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By Darwin G Amojelar, Reporter
PROJECTS under state-run National Irrigation
Administration (NIA) have incurred cost overruns amounting to
billions of pesos owing to the rapid appreciation of the peso and
delays in implementation, the National Economic and Development
Authority (NEDA) said.
Documents from NEDA showed that four projects
have incurred cost increases amounting to P4.27 billion.
Of the total, the irrigation component of the
Casecnan Multipurpose Irrigation and Power Project saw costs rise
from P5.832 billion to P7.158 billion.
A Japan Bank for International Cooperation loan,
which became effective in 1999, was supposed to end in January 2007,
but was extended for another year.
The NEDA said the project involves the
construction of irrigation facilities for 26,920 hectares and the
rehabilitation of selected irrigation and drainage facilities in the
Upper Pampanga River Integrated Irrigation System. This will ensure
irrigation for 55,100 hectares in Nueva Ecija and parts of Bulacan
and Pampanga. The project services a combined 82,020 hectares.
A second project, the Bohol Irrigation Project
Stage II, incurred a 51 percent cost increase from P2.384 billion to
P3.606 billion.
The project involves the construction of canals,
drainage and road networks, the development of on-farm facilities
including land development, relocation and/or resettlement of about
134 families affected by the dam construction and reservoir, as well
as a water management plan.
The Help for Catubig Agricultural Advancement
Project Stage 1 also overshot its P2.481 cost ceiling, with actual
expenses reaching P2.971 billion.
The project aims to increase agricultural
production in Northern Samar through the provision of irrigation and
drainage facilities, the extension of the road network, among
others. It will benefit 6,000 farmers.
Lastly, the Banaoang Pump Irrigation Project in
Ilocos Sur, funded by the Chinese government, also incurred cost
overruns of P2.58 billion from an original estimate of P1.340
billion.
The project will increase agricultural
production through the provision of irrigation and drainage
infrastructure in the area and consequently, increase farmers’
income and uplift their standard of living.
It also aims to construct and improve farm to
market roads, to generate additional employment opportunities and
reduce transportation costs.
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