The Department of Finance (DOF) vowed to support the Mindanao Development Authority (MiNDA) in its mission to bolster economic growth and development in Mindanao by facilitating investments in infrastructure during the Mindanao Development Forum 2023 held on May 18 in Davao City.
“[T]he Department of Finance stands ready to support the Mindanao Development Authority by strengthening its relationship with bilateral and multilateral development partners. We are continuously working with international development partners on priority programs and projects in key sectors in Mindanao,” Finance Secretary Benjamin Diokno said in his pre-recorded keynote message.
In his presentation, Secretary Diokno said that the administration of President Ferdinand R. Marcos, Jr. is determined to “turn the Land of Promise into an economic powerhouse” by boosting infrastructure and transportation on the island, which are crucial to increasing connectivity with surrounding regions.
“The idea is to link and integrate markets, connect urban centers to rural areas, and facilitate the movement of people and goods to expand access to more opportunities for local industries. Ultimately, this will boost productivity,” Secretary Diokno said.
The government has committed to sustaining annual infrastructure spending at 5 to 6 percent of gross domestic product (GDP), aligned with the National Economic and Development Authority (NEDA)’s Public Investment Program (PIP) 2023 to 2028.
The PIP is a programming document containing the priority programs and projects (PAPs) to be implemented within the medium-term. It contains 3,770 infrastructure PAPs––1,310 of which are located in Mindanao amounting to PHP 1.2 trillion.
Furthermore, 30 out of the 194 high-impact Infrastructure Flagship Projects (IFPs) approved by the NEDA Board are intended to directly support investments in Mindanao.
These include the Mindanao Railway Project, Samal Island-Davao City Connector Project, Cagayan de Oro Coastal Road, Davao City Expressway, and preparation for New Zamboanga Airport, Bukidnon Airport, and New Siargao Sayak Airport.
The Finance Secretary said that the projects will adopt an optimal mix of financing from various development partners through Official Development Assistance (ODA), General Appropriations of the National Government, and Public-Private Partnerships (PPPs).
Preliminary data from NEDA showed that there are 97 active or ongoing ODA-loan and grant funded projects and programs being implemented in Mindanao as of end-December 2022.
On top of this, there are 35 ongoing projects with total loan and grant commitments of US$ 4.2 billion from bilateral and multilateral development partners.
The DOF also expressed its commitment to assist MinDA in its implementation of the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) Vision 2025 to make Mindanao a key economic driver in the sub-region.
MinDA serves as the Philippine Coordinating Office of BIMP-EAGA––an initiative that aims to increase trade, tourism, and investments in the subregion.
Some of the Priority Infrastructure Projects (PIPs) completed in Mindanao are the development and upgrade of the General Santos Airport (Aerotropolis), Zamboanga International Airport, Mindanao Transmission Backbone, and the construction of Metro Davao Bike Lanes.
“Let us work together to unlock Mindanao’s full economic potential in the years to come,” Secretary Diokno said.
