House panel wraps up hearing on P2.6-T 2015 budget

MANILA, Philippines - The House of Representatives’ appropriations committee has wrapped up its two weeks of public hearings on the proposed P2.6-trillion national budget for 2015.

“We are now preparing for the plenary debates scheduled to start on Monday,” Davao City Rep. Isidro Ungab, committee chairman, said yesterday.

After that, he said the House would come up with its version of next year’s national budget.

The Ungab committee ended its hearings on Thursday when it received spending reform proposals from various budget watchdogs, including Social Watch and Freedom from Debt Coalition.

On Wednesday, it tackled funding for the remaining four major agencies – Department of National Defense, National Economic and Development Authority (NEDA), Office of the Vice President and Office of the President.

Like in previous days, Wednesday’s hearing started at 9:30 a.m. and lasted up to past 10 p.m. On certain days, committee deliberations extended up to past midnight.

Of the four agencies tackled, the Office of the Vice President was the least controversial. Its funding was approved in less than 10 minutes.

During the discussions on the NEDA budget, the committee discovered that the government’s P400-million feasibility study fund for this year is still intact.

It was Rep. Antonio Tinio of the Alliance of Concerned Teachers who asked why not a single peso of the huge appropriation has been spent.

“It’s almost the third quarter of the year and yet, this entire fund for project feasibility studies has remained untouched,” he said.

NEDA chief and Economic Planning Secretary Arsenio Balisacan said state agencies have submitted five feasibility study proposals costing P250 million.

“We are now in the process of conducting biddings for these proposed studies,” he said.

Balisacan said two studies on irrigation projects were suggested by the National Irrigation Administration (NIA), one on waste-to-energy technology by the Department of Environment and Natural Resources, another on sanitation management in water districts by the Local Water Utilities Administration and the production of sweet sorghum sought by the Philippine National Oil Co.-Alternative Fuels Corp.

He added that whatever remains of it after projects are awarded would be returned to the treasury.

Responding to questions raised by Tinio, Balisacan admitted that one of the two NIA proposals involved a study on an irrigation dam-electricity generation project in Balintingon, General Tinio, Nueva Ecija.

But quoting news reports and an announcement from NIA, Tinio said the irrigation agency has awarded the project costing P13 billion to a Singaporean company named Kaltimex Energy Ltd. in 2013.

“Why would you still spend P39 million for a study on whether it is possible to construct a dam that would irrigate farmlands and generate electricity at the same time when a foreign company has already undertaken to build it?” he asked.

Balisacan said he was not aware of the awarding of the contract by NIA and would inquire about it.

Tinio said NEDA is just apparently trying to spend the P400 million available to it for project studies.

He urged Balisacan to just save the money for taxpayers.

During the hearing, Cagayan de Oro City Rep. Rufus Rodriguez complained that the proposed Mindanao railway has not been included by NEDA in its list of PPP (public-private partnership) projects.

“This railway system has been found in a study costing P70 million to be feasible and viable. Why is it not here in your PPP list?” he asked Balisacan.

“I will oppose your budget unless you include it here. I will be content with a commitment that you undertake another study on a study previously conducted. The proposed railway line will connect major cities in Mindanao,” he said.