MANILA, Philippines – About P326 billion worth of infrastructure projects have been started or are in the pipeline for implementation this year, the Department of Finance (DOF) said.
In his address at the Philippine Chamber of Commerce and Industry (PCCI) general membership meeting yesterday, Finance Secretary Carlos Dominguez III said the government has started rolling out some big-ticket infrastructure projects this year.
“Over the next few years, we anticipate substantial investment inflows. This is helped, to a significant extent, by commitments made both by Japan and China to assist us especially in large infra projects. Expect a palpable uptick in business activity over the next few months,” Dominguez said in his speech.
Included in the large-scale infrastructure projects to be started this year are the Clark-Subic Rail Tutuban-Clark Rail and the 581-kilometer South Line of the North-South Railway Project connecting Tutuban, Calamba, Batangas and Bicol.
Dominguez said the construction of the Panguil Bay Bridge in Mindanao began this year, while the groundbreaking rites for the Clark International Airport, the Metro Manila Bus Rapid Transit System and three bridges across Pasig River — two of which will be built through Chinese grants–are already set.
The finance chief also said the government is closely working with the Chinese government to start the construction of the Kaliwa Dam and the Chico River Pump Irrigation project in the Cordillera region this year.
“All these projects mentioned have a total cost of around P326 billion,” Dominguez said.
After 2017, the Duterte administration expects to start the construction of bridges between Bicol and Samar, and between Leyte and Surigao, which aim to make land travel between Luzon, Visayas and Mindanao possible.
Regional airports will also be constructed and rehabilitated, also to improve connectivity between the three island groups. In Mindanao, a 2,000-kilometer railway will also be built to connect key cities and stimulate economic activities in the region.
“When I said we will start these projects, we do not mean just bidding out projects, signing contracts, or attending opening ceremonies. In this administration, ‘start’ means groundbreaking and actual construction,” Dominguez said.
According to the official, the Duterte administration’s move to strengthen its integration with other Asian economies would lead to more substantial investments inflows in the country starting this year.
All these investments and projects are seen to boost the country’s tourism sector, and amplify exports, benefiting not only large companies, but also micro and small enterprises.
“It is not only the large businesses that will benefit from the multifold opportunities that will open up in the near future. Our closer relationship with China, Japan, South Korea and the ASEAN (Association of Southeast Asian Nations) will translate into rapid tourism growth and bountiful export markets,” Dominguez said.
“This will mean stronger demand for processed food, in-person service enterprises, household items and consumer electronics,” he added.
“The stronger linkages we now forge with our development partners and regional neighbors will provide new drivers for the growth of our domestic economy.”
It is the thrust of the Duterte administration to intensify public spending to address the country’s infrastructure gap. Dominguez said the government envisions P1 trillion investments in infrastructure annually to help sustain the country’s economic growth momentum.
17 March 2017
By Mary Grace Padin
