NEDA-ICC approves 3 major projects

MANILA, Philippines - The National Economic and Development Authority Investment Coordination Committee (NEDA-ICC) approved recently three major projects.

The body, tasked to evaluate government infrastructure projects in the country, approved the changes in the Logistics Infrastructure Assistance Facility (LINAF), the Puerto Princesa Airport Development Project as well as the cost increase and 14-month extension of the Japan International Cooperation Agency (JICA)-assisted Mindanao Sustainable Settlement Area Development Project (MINSSAD).

In 2005, the NEDA board already confirmed that the LINAF project was reverted to the ICC due to proposed changes after an appraisal by Japan International Cooperation Agency (JICA).

The LINAF project aims to improve the country’s infrastructure facilities and logistics system by providing medium and long-term financing to private companies, local government units (LGUs), government-owned and controlled corporations (GOCCs), cooperatives, and government agencies. The facility also intends to finance the technical assistance needs of the Development Bank of the Philippines (DBP) – its proponent institution – as well as private financial institutions.

Under the approved changes, the cost of its technical assistance component has been increased to P160 million from P80 million while the local counterpart would be increased to P5.4 million from P4 million.

This resulted in a 7.18-percent increase in the total project cost to P21.56 million from P20.12 million.

The project’s title is also proposed to be changed to Logistics Infrastructure Development Project.

Other changes are the exclusion of stand-alone power projects among the eligible projects under the facility and the possible inclusion of government agencies as eligible sub-borrowers.

The NEDA board also approved the P4.36-billion Puerto Princesa Airport Development Project which involves the improvement of the airport to comply with international standards.

The project aims to revitalize the transport and trade linkages under the Brunei Darussalam, Indonesia, Malaysia, and the Philippines-East ASEAN Growth Area (BIMP-EAGA).

Seventy-eight percent or P3.4 billion of the total project cost will be financed through the Korean Economic Development Cooperation Fund (EDCF) loan while the remaining 22 percent or P970 million will be the Philippine government’s counterpart funding.

This project will be implemented in July this year and is expected to be completed by 2012.

The ICC likewise approved the proposed cost increase and 14-month extension of the MINSSAD project.

The Department of Agrarian Reform (DAR) proposed an increase in project cost to P3.177 billion from P3.102 billion and its project completion date is proposed to be extended from June 2008 to August 2009. The project was originally scheduled for implementation over six years.

The project involves the development of eight agrarian reform settlement areas in Mindanao and has components such as rural infrastructure, agricultural and environmental development, procurement of equipment, and institutional development that include construction of irrigation facilities, farm-to-market roads, post-harvest facilities, school buildings, water supply and provision of appropriate training to agrarian reform beneficiaries.