By Roderick T. dela Cruz

THE global crisis will last longer than expected, and the government needs to spend at least P300 billion on infrastructure projects over the next three years to support the economy and stem the loss of jobs, the head of the state planning agency said yesterday.

?It is clear to my mind that the crisis will last longer,? said Economic Planning Secretary Ralph Recto, who heads the National Economic and Development Authority.

?We should plan for 2009 to 2010 and leave something for 2011.?

This year, the government plans a P330-billion economic stimulus package, including a P100-billion infrastructure spending program to stimulate growth.

But Recto said infrastructure spending should continue beyond 2009, as it appeared that the global economic meltdown would persist over the next three years.

He said this should be addressed by a medium-term investment program until 2011.

Recto made the statements after meeting officials from the World Bank and the International Finance Corp. to discuss what role the multilateral lenders could play in this year?s P100-billion infrastructure spending program.

He said the participation of the two foreign lending agencies in the stimulus package would lend confidence to the private sector, offer cheaper financing, and support successful programs such as the Social Welfare Department?s Kalahi program.

Recto said he would present the medium-term infrastructure investment program to the Cabinet meeting today.

?There are so many infrastructure projects that need to be built,? he said.

He said those investments would focus on three sectors: energy in the Visayas and Mindanao, transport in Luzon, and water systems where needed.

?The projects in the P100-billion portfolio will fall along these three areas,? he said.

Recto said infrastructure spending was a part of the fiscal stimulus package designed to create and save jobs, boost growth, and upgrade the country?s capital stock.

He said the government was also improving the ability of public works agencies to spend funds earmarked for such projects.

Recto said he had asked the Public Works, Transportation and Agriculture Departments to ensure that at least 60 percent of their spending on projects was done in the first half of the year to support economic expansion during the period.

At the same time, the private sector must participate in infrastructure development to prepare the country for the eventual global economic recovery, he said.

As part of the government pump-priming efforts, the Agriculture Department said it expected to create 131,679 new jobs by carrying out 3,573 projects.

Agriculture Secretary Arthur Yap said the targeted jobs represented about 13.17 percent of the one million jobs that President Arroyo hoped to create under her new economic stimulus program by July this year.

?These projects will not only generate jobs in the short term but will also benefit Philippine agriculture in the long run,? Yap said.

The government has made creating new jobs a top priority as industries reeling from the effects of the global economic slowdown begin laying off workers.

The Trade Union Congress of the Philippines said 28 rural banks closed shop in 2008, resulting in the loss of 1,000 jobs.

The labor group urged the Bankers Association of the Philippines, the Chamber of Thrift Banks, and the Rural Bankers Association of the Philippines to extend assistance to the displaced workers. With Othel Campos and Arlie Calalo