March 23, 2017
MANILA – The National Economic and Development Authority (NEDA) Investment Coordination Committee–Cabinet Committee (ICC-CC) approved on March 21, 2017 the scope revisions of two transport projects, change in financing mode of one irrigation project, and one water supply project. It also endorsed the approval of a new cost threshold for projects for ICC review and approval.
First, the ICC-CC approved the new project configuration for the LRT Line 1 North Extension Project-Common Station or the Unified Grand Central Station (North Extension Project). It will have a new total project cost of approximately PhP2.8 billion, inclusive of the PhP1.4 billion in the Department of Transportation’s 2017 budget.
The project’s new physical configuration includes dual tracks for LRT-1, MRT-3, and MRT-7, and a total concourse area of 13,700 square meters. The project is targeted to be delivered by April 2019 (assuming there will be no needless further delays).
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 proposed project revision includes a loan extension of two years and six months. It will also reallocate the PhP570.38 million-portion of the project cost to construction and procurement, consulting services, administration costs, VAT, and duties and taxes from the local counterpart contingency.
Meanwhile, the ICC-CC also approved the change of the financing mode for the Chico River Pump Irrigation Project from national government funding to Official Development Assistance (ODA).
Similarly, the ICC also supported to change the financing mode from PPP scheme to ODA for the New Centennial Water Source-Kaliwa Dam Project and the North-South Railway Project-South Line, which were originally approved by the NEDA Board in September 2015 and February 2016, respectively.
Finally, a new project cost threshold for ICC review and approval of PhP2.5 billion was approved by the ICC-CC. Major capital projects costing at least PhP2.5 billion shall require ICC approval, except as otherwise provided by law. However, projects costing below PhP2.5 billion will still need certification that the project is consistent with the Philippine Development Plan/Results Matrices/Public Investment Program and the implementing agency’s mandate, as well as the performance indicators approved by the Department of Budget and Management (DBM), among other requirements.