April 26, 2018
The National Economic and Development Authority (NEDA) Board approved eight new projects on Wednesday.
These include the approval of the Subic-Clark Railway and the Unsolicited Proposal for the Bulacan International Airport, the latter with the NEDA Board also approving the Investment Coordination Committee’s recommended reasonable rate of return and other parameters for negotiation.
“We are pleased to see more infrastructure projects in the pipeline. As we roll them out, government shall keep working towards developing the country’s infrastructure to ensure easing of congestion in Metro Manila and spreading growth to the regions,” said Socioeconomic Planning Secretary Ernesto M. Pernia during the 6th NEDA Board meeting of President Rodrigo R. Duterte’s administration at the Bangko Sentral ng Pilipinas last April 25, 2018.
Besides the two projects, the NEDA Board also approved the Clark International Airport Expansion Project-Operations and Maintenance PPP Concession, Ambal-Simuay River and Rio Grande de Mindanao River Flood Control Projects, Pasig-Marikina River and Manggahan Floodway Bridges Construction Project, Bridge Construction Acceleration Project for Socioeconomic Development Project, Rural Agro-Enterprise Partnership for Inclusive Development and Growth (RAPID Growth) Project, and the Davao Food Complex. (See detailed list below)
Moreover, the NEDA Board also approved the changes in the following previously approved projects: change in scope and cost as well as loan validity extension of the Integrated Disaster Risk Reduction and Climate Change Adaptation Measures in Low-Lying Areas of Pampanga Bay of the DPWH; change in scope and cost for the Integrated Marine Environment Monitoring System Project Phase 2 of the DA-BFAR; cost increase of the New Centennial Water Source—Kaliwa Dam Project of MWSS; and restructuring for the Integrated Natural Resources and Environment Management of the DENR.
NEDA Board-approved Projects
1. Subic-Clark Railway Project/Department of Transportation (DOTr) and Bases Conversion and Development Authority (BCDA)
The Subic-Clark Railway Project is a 71.13-kilometer railway that will connect Subic Bay Freeport Zone and Clark Freeport Zone to support current industrial activities and the potential demand for freight services along the Subic-Clark corridor. The project will cost PhP50.03 billion, of which PhP42.53 billion will be financed through Official Development Assistance (ODA) and PhP7.51 billion through local funds.
This project is seen to help decongest Metro Manila traffic, provide infrastructure for the Metro Luzon Urban Beltway, and spur the development of a freight railway system for Luzon.
2. Unsolicited Proposal for the Bulacan International Airport Project/DOTr
The Project involves the construction, operation, and maintenance of the Bulacan International Airport with an area of approximately 2,500 hectares in Bulakan, Bulacan. The project involves airport development (i.e., passenger terminal building, with airside and landside facilities) and an 8.4-kilometer airport toll road, and will be able to accommodate 100 million passengers per annum by its opening year. This unsolicited proposal has a project cost of PhP735.634 billion.
3. Clark International Airport Expansion Project-Operations and Maintenance PPP Concession (“O&M Undertaking”)/BCDA
The O&M Undertaking involves the competitive procurement of a technically qualified operator to undertake the necessary internal fit-out, and provision of the necessary equipment and systems to complete, commission, operate and maintain the new CIA terminal.. It has an estimated capital expense of PhP5.61 billion, proposed for public-private partnership implementation under the solicited Build- Operate-Transfer (BOT) mode, as represented by BCDA during the NEDA Board Meeting, pursuant to the Amended BOT Law and its IRR, with a 25 to 30 year concession period.
4. Ambal-Simuay River and Rio Grande de Mindanao River Flood Control Projects/Department of Public Works and Highways (DPWH)
The Ambal-Simuay River and Rio Grande de Mindanao River Flood Control Projects will involve the construction of various flood management infrastructures such as dikes and floodgates, and the conduct of channel dredging among others. These form part of the Mindanao River Basin, the second largest river basin in the country. It has a project cost PhP39.2 billion.
5. Pasig-Marikina River and Manggahan Floodway Bridges Construction Project/DPWH
The project involves the construction 10 remaining priority bridges crossing Pasig-Marikina River and Manggahan Floodway. These bridges will improve road transport network capacity and efficiency in Metro Manila by providing additional fix links and alternative routes. The project has a total project cost of PhP27.368 billion. The NEDA Board approved last September 2017 the construction of the first two bridges—the Binondo-Intramuros and Estrella-Pantaleon Bridges—with a total cost of PhP5.98 billion, to be financed through grant provided by the Chinese Government.
6. Bridge Construction Acceleration Project for Socioeconomic Development/DPWH
The Bridge Construction and Acceleration Project for Socioeconomic Development Project involves the full turnkey construction of five iconic 4-lane bridges and twenty-five 2-lane truss bridges, altogether with a total length of 2,848 lineal meters, in nine regions of the country. The project has an estimated cost of PhP11.369 billion, and is expected to be completed by 2022.
7. Rural Agro-Enterprise Partnership for Inclusive Development and Growth (RAPID Growth) Project/Department of Trade and Industry (DTI)
The RAPID Growth Project aims to support 78,000 farming households by increasing on-farm and off-farm activities and generating employment opportunities in the rural areas. Specifically, the project will: a) facilitate the expansion and establishment of micro, small, and medium enterprises (MSMEs) with strong backward linkages to farmers; b) provide MSMEs with access to the needed capital to sustain their businesses; and c) create business partnerships between MSMEs and farmers to ensure a steady source of high-quality raw materials for the production requirements of agro-enterprises.
The project will be implemented in phases, with the pilot phase covering up to 25 percent of the total project cost of PhP4.78 billion.
8. Davao Food Complex Project/DTI/National Development Company
The Davao Food Complex Project, to be implemented through a contractual joint venture (JV) agreement, costing PhP1.086 billion. It will involve the development, marketing, management, and lease of a 20-hectare government-owned land in Toril, Davao City into an agri-industrial complex that will help promote rural and value chain development toward increasing agricultural and rural enterprise productivity, rural tourism, and supporting marine-based industries due to the existence of major landing facilities in the area.