Philippines asks foreign donors for at least P100 billion to develop Bangsamoro region

From InterAksyon (Nov 6): Philippines asks foreign donors for at least P100 billion to develop Bangsamoro region

The Philippines is asking the foreign donor community to pick up less than half the tab for the near-term development of the proposed Bangsamoro region.

Documents furnished by the Bangsamoro Development Agency (BDA) show that the new autonomous region would require an estimated P225.7 billion in investments through 2016, covering the transition period until the formation of the area's governing body.

This amount is less than that required to wipe out the government's budget deficit for this year, and is much lower than the combined first-half profit of the country's listed companies.

Creation of the region awaits passage of the Bangsamoro Basic Law, which Congress promised to accomplish before yearend. The new autonomous region, along with the Bangsamoro Development Plan (BDP), form part of the peace accord that the government and the Moro Islamic Liberation Front (MILF) signed earlier.

Economic Planning Secretary Arsenio Balisacan said the government will fund more than half of the amount required, leaving P109 billion that would be sought from the country's foreign donors.

Philippine economic managers are holding the annual pledging session with the donor community in this city, with the dialogue centering on the Bangsamoro region.

"Securing peace would not only be good for Bangsamoro, but the effects will be seen throughout the entire country. The amount of investments that could flow into Bangsamoro areas could be very substantial," said Balisacan, who is also director-general of the National Economic and Development Authority (NEDA).

"The whole country will benefit from it. If you watch the news, every time there is a crisis in Mindanao, the entire country is affected. Even tourist spots such as Palawan and Boracay (which are outside Mindanao) are affected because of the lack of peace. If we finally solve this problem, it has been a problem for so many decades, it can be a game-changer for us," he said.

According to NEDA, the peace dividend could range from 0.1-0.3 percentage points of increase in the country's gross domestic product (GDP) growth.

"But it could be higher than that if you consider the investments, the effects of the human capital," Balisacan said.

He said the donor community is "aware of the very backward infrastructure and the power situation" in the Bangsamoro areas.

"The challenges are normal but the thing is, they know, they are aware, and they are open to collaborating with development partners, the national government, they are open to see how we can synergize," Balisacan said.

"The plan is a work in progress. What we would want in particular to know is the development requirements all the way to 2016, because the Bangsamoro government will not come in until then," he said.

"For the meantime, we would want to see what can be mobilized by way of national government. The national government has been investing in Mindanao but we would want to see how it can be more directed and more focused, what resources are available, and how the development partners can also come in," he added.

Torn by decades of war, the Bangsamoro areas have lagged behind the country's development, with GDP growth for the Autonomous Region in Muslim Mindanao (ARMM) last year at 3.6 percent, or half the national average of 7.2 percent. Poverty incidence stood at 55.8 percent in ARMM compared with the national average of 25.2 percent.

http://www.interaksyon.com/business/98708/philippines-asks-foreign-donors-for-at-least-p100-billion-to-develop-bangsamoro-region