Rep. Edcel C. Lagman
Tel No. 218-8619
Mobile No. 0916-6406741 / 0918-9120137
24 September 2011
The excess fat in the 2012 appropriations for Public Private Partnership (PPP), which have ballooned to 76.8% over the 2011 level, must be excised to augment the budget for infrastructure and State Universities and Colleges (SUCs).
This was the strong message which Minority Leader and Albay Representative Edcel C. Lagman told the select committee tasked with effecting amendments to the 2012 General Appropriations Bill (GAB).
The allocation of P22.1 billion in 2012 as government counterpart funds for PPP projects is inordinately excessive considering the unutilized balance of P12,425,500,000.00 this year which is available for disbursement next year.
Due to the anemic implementation of PPP projects for the past 15 months where no project has been bid out, the appropriations in 2011 in the total amount of P12.5-B for the Department of Transportation and Communication (DOTC), Department of Public Works and Highways (DPWH) and Department of Agriculture (DA) has barely been used.
The 2011 outlay for DOTC in the amount of P5.0-B remains intact, while DPWH utilized only P72-M for road right-of-way out of its total budget of P5.0-B and only the amount of P2.5-M was released to DA, of which only less than P500,000.00 has been obligated, out of its allocation of P2.5-B.
DOTC, DPWH and DA has a combined unutilized balance of P12,425,500,000.00 which should be carried over for next year.
Consequently, the PPP budget for 2012 even if maintained at P22.1-B is still effectively overstated by P12.425-B corresponding to the unutilized balance in 2011.
This excess of P12.425-B must be realigned to augment the appropriations for infrastructure and State Universities and Colleges (SUCs).
It is welcomed that the Department of Education (DepEd) and the Department of Health (DOH) have been added as beneficiaries of PPP with outlays of P5.0-B and P3.0-B respectively.