The Philippines’ Department of Transportation (DOTr) received an 11% hike in budget for 2018 to carry out improvements in the country’s water, air, road, and rail transportation systems.
The DOTr Office of the Secretary has been appropriated with a P51.474-billion budget for 2018, higher than the P46.165 billion budget in 2017, based on the General Appropriations Act of 2018 signed by President Rodrigo Duterte on December 19, 2017.
Of the total fund, P24.059 billion is allocated for railway infrastructure, P9.785 billion for aviation infrastructure, P7.334 billion for land public transportation program, P5.464 billion for maritime infrastructure, and P1.690 billion for the motor vehicle regulatory program. The remaining fund will be used for general administration and operations.
On top of the approved budget, special provisions were granted for the Land Transportation Office (LTO)’s P801.832-million special vehicle pollution control fund, and P82.859 million for seatbelt use promotions.
DOTr is also authorized to deduct engineering and administrative overhead expenses for infrastructure projects costing more than P5 million but not exceeding 3% of the project cost.
A special provision was also granted for payment of obligations for the services of the Metro Rail Transit (MRT) for the prior and current years.
A total of P4.038 million was also appropriated for projects of the Light Rail Transit Authority (LRTA), which include the LRT Line 1 Cavite Extension, LRT Line 2 East Extension, LRT Line 1 North Extension (Common Station), and LRT Line 2 West Extension.
At the same time, DOTr and its attached railway agencies are authorized to maintain and ensure the continued availability of adequate spare parts inventory.
Another special provision is the P3.213 billion budget for the resettlement of families affected by the North-South Railway Phase 2 project.
For 2018, DOTr’s performance targets for the maritime sector include a 5% increase in passenger traffic and 2% increase in vessel traffic. No target for cargo was indicated. A total of 71 social port projects and eight tourism port projects must also be successfully bid out and obligated this year.
For aviation, targets include a 16% increase in passenger traffic, a 5% rise in cargo traffic, and a 20% decrease in passenger travel time and flight delays.
For rail, 15% of new railway projects must be completed and 15% of expansion of existing railway projects must be finished.
For land transport, there should be an 11% increase in modernized public transport vehicles; 25% increase in the ridership of public transport services; 97% of franchise applications resolved/decided; and 26 policies formulated, developed, implemented, updated, and disseminated.
Attached agencies’ budgets
The Civil Aeronautics Board (CAB), DOTr’s attached agency tasked to promote and regulate the country’s air transportation sector, got a budget of P127.899 million, 17% higher than its P109.210 million budget for 2017.
CAB under the 2018 GAA is tasked to improve services by adopting policies encouraging growth through progressive liberalization, fair competition, and promotion of users’ welfare.
Some of its performance targets include a 7% increase in the number of routes operated by scheduled carriers, and seven air agreements/negotiations initiated or acted upon within the year.
The Maritime Industry Authority (Marina), which is mandated to administer an integrated and sustainable maritime industry, likewise received a higher budget of P1.041 billion, up from P801.288 million last year.
In addition to Marina’s budget, P25 million is being allocated for the promotion and development of the domestic shipping industry, enhancement of maritime safety, and promotion of the shipbuilding and ship repair industry. The additional budget will be sourced from the annual tonnage fees collected by Marina from ship owners and operators.
The maritime agency is tasked to increase by 3% the number of operating ships and by 10% the number of Filipino seafarers certified as meeting international standards.
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