More PPPs eyed for ambitious infra dev‘t program

MANILA, Philippines - The   government wants more private investors to come in and help undertake a massive lineup of infrastructure projects that is a part of the administration’s strategy to stimulate inclusive growth and create jobs.

Public Works and Highways Secretary Rogelio Singson said the government plans to raise infrastructure spending to P800 billion in 2016 to implement a comprehensive development strategy that involves building major roads and irrigation projects, upgrading schools and hospitals, and launching massive housing projects for informal settlers, all in support of national growth.

Infrastructure spending will be hiked to five percent of gross domestic product in 2016, amounting to P800 billion. This is higher than the infrastructure spending of 2.5 percent of GDP in 2013, or more than P400 billion, and 3.1 percent targeted for this year, equivalent to over P400 billion.

The outlay will be funnelled into building and maintaining national roads, bridges, port access roads, farm-to-market roads, irrigation systems, railways, and linkage roads to tourist destinations, as well as into flood-control projects across 45 provinces, disclosed Singson at the first EU-Philippines Business Dialogue organized recently in Makati City.

To carry this out, the DPWH will engage in convergence programs that promote seamless coordination with relevant government agencies, such as the Department of Transportation and Communications (DOTC), Department of Agriculture, Department of Health, Department of Education, and the National Housing Authority.

With the DOTC, for instance, the goal is to create an integrated transport system where roads leading to airports, seaports, RO-RO ports, and other transport hubs will be upgraded to national road standards, said Singson.

Public-private partnerships (PPPs) are to be intensified to actualize these projects, such as the Cavite-Laguna expressway, whose construction will be opened to public bidding over the next few weeks, he added.

There is also the department’s biggest proposed PPP project to date—the 47-kilometer Laguna Lake road dike and spillway that is expected to cost P122 billion.

At the same time, Singson said Mindanao, which has been lagging behind in investment inflows and trade expansion, will be a key area for logistics development following the completion of a master plan to upgrade its infrastructure network. The Mindanao Logistics Network Program is a P100-billion initiative to reduce logistics costs in the region by, among others, improving linkage roads to key ports and fish-production areas.

Singson explained that efforts to bolster the region’s economic expansion through an integrated infrastructure development plan will also encompass the Autonomous Region in Muslim Mindanao.

At the same forum, Helena Koenig, directorate-general for trade of the European Commission, said Western investors would be happy to learn of these developments, pointing out that an increasing number of European firms are “very keen” to explore business and investment opportunities in the Philippines if they see sincere efforts to develop a more investor-friendly business environment.

She urged the Philippines to take the opportunity to attract more foreign investments from the European Union in view of the growing trend in the EU to move away from China and explore the Association of Southeast Asian Nations bloc as an emerging investment destination.