MANILA – Finance Secretary Carlos Dominguez III said while the implementation of various infrastructure projects is important to the Duterte administration, the completion of New Clark City is deemed especially significant.
“Our priority is the Clark City Development and we have put money in it. We have invested money. We started that, obviously that's our priority,” he said in a Senate hearing on Monday.
The construction of the 9,450-hectare New Clark City is now ongoing in the Clark Special Economic Zone. It is envisioned to be a green and smart metropolis that will become the growth driver of central and northern Luzon.
Dominguez said the project has an asset value of around USD14 billion, a plus for the government.
He told Senators that any project that will be implemented should not affect the sound and efficient management of the government’s finances.
This, as he clarified that he is not against the proposed construction of an international airport in Bulacan, which will be undertaken by the San Miguel Holdings Corp. (SMHC).
SMHC reportedly has a total equity of PHP60 billion as of 2016, way below the PHP735 billion needed to construct the proposed international airport.
Thus, Dominguez suggested that a “Joint and Several Liability Agreement” be signed by SMHC and its parent company, San Miguel Corp. (SMC) to ensure funding for the project.
The Department of Finance (DOF), in a statement Monday, said a Joint and Several Liability Agreement pertains to “an agreement in which two or more parties are held liable for the same act and are all held responsible for the payment of any restitution or damages.”
Dominguez said there is really a need for better air service in Metro Manila, citing results of some studies saying that the Ninoy Aquino International Airport (NAIA) has reached the point of diminishing returns.
“In other words, whatever you put in there, money, it won't return to you the same amount,” he said.
There have been suggestions to buy a big part of Merville Subdivision in Paranaque City but this did not pursue because “that’s too expensive,” he said.
He said there is really a need for additional airports in the metropolis but this should not be disadvantageous to future generations and the government.
Asked if economic managers are considering to use official development assistance (ODA) to finance the construction of airport projects, Dominguez said they have not considered it.
“We haven't because I don't know if we have the expertise to do it,” he said.
“I think for Clark, yes, we can fund it ourselves. It's only US12 (billion)or USD15 billion,” he added. (PNA)
