P136-B projects readied to jumpstart infra buildup

The Coordination Committee-Cabinet Committee (ICC-CabCom) recommended 10 projects worth P136.44 billion for National Economic and Development Authority (Neda) Board’s approval in its first meeting under President Duterte’s administration. 

“These recommended projects are a good start toward the government’s goal of improving government investments in infrastructure, especially in transportation and health, and agribusiness,” Socioeconomic Planning Secretary Ernesto Pernia said.

“We are optimistic that these projects will significantly contribute to the development and improvement of their target areas and communities,” said Pernia.

These projects include the North-South Railway Project–South Line; the Maritime Safety Capability Improvement Project for the Philippine Coast Guard Phase II; the Metro Manila Bus Rapid Transit-Edsa; the Plaridel Bypass Toll Road Project; the Metro Manila Flood Management Project, the Increase in Passenger Terminal Building (PTB) Area of the Bicol International Airport Project; the Change in Scope of the New Bohol Airport Construction and Sustainable Environment Protection Project; the Modernization of the Eastern Visayas Regional Medical Center; the Gov. Celestino Gallares Memorial Hospital; and the Inclusive Partnerships for Agricultural Competitiveness.

The North-South Railway Project–South Line of the Department of Transportation (DOTr)will be undertaken through a Public-Private Partnership (PPP) scheme in two separate projects: the Commuter Line, from Tutuban to Los Baños, and the Long Haul Line, from Los Baños to Sorsogon, with a branch from Calamba to Batangas City.

The project has a 34-year concession period (including construction for four years) for the Commuter Line.

The Long Haul Line’s concession period is based on the payment timeline prescribed under the repayment scheme. DOTr will resubmit the project under the proposed standard gauge rail system.

Moreover, Phase II of the Maritime Safety Capability Improvement Project for the Philippine Coast Guard (PCG) will acquire two 92-meter heavy weather, high endurance Multi-Role Response Vessels or MRVs.

The project will strengthen PCG’s coast or watch patrol and search-and-rescue capabilities and help them comply with international commitments on maritime safety and security, and marine environmental protection. The total project cost is estimated at P8.02 billion with an implementation period of 2016 to 2021.

For the Metro Manila Bus Rapid Transit (BRT)-Edsa, a BRT infrastructure of 48.6 kilometers through Edsa, Ayala Avenue, Ortigas-BGC, and the Ninoy Aquino International Airport will be built with 63 stations.

The project is expected to add accessibility infrastructure such as greenways, pedestrian walkways, and bikeways.

The total project cost is estimated at P68.26 billion, of which the public-sector component cost is P37.76 billion, with an implementation schedule of 2017-2019.

The Plaridel Bypass Toll Road Project, involves the conversion of the existing two-lane Plaridel Bypass Road into a four-lane toll road with expressway standards.

The new four-lane toll roads will improve the road capacity and save travel time of about 80 minutes per vehicle.

The total project cost is estimated at P9.33 billion, with a concession period of 30 years, including three years of construction.

The Metro Manila Flood Management Project (MMFP) Phase I aims to reduce flood risk to people and property in the flood-prone areas of Greater Manila through an integrated set of interventions with a project cost of P23.5 billion.

Two ongoing airport projects of the DOTr will also be elevated to the Neda Board for confirmation of the proposed changes that involve an expansion of the Passenger Terminal Building (PTB) area of the Bicol International Airport Project, and a change in the scope of the New Bohol Airport Construction and Sustainable Environment Protection Project.

The Bicol International Airport Project involves the construction of a new domestic-Principal Class 1 airport of international standards in Daraga, Albay, to replace the existing Legazpi Airport due to its limitations and safety concerns.

The proposed changes does entail additional cost, thereby maintaining project cost at P4.79 billion. The New Bohol Airport Construction and Sustainable Environment Protection Project aims to develop a new airport facility of international standards in Panglao Island, Bohol, to replace the existing Tagbilaran Airport, which has a limited capacity for expansion and operational safety concerns. The revised project cost is P7.77 billion.

The first of the two hospitals endorsed is the Eastern Visayas Regional Medical Center Modernization Project, which seeks to expand the hospital’s bed capacity from 325 to 500, transfer to a new site in Tacloban City, and establish a new IT system and medical equipment. The hospital project cost is estimated at P2.4 billion, with an implementation period of 30 months upon approval.

The modernization of the Gov. Celestrino Gallares Memorial Hospital Project will expand the hospital’s 225-bed capacity to 500 and transfer it to a new site in Cortez, Bohol.

It will also include site development, warehouse building, medical equipment, and IT systems.

The project cost of the Bohol hospital is estimated at P2.22 billion, with two years of implementation, including design, procurement of works and construction.

The Inclusive Partnerships for Agricultural Competitiveness (Ipac) project aims to enhance the market access and competitiveness of small farmers in the target agrarian reform communities (ARC) clusters. The Ipac has a total project cost of P10.15 billion, Pernia said.

The projects that are mostly found outside of Metro Manila are consistent with the Duterte administration’s policy of spreading growth in the regions, Pernia said, citing government figures showing concentration of growth in three regions that reveals the need to address inequality in the distribution of development within the country, according to the Neda.

According to the Philippine Statistics Authority, the National Capital Region (NCR) has remained the top contributor to the country’s gross domestic product (GDP) from 2010-2015 followed by Cavite-Laguna-Batangas-Rizal-Quezon (Calabarzon) and Central Luzon, primarily due to the expansion of the industry and services sectors and its proximity to NCR.

The share of NCR in GDP grew to 36.5 percent in 2015 from 35.7 percent in 2010, while Calabarzon and Central Luzon posted shares of 17.2 and 9.3 percent, respectively, in the same year.

In 2015, only these three out of 17 regions had their per-capita GRDP (gross regional domestic product) above the national average of P74, 770 (at constant 2000 prices). The NCR is by far the richest region with a per-capita GRDP of P219, 114. This is about 2.9 times the national average and more than twice the level of the next richest region, Calabarzon with per-capita GRDP of P92, 285. The NCR’s per-capita GRDP is 16 times that of the poorest region, ARMM, which has a measly per-capita GRDP of P13, 695.

“These three regions constitute about two-thirds of the Philippine economy’s output, which means the 14 other regions share just a third of GDP. We cannot continue to focus development on these three regions and expect to reduce massive socioeconomic inequality,” Pernia said.

Conversely, the regions with the smallest contributions to the GDP were the Autonomous Region of Muslim Mindanao (ARMM), Caraga, and Mimaropa. This despite the rapid growth posted by Caraga in the past six years, the 6.7-percent growth of ARMM in 2010, and the growing tourism service sector of Mimaropa.

Addressing spatial and socioeconomic inequality requires linking lagging regions with leading ones through connective infrastructure such as transportation, communications, and information technology, Pernia said. This way, it is much easier and cheaper to transport goods into larger markets in bigger cities and even overseas and enable people to access employment opportunities, he added.

Apart from infrastructure, it is also important to link economic sectors – agriculture, services, and industry, particularly manufacturing, within a region, Pernia said. “For example, local small farmers can be organized and supported so they can supply food or raw materials to bigger businesses like food manufacturers and restaurant and grocery chains. This has already been started in selected regions and provinces through the Accelerated and Sustainable Anti-Poverty Program (Asapp). In Tuburan, Cebu, for instance, local coffee growers were provided technical assistance so that they can supply the requirements of a large local coffee chain,” said Pernia, who is also Neda director-general.

“We must rebalance regional infrastructure investment and growth opportunities to reduce inequality and poverty in the whole archipelago. This will allow more Filipinos throughout the country to participate in the growth process and ensure that no one is truly left behind,” he said