ASEC. OTIDA: Magandang umaga, Malacañang Press Corps. Welcome sa ating press briefing ngayong araw, October 13.

The National Economic and Development Authority Board or NEDA Board chaired by President Ferdinand R. Marcos Jr. held its 10th meeting this morning to deliberate various projects submitted by proponent government agencies. Key projects and programs and changes to existing project costs and timelines were approved today, although these projects are in line with the Marcos administration’s goal of enabling deep economic and social transformation for the attainment of sustainable and inclusive growth in the Philippines.

Para ibahagi sa atin ang mga detalye ng pinag-usapan sa 10th NEDA Board meeting, kasama natin ngayon si NEDA Secretary Arsenio M. Balisacan. Good morning, sir. Welcome po sa ating press briefing ngayong araw.

SEC. BALISACAN: Good morning, Wheng. And good morning, everyone. I’m pleased to announce that the National Economic and Development Authority Board under the leadership of President Ferdinand Romualdez Marcos Jr. has approved a number of high-impact programs and projects amounting to approximately 270 billion pesos during its 10th meeting held today.

To boost tourism and address gaps in our healthcare system, the NEDA Board has approved the following public-private partnership or PPP projects:

1. The NEDA has approved the upgrade, expansion, operation and maintenance of the Bohol-Panglao International Airport Project with a total cost of 4.5 billion pesos. This unsolicited PPP project aims to increase the passenger capacity and improve the passenger experience at the Bohol-Panglao International Airport. Currently, Bohol International Airport is designed to support two million passengers per year. With the approved expansion project, the maximum passenger throughput will be increased to two and a half million passengers per year at project start and is expected to increase to 3.9 million by the end of the project. Expect this project to boost tourism and as a result, generate more high-quality jobs.

2. To address the need for more accessible and affordable hemodialysis treatment, the NEDA Board has approved the dialysis center PPP project for the renal center facility of the Baguio General Hospital and Medical Center – the largest government-funded tertiary hospital in the Cordillera Administrative Region. The dialysis center project has a total cost of 392 million pesos. Chronic Kidney Disease is one of the leading causes of hospitalization and the 10th leading cause of mortality in the Philippines. The most common treatment for its final stage is hemodialysis treatment which requires hemodialysis machines. Currently, the Baguio General Hospital only has 30 machines, all of which are working at full capacity. Thus, this solicited PPP project will increase the number of active hemodialysis machines to 108 by 2029, this will enable the Baguio General Hospital to provide more affordable dialysis treatment to a greater number of chronic kidney disease patients.

To support our economic and social development initiatives, the NEDA Board has approved the following official development assistance or ODA project that will augment our green economy initiatives and help speed up and improve infrastructure projects: First, to improve and accelerate the delivery of infrastructure flagship projects or IFPs, the NEDA Board has confirmed the approval of the infrastructure preparation and innovation facilities; second additional financing.

Before implementing an infrastructure project, it is necessary to conduct feasibility studies, detailed engineering design and other project preparation activities. Typically, this process takes between 12 to 24 months, increasing the overall implementation time for infrastructure projects. The infrastructure preparation and innovation facility speed up this process by providing DPWH and DOTr with a better mode for financing and conducting project preparation activities.

The second additional financing will include more IFPs to its scope, allowing more IFPs or infrastructure flagship projects to be implemented sooner. It will have a total project cost of 13.08 billion pesos, 11.38 billion of which will be financed through ODA from the Asian Development Bank.

Second, to address our need for more effective solid waste management, the NEDA Board has confirmed the approval of the green economy program in the Philippines. The program will accomplish this by building the capacity of the national government, LGUs and the private sector to mainstream and sustain green economy or green economy activities, enhance our circular economy, reduce waste and plastic, and increase energy efficiency and renewal energy deployment. It will be financed through a 3.62 billion grant from the European Union.

To ensure the sustainability and maximize the economic benefits of previously approved infrastructure projects, the NEDA Board has also approved certain changes to expand and improve the following projects: First, the NEDA Board approved changes to the cost and implementation timeline of the Bataan-Cavite Interlink Bridge Project. The project involves the construction of a 32.15-kilometer bridge over Manila Bay that will significantly reduce travel time between Bataan and Cavite from four to five hours to just 30 to 45 minutes, yielding various economic benefits for both provinces – that is Bataan and Cavite. We also expect this to decongest traffic in Metro Manila since travelers going to and from either Bataan or Cavite who’d typically pass through Manila could pass through this Bataan-Cavite Interlink Bridge Project instead.

The changes have been approved to accommodate an updated detailed engineering design that utilizes superior construction materials and a stronger bridge structure. Additionally, the cost was suggested to account for inflation. The cost of Bataan-Cavite Interlink Bridge Project will be increased to 219.3 billion pesos from 175.6 billion pesos. And the implementation period will be extended to December 2029.

Second, consistent with the government’s goal to provide better and safer public transportation and to reduce traffic congestion, the NEDA Board approved changes to the cost, scope and timeline of the Cebu Bus Rapid Transit or Cebu BRT Project. The updated project plan will now include mixed traffic sections from Bulacao, Talisay, SRP Talisay and IT Park Talamban. Additionally, there will be an increase in the number of stations and terminals, automation of routes and overall increase in the number of buses.

To accommodate these changes, the cost of the Cebu BRT Project will be increased to 28.78 billion pesos from 16.3 billion pesos. Also, the implementation period will be extended until the end of December 2027, and the loan validity from ADB and the World Bank will be extended until September 2027.

With these approved projects, the Marcos administration reaffirms its commitment to aggressively advance infrastructure development to attain our medium-term development goals of more high-quality jobs and better lives for all Filipinos. Thank you and good morning.

ASEC. OTIDA: So, sir, may I throw the first question. Iyong tungkol po doon sa dialysis, may number of sessions lang or kung ilan talaga iyong required doon sa pasyente ay ibibigay sa kaniya?

NEDA SEC. BALISACAN: I think the access to the dialysis services will be supported through the PhilHealth. So kung ano iyong limitation sa PhilHealth, iyon iyon. My understanding is that PhilHealth can accommodate almost a year ‘no and this ceiling ng PhilHealth is annual ‘no. So kung naubos na iyon, you can again go back. So, I think that… in our assessment, that will reduce the out-of-bucket cost of dialysis patients by almost one-half because we will have now access to cheaper dialysis treatment.

ASEC. OTIDA: Thank you, sir. Jinky Baticados, IBC-13.

JINKY BATICADOS/IBC-13: Hi, sir. Good morning po. Sir, generally, sa lahat ng mga proyektong inaprubahan po at sinabi ninyo ngayon, mabilis po ba iyong implementasyon, sir, ng mga proyektong ito? And, if you may, puwede ninyo kaming bigyan po ng timeline kung kailan po siya matatapos?

NEDA SEC. BALISACAN: Since this administration has started approving projects, implementing projects, we have improved significantly our processes ‘no including the preparation of feasibility studies, engineering designs, preparation of detailed engineering design and particularly doon sa approval process ng NEDA Board ‘no, including its various committees. We have streamlined the procedures so that it is now faster.

The NEDA Board has been meeting regularly, that’s once a month and we have—since the administration has come in, it has met already ten times ‘no; compared to the previous administration, we have exceeded that number already compared to the six-year period that the administra—so it has been, you know, moving very… meeting regularly to ensure that projects submitted for the session are acted upon quickly. And we can provide the details and how many days of processing time have been reduced because of the changes and improvements in our processes.

Now, with respect to these projects because we are now—the projects are started on time and delays are avoided, we should be able to complete projects as originally designed ‘no. I recall that some of these projects that we’re now implementing were approved, like for example the bus transit system, that was approved in 2014. Can you imagine how ano..? And now it has come back to us for a change in cost, a change in scope and we quickly approved that. Now the DOTr has been given the instruction by our President to ensure that this project is implemented quickly and to ensure that there will be no further delay. That the DOTr will work closely with the local governments that there is an alignment in the way the project is implemented ‘no.

Similarly, for the Cavite-Bataan transport which will be the second longest overwater bridge in the world ‘no, after the Hong Kong-Macau Bridge, that is expected to be completed in 2029. But it would have been completed—it was originally designed to be completed by 2028 or 2027 but because of the COVID, almost two years of delay ‘no. But now, we are trying to get that project proceeding smoothly.

ASEC. OTIDA: Second question from Eden Santos, NET 25.

EDEN SANTOS/NET 25: Secretary, good morning po. Napakagaganda po nitong mga proyektong ito ng ating administrasyon ano po. Talagang alam nating malaki maitutulong nito sa ekonomiya ng bansa at sa ating mga mamamayan. So, to top it all po, magkano po iyong madadagdag sa utang ng Pilipinas sa mga proyekto pong ito at papaano po natin iyon planong mabayaran?

NEDA SEC. BALISACAN: You know, we are working on this—when we implement these projects and accessed loans for the financing of these projects, we take into account the medium-term fiscal program natin. We have a fiscal program, this administration has fiscal program to ensure that as we rapidly implement our infrastructure projects, ramp up the implementation of many infrastructure projects, we do not go out of bounds ‘no, we do not create problems for the future especially raising the debt to unsustainable level, raising the fiscal deficit to unsustainable level.

In fact, our fiscal program was designed in such a way that from… after the COVID when the debt was increased substantially, we are on a downward track. We want to get those debts and those deficits at a lower level by the time that we leave, this administration ends.

Second one, we are capitalizing on the availability of capital from the private sector. We are, to the extent possible, we are using this public-private partnership mode of financing our infrastructure while ensuring that these infrastructure services will be accessible to all our people particularly among the poorest in our society ‘no.

So, for example, there’s this—many of these projects in the urban areas are quite profitable even from the viewpoint of the private sector. So if they can take over the financing of these infrastructure projects particularly the operation and maintenance of these projects, the better. Because then, we can use the very limited resources that we have for social services like health, education, social protection, ayuda… which you know, would not be too attractive for the private sector. That’s the overall framework of our fiscal program for infrastructure.

EDEN SANTOS/NET 25: Secretary, follow up lang po ‘no para mas maintindihan lang po ng ating mga kababayan, kasi ang iisipin nila may magandang proyekto pero sa kanila rin ang bagsak noong pagbabayad nitong mga uutangin po na ito ano. Example: Nagpagawa tayo ng isang tulay, maglalagay doon ng toll plaza; magbabayad iyon din pong mga mamamayan. Tataas ang toll fee, hindi naman natin masasabing mananatiling mababa iyon kaya nga po may mga nagri-request ng pagtaas, hindi po ba, diyan sa TRB. Papaano natin maa-assure sa ating mga kababayan na itong mga proyektong ito ay hindi naman din sila ang magpapasan pagdating po ng panahon?

NEDA SEC. BALISACAN: No, that’s part of the design of these infrastructure projects particularly those involving PPP ‘no. That we see that the tariff rates that we’ll use will be at a rate that is fair, reasonable ‘no and affordable for our people particularly for the low-income groups ‘no. And there is a regulatory body, an interagency body that checks and that reviews approval of increases or changes into rates – that’s number one.

Number two is, we are also looking at this issue from a broader perspective. For example, the question is: How much time is lost for example ‘no, by an ordinary citizen who will leave from his house to his place of work ‘no? What’s the value of that time? If you are using… to go, for example, from Manila to, say to Bataan. As I said earlier, it could take you four to five hours ‘no and you can imagine the value of that time ‘no. Compared mo ngayon na 30 to 45 minutes na lang ngayon – of course may bayad pero iku-compare mo, what’s the income forgone versus ito naman sa cost that you pay for this cost.

And we assure you that the way we design the projects and approved projects, take those into account – that the net gain for users will be positive.

EDEN SANTOS/NET 25: Tama naman po iyon, Secretary ‘no. Kahit ako kung tatanungin ninyo po, mas gusto kong mabilis na makarating doon sa pupuntahan ko kahit magbayad ako nang mahal. Mas masarap iyong kakainin mo kahit mahal iyong babayaran mo, ‘di po ba?

Ang problema lang po kasi pagdating ng panahon nga ipapatong at ipapatong sa bayarin ng mga mamamayan itong mga proyekto na ito, hindi natin masisigurong hindi po iyan eh. Ang mangyayari po, si Juan at si Juana sasabihin na lang “Wala tayong magagawa eh, tumaas ang presyo ng langis. Wala tayong magagawa, tumaas iyong toll fee.” Doon po tayo, ang ating gusto lang malaman papaano masu-sure ng ating gobyerno lalo na kung 2029 po itong mga proyekto na ito, mayroon pang hindi matatapos; matatapos na iyong termino ng ating mahal na Pangulo ‘di po ba, may maiiwan pa ring mga utang na siyang isu-shoulder po ng ating mga mamamayan.

NEDA SEC. BALISACAN: Gaya ng sinabi natin kanina iyong part ng architecture ng mga PPP projects na ganoon includes iyong how are those fees, charges structured overtime ‘no. We made sure na that may mga safeguards doon. Importante iyong role ng inter-agency body na magri-regulate niyan, magri-review ng mga proposal na hindi puwedeng basta magtaas na lang si concessionaire, iyong operator ‘no – kinakailangan ang approval ng government body, responsible body.

So, nandoon iyon sa architecture ng kontrata at saka mga criteria ‘no, standards that you use to adjust. For example, kung inflation – adjustment for the cost of inflation ang isyu – iyon, ia-allow mo iyan kasi malulugi naman iyong operator if you don’t allow adjustment in inflation.

So, we can assure you that the contracts or the concession does include those kinds of provisions.

EDEN SANTOS/NET 25: Sir, kahit magpalit naman po ng administrasyon mamanahin na kumbaga itutuloy na lang ng susunod na administrasyon.

NEDA SEC. BALISACAN: Yes, because that contract is until matapos iyan maliban lang of course kung the next administration changes it which of course you don’t want to do because iyan ang palaging complaint ng mga investors sa atin ‘no na dapat hindi ka magpapalit ng rules of the game while the game is going on ‘di ba kasi otherwise very uncertain sa kanila iyon, risk iyon – so hindi sila papasok kung ganoon ang environment na nakikita nila. So, I’m sure that even the next administration knowing that that’s how investors look at the country, that they will go to a country, they invest in a country because they see that the regulatory environment is transparent, clear, hindi risky, therefore that country is a good place to do business with.

ASEC. OTIDA: Allan Francisco, PTV.

ALLAN FRANCISCO/PTV: Hi, Sec. Sir, as they say, ‘ang malusog na mamamayan ay yaman ng bayan’ and I believe that’s the reason why the government is focusing on the kidney hospital in CAR. So, may question, sir, by any chance mayroon pa po bang ibang mga health programs that will be funded based on your discussion?

NEDA SEC. BALISACAN: Yeah, marami, marami. As you must have heard this administration has a program for expanding access to specialized hospitals ‘no all over the country kasi ngayon iyong mga specialized hospitals lang nandito sa Manila ‘no – Heart Center, Kidney Center nandito lang. Paano kung nasa Visayas ka or Mindanao? So, we want to ramp up the building of infrastructure and support systems for these kind of projects ‘no.

So, we are looking at this [project in] Baguio as a kind of a template so that we can have the same facilities and arrangements put up in many other places including the Visayas and Mindanao.

Not only dialysis but even transplant later on should be made available and many of these specialized hospitals that we see in Metro Manila should become more accessible in other places in the country.

ASEC. OTIDA: We have Tuesday Niu from DZBB.

TUESDAY NIU/DZBB: Good morning, sir.

NEDA SEC. BALISACAN: Good morning.

TUESDAY NIU/DZBB: Sir, I understand itong transport modernization ay approved din before pa ng NEDA at ongoing na po ngayon iyong mga initial stages. Pero may mga mambabatas po na nananawagan na i-postpone muna hangga’t hindi raw po nalilinis iyong allegedly anomaly or corruption sa LTFRB. Will you heed their call, sir?

NEDA SEC. BALISACAN: I think that the infrastructure projects are already in the various stages of implementation and identification. The ones that we are implementing have been long well-identified there in the public investment programs, there in the three-year rolling infrastructure programs, of course the IFPs that we have been saying.

So, kung hindi naman directly related doon sa issue na niri-raise then I think we should proceed because you remember these infrastructure deficits natin, backlogs natin have been raised so long ago and that’s why we have difficulty bringing in investors ‘no because they look at how the kind of infrastructure you get, how costly it is to move goods and services, how costly your electricity, how costly iyong mga port services, airport services. We can’t afford to wait further. Naiwanan na tayo eh, that’s the urgency of this administration.

Kaya ang flagship natin sa administration is transformation kasi how patient are we, nakikita mo na even countries that were so poor, relative to us in the 70’s are now much, much richer than us. Hindi na puwede iyon, I think we need to catch up and if there are problems and issues, they should deal with those issues directly but do not hostage the entire government ‘no. Kaya kung wala namang issue doon why do you stop?

ASEC. OTIDA: Pia Gutierrez, ABS-CBN.

PIA GUTIERREZ/ABS-CBN: Sir, can you please update us kung na-release na po iyong executive order that will expedite the implementation noong priority infrastructure flagship projects under the current administration?

NEDA SEC. BALISACAN: You are referring to the issuance of permits and—yes, yes I think they’re still doing some legal scrubbing but it should come out soon.

PIA GUTIERREZ/ABS-CBN: May challenges po ba doon sa pag-release ng EO na iyon, sir?

NEDA SEC. BALISACAN: I think it’s just getting more feedbacks coordinating with the concerned agencies kasi ang daming agencies na na-enumerate doon na potential issues ‘no, and we want those issues resolved para pag-isyu ng EO wala nang concerns pa iyong agency kung paano niya i-implement.

PIA GUTIERREZ/ABS-CBN: So far, sir, iyong doon sa mga infrastructure flagship programs – ano na po iyong update or ilan na po iyong ongoing, sir, or ilan na rin po iyong for implementation?

NEDA SEC. BALISACAN: As we reported earlier, I don’t have the numbers with me now but you can go to the website of NEDA, there’s a website for the infrastructure flagship project, you can actually see the movements of projects there; every month, every quarter naa-update iyon. But I made a report to the NEDA Board two NEDA Board meetings ago and we indicated there a number of projects they’ve moved forward; we’re seeing some delays for some projects and that’s the reason why we report this regularly because we want to ensure that those delays are addressed upon quickly and the agencies concerned would have to do some catchup plan to ensure that those projects are completed on time. Kasi very costly iyong ma-delay na projects eh. The benefits are delayed, you know and then the costs are also become later more expensive. Kaya itong Cebu Bus Transit, can you imagine, the inflation cost that we have to do, to adjust because of the delay; dapat timely, ganoon.

IVAN MAYRINA/GMA: Secretary, a bit off topic, if I may. Did you have a chance to talk to the President about the possible impact of the Israel conflict on our economy? Are there certain ripples that we should be bracing for?

NEDA SEC. BALISACAN: Yes, there was a meeting yesterday and we did look at the—discussed about the impact on the economy. But so far, there is hardly any impact, because there have been no major disruptions in the supply chain. Oil has increased a bit, but we don’t know if that is just an initial reaction but the impact is so negligible. I guess, the question is whether it will spread, that the conflict spread and that is another matter. Because then, if it gets into the supply chain, affects global movements of trade and the effects can be even more substantial. But as of this date, we don’t see any major impact in the economy.

IVAN MAYRINA/GMA: But, should it be the protracted war that everyone’s worrying about, magkakaroon at magkakaroon po siguro ito ng impact sa atin.

NEDA SEC. BALISACAN: We have very little exposure to both Israel and Palestine in all dimensions, whether it’s labor employment or trade or investment. Unless nga, if that spills into the other countries and it affects the supply of oil, then magkakaroon ng impact sa atin. But as of now, we are not seeing that.

JINKY BATICADOS/IBC-13: Sorry, sir, iyong about lang po kasi kanina, sinabi ninyo na 2014 pa po may mga projects na hindi pa natapos ‘di ba, because of so much delays. Tayo po ngayon sa current administration, what are those possible delays po that we are looking at na maaaring makapigil sa mga programa at proyektong ito? And are we really positive for our timeline, that this time, mai-implement po natin lahat ang proyekto?

NEDA SEC. BALISACAN: Just to be sure, we are not undertaking a project or implementing a project just for the sake of completing it within the year. Kung talagang malaki iyong project and mag-spill into the next administration, okay lang naman iyon na mag-spill into the other administration. Big projects for example like itong Bataan-Cavite, it’s so big that is quite unlikely to think, that given the COVID, the impact of the COVID which is out of our control, that you could complete it within the administration. We look at the time frame and you know, the deployment of resources.

But, I think we are not behaving as if, you know, we do this project because we wanted to be the one to inaugurate it, hindi dapat ganoon eh. We see it as part of the broad program for the modernization and transformation of our country and it doesn’t matter who will eventually inaugurate it. Basta you do your best to deliver it, while you are there. Kung ganoon ang behavior natin, matatapos lahat ang mga project na iyan.

Ang problema natin kasi in the past is kung dumating ang ibang administration, i-slowdown iyong implementation or i-stop or what you know, which is not really good for the country. I hope that this administration is setting up an example. There is hardly any major infrastructure project from the past administration that we did not continue. And that was the instruction of the President, we have to continue those projects. If they are found to be useful and beneficial for the country, let’s finish them. That should be the position of any government coming in.

EDEN SANTOS/NET25: Secretary, iyon po bang mga long holidays ay wala po bang epekto ito sa ating ekonomiya, although nakita namin iyong latest na 2024, lumabas na iyong mga regular holidays and non-working? Pero iyon pong October 28 to November 5, iyong mga ganito pong mahahabang holidays, wala po bang epekto sa ating ekonomiya?

NEDA SEC. BALISACAN: Well, na-factor in naman iyon because those are already known holidays. When the business sector plans, when we plan in government, we have already taken those into account. Of course, may mga effects. Kaya ngayon, that we are, our economy is fully open, mobility is no longer restricted, those long holidays should be good tourism, local tourism. So, it’s okay, but again, the suspension of work during those times is already factored in.

EDEN SANTOS/NET25: Akala ko po may epektong malaki kaya tinanggal iyong isang holiday, iyong February 25 ba iyon for 2024?

NEDA SEC. BALISACAN: I think that, there is a broader, kasi if you look at our, compare kasi iyong working days natin, the business community is saying that compared to other countries, we have many more holidays than other countries. Again, we are a county that is seen by investors as just one among the many potential places to go. So, you cannot afford to be too generous with your holidays, when their profitability is also affected, vis-à-vis what profitability will look like in other places.

MARICEL HALILI/TV5: Sir, just a follow-up of the long holiday. Kasi doon sa long holiday from October 28 to November 5, dalawa lang iyong may pasok. So, how difficult it will be for employers kung madi-declare iyong 31 and November 3 na holiday, also? Marami lang kasi nagtatanong.

NEDA SEC. BALISACAN: Medyo mix ang impact sa workers, kasi maraming workers tayo na no work, no pay ‘di ba. So, kung hindi sila nakapag-report, nakapag-work, kawawa and there are so many of those especially in the private sector. So, hindi rin ano eh. You are okay, if you are permanent, in a monthly basis. So, I think we have to take that into account, marami iyong talagang gustong magtrabaho, dahil kinakailangan nilang magtrabaho to make both ends meet; kawawa sila. I mean the long holiday is not for many of them. It’s not what they want, they want a work. For us na, siguro sa mga medyo may kaya sa buhay, they like that, kasi nakakapag-travel, makapagbakasyon nang matagal. I have to look at those issue in a broader context.

ASEC. OTIDA: Puwede ng rumaket iyong mga no work, no pay. Wala na po tayong tanong?

ANNE SOBERANO/BOMBO RADYO: Sir, Asec, good afternoon po. Gusto ko lang po makuha iyong reaksiyon po ninyo, dahil ang NEDA po is exploring itong remote sensing technology na ginawa po ng UPLB to foster inclusive policy advise. Ano po ang magiging epekto nito sa komunidad natin, Secretary?

NEDA SEC. BALISACAN: I think maganda iyon. You know, if you can see the progress of a project else in any part of the country, without leaving your desk, then you would be in a better position to, one, if you are the project implementer or project oversight, you would get quick validation or information about the progress of the project. I think it advances empowerment, accountability, kasi ngayon makikita mo, igi-geo tag mo iyong, say may irrigation project or may road na gagawin, binigyan na ng pera. Kung nai-tag mo, geo-tag mo iyong project na iyan, ang area niya. Alam mo kung ginagawa o nagawa na iyong project without living your desk. Then if it’s not, then you can, you know, make these people who are supposed to implement those projects accountable. So I think, that is a good instrument or tool not only for the government but for the private sector to enhance implementation and proper use of money because you can have better accountability mechanisms.

ASEC. OTIDA: Thank you. So, if you have no more questions, we will be concluding this press briefing. Thank you so much, Secretary Balisacan, and thank you so much Malacañang Press Corps.

 

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