PHL eyes EDSA bus system, Manila flood control for AIIB funding

The EDSA Bus Rapid Transit and the Metro Manila flood control are two priority projects the Philippines intends to present before the Asian Infrastructure Investment Bank (AIIB) for possible funding, the Department of Finance (DOF) said Monday.

"These are the projects that are the most prepared in terms of government approvals, feasibility studies and other requirements, and are already in the pipeline. These projects can be processed most expeditiously for co-financing by AIIB," National Treasurer Roberto B. Tan said.

The P37.8-billion Metro Manila Bus Rapid Transit (BRT)-EDSA is under the Department of Transportation (DOTr). It covers the creation of a bus system along the 48.6-kilometer stretch of EDSA, from Monumento to Diosdado Macapagal Avenue, with integrated routes between the Ortigas Business District, Bonifacio Global City and Makati Business District.

The plan is to link the BRT-EDSA with the terminals of the Ninoy Aquino International Airport (NAIA) as well as connect to the targeted Integrated Transport System terminals in the north, south, and southwest of Metro Manila and within the vicinity of SM Fairview.

The P23.5-billion Metro Manila Flood Management Project of the Department of Public Works and Highways and the Metro Manila Development Authority is supposed to improve 36 pumping stations in Makati, Malabon, Manila, Pasay, and Taguig.

It entails the construction of 20 new pumping stations in Caloocan, Mandaluyong, Manila, Pasay, Pasig, Quezon, San Juan and Valenzuela.

It involves housing and resettlement, project management, support and coordination 1with the Housing and Urban Development Coordinating Council and the Department of Interior and Local Government .
 
Both projects have been approved by the National Economic and Development Authority (NEDA) Board, chaired by President Rodrigo R. Duterte.

The DOF statement comes a week after the Senate ratified the Philippine membership in the AIIB.

The AIIB is a multilateral lender owned by sovereign-member countries to promote economic development in Asia.

As part of the AIIB, the Philippines is expected to realize other benefits such as increased opportunities for Filipino contractors and professionals to undertake  infrastructure projects in the Philippines and abroad, as well as reduced trade costs of about 15.6 percent of trade value and real income gain of about $220 billion.

The AIIB can also provide an annual financing window of $200 million to $500 million for the Philippines.

"Funds from AIIB will serve as an additional source of concessional financing to support our growing infrastructure requirements. Its terms and conditions are comparable to those of other multilateral development banks," Tan said.

"AIIB can contribute in closing the country's infrastructure gap for the next six years, which is estimated at P8 trillion. The funding that we can tap from AIIB will support the infrastructure priorities under the Duterte administration's 10-point socioeconomic agenda," Finance Secretary Carlos G. Dominguez III said.

The government plans to spend P8.2 trillion on infrastructure projects until 2022, to achieve the "golden age of infrastructure." — Jon Viktor Cabuenas/VS, GMA News