NEDA recalibrating flagship infra projects amid COVID-19 pandemic

The National Economic and Development Authority (NEDA) is in the process of revising the Duterte administration’s flagship infrastructure projects as it reevaluates the viability and its significance in addressing the economic fallout resulting from the pandemic.

“In response to COVID-19, we have also reassessed and reprioritized our infrastructure development program to include more projects that are responsive to addressing the challenges brought by the pandemic,” Acting Socioeconomic Planning Secretary and NEDA chief Karl Kendrick Chua said in a virtual press briefing on Thursday.

Chua said the NEDA’s list infrastructure flagship projects (IFPs), includes 104 projects under the sectors of health, information and communications technology, power and energy, transport and mobility, urban development, and water resources.

For his part, NEDA Undersecretary Jonathan Uy said the agency is now “recalibrating” the 104 IFPs.

“Hopefully, by the end of this year we will have a finalized list. It could have been we are now reaching about a hundred projects, and some additional ones we proposed for the update,” Uy said.

“Apart from the recalibration, we are also considering digital technology as well as health infrastructure. Also, with the effects of the typhoon we are expanding flood water and water supply projects,” the NEDA official said.

Chua explained that the NEDA is reevaluating the readiness of the project and its substantial completion or implementation within the term of President Rodrigo Duterte.

“There are 104 [IFPs], only 26 are in various preparation processes,” the NEDA chief said.

“So those 26 are being reviewed if they will be able to go through approval and final preparation process in the next few weeks... they will remain. If they will not be achieving those objectives they may be parked. But, we are considering a number of projects especially on addressing flood issues in the country,” Chua noted.

The country’s chief economist emphasized that the government’s infrastructure program is crucial in the economy’s recovery from the COVID-19 crisis due to its job-generating effect.

“Despite the pandemic, the government is committed to pursuing its infrastructure program. In the 2021 GAA (general appropriations act), some P1.1 trillion, around 5.4% of GDP (gross domestic product), is allocated to infrastructure,” Chua said.

“We estimate that around 1.7 million direct and indirect jobs would be created by the infrastructure program in 2021. This highlights the infrastructure program’s pivotal role in reviving the economy given its high multiplier effect,” he said. — RSJ, GMA News