MANILA, Philippines—The Philippines’ investment program over the medium term is now expected to reach P4.2 trillion—more than double the amount reported under a similar program drawn up by the previous administration.
National Economic and Development Authority (NEDA) deputy director general Rolando G. Tungpalan told reporters that the P4.2 trillion worth of proposed projects under the final draft of the Philippine Investment Plan (PIP) for 2011-2016 could still go up with the completion of ongoing feasibility studies for some of the projects.
Of the estimated P4.2 trillion in proposed projects, the government would need “roughly P3.7 trillion” in resources for public investments, he said.
According to the Tungpalan, NEDA has already determined which projects under the present PIP would actually need government allocations and the ones that would simply require credit lines or government guarantees.
This is to avoid overstating the financing need for the PIP, according to the official.
“We said that on-lending projects are not really public investments. Government’s role requires no cash-out,” Tungpalan said.
“On-lending” refers to private companies borrowing from banks to be able to participate in a government project.
Tungpalan said that submissions of government agencies for the 2011-2016 PIP were studied in terms of how “responsive” these proposal were to the Aquino administration’s development plan for 2011-2016.
The evaluation determined which of the priority programs and projects could be suitable for public-private partnerships, foreign assistance, credit lines to be availed of by the private sector, and so on, Tungpalan said.
The PIP sets priority projects to be implemented by the government, government-owned and -controlled corporations, state financial institutions and other offices until 2016.
In effect, the PIP concretizes how the goals defined under the Philippine Development Plan (PDP) will be achieved.
The PDP goals include annual economic growth of 7 to 8 percent and the reduction of poverty.
“For example, if food self-sufficiency is a target by 2013 or beyond, how many hectares of irrigation (are needed)? What are the post-harvest facilities? That’s the kind of processing that we want to do,” Tungpalan said in an earlier interview.
In June 2011, Economic Planning Secretary Cayetano W. Paderanga Jr., also the NEDA director general, said in a memorandum that in formulating the PIP, “the programs and projects should contribute to the societal goals, outcomes and outputs spelled out in the Philippine Development Plan 2011-2016.”
Paderanga said the guidelines for the PIP included the alignment of outcomes, indicators and targets under the following priority areas: anti-corruption, transparent, accountable and participatory governance; poverty reduction and empowerment of the poor and vulnerable; rapid, inclusive and sustained economic growth; just and lasting peace and the rule of law; and, integrity of the environment and climate change mitigation and adaptation.
Government agencies must also determine the annual financing requirements for these projects over the medium term, Paderanga said.
After its completion, the PIP will be regularly updated together with the midterm review of the PDP.
In 2007, then President Macapagal-Arroyo and the NEDA approved P2.01 trillion worth of projects under her Medium-Term Public Investment Plan.