THE CURRENT administration may go down in history as the most efficient government in terms of project accomplishments. Big infrastructure projects are being simultaneously built today across Metro Manila and the rest of the Philippines.
President Rodrigo Duterte in just two years after his election in May 2016 has already been instrumental in the construction and planning of several toll roads, railway networks, farm-to-market roads, bridges, airports, seaports and power plants. The accomplishments of the Department of Public Works and Highways (DPWH) in the first two years of the Duterte presidency alone, for instance, are far more superior than those achieved in the previous administrations despite the lack of detailed project studies.
The present government was right in welcoming unsolicited proposals from the private sector to compete with what the government has in mind. Relying solely on the government to initiate infrastructure projects, in my opinion, is not the correct approach. We need the private sector to fill in the gap because the government has no monopoly of brilliance insofar as design and construction are concerned.
Take the case of the DPWH. The department thought, as it was told by the National Economic and Development Authority (Neda), that detailed studies on numerous infrastructure projects were already available for implementation. It turned out that what the Neda and the previous DPWH administration had were just proposals and plans that needed further detailed studies. The previous administration, it turned out, did not come up with the detailed engineering and financial aspects of the projects.
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The current administration, thus, has to rush and complete these detailed studies to get the big infrastructure projects going. But there is a timeline involved here. The conduct of such project studies will require the budget approval process and eventually state funding.
Meanwhile, the private sector on its own has its own idea and has offered the government to build several infrastructure projects, which are quite impressive. You can just imagine the momentum being built in the economy if all these projects, both from the government and the private sector, simultaneously begin construction.
President Duterte himself is eager to complete the major infrastructure projects in the Philippines. He wants the P735.6-billion Bulacan airport of San Miguel Corp., for instance, and other major infrastructure projects to be implemented quickly to fulfill his promise under his leadership.
Finance Secretary Carlos Dominguez III relayed Duterte’s marching orders in April after the Neda board headed by the President approved the construction of a new airport in the coastal town of Bulakan town in Bulacan province.
The President, according to Dominguez, “wants all infrastructure projects to be done quickly.” He doesn’t discriminate whether it’s this or that. He just wants all the infra to be done quickly because he believes that one of the reasons he was elected is to make life easier for people and this requires precisely better infrastructure development.
The Neda board in that same April meeting also approved the Clark International Airport expansion project, Ambal-Simuay River and Rio Grande de Mindanao River Flood Control project, Pasig-Marikina River and Manggahan Floodway bridges and the Davao Food Complex.
Several private companies are in the mood to join the infrastructure boom in the Philippines. The Clark airport is one example of public-private partnership that has drawn the interest of big companies. Eight groups so far bought bid documents for the 25-year operation and maintenance contract of Clark International Airport in Pampanga province. These are Megawide-GMR Consortium, Metro Pacific Investment Corp., Filinvest Development Corp., San Miguel Holdings Corp., Prime Assets Venture, Central Luzon Infrastructure Consultancy Inc. Consortium, GVK Airport Developers Ltd. and Groupe ADP.
These private companies are willing to invest billions of pesos to sustain the infra momentum in the Philippines. I am sure more companies are busy crunching the numbers in their respective drawing boards and finalizing their specific infrastructure projects. These companies all know too well that a solid infrastructure foundation will sustain rapid economic growth.
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This piece first came out in Business Mirror on June 25, 2018 under the column “The Entrepreneur.” For comments/feedback e-mail to: mbv.secretariat@gmail.com or visitwww.mannyvillar.com.ph./PN
