The Market Monitor Minding the Nation's Business
The Philippines and the Japanese governments recently met to firm up cooperation programs for the Duterte Administration’s “Build Build Build” campaign.
The meeting was the fourth high-level discussion between both countries since the first dialog held in Tokyo, Japan on March 2017.Both sides affirmed their commitment to streamline the approval process for infrastructure projects in the pipeline for Japanese loan and grant financing.
The measures agreed upon are intended to fast track the implementation of the said infrastructure projects, ensuring “shovels on the ground” at the soonest possible time.Some of the major projects discussed in the meeting include: the Metro Manila Subway Project, with the first tranche of the loan due for signing in March 2018; the Arterial Road Bypass Project (Phase III); the PNR North 2, spanning from Malolos to Clark; the PNR South Commuter, which runs from Manila to Los Banos; the Davao City Waste-to-Energy Project; the Pasig-Marikina Travel Improvement Project; and the MRT-3 Rehabilitation and Improvement Project. Beyond infrastructure, the Japanese delegation also expressed its support for the Marawi rehabilitation efforts and the overall pursuit of peace and development in Mindanao.
In fact, the Japanese government is set to deliver heavy machinery to aid in the Marawi reconstruction efforts in March 2018.For his part, Budget and Management Secretary Benjamin E. Diokno assured the timely implementation and disbursement of funds to fulfill the “Build Build Build” program. “From January to November 2017, infrastructure and other capital disbursements have amounted to P486.5 billion, a 14.2 percent year-on-year increase,” the Budget chief said. “We are optimistic that the full-year data will validate our projections of a sharp rise in infrastructure spending for 2017, as well as minimizing government underspending,” Diokno added.
The improved performance of government disbursements can be attributed to the reforms implemented under the watch of Sec. Diokno. For one, the Implementing Rules and Regulations (IRR) of the Government Procurement Reform Act had been revised to streamline public procurement without sacrificing the integrity of the process.
The Budget and Treasury Management System (BTMS), a financial management information system, is also being rolled out and will continue to enhance budget preparation, execution, oversight, and reporting. Policy wise, the Department of Budget and Management (DBM) has continued the early release of allotments and the conduct of early procurement activities, enabling agencies to immediately implement projects at the start of the fiscal year.
Moving forward, the shift to a one-year cash-based Budget starting in 2019 will further quicken government spending. The DBM has also hiked the budget for Right-of-Way (ROW) payments for big-ticket items. This is intended to reduce bottlenecks in the implementation of infrastructure projects.
