Work begins on P4.1-T infra flagship projects
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HE government has already started the construction of 71 infrastructure flagship projects (IFPs) with an estimated cost of P4.1 trillion, according to the National Economic and Development Authority (Neda). Neda made the announcement at its board meeting led by President Ferdinand R. Marcos, Jr. on Wednesday. The three new projects included on the list of ongoing IFPs are the Metro Cebu Expressway, the Nautical Highway Network Improvement and the Daang Maharlika Improvement projects. “The Department of Public Works and Highways is implementing these connectivity and transportation infrastructure projects which aim to provide— or to improve connectivity across
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the country,” Neda Director General Arsenio M. Balisacan said in a press briefing in Malacañang. He noted there are currently 123 other IFPs, which have yet to start construction. Of these, 27 have been approved for implementation, 8 are awaiting government approval, 52 are in the project preparation phase while 36 are under the preproject preparation phase as of July 2023. Balisacan said the implementation of the projects will help the government in generating more high-quality jobs. “By ensuring the efficient implementation of high-impact infrastructure projects, the Marcos administration aims to get the job done, to enhance connectivity, reduce the cost of doing business,
promote the creation of high quality jobs and ultimately reduce poverty sustainably to improve the lives of every Filipino,” he added.
Guidelines
THE Neda Board also confirmed the revised guidelines for the formulation, prioritization and monitoring of the government’s IFPs. The guidelines covered infrastructure projects, which are approved by the Investment Coordination Committee (ICC) and confirmed by the Neda Board, but are not in the current IFP. Under the new guidelines, the following three projects will now be included on the list of IFPs: Tarlac-Pangasinan-La Union Expressway or TPLEX Extension Project, the Philippine Rural Development Project Scale-up and the Upgrade
Expansion, Operation and Maintenance of the Laguindingan International Airport Project in Misamis Oriental. “These projects will be prioritized in the government’s annual budget preparation and will benefit from the expedited issuance of application permits and licenses in accordance with current legal frameworks,” Balisacan said. During its latest meeting, the Neda Board also approved the request for change in cost, scope and implementation timeline of the Flood Risk Management Project for Cagayan de Oro River and the P72.5 Official Development Assistance (ODA) grant from China for the procurement of 6 fire trucks to be deployed to Marawi City. Samuel P. Medenilla
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Thursday, August 24, 2023 Vol. 18 No. 311
By Samuel P. Medenilla
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ECOZONE RBEs STILL ENJOY SCT STATUS, SAYS PEZA CHIEF
HE National Economic and Development Authority (Neda) on Wednesday said a 6-percent economic growth target this year remains achievable, but it will be no easy task, and the first order of the day is fighting inflation.
By Andrea E. San Juan
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HE separate customs territory (SCT) treatment for economic zones, which makes locatorregistered business enterprises (RBEs) VAT-exempt entities by virtue of the cross-border doctrine (CBD) and destination principle in taxation, shall still apply despite conflict between the implementing rules and regulations (IRR) of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law and a memorandum circular of the Bureau of Internal Revenue (BIR). Director General Tereso O. Panga of the Philippine Economic Zone Authority (Peza) made this clear, as he pointed out that the SCT status is a “unique selling point of ecozones to investors.” “As to whether or not the separate customs terri-
In a press briefing in Malacañang, Socioeconomic Planning Secretary Arsenio M. Balisacan, who is Neda director general, laid out the conditions for the government to meet the “lower end” of its 6- to 7-percent gross domestic product (GDP) goal this year. He noted it will involve stabilizing inflation amid rising fuel and rice prices. “Well, the downside risk [for our GDP growth target] is the inflation, especially that the oil prices are picking up again, the global oil prices; the staples like rice in the global market, prices are also…they are also, you know, rising,” Balisacan said. Transport groups are now demanding for a P2 fare hike after oil companies hiked the prices of gasoline by P1.10 per liter and P0.20 per liter for diesel. Meanwhile, the Department of Agriculture (DA) reported the price for rice in Metro Manila now ranges between P43 and P65. The Palace earlier said the government is trying to cushion the impact of higher prices on consumers through fuel subsidies, as well as increasing farm production and rice importation.
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tory (SCT) status vested in the ecozones has been rendered ineffectual by the CREATE IRR and BIR RMCs, the [Office of the Solicitor General] OSG has sustained Peza’s position that the SCT treatment for the ecozones—which makes the locator RBEs VAT-exempt entities by virtue of the crossborder doctrine and destination principle in taxation— are still applicable despite the conflicting provisions of the CREATE IRR and BIR RMC 242022,” Panga said in his social media post. The PEZA chief noted that the [Office of the Government Corporate Counsel] OGCC also rendered the same opinion in favor of Clark Freeport’s locator companies. With this, Panga said, “It is clear that the SCT accorded to the ecozones as originally contained in the PEZA law Continued on A2
‘MUP reforms must factor in indexation’ By Cai U. Ordinario
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Higher spending
ANOTHER condition for achieving their GDP target, he said, is addressing government underspending during the second half of the year when the election ban for the 2023 Barangay and Sangguniang Kabataan polls takes effect. The ban will cover social welfare projects and barangay-funded roads and bridges will kick in from September to October. “We have identified the sources of the [spending] slowdown and we think that we can speed up the implementation of projects and programs to benefit
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A US Navy plane flies over BRP Sierra Madre, right, and a Chinese coast guard ship at the Second Thomas Shoal, locally known as Ayungin Shoal, at the South China Sea on Tuesday, August 22, 2023. As a US Navy plane circled overhead, two Philippine navy-manned boats managed to breach a Chinese coast guard blockade in a dangerous confrontation in the disputed South China Sea and succeeded in delivering food and other supplies to Filipino forces guarding a contested shoal on board BRP Sierra Madre. AP/AARON FAVILA
HE Department of Finance (DOF) believes that any reforms made on the pension system for military and uniformed personnel (MUP) should address the budgetary implications stemming from the indexation and absence of personnel contributions. Finance Secretary Benjamin Diokno agreed with the indexation for current pensioners to ensure the non-diminution of their benefits. The pension benefits will be reviewed annually for a possible increase of up to 1.5 percent every year. For the active personnel and new entrants, their future pension will be adjusted according to economic conditions and financial viability of the proposed pension fund. “The pensioners and the active personnel have different needs. It is therefore necessary to ensure
that the pension and wages have different bases for adjustment. Removing automatic indexation of pension to the current wages gives us flexibility to respond to the unique needs of the pensioners and the active personnel,” Diokno explained in a statement. Diokno reiterated the economic team’s proposals on the MUP pension reform system which included a mandatory 5-percent contribution of active personnel on year 1 to 3; 7 percent on year 4 to 6; and 9 percent starting year 7 onward, while new entrants will immediately contribute 9 percent. The contributions are based on the personnel’s monthly base and longevity pay. The proposal says that government counterpart contributions should meet the 21 percent total pension premium and there must be a removal of indexation for active personnel and new entrants. Continued on A2
PESO EXCHANGE RATES n US 56.2150 n JAPAN 0.3854 n UK 71.5898 n HK 7.1725 n CHINA 7.7070 n SINGAPORE 41.4260 n AUSTRALIA 36.1069 n EU 60.9820 n KOREA 0.0419 n SAUDI ARABIA 14.9875 Source: BSP (August 23, 2023)