September 08, 2017
MANILA – The National Economic and Development Authority (NEDA) said Thursday that the government’s plan of sharply increasing public spending on infrastructure will boost the Philippine economy.
At the Second Annual Philippine Energy and Infrastructure Finance Forum in Makati, Socioeconomic Planning Secretary Ernesto M. Pernia said that growth of gross domestic product (GDP) is expected to increase by an additional 1.4 percent annually on average over six years. Accelerated infrastructure development will also generate around 1.1 million additional new jobs every year.
The government has committed to increase spending on infrastructure from 5.32 percent of GDP this year to more than 7 percent of GDP by 2022.
Seventy-five (75) game-changing flagship projects were identified to be prioritized, approved, and implemented until 2022, of which 53 projects with cost estimates will make for a total cost of almost ₱1.6 trillion.
Of the 75 flagship projects, 18 have already been approved by the NEDA Board.
Among these are the Malolos-Clark Airport-Green City Rail Project, New Centennial Water Source Project, Chico River Pump Irrigation Project, Phase 1 of the Mindanao Railway, the New Cebu International Container Port, and the Davao, Bohol, Laguindingan, Bacolod, and Iloilo Airports.
“Most of these projects are in the regions. This affirms the government’s strategy to aggressively pursue rural and regional development, and to spread economic growth outside Metro Manila,” Pernia said.
The NEDA is likewise currently validating the Public Investment Program (PIP) 2017-2022, which contains at least 5,600 priority programs and projects of various national government agencies, including both hard and soft infrastructure, that would respond to the goals and strategies of the Philippine Development Plan (PDP) 2017-2022. Many of these projects will be in the provincial towns and cities.
He added that various sectors and industries will benefit from the government’s massive infrastructure program.
In terms of gross value added, these are construction; wholesale and retail trade; food manufacturing; non-metallic mineral products; ownership of dwellings; electricity; wood, bamboo, cane, and rattan; communication; land transport; and petroleum and other fuel products.
On employment, these are construction; wholesale and retail trade; wood, bamboo, cane and rattan; forestry; stone quarrying, clay and sand pits; land transport; non-metallic mineral products; fabricated metal products; renting and other business activities; and maintenance and repair of motor vehicles.