MANILA, Philippines – The Arroyo administration is readying a P230-billion public sector “infrastructure war chest” under the proposed P1.415-trillion national budget for next year, Budget Secretary Rolando Andaya Jr. said yesterday.
Of this amount, P147.5 billion will be spent by the national government, P32.1 billion by government-owned and controlled corporations, and P50 billion by local governments, he said.
“We took into consideration the much-needed infrastructure, not just schools, bridges but also the needs of investors, like highways, and for tourism, you will see that we are giving attention to airports in coming up with infrastructure projects,” Andaya said.
He said infrastructure is “but one entry in (the) capital outlays menu, as the latter includes machineries, transportation equipment, livestock and crops outlay, buildings, net lending, among others.”
The national government’s total capital outlay is projected to hit P253 billion next year.
This would be on top of ongoing and future projects government is or will be undertaking through various joint venture schemes with the private sector, Andaya said.
The national government’s 2009 infrastructure budget is 20.7 percent higher than this year’s P122.2 billion, pushing up its share from 1.6 percent of the gross domestic product to 1.7 percent, he said.
By category, cornering the biggest slice of the infrastructure pie are roads and bridges, with P83.9 billion, he said.
The category excludes the P6-billion worth of farm-to-market roads, which will be constructed by the Department of Agriculture (P4.37 billion) and the Department of Agrarian Reform (P1.63 billion.).
Another type of farm infrastructure that will get a funding boost next year is irrigation, with a P13.2-billion allocation, Andaya said.
To construct new airports and improve existing ones, the government is earmarking P7.6 billion, which will also be used to acquire or repair navigational facilities and other air safety aids.
For the rail sector, Andaya said the government is setting aside P4.3 billion for the Light Rail Transit Line 1 North Extension Project, P858 million in “initial requirements” to extend the LRT’s service from Baclaran to Cavite, and P1.8 billion “for the operational requirements” of the Metro Rail Transit Line 3.
To cope with the annual rise in the number of public school students, some P8.519-billion worth of classrooms will be constructed next year. At least 11,480 classrooms and 750 science and IT laboratories will be built using this amount, he said.
Andaya said for the first time, government is tapping the Department of Health as a “major infra provider,” providing it with P1.5 billion to supply clean water to hundreds of “waterless” barangays next year.
By implementing agency, the Department of Public Works and High-ways (DPWH) ranks first with an allocation of P99.72 billion, which includes P7.5 billion for the repair and construction of seawalls and flood control systems.
The amount represents only the “building kitty” of the DPWH, and does not include operational expenses of the agency, he said.
Next is the Department of Transportation and Communications (DOTC) with P14.85 billion, which includes P151 million for the repair of ports and lighthouses.
The DOTC is followed by the Department of Agriculture’s P17.3-billion outlay for infrastructure, which, if added to the Agrarian Reform Fund’s P3.36-billion allocation for infrastructure, represents the P20.68-billion infrastructure component of the Agriculture and Fisheries Modernization Fund.
The Department of Education has a proposed infrastructure allocation of P8.52 billion and the Autonomous Region in Muslim Mindanao, P1.16 billion.