Gov’t ramps up infra spending

MANILA, Philippines - The government is ramping up major infrastructure projects as tries to catch up to its infrastructure spending target of at least five percent of the gross domestic product (GDP) before President Aquino steps down in June 2016.

Public Works Secretary Rogelio Singson yesterday said during the Philippine Economic Briefing that the government hopes to spend $18 billion for major infrastructure projects, or five percent of GDP by 2016 from $4 billion or 1.9 percent of GDP in 2011.

To achieve this, Singson said the Department of Public Works and Highways (DPWH) would upgrade the quality and safety of roads and bridges, and at the same time provide better access to tourism destinations, seaports and roll on – roll off (RORO) ports, and food production areas.

Other projects, he added, would also involve flood risk reduction program and structural resilience, Mindanao logistics network program, Autonomous Region for Muslim Mindanao support infrastructure program, as well as resiliency and disaster risk management projects.

Data showed that the infrastructure program for Mindanao would jump 68 percent to P63.1 billion next year from P37.6 billion this year

In all, the infrastructure program of the DPWH alone would jump 41 percent to $6.1 billion next year from $4.3 billion this year. Capital outlays next year would amount to P213.85 billion.

“We commit that by 2016, all national roads and bridges, estimated to measure 32,000 kilometers, will have been paved,” Singson said.

Transportation Secretary Joseph Emilio Abaya said the Aquino administration hopes to reduce transportation cost by 8.5 percent by increasing urban mass transport ridership to 2.2 million by 2016 from the current level of 1.2 million.

Likewise, Abaya added, the government intends to lessen logistics cost to 15 percent from 23 percent by improving transport linkages and efficiency.

According to Abaya, the government also intends to improve airport infrastructure to accommodate 10 million foreign tourists and 56 million domestic tourists by 2016.

The DOTC chief said the government is bidding out the operation and maintenance of major airports, including that of the congested Ninoy Aquino International Airport, Laguindingan, New Bohol (Panglao), Puerto Princesa, Davao, Iloilo, and Bacolod.

Other airport project include Naga, Clark, Bicol, and Busuanga, as well as the night rating of the Tuguegarao, Roxas, Dumaguete, Ozamiz, Cotabato, and Butuan airports.

The DOTC chief said the government is still studying the dream plan to address congestion in Manila prepared by the Japan International Cooperation Agency (JICA).

“Government investments as well as efforts to encourage participation of private enterprises in the area of public infrastructure mean a lot as for the goal of sustainability,” Abaya said.

Aside from the Light Rail Transit (LRT) and Metro Rail Transit (MRT), Abaya said the government is pursuing the North-South commuter rail, the integrated Luzon commuter rail, as well as the modernization of the Philippine National Railways.

The roll out of PPP projects in the Philippines is in full swing after the award of eight PPP projects worth close to P133 billion, including the Daang Hari – South Luzon expressway link road (P2 billion), PPP for School Infrastructure Project phase 1 (P8.86 billion), the PSIP-2 (P16.28 billion), the modernization project for the Philippine Orthopedic Center (P5.98 billion), the Ninoy Aquino International Airport expressway (P15.52 billion), the automated fare collection system project (P1.72 billion), the Mactan – Cebu International Airport expansion project (P17.5 billion), and the Light Rail Transit line 1 Cavite extension project (P65 billion).

The award of the P35.4 billion Cavite – Laguna expressway project is still pending after the disqualified bidder filed an appeal before the Office of the President.

The government has also rolled out the biggest PPP project so far with the P123 billion Laguna Lakeshore expressway dike project; the P24.4 billion Bulacan Bulk Water supply project; the P4 billion Integrated Transport System (ITS)-South terminal; the P2.5 billion ITS-Southwest terminal; and the operation and maintenance of LRT-2.

As of September 2014, some P553 billion worth of projects under the PPP program would be rolled out in the next 12 months.