Noy seeks P400 M for studies on infrastructure projects

MANILA, Philippines - Halfway into his six-year term, President Aquino is asking Congress for the first time to allocate funds for feasibility studies on the viability of government infrastructure projects.

His proposed P2.268-trillion 2014 national budget includes a “Feasibility Studies Fund” in the amount of P400 million.

A special provision governing the use of the fund provides that it “shall be administered by the National Economic and Development Authority (NEDA) and shall be disbursed exclusively for the conduct of feasibility studies for non-private-public-partnership projects.”

The NEDA is required to submit quarterly reports on disbursements and accomplishments to the Department of Budget and Management, Senate and House of Representatives, and to post such reports on its website.

Aquino’s first request for funds for feasibility studies came to light during the initial hearings of the House appropriations committee on his 2014 budget proposal.

The feasibility studies fund was not part of Aquino’s budgets for 2011, 2012 and 2013, leaving some committee members wondering why his administration needs P400 million in 2014 for such studies and how it undertook infrastructure projects in the past three years without such research.

One member, who did not want to be identified, said the fund would just fatten the pockets of former NEDA officials and their university classmates and other private contractors, who usually do feasibility studies.

“They don’t need to spend taxpayers’ money on such theoretical exercise. All they need is common sense: will an infrastructure project benefit the public? If yes, then do it,” he said.

He said the government should do infrastructure projects even in remote towns with small population since these areas would soon have more people.

“Build the necessary infrastructure and people will come,” he added.

He suggested that the P400 million for feasibility studies should better be used for new school buildings or health facilities.

An opposition congressman wondered why the administration still wants to conduct research midway into its term.

He said a feasibility study takes several months and even years to conduct, and by the time it is finished, Aquino, his political allies and enemies, and the entire nation would already be preparing for the May 2016 elections.

During the hearing, Budget Secretary Florencio Abad defended the feasibility studies fund, saying it would be used to determine the viability of government projects.

He said there are a lot of non-PPP projects that the administration is planning to undertake.

For his part, NEDA chief and Economic Planning Secretary Arsenio Balisacan said the P400 million might not even be enough for project research.