Budget deficit slows down Casecnan Dam project

SCIENCE CITY OF MUNOZ, Nueva Ecija — The ongoing construction of the irrigation component of the Casecnan Multipurpose Irrigation and Power Project (CMPIPP) is going slightly ahead of schedule but officials fear a slowdown in construction work due to the country’s growing budget deficit.

Officials of the National Irrigation Administration (NIA)-Casecnan, which is tasked to implement the P5.832-billion irrigation project, said a slowdown in construction could be experienced unless government comes up with the needed funds up to 2006.

The project, they said, needs at least P1.9 billion over the next three years to ensure its targetted completion in 2006.

Engr. Serafin Palteng, NIA-Casecnan project manager, reported that they have already constructed 19.2 kilometers out of the 29.2-kilometer SuperDiversion Canal (SDC) under Phase 1 of the project.

However, he said that the government is hard-pressed to come up with the P1.9 billion over the next three years, which represents the government’s funding equity.

The project is funded largely by the Japan Bank for International Cooperation (JBIC), formerly the Overseas Economic Cooperation Fund (OECF). Of the project’s total cost of P5.832 billion, JBIC will finance P4.049 billion while the government will finance the rest of the amount needed.

But officials said the release of funds from JBIC is dependent on whether the Philippine government could come up with its equity.

Failure of government to come up with the amount will seriously hurt efforts to fasttrack the project and this would impact heavily on the agriculture sector.

When completed, the project will irrigate 26,920 heactares in this city and the municipalities of Guimba, Nampicuan and Talugtog. — Manny Galvez