TO BETTER AVOID anomalies in project costs, releases and implementation, the government has expanded the threshold of oversight by the Investment Coordination Committee from P2.5 billion to P5 billion and included all public private partnership (PPP) projects under ICC’s review.
The ICC consists of the Finance Secretary, as chairman; Department of Economy, Planning, and Development (formerly National Economic and Development Authority) Secretary as co-chair and the Executive Secretary, the secretaries of agriculture, trade and industry, budget and management and the governor of Bangko Sentral as members. It is under the NEDA Board, chaired by the president.
In a press release, the NEDA Board-ICC said it had overhauled and strengthened the review and approval process for government programs and infrastructure projects, such as raising the cost threshold and including public-private partnership (PPP) projects.
The Department of Economy, Planning, and Development (DEPDev) said the Council, chaired by President Marcos, Jr., approved the new guidelines that would be applied to new and ongoing projects that require action from the ED Council or Investment Coordination Committee (ICC).
Under the new guidelines, projects funded by the national budget will now require ICC review if they exceed P5 billion. The previous threshold was at P2.5 billion.
“We have raised the threshold from P2.5 billion to P5 billion already, while at the same time putting safeguards into the various stages of the approval process so that we can spot possible issues or problems that may arise,” DEPDev Secretary and ED Council Vice-Chair Arsenio M. Balisacan said in Monday’s Philippine Development Forum, a report published by Business World said.
BLAME THE SCANDAL
The sweeping changes were prompted by the billions of pesos flood control mess that exploited loopholes in government policies to evade scrutiny.
The ICC earlier said that flood control and management projects will now be aggregated by river basin rather than evaluated individually with lower tagged costs.
Under the new guidelines, the ICC’s coverage also includes PPP projects.
The ICC will also conduct a mandatory review of all foreign loan-assisted projects, regardless of loan amount or total cost, except for grant-assisted projects, which are reviewed by DEPDev.
STRICTER EVALUATION
Balisacan said streamlining the ICC process and clarifying its scope will make project evaluation more rigorous while minimizing delays, said a report of Business World.
“As we work to ensure that every peso invested by the government delivers maximum value for Filipinos, streamlining the ICC process and clarifying its scope will make project evaluation more rigorous while minimizing delays,” Balisacan said.
MRT-3 ADJUSTMENT
The ED Council also approved “critical” adjustments to the Metro Rail Transit Line 3 (MRT-3) rehabilitation project, including the full replacement of the rails and overhaul of 72 light rail vehicles.
The Council said the Department of Transportation (DoTr) requested the approval for systems upgrade, equipment rehabilitation, and facility improvements all aimed at enhancing the long-term reliability and safety of the MRT3 system. The DoTr also sought approval for full replacement of main line rails, a general overhaul of 72-CKD-Tatra light rail vehicles and procurement of bogie frames and assemblies.
The rehab project involves integrating MRT-2 with the Common Station, the deployment of the Dalian trains, and a transition to four-car train operations.
“The MRT-3 is a vital artery in Metro Manila’s transport network. These adjustments are necessary to meet evolving technical demands and ensure that commuters benefit from a safer, more efficient, and more reliable transit system,” Balisacan said.
The President has ordered the DoTr to implement safeguards to ensure the operations and maintenance of the MRT-3, its operational sustainability and maintenance of the MRT-3.
The DoTr aims to start the bidding process for the operations and maintenance of MRT-3 within the first half of 2026.
U.S. PROJECTS
On US-backed projects, the Council okayed a $400-million cost increase and extension for four projects to ensure continuity after the shutdown of the United States Agency for International Development.
The DEPDev said the request by some agencies to increase the cost and extend the implementation and grant validity period for four US-assisted development agreements.
USAID was shut down by President Trump in July then froze and cut billions of dollars of foreign aid in keeping with his “America First” policy.
“By approving these measures, we are making sure that implementation remains uninterrupted despite the transition in management,” Balisacan said.
The Council approved a $300-million cost adjustment for the Department of Health’s “Improved Health for Underserved Filipinos” project, raising its budget to $524 million from $224 million.
This aims to sustain better health outcomes among underserved populations and strengthen overall health profile.
The funding for the “Enhanced Ecosystem and Community Resilience” project was increased from $100 million to $250 million, being undertaken by DA and DENR to address the impact of climate change on natural ecosystems.
The DoF’s “Economic Growth and Democratic Governance with Equity’ program and the DepEd’s”Improved Basic Education Outcomes” program were extended until Sept. 30, 2027.