secretariat will provide assistance to agencies to facilitate effective and accountable exercise of such delegation of approvals to implementing agencies.
The Neda Board also approved the streamlining of ICC review procedures for minor changes in scope, design, cost, and extension of implementation or loan/grant validity of projects. Approvals of these projects will be delegated to the level of the ICC, the Department of Finance, and the Neda Secretariat, as applicable, based on existing laws, rules and regulations.
Finally, the streamlining of the Neda Board and ICC membership was also recommended for approval. It was proposed to reduce the Neda Board membership to 11. As for the ICC, it was proposed to limit the membership to six, composed of the Secretaries of DOF, Neda, DBM, DOE, the Executive Secretary, and Governor of BSP.
These changes in membership will still be formalized through an Administrative Order or Memorandum Order. Through Executive Order 230, the President is empowered to modify the membership of the Neda Board whenever deemed necessary. (SDR/Sunnex)