The Defense department on Wednesday said it expects to spend P58 billion to finance the acquisition of modern war material for the Armed Forces for this year and in 2016.
Defense Undersecretary Fernando Manalo, DND undersecretary for finance, munitions and material, said the department would need a total of P58 billion for 2015 and 2016 programmed acquisition under the revised modernization program of the AFP.
Manalo said the budgetary allocation falls under the first phase called “First Horizon,” covering 2014-2017, allotting a total of P90.858 billion fund.
He said the DND will need P31.1 billion out of the 58 billion in 2015, while the rest will be spent in 2016.
Manalo said P30 billion of the total fund covering 2015-2017 will come from the general appropriation for 2015; P20 billion under the regular appropriation, P10 billion from unprogrammed appropriation and the rest to be culled from remittances of the Bases Conversion Development Authority (BCDA), which was the primary source of fund of the original AFP Modernization Program passed in 1995.
Manalo said that in 2014, a P13.4 the DND needed billion P13.4 billion, P10 billion of which had already been released. The balance of P5 billion, according to the DND official, should come from the BCDA remittances.
He explained that the appropriation for 2015 and 2016 are bigger since “most of the projects are now in the advance stages of implementation.”
“So based on the projected cash requirement, umabot talaga sa P31 billion ang kailangan sa 2015 to pay advance payments for those that will be implemented through a multi-year obligation authority,” Manalo said.
He also pointed out that a total of 33 projects will be implemented under the “First Horizon” which covers 2014 to 2017, but added that only P18 billion will be needed for 2017, the final year of the “First Horizon.”
Under the “First Horizon” of the AFP modernization program, the government is spending the P90.858 billion for the acquisition of warships, fighter jets, helicopters, air radar system and other modern military hardware.
The acquisitions were focused on improving the capability of the AFP on humanitarian assistance and disaster response (HADR) operation and territorial defense.
Manalo said that also included in the modernization program are upgrades of existing bases and facilities to accommodate new acquisitions.
Manalo said the “Second Horizon”, covering 2017 to 2023, of the Revised AFP Modernization Program under Republic Act 10349 would require more than the P90 billion programmed for the ‘First Horizon.” The ‘Third Horizon” covers 2024 to 2028.
He said that acquisition under the ‘Second Horizon” will be used to enhance the AFP’s capability on HADR and territorial defense.
“It is sufficient [to say] we are heavy on humanitarian assistance and disaster relief and protecting our interest in the West Philippine Sea,” Manalo said.