Gullas supports move to tap aid for new projects

CEBU, Philippines - A senior member of Congress favors the decision of the Department of Transportation and Communications (DOTC) to draw on low-cost official development assistance (ODA) instead of relying on high-priced private sector capital to carry out a combined P565-billion worth of new port and rail projects.

“There is wisdom in tapping ODA funds, which are easier on the pocket compared to private equity or commercial borrowing. Government can generate real savings,” said House Assistant Majority Leader and Cebu Rep. Eduardo Gullas.

“There is more than enough official aid around. In fact, previous administrations wasted a lot of money by not efficiently harnessing ODA funds,” Gullas pointed out. DOTC Secretary Mar Roxas recently unveiled a five-year plan using ODA funds to develop key port and rail projects aimed at building up the country’s public transportation systems.

ODA refers to money from the official sector, mostly foreign governments and international agencies, primarily for the purpose of supporting the development and welfare of emerging countries such as the Philippines.

By their very nature, Gullas said, ODA funds are extended at concessional terms. In some cases, if the aid is in the form of a loan, he said at least 25 percent of the money is offered as a gift or an outright grant.

Gullas the country now has 20 active bilateral ODA donors: Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Italy, Japan, South Korea, Kuwait, The Netherlands, New Zealand, Norway, Spain, Sweden, the United Kingdom, and the United States.

The country’s active multilateral ODA donors include the World Bank, Asian Development Bank, and the European Union, he said.

Meanwhile, Gullas is counting on Roxas, who hails from Capiz, to ensure the equitable distribution of new transport infrastructure projects all over Luzon, Visayas and Mindanao.

“Being an archipelago of more than 7,100 islands, we have to invest heavily to make air and sea travel fast, reliable and safe throughout the country,” he said.

The Visayas and Mindanao were left behind by previous administrations in terms of resource allocation for new public transport infrastructures, Gullas said.

“We have high hopes that Secretary Roxas will see to it that this imbalance is rectified through the fair allocation of resources nationwide,” he added.

The DOTC projects lined up include the international airports of Puerto Princesa City in Palawan, Panglao in Bohol, and Laguindingan in Misamis Oriental; the development of ports in Davao; and the roll-on/roll-off port linking China with the Subic Bay Freeport Zone in Zambales.

The projects also include the LRT 1 Baclaran, Pasay City to Bacoor, Cavite and LRT 2 Santolan, Pasig City to Masinag, Antipolo City extensions; and the reconfigured North Rail from Metro Manila to the Clark Freeport Zone in Pampanga. — PR/JPM (FREEMAN)