Businessmen are very upbeat with the big-ticket infrastructure projects bared by President Duterte’s economic team during the recent “Dutertenomics Forum” at the Conrad hotel in Pasay. The administration has promised a “golden age of infrastructure” that would sharpen the country’s global competitiveness to usher in an inclusive, pro-poor economy.
Top businessmen have also been invited to a special forum today on the administration’s infrastructure program. We’re positive the session will be very productive as it will enable investors to air their concerns about doing business in this country.
One of the biggest complaints is the hellish traffic in Metro Manila, and the government is readying its “first salvo” with the 5.7-kilometer segment 10 of the North Luzon Expressway (NLEX) Harbor Link project by Metro Pacific Investments Corp. (MPIC) which could significantly decongest Metro Manila, particularly EDSA and C5.
Expected for completion at the end of the year, the project is anticipated to spur trade and commerce between the Manila Harbor area and North and Central Luzon. This will also boost the cargo-transport industry since delivery trucks will have 24/7 access from the port area to the northeast provinces of Luzon and vice versa.
About 12,000 trucks pass though NLEX daily, but once segment 10 becomes operational, it will only take minutes to reach NLEX from the Manila Port Area which will greatly ease up traffic in C5, EDSA and other major thoroughfares.
The Harbor Link is actually touted by its builders as an engineering marvel due to the construction innovations done to speed up work for the all-elevated expressway, among them the use of gantry cranes to transport pre-cast girders and precision equipment for the safe installation of structures.
The expressway is utilizing the Philippine National Railways alignment to traverse Valenzuela, Malabon and Caloocan. In some portions, the expressway is either above the tracks or on the side – an ingenious solution that can do away with right-of-way problems that usually hamper the implementation of projects (not to mention the displacement of affected residents).
Aside from the Harbor Link segment, MPIC has several projects lined up to help the government provide long-term solutions to the problem of traffic congestion. These include the Cavite-Laguna Expressway, the NLEX-SLEX connector road, the Cavite Expressway expansion and the Cebu-Cordova Link Expressway, among others.
Of course, these infra projects require billions in capital – and the fact that the company continues to participate in government infra projects despite the pending arbitration cases separately filed by Manila North Tollways Corp. and Cavitex Infrastructure Corp. (both MPIC units) – is solid proof of support for the Duterte administration and its economic agenda.
The cases were filed during the previous Aquino administration to compel it to compensate MNTC and CIC for about P5 billion in foregone revenues due to the inaction of the Toll Regulatory Board on the petitions for toll increases, which are provided for in the respective concession agreements. Even the Supreme Court has already ruled that private operators have the right to a reasonable rate of return on their investments – and in the case of MPIC, the P5 billion in losses could risk the viability of ongoing projects.
The continued inaction of the TRB could dampen the enthusiasm of potential investors from participating in the government’s ambitious economic program. However, many are also reassured by the President’s promise that contracts and obligations entered into with investors would be honored by the government – something the people at TRB seem unaware of.
Trump’s practical approach to human rights
There seems to be a major shift in the relations between the US and Egypt – which had been rather strained during the time of Barack Obama – as evidenced by the recent release of American-Egyptian Aya Hijazi, her husband Mohamed Hassanein and four other humanitarian workers who had been imprisoned in Cairo for three years.
Hijazi and her husband established a foundation for street children in Cairo, but in May 2014, they were charged with child abuse and trafficking, with no evidence presented even as trials and hearings kept getting postponed or canceled. Human rights workers and US officials widely criticized the government of Egyptian President Abdel Fatah al-Sissi, and despite pressure from the Obama government, Hijazi and company were kept in prison.
Early this month, President al-Sissi was warmly welcomed by President Donald Trump at the White House – embraced in fact – and publicly praised for his “fantastic” leadership and assured of the US government’s strong backing. Not surprisingly, Trump received condemnation from human rights groups who also criticized the US president for failing to discuss the plight of Hijazi during al-Sissi’s visit.
But just five days ago, Hijazi and her fellow prisoners were released, with all charges inexplicably dropped by a Cairo court. Obviously, Trump’s style proved more effective – quietly working for the release of the prisoners and signaling that the US government will not meddle in another country’s internal affairs.
As articulated by Senate foreign relations committee chairman Senator Bob Corker, the US can sometimes lead with things in a public way, but the Hijazi issue was dealt with in a manner that would not provide public embarrassment to the other party.
Hopefully, this will also be the kind of approach with President Duterte who strongly feels that one country should not meddle in the domestic problems of another – more so if it is a big nation telling how a smaller nation should conduct its internal affairs.
Businessmen are upbeat about the pragmatic approach of Trump, who is definitely coming in November for the ASEAN meet – with the White House expected to send an advance security team either in June or July.
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