THE National Economic and Development Authority (Neda) has raised the Investment Coordination Committee (ICC) project cost floor to P5 billion.

Setting a project cost floor of P5 billion means all projects amounting to below P5 billion will no longer be under the purview of the ICC.

In a briefing in Malacañang on Tuesday, Neda Director General and Socioeconomic Planning Secretary Ernesto M. Pernia said the agency also updated the Social Discount Rate to 10 percent from 15 percent.

“Also, other reform initiatives on the process are currently proposed to fast-track the appraisal and approval process, while still ensuring the quality of infrastructure projects,” Pernia said.

The ICC has already approved 10 projects costing P320 billion. It includes projects on rural development, regional hospitals, airport modernization and flood management.

The list also includes the North-South Railway-South Line project (NSRP) and the Metro Manila Bus Rapid Transit (BRT)-Edsa project.

“We have moved quickly to implement reforms to accelerate infrastructure  development,” Pernia said. “The Neda Board, chaired by the President, will deliberate the approval of these projects in September and, thereafter, for implementation by agencies.”

The last time the ICC revised its project cost floor to P1 billion from P500 million was in April 2013.

The ICC evaluates the fiscal, monetary and balance-of-payments implications of major national projects. It also advises the government on domestic and foreign borrowings program. It is also tasked to submit a status of the fiscal, monetary and balance-of-payments implications of major national projects.

The ICC consists of the secretary of finance as chairman and the Neda director general, as cochairman. Its members include the executive secretary; the secretaries of the department of Agriculture, Trade and Industry, and Budget and Management; and the governor of the Central Bank of the Philippines.

In another development, Pernia said the national government is prioritizing infrastructure projects and policies that seek to ease congestion in Metro Manila and boost economic development nationwide.

Pernia said the interagency Infrastructure Committee (Infracom) has sought to prioritize the Mindanao Railway Project to boost growth in Mindanao, and five projects that aim to decongest traffic in Metro Manila.

Infracom has also recommended six priority infrastructure policies to be submitted to the Legislative-Executive Development Advisory Council (Ledac).

“Guided by the 0+10 agenda of the President, we are carrying on macroeconomic policies, ramping up infrastructure spending, promoting rural development and investing in human-capital development. In the first 50 days, I can say we are on the right track and on a faster pace to make sure we reach our goals,” Pernia said.

Pernia said the Mindanao Railway Project’s initial phase will be implemented in 2017, after securing the approval of the Neda Board this year.

The Mindanao Railway System is a 2,000-kilometer railway. Its two segments will connect various provinces in Mindanao.

Neda officials earlier said the feasibility study, currently being conducted by a local consortium composed of local firms Schema Konsult Inc., Edcop and Primex, will determine the mode of financing to be used in the project.

The project can be financed through official development assistance (ODA), public-private partnership (PPP) or a combination of ODA and PPP, depending on the recommendation of the feasibility study.

Meanwhile, the five measures prioritized to decongest Metro Manila includes the Bonifacio Global City-Ortigas Link Bridge. Once completed, Pernia said, it will divert 25 percent of Edsa traffic.

The list includes the early resolution of the common station for the Metro Rail Transit 3, Light Rail Transit 1 and MRT 7.

Pernia added that the Department of Public Works and Highways will soon hand the final configuration of the station to the Department of Transportation.

Pernia said the Infracom urged the use of the Batangas and Subic ports to decongest Manila ports. In 2014 the country’s export and import performance suffered due to port congestion at the Port of Manila.

Two years ago the city of Manila imposed a truck ban that caused the slow inflow and outflow of goods within and outside Metro Manila.

Pernia said other measures include the North-South Railway-South Line project and the Metro Manila Bus Rapid Transit (BRT) – Edsa project.

The NSRP is being funded through the PPP,  and involves commuter and long-haul railway operations.

Commuter railway operations will be between Tutuban and Calamba, and the long-haul operations between Tutuban and Legazpi City.

The P68.26-billion Edsa BRT is 48.6 kilometers long and will traverse 63 stations on Edsa, Ayala Avenue, Ortigas-BGC and Ninoy Aquino International Airport.

Also, it will add accessibility infrastructure, like greenways, pedestrian walkways and bikeways. It will be implemented between 2017 and 2019.

The Infracom has also identified measures to address institutional, legal and policy issues in relation to infrastructure programs.

Part of the legislative agenda to be submitted to the Ledac include the creation of an apex body for the water resources sector, proposed to be the Department of Water Resources, and an independent economic and financial regulator for the water sector.

The Infracom will also submit to the Ledac the creation of a National Transport Policy and amendments to the build-operate-transfer or  law and its IRR; Electric Power Industry Reform Act; and the Water Code of the Philippines.

“We have hit the ground running and we intend to do much more, in collaboration with other agencies, development partners  and key stakeholders,” Pernia said. “We trust that in the next 50 days, we can mobilize more people and resources to accomplish even more and continue improving our processes that will benefit the Filipino people, especially the poor and those left behind,” he said.

Source: www.businessmirror.com.ph