NEDA okays 1st tranche of P6.2-B road development project

MANILA, Philippines -  A government Cabinet committee has approved the first tranche of a P6.2 billion road development program.

The Investment Coordination Committee-Cabinet Committee (ICC-Cabcom) of the National Economic and Development Authority (NEDA) said yesterday that it has approved the first tranche of the Road Sector Institutional Development and Investment Program. It also approved two other projects.

The first tranche of the three-year project, to be financed by the Asian Development Bank (ADB) will be implemented by the Department of Public Works and Highways (DPWH).

The P6.2-billion road project, which aims to enhance and preserve sections of the national road infrastructure network, is expected to contribute to economic growth by boosting the efficiency of the movement of people and goods, and generating jobs for over 5,600 workers.

The project consists of three components: Asset preservation of specific roads selected from the DPWH Development and Management, which involves reconstruction, rehabilitation, resurfacing, and preventive treatment; detailed engineering designs of 14 road sections to be implemented under Tranche 2; and institutional capacity development, which will strengthen the capacity of the DPWH to undertake road improvement and management.

After the ICC-CabCom’s approval, the RSIDIP will be presented to the NEDA Board for confirmation.

The ICC-CabCom also approved the 20-month extension of the Autonomous Region of Muslim Mindanao (ARMM) Social Fund Project (ASFP) loan from the Japan International Cooperation Agency.

The loan was originally set to end on April 2011, the NEDA said.

Funded by the JICA and World Bank, the P1.2-billion ASFP is a poverty reduction and peace building project that finances small-scale social and economic infrastructure subprojects, such as school buildings, warehouses, and multi-trade centers, with participation from ARMM local communities.

The ICC recognizes the effectiveness of the project in reducing poverty in the project areas, and requested the ARMM Regional Government to explore possibilities of channeling the allocation for Institutional Strengthening and Development to capacity building of organic staffs of ARMM to ensure sustainability of project benefits.

Along with the project extension is the expansion of scope to additional 30 barangays in Lanao del Sur and Basilan.

In addition, the ICC-CabCom also approved the change in loan amount for a wastewater project in Metro Manila.

The government committee approved the change in the amount of the loan for the Metro Manila Water to $275 million from $500 million.

The loan willbe borrowed by the Land Bank of the Philippines from World Bank for on-lending to the Manila Water Company, Inc. (MWCI) and Maynilad Water Services, Inc. (MWSI).

The objective of the project is to improve wastewater services in Metro Manila by increasing the coverage and effectiveness of sewage collection and treatment, and septage management. Further, MWMP is in support of the continuing Supreme Court order to improve the water quality of the Manila Bay.