Govt expected to hitinfra spending target
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Mon, 31 Dec 2018 16:20:21 +0000
Government infrastructure spending will likely hit the 2018 target, First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P) said in a joint report, citing the torrid pace seen so far for the year.
“We believe that NG (national government) disbursements will continue to record growth and that NG will be able to reach its target infrastructure spending of 5.3 percent share to GDP (gross domestic product) for 2018, given the current administration’s active commitment in ensuring a fast delivery and implementation of public infrastructure projects,” FMIC and the UA&P said in the latest issue of “The Market Call.”
“This remarkable pace, which as of Q3 2018 clocked above the programmed target, has translated into quicker delivery of various sectoral programs (i.e., health, education, and poverty-reduction) and faster implementation of big infrastructure projects, which is expected to help sustain and drive economic growth in fourth quarter faster,” FMIC and the UA&P declared.
Based on latest official data, infrastructure and other capital spending totalled P391.2 billion as of the third quarter, P16.8 billion or 4.5 percent higher than the P374.4 billion requirement for the period due to increased progress billings from contractors tapped by the Department of Public Works and Highways.
The government has pledged to ramp up its “Build Build Build” infrastructure program, which is expected to propel economic growth at 7.0-8.0 percent annually next year until 2022.
The National Economic and Development Authority (NEDA) has said that as of end-November 2018, 35 out of 75 infrastructure flagship projects were approved by the NEDA Investment Coordination Committee (ICC) and confirmed by the NEDA Board.
These have a total investment requirement of P1.54 trillion.
Another 31 projects are expected to be approved by the NEDA Board after these were cleared by the ICC.
In terms of project timelines, 31 projects are expected to be completed by 2022.
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