Changes to the scope of two transport projects have been approved by the National Economic and Development Authority (NEDA) Investment Coordination Committee-Cabinet Committee (ICC-CC).
The ICC-CC also endorsed a change in the financing mode of one irrigation project and one water supply project, and allowed a new cost threshold for projects needing ICC review and approval.
Approved March 22 was the new configuration for the Light Rail Transit (LRT) Line 1 North Extension Project-Common Station, or the Unified Grand Central Station. The project’s new physical configuration includes dual tracks for LRT-1, Metro Rail Transit 3 (MRT-3), and MRT-7, and a total concourse area of 13,700 square meters.
Assuming no further delays, the project is targeted to be delivered by April 2019. The North Extension Project’s new total cost is now P2.8 billion, including the P1.4 billion from the Department of Transportation’s 2017 budget.
The ICC-CC also approved the proposed loan extension and fund reallocation for the New Communications, Navigation and Surveillance/Air Traffic Management (CNS/ATM) Systems Development Project.
The planned revision includes a loan extension of two years and six months. Moreover, it will reallocate the P570.38-million portion of the project cost to construction and procurement, consulting services, administration costs, value-added tax, and duties and taxes from the local counterpart contingency.
Meanwhile, the ICC-CC allowed the change in financing mode for the Chico River Pump Irrigation Project, shifting from national government funding to official development assistance (ODA).
Similarly, the ICC supported the proposal to change the financing modes for the New Centennial Water Source-Kaliwa Dam Project and the North-South Railway Project-South Line from public-private partnership schemes to ODA. The dam project was originally approved by the NEDA Board in September 2015, while the railway project was cleared in February 2016.
Finally, the ICC-CC gave the go-signal for a new cost threshold for projects that have to undergo ICC review and approval. Projects costing at least P2.5 billion will require ICC approval, except as otherwise provided by law. Projects costing less will still need certification that they are consistent with the Philippine Development Plan/Results Matrices/Public Investment Program and the implementing agency’s mandate. These must also pass the performance indicators approved by the Department of Budget and Management.
55 other ‘game-changing’ projects
Aside from these, lined up for approval by the NEDA ICC-CC are 55 “game-changing” flagship projects worth more than P1.2 trillion, which are scheduled for implementation and completion within the current administration’s term.
“These are catalytic projects. These will encourage other developments,” NEDA director general Ernesto Pernia said.
Among these flagship projects are the Clark Green City as well as the railway connecting Manila to the development. Other projects include the 15 big-ticket projects earlier proposed for Chinese financing.
The 55 flagship projects will entail various forms of financing such as ODA, loans from multilateral development banks, general appropriations, and public-private partnership.
The projects will be presented for approval during the next NEDA board meeting in April.
The Duterte administration aims to spend around P8 trillion for infrastructure projects in the next five years as part of its envisioned “Golden Age of Infrastructure.”
Image courtesy of digitalart at FreeDigitalPhotos.net
