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Manila Bulletin devider Business devider DBM: PPP to bridge gap in reduced 2025 infra budget

DBM: PPP to bridge gap in reduced 2025 infra budget

Published Oct 9, 2024 07:02 am

Despite a slight reduction in the government's infrastructure budget for 2025, the Marcos administration is banking on increased investments in Public-Private Partnership (PPP) projects to bridge the gap.

In a statement, Budget Secretary Amenah F. Pangandaman confirmed that the proposed 2025 budget includes a 0.3 percent decrease in infrastructure spending compared to the current year, bringing the total allocation down to P1.507 trillion from P1.510 trillion.

While the final budget will be determined by Congress, Pangadaman expressed confidence that the recently enacted PPP Code and its implementing rules will incentivize greater private sector participation in infrastructure development. 

She said the expected increased involvement would offset the reduced government spending and ensure the continued progress of the country's infrastructure projects.

"For instance, PPP projects in the pipeline, the bulk of which are infrastructure-related, already amount to P3.183 trillion," she said.  

The DBM said that the government's infrastructure development budget for 2025 will continue to prioritize projects that enhance access to basic services, strengthen industry connections, and improve nationwide connectivity.

The government's infrastructure outlay appropriations have steadily increased over the past few years. 

From P989.3 billion in 2020, the allocation has grown to P1.510 trillion in 2024. (Derco Rosal)

Related Tags

Department of Budget Management Procurement Service infrastructure spending Budget Secretary Amenah F. Pangandaman
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