70 flagship projects to be scrapped for lack of funds

Due to lack of counterpart peso funds for foreign-assisted projects (FAPs) and right-of-way problems, some 70 out of 128 "flagship" projects of the Estrada administration may have to be scrapped, Presidential Flagship Committee chairman Roberto Aventajado admitted yesterday.

Because of these problems, Aventajado said, the government could absorb only 64 percent of its official development assistance (ODAs) compared to the 72 percent of the previous Ramos administration.

Upon instructions of President Estrada, Aventajado said the Flagship Committee which he chairs, along with National Economic Development Authority (NEDA) director-general Felipe Medalla will hold a one-day workshop on Jan. 14 to review and identify which among these 128 FAP projects were being delayed by problems with no immediate solutions in sight.

"We will evaluate in our workshop and decide which of the projects are problematic or probably should be dropped. Of the others that can still be solved, we will make sure these are solved as soon as possible," Aventajado pointed out.

Aventajado admitted that many infrastructure flagship projects were stalled by lack of peso counterpart funding, largely because of the government budgetary deficit, as well as the perennial right-of-way problems that end up in courts.

He noted that a large chunk of these 128 flagship projects were inherited by President Estrada from his three predecessors.

As a possible solution to lack of peso counterpart funds, Aventajado said, the President and the Cabinet have decided that some of these FAPs may have to be undertaken by the private sector through various BOT schemes.

He expressed belief the Estrada administration would improve on, if not equal, the batting average of the Ramos administration in completing flagship projects.

The Ramos administration, he said, finished only 60 of 102 flagship projects, while the balance of 42 were continued under the Estrada administration. -