Aha! So, we don’t have money after all!

August 1, 2006 by reyna11
Filed under: Politics & Government

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THE government has received $7.4 billion worth of pledges for various infrastructure development projects, taking it a step closer toward realizing its economic pump-priming program over the medium term.

ANO KAMO?! PLEDGES? Ano to? Tele-thon? Pledges here? Pledges there? Bakit me mga pledges? Sinong humihingi nang pamasko?!

About $6 billion will come from the Chinese government, which is seeking places to invest parts of its estimated $800 billion in gross international reserves. The funds will be coursed through China’s export-import bank.

PAKI-ULIT NGA?! Teka… $6 billion sa Chinese? Pump ki Tita Glo’s infrastructure projects? Akala ko WE HAVE MONEY?

This is according to Economic Planning Secretary Romulo Neri, who told reporters Monday that the government’s economic team was set to finalize a list of infrastructure projects to be submitted to foreign creditors for financing.

Hmmmn… TO BE SUBMITTED TO FOREIGN CREDITORS FOR FINANCING. Sa madaling salita… NANGU-NGUTANG PO NA NAMAN ANG PINAS! HA HA HA! We have money, ha?! Teka… sino yong “WE”? Does this mean that Tita Glo is a partner or investor dito sa mga magpapagutang saatin?

Neri, who is director-general of the National Economic and Development Authority, said the financial support from China would be released over the next three years at about $2 billion a year.

The funds will come in the form of concessional loans that will carry an annual interest rate of 3.0 percent and payable in 20 years, Neri said.

O Ayan, LOANS… at hindi WE HAVE MONEY.

Japan Bank for International Cooperation, so far the Philippines’ biggest source of official development assistance, has agreed to give $1 billion worth of ODA for its 27th yen loan package, Neri added.

The World Bank and the Asian Development Bank, the Philippines’ two other major sources of ODA, will each give $200 million, he said.

Earlier, the Department of Finance said the administration of President Gloria Macapagal-Arroyo would embark on a series of infrastructure development projects estimated to total P290 billion, starting this year until 2010. The purpose is to pump-prime the economy, which has lagged behind its Asian counterparts in public spending for infrastructure.

Because its revenue generation capability cannot cover the expenditure requirement, it will have to rely on soft loans from foreign lenders.

The Arroyo administration has set a goal of increasing the government’s spending for infrastructure to five or six percent of the gross domestic product, which is what governments in neighboring countries spend, on average.

The Philippine government’s spending for infrastructure is two to three percent of the GDP.

The big-ticket projects include new airports in several provinces, interconnection of the North and South Luzon expressways, and extension of Metro Manila’s overhead Light Rail Transit to Bacoor town in Cavite province. The projects also include connection of the north stations of the Light Rail Transit and the Metro Rail Transit, and several farm-to-market roads.

The government also wants to start work on a connection of the Subic-Clark-Tarlac Road to Dingalan Port through Nueva Ecija province; connection of the Marikina-Infanta Road to the port in Real town in Quezon province, connection of the Clark Special Economic Zone to the Port of Batangas via Metro Manila, creation of an advanced facility in Port Irene through the Cagayan Zone Authority; opening of a seaport in Salomague in the northern province of Ilocos Sur, upgrade of the Subic seaport, and construction of a roll-on, roll-off port system that will link Lucena City in Quezon with Boac in Marinduque province.