MANILA, Philippines - The government and the private sector will kick off the P100-billion infrastructure fund with the proposed P10-billion extension of the North Luzon Expressway (NLEX) to Carmen, Pangasinan.
In an interview, Philippine Chamber of Commerce and Industry (PCCI) chairman Donald Dee said the project is ready for implementation next month.
He said bulk or 70 percent of the project cost will be funded by private banks while the remaining will come from the government. The government has allocated P50 billion for the entire infrastructure fund.
For this particular project, Dee said the private investors will not ask for government guarantees. “What they (private investors) want is the support of the government in terms of development,” he noted.
He explained since vehicular traffic is good only up to Carmen, Pangasinan, beyond that not be very profitable for the private sector. In order to improve viability and traffic, Dee said there must be development in the area.
“The government must fasttrack the development. This is the support that we need,” he said.
“This project proves that we are serious with our goal to pump-prime the economy through various infrastructure projects,” Dee said.
The NLEX extension project will be divided into three phases. The first phase, reaching up to Rosales, Pangasinan, will take two to three years to complete.
Dee hinted that the next project is ready and will be started before the first half of the year ends.
Instead of putting up their half of the P100-billion infrastructure fund, the private sector was given a list of government priority projects that they can fund.
Last October, businessmen led by the PCCI informed President Arroyo that they will be putting up P50 billion if the government can come up with another P50 billion in order to help pump prime the economy.
The government has tapped state run financial institutions to come up with their share of the fund. However, the private sector has yet to produce their share.
However, Trade Secretary Peter B. Favila said they have agreed to scrap the P50-billion private sector fund. Instead, the private sector will be given a list of priority projects they can fund.
“Any proponent can come to a GFI (government financial institution) to finance infrastructure projects under the MTDP (Medium Term Development Plan),” Favila said.