$1-B infra up for private bids

THE National Government has launched the first batch of major infrastructure projects it is opening for partnership with private investors.

It is asking for bids for five rail and road projects worth over $1 billion.

President Benigno Aquino III said the projects will stimulate the economy, create thousands of jobs and upgrade services for Filipinos

Officials say the bidding process begins later this month for two railway expansion projects in the capital. Invitations to bid will be out in April for a new toll road south of Manila, in May for an airport expressway and in June for an elevated expressway.

Lack of infrastructure is among the factors that has held back the country’s economic growth.

As this developed, the National Government set aside about P690 billion to pay foreign and domestic creditors.

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The sum is nearly 11 percent more than what it allotted to debt servicing in 2009, which was only P622.29 billion.

The Business World reported that principal and interest payments to domestic creditors totaled P446.9 billion, while payments to foreign creditors summed up to P242.9 billion.

The country’s debt swelled in the wake of the global economic crisis in 2008, which caused the economy to slow down and reduced government revenues.

Since government was operating with a deficit, it was forced to borrow more to finance programs. (AP)

Published in the Sun.Star Cebu newspaper on March 10, 2011.