RISKS tied to projects under the Luzon Economic Corridor (LEC) should be assessed according to their nature, according to the World Bank (WB).
During a media briefing in Mandaluyong on Tuesday, Zafer Mustafaoglu, WB division director for the Philippines, said projects carry different levels of risk and that these should be identified based on their specific characteristics.
He was responding to a question on how the government could address opposition to projects under the LEC without delaying the wider initiative.
Beyond the Philippines, the United States and Japan, the LEC international partners are the European Union, Australia, Canada, Denmark, France, Italy, South Korea, Spain, Sweden and the United Kingdom.
Concerns include potential displacement and environmental damage linked to a project such as Pax Silica, which could face resistance even as the corridor draws support from foreign partners.
Mustafaoglu did not outline a specific mechanism for preventing project-level disputes from holding up the broader corridor. Yet, he stressed that risk assessment should account for the nature of each project and the requirements involved.
Separately, Department of Budget and Management (DBM) Kim Robert C. de Leon said the WB’s report on urban development highlighted the need to coordinate planning, budgets and implementation across local government boundaries.
For him, this is a challenge relevant to infrastructure corridors that connect cities, municipalities and economic centers.
‘Economic growth does not respect administrative boundaries,’ de Leon said in his keynote address at the report’s launch.
He said government agencies often include coordination and collaboration in their plans, but the challenge is translating these into results on the ground.
‘A corridor is not a connection of unrelated projects. It is a shared economic strategy,’ de Leon said.
The budget chief said economic activity often spans multiple local government units, while planning and budget decisions remain confined within administrative boundaries.
He cited the report’s finding that only 30 percent of proposals endorsed by Regional Development Councils receive funding in a given budget cycle.
Delays caused by right-of-way problems, permitting, procurement and incomplete feasibility studies were also pointed out by the budget agency chief, saying projects need to be prepared properly before implementation.
The government, he said, must improve project execution and make national budget processes more responsive to regional priorities.
The DBM and the Department of Economy, Planning and Development have issued a joint circular requiring agencies to engage regional councils, local governments and other stakeholders earlier in preparing budget proposals for 2028.
De Leon said consultations must take place while priorities are still being shaped, rather than after decisions have already been made.
The WB’s report, titled ‘From Cities to Corridors: Unlocking the Philippines’ Urban Growth Potential,’ identifies 190 urban local government units and 26 multi-local government agglomerations with potential to support growth beyond traditional economic centers.