Infra spending to boost 2012 PHL economy

Government spending on infrastructure will help the economy grow by at least 5 percent this year, the National Economic and Development Authority (NEDA) said Friday.   NEDA director-general and Socio-Economic Planning Secretary Cayetano Paderanga Jr. told reporters in a media forum that 70 percent or P99.3 billion of the P141.8 billion spending program on infrastructure was already released by the Department of Budget and Management (DBM).   The money which will also fund national roads and bridges, airports and seaports will be used to implement agriculture, education, transportation and flood control projects. The balance will be released this month.   “With our public infrastructure expenditure program, along with other socio-economic programs, we are optimistic that we will reach the 5 percent to 6 percent growth in gross domestic product this year,” said Paderanga.   The successful sale of $1.5-billion global bonds Thursday indicates confidence among local and foreign investors and buoys government optimism, according to the NEDA chief.   “That's payable in 25 years at only 5 percent interest compared to 7 percent interest rate given to other countries,” he said.   Government intends to secure $4.02 billion in commercial and official loans this year.   About 14 percent or P255.2 billion of the P1.816-trillion 2012 budget is allotted to infrastructure projects.   To induce productivity and create more jobs, government will fast-track infrastructure spending, said Paderanga.   He said NEDA has just finished the Public Investment Program (PIP), which aims to accelerate government's infrastructure projects. “It will soon be revised so that each government agency can assess the projects it will implement and determine how they will be funded,” he added.   The public-private partnership (PPP) program, meanwhile, will bid out 16 projects worth P154.5 billion by the second quarter, including the P25-billion Metropolitan Waterworks and Sewerage System New Water Supply. — VS, GMA News