Infra rollout, PPPs to buoy construction growth in Q2

CEBU, Philippines - The construction industry is seen to take a dynamic leap in the second quarter of this year, a top economic official said.

Socioeconomic Planning Secretary Arsenio Balisacan said that the growth in the country's construction industry is buoyed by the roll-out of public infrastructure projects, including PPP (public-private partnership), the reconstruction assistance in the Visayas region, and the rising demand for more business and residential units.

The service sector, according to Balisacan will also continue to grow mainly due to higher demand from households, domestic industries, inbound tourists and the strong external demand for business process management.

The economy expanded by 6.4 percent in the second quarter from previous quarter’s 5.6 percent, making the Philippines the second fastest growing economy among major Asian countries in the region.

Likewise, while Cebu and the rest of the region's construction industry is seen to sustain its dynamism, Department of Trade and Industry regional director Asteria Caberte said that the Cebu is seen to regain its attractiveness to manufacturing investors.

Caberte said that Cebu has to prepare for the influx of manufacturing related investments beginning this year that would bring in more employment opportunities.

“The Philippines is now becoming a better option for investors,” said Caberte.

Mandaue Chamber of Commerce and Industry past president Philip tan said that while there is a need for the country, specifically Cebu to attract more manufacturing based investors, the construction sector on the other hand will temporarily balance the economic leg of Cebu, providing employment to people with less educational background to get jobs in the booming construction sector.

Tan said both the interest of investors to build more buildings, residential developments, and the government's implementation of PPP projects on infrastructure (roads, airport, seaport) would also sustain the good construction performance at least in the short term.

Ongoing rehabilitation projects of the Yolanda affected areas would also double-up the demand for construction jobs within the Visayas,

Caberte said big ticket investments in manufacturing would also bring in demand for construction jobs, employment even to those who do not have college degrees. (FREEMAN)