By Ma. Elisa P. Osorio Updated January 06, 2009 12:00 AM
[ philstar.com ]
The P18-billion North Luzon Expressway Project and the $200 million airport in Clark Freeport zone are the first two projects to be funded by the P100-billion infrastructure fund of the government and the private sector.
“We are currently validating two projects and if everything goes well we can start this before the end of the month,” Donald Dee, Chairman Emeritus of the Philippine Chamber of Commerce and Industry (PCCI) told The STAR in a telephone interview.
According to Dee, the private and public sector fund will bankroll part of the two projects in an attempt to stimulate economic activity in the country.
“We think these are important projects and we are already talking to NEDA (National Economic Development Authority) about it,” Dee explained.
The road project is expected to decongest the heavy Metro Manila traffic while the Clark Freeport Zone is looking at building a new terminal for its airport which is expected to be operational by 2010. It will be constructed beside the existing airport.
Late last year, the government and the private sector joined forces and raised a P100-billion fund that will spur spending in the country’s infrastructure in a bid to further insulate the Philippines from the effects of the global financial crisis.
The public and the private sector each contributed P50 billion to the pool.
The government’s contribution will come from the Government Service Insurance System (GSIS), the Social Security System (SSS), the Development Bank of the Philippines (DBP), Land Bank of the Philippines (LBP) and the National Development Company (NDC). The five state-run firms will contribute P10 billion each.
Dee said other projects are expected to be approved within the year. He explained that the proponents of the fund, in coordination with NEDA will evaluate which infrastructure projects to fund.
He said the P100 billion will be released pro rata, depending on the result of each project evaluation.
“We need the government to pump prime the economy. The private sector cannot do it alone,” Dee said. “This is fresh capital and it is vital to help us in light of the global economic crunch,” he added.