P127-B DoTr budget OKd

Tugade earlier warned that a substantial slash in its budget would hobble DoTr’s plans for the next two-and-a-half years.

Earnest appeal to legislators worked for Department of Transportation Secretary Art Tugade as the Senate budget slash on the agency was reduced to P20 billion from an original P60 billion. YUMMIE DINGDING @tribunephl_yumi

The Department of Transportation (DoTr), a key agency in the implementation of the government’s flagship “Build, Build, Build” program, received a P20 billion slash in its proposed budget after the Senate approved yesterday its P126.86 billion allotment.

The Senate also approved a P1.018 billion budgetary support for the Light Rail Transit Authority.

During the interpellation on the DoTr budget, its sponsor Sen. Sherwin Gatchalian mentioned that the agency has completed communications, navigation and surveillance or traffic system in the entire Philippine airspace, Puerto Princesa and Panglao International airports and the MRT-3 Rehabilitation during the administration of President Rodrigo Duterte.

DoTr Secretary Arthur Tugade earlier warned that a substantial slash in its budget would hobble DoTr’s plans for the next two-and-a-half years.

The initial Senate proposal was for a P60 billion reduction in DoTr’s P147 billion proposal.

The Senate wanted the agency’s budget reduced due to supposed underspending.

Tugade said in a television interview that allegations of the DoTr’s low disbursement for 2019 was “not an accurate approach.”

“If you slash the proposed budget, how can we operate on projects which we have forecast but there is no budget yet? What is the effect? You are actually putting into jeopardy the projects which we have envisioned to be done in the next two and a half years,” he said.

The DoTr chief explained that some projects, including the Bohol-Panglao International Airport, have been completed but some payments have yet to be finalized.

“There is what is termed as progressive billings, you are looking at billings, you validate that. There are also some retentions that are not yet paid. That’s not part of the actual disbursement, but in reality, it is a virtual actual disbursement because it will just be a matter of time that it will be paid,” Tugade indicated.

The DoTr has obligated more than 80 percent of its total budget for the year, 44 percent of which have been disbursed, Tugade noted.

“Now, they will say 44 percent were actually disbursed, that’s low, but does it mean that there are no projects? No. Because the actual disbursement of 44 percent does not include certain situations, such as in situations where projects that have been completed but have not been fully paid yet,” Tugade added.

Also among the hurdles of DoTr projects are resettlement and right-of-way problems.

Of the total budget it is seeking for 2020, more than double of its approved budget of P67.67 billion for this year’s fiscal plan will be devoted to infrastructure.

Some 98 percent of the planned infrastructure are big-ticket railway projects, such as the construction of the Philippine National Railway (PNR) North-South Commuter line, Metro Manila Subway, the comprehensive rehabilitation of Metro Rail Transit 3 (MRT-3), PNR Bicol, Light Rail Transit 1 (LRT-1) Cavite Extension and Mindanao Railway project.

Amendments on the budget of the DoTr might be introduced after Senate President Pro Tempore Ralph Recto underscored the low obligation rate of the department.

Recto said of the P44 billion obligated funds, around P30 billion were disbursed in 2019.

The Senate leader said part of DoTr’s programmed funds might be moved to unprogrammed funds as a result of low obligation as he pointed out that other government agencies needed additional funding.

Moreover, Sen. Francis Tolentino reminded DoTr officials of President Rodrigo Duterte’s order to release and finish all the papers from government offices by December.

Tugade, through Gatchalian, said he received Duterte’s order and he already advised all the agency heads under him to follow the President’s directives.

Tolentino and Senate Majority Floor Leader Juan Miguel Zubiri hailed Tugade for his persistence and leadership in DoTr.

“To our friends in the DoTr, fear not. The examples (from other countries) that I have mentioned will be hurdled by the DoTr family knowing the capacity of the good secretary. What the DoTr needs to do is to make the dream of having a good transport sector a reality,” Tolentino manifested.

The focus on railways is a “recognition of the urgent need to vastly improve this long-neglected transport system, which if developed properly and to its full potential, is capable of taking in high levels of passengers and cargo utilization in an efficient and environment-friendly manner,” DoTr said in a statement.

The agency noted that railways contribute to social vibrancy and economic competitiveness by transporting multitudes of commuters and workers to city centers and suburban districts.

“Most modern and advanced countries have recognized railways as the backbone of the public transport infrastructure and as such developed other road transport systems and infrastructure in comprehensive alignment with their railway services,” it noted.

The DoTr said the urgent approval of its budget is needed to pursue this substantive infrastructure development campaign, particularly in railways.

This proposed allocation for railways will significantly contribute in addressing the almost 20-year infrastructure deficiency of our country, and boost our economic advancement.

This in turn will build the foundation for better infrastructure assets across regions, and ultimately providing the Filipinos better mobility and connectivity, the agency noted.