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four (4) energy facilities that will ensure stable power supply at lower prices;
10 water resource projects as well as irrigation systems that will raise agricultural
INTRODUCTION
output;
According to the World Economic Forum (WEF), Philippine infrastructure ranks 97th out
five (5) flood control facilities that will help protect vulnerable communities as
of the 137 countries, which is on the same level as Rwanda. WEF also said that, for
well as boost their resilience against the impact of climate change;
competitiveness, the Philippines places 7th out of the 9 countries in the ASEAN region,
and three (3) redevelopment programs that will deliver sustainable solutions to best
besting only Cambodia and Laos. The Philippines suffers from unemployment and poverty
meet the needs of urban populations.
because of poor infrastructure. These figures already give a picture of how poor
infrastructure in the country has dragged the Philippine economy down. The government’s
BIG-TICKET PROJECTS
“Build, Build, Build” project seems to be a promising solution to this problem. “Since
1. Luzon Spine Expressway Network
2011, the Philippines has broken out of its historically mediocre growth pattern to feature
A 1,040-km expressway network which would connect the northern and southernmost
among the fastest growing nations in the [Southeast Asian] region,” said Heydarian. “But
parts of Luzon. By building a total of 18 expressways with a total road length of 655
the country’s growth has been shallow and far from comprehensive, leaving high levels of
km, Department of Public Works and Highways (DPWH) Secretary Mark Villar aims
unemployment, poverty and hunger relatively untouched.”
to complement the existing expressway network spanning 385 km.
“Infrastructure is clearly the country’s Achilles’ heel.”
2. NLEX Harbor Link Project Segment 10
The first project expected to be completed in 2018 under the network, a 5.58-km, 6-
WHAT IS BUILD BUILD BUILD PROGRAM?
lane elevated expressway connecting MacArthur Highway in Valenzuela City and C-3
The “Build, Build, Build” program is the Duterte administration’s medium-term goal to
in Caloocan City, which is expected to shorten travel time from Manila to Quezon City
increase infrastructure spending from 5.4 percent of the country’s Gross Domestic Product
to just about 11 minutes.
(GDP) in 2017, to 7.3 percent by the end of President Rodrigo Duterte’s term in 2022.
3. Mindanao Growth Corridors Project
To effectively usher in the Golden Age of Infrastructure, the Philippine government will
A R25.257-billion infrastructure plan, which involves the construction of eight roads in
spend around R8.4 trillion (around US$160-200 billion) in an infrastructure plan consistent
Zamboanga Peninsula with total length of 277.23 kilometers and additional three
with the Master Plan on Asean Connectivity, which aims to facilitate flow of capital,
bridges in the province of Tawi-Tawi.
goods, and people nationwide in every region in the country. For the first time, Luzon,
4. The Leyte Tide Embankment Project
Visayas, and Mindanao are on an equal footing as far as the budget is concerned.
A 27.3-km project from Brgy. Diit in City to Brgy. Ambao in Tanauan, Leyte, which is
“Build Build Build” program includes:
expected to protect at least 33,185 houses from the destructive effects of storm surges.
Singson said that the 75 flagship projects is consist of
5. Matnog - Sta. Magdalena - Bulusan Road
six (6) airports, The road improvement of Matnog - Sta. Magdalena - Bulusan Road is a 30 Km. road
nine (9) railways, traversing the coastal barangays of the Municipality of Sta. Magdalena - Bulusan -
three (3) bus rapid transits, Matnog in the Province of Sorsogon including construction of bridges. It is an access
32 roads and bridges, road leading to Tourism Destinations
and four (4) seaports 6. The Metro Cebu Expressway
That will help bring down the costs of production, improve rural incomes, encourage A 73.75-km highway with a 2-km tunnel, which is expected to reduce travel time from
Danao City to Naga City by over 50% percent. It is divided into three segments: Talisay-
countryside investments, make the movement of goods and people more efficient, and Cebu City-Mandaue (Segment 1), Consolacion-Liloan-Compostela-Danao (Segment 2),
create more jobs. and Naga-Minglanilla (Segment 3).
7. The Davao City Bypass DISADVANTAGES
A 44.6-km by-pass road with a 2.28 km tunnel, which is expected to reduce travel time 1. Build Build Build borrowings can weaken the econony
from Digos to Panabo by about 50% — from 1 hour and 44 minutes (via Pan- 2. Increasing government debt, which would have adverse effects on the country in the
Philippine Highway) to only 49 minutes (via Davao By-Pass Road). long run.
3. Debt trap
SOURCES OF FUNDS 4. The pace of economic growth could be slower if the government is unable to timely
1. Unlike his predecessors, President Duterte is ditching the PPP modality in favor of deliver on its planned infrastructure program (warned by the World Bank)
larger reliance on government revenues as well as Official Development Assistance 5. It’s the foreign lenders who will gain the most from this venture.
(ODA), particularly from Japan and China, as his main sources of infrastructure 6. Spending on these infrastructure projects will be a huge burden on the national budget
funding. deficit.
2. To support the new modality, Duterte has normalized relations with China, which has
offered $7.3 billion in infrastructure investments, and Japan, which has been a leading ISSUES AND CHALLENGES
investor in the Philippines for decades. 1. Lack of capacity of our construction industry.
3. Duterte also passed a new tax reform package, which is expected to raise sufficient 2. Sourcing of Funds
revenues to fund infrastructure spending. According to Mr. Chua, up to 70% of newly- 3. Corruption
raised revenues (estimated to raise P786 billion over the next 5 years) are earmarked
for supporting the “build, build, build” campaign. ECONOMIC RISKS by Gerardo P. Sicat
1. Inflation
ADVANTAGES OR GOALS 2. exchange rate changes
1. Seeks to accelerate infrastructure spending and develop industries that will yield robust 3. interest rate changes
growth, create jobs and improve the lives of Filipinos. Public spending on 4. the contractor choice
infrastructure projects is targeted at P8 to 9 trillion from 2017 to 2022. 5. absorptive capacity.
2. Sustain rapid growth, attract investments and attain economic inclusion for all Filipinos
-DOF Undersecretary Grace Karen Singson.
3. Designed to accelerate our economic growth, increase public sector infrastructure
spending to 7.3 percent of GDP by 2022." - Department of Finance Sec. Carlos
Domiguez
4. Expected to generate an average of 1.1 million jobs annually - Diokno
5. “With economic studies showing that every peso invested in infrastructure yields two
pesos and four centavos in economic activity, we can expect this stimulus to cause a
surge in our growth,” Singson said.
6. Reduce poverty incidence from today’s 21.6 percent to 14 percent by 2022, which
would uplift the lives of more than six million Filipinos and “set the economy securely
on the road to upper middle income status by 2o22 and to a high-income one by 2040.”
- Singson said.