Key infrastructure to cost P2 trillion

Key infrastructure projects require huge funding estimated at P2 trillion.

According to the National Economic and Development Authority (NEDA), P1.15 trillion will come from the national government and P613 billion from the private sector.

The transportation sector has the highest share at 38 percent, or P755 billion followed by power electrification, P611 million; water resources, P347.53 million; social infrastructure, P167.91 million; communication, P56.49 million; and relending program, P36.69 million.

The biggest investment in transport will be on roads and bridges (44 percent) linked to the roll-on, roll-off ports. Rail transport will get 39 percent.

The P94 billion will be funded by the government-owned and controlled corporations; P26 billion by government financial institutions; P10 billion by local governments; and P118 billion by other sources, such as grants and Universal Charge for Missionary Electrification.

The government is already addressing the infrastructure gaps by implementing the super region strategy as the development blueprint.

The “super region” strategy groups regions and provinces by their economic strengths. The strategy also provides for massive infrastructure investments to stimulate economic growth, spread development away from an inequitable concentration in urbanized areas, and sets the country in step with its Asian neighbors.

The super regions were formed with their respective development themes. For example, the North Luzon Agribusiness Quadrangle (NLAQ) focuses on agribusiness development.

The Luzon Urban Beltway (LUB) serves as a globally competitive logistics and services hub. Central Philippines focuses on tourism development; the Mindanao Agribusiness super region on agribusiness development; and the Cyber Corridor on information and communications technology and the knowledge economy.

Government priorities

As outlined in the 2004 to 2010 Medium-Term Philippine Development Plan, infrastructure development ranks high in the government’s priorities because it is vital to accelerating the country’s economic growth and global competitiveness.

Projects such as the Tarlac-La Union Toll Expressway, Panguil Bay Bridge, Manila-Cavite Toll Expressway Extension, Daang Hari-South Luzon Expressway Link Road, South Luzon Expressway Extension Project, and Southern Tagalog Arterial Road Project, among others, are being proposed for private sector financing.

In order to implement an integrated urban rail-based mass transport system, projects like the LRT Line 1 North Extension (closing the rail loop around Metro Manila) is being fast-tracked.

To provide efficient mass transportation, the government plans to increase capacities of existing railway lines through projects, like the MRT 3 Capacity Expansion, and existing rail facilities will be extended through LRT Line 2 East Extension to Masinag and the Line 1 South Extension Project.

To help decongest Metro Manila and spread development to the countryside, the government is working on the Northrail-Southrail Linkage Project, Phase 1 (extending from Caloocan to Alabang) and Phase 2 (from Alabang to Calamba, Laguna), North Rail Project Phase 1, Section 1 (from Caloocan to Malolos, Bulacan) and Section 2 (from Malolos to Clark, Pampanga), Mainline South Railway Project (the so-called Southrail) Phase IA (from Calamba to Lucena, Quezon), Phase 1B (from Lucena to Legaspi, Albay) and Phase II (the extension to Sorsogon).

Already completed is the third of an integrated roll-on, roll-off highway and vehicular ferry network that stretches from Southern Tagalog to Central Mindanao. The network reduces travel time by 17 hours to key cities, enhances the accessibility of the prime tourist destinations, and minimizes the handling expenses of goods.

The government is pushing the exploration and development of geothermal, wind, solar, hydro, tidal and biomass and increasing the use of alternative fuels like biodiesel, LPG and compressed national gas.

Energy independence

With the signing of Renewable Energy Act, the government seeks to achieve 60 percent self-sufficiency in energy by 2010. Renewable energy activities are prioritized and given incentives.

The Philippines remains the world’s second-largest producer of geothermal energy with installed power generation of 1.958 megawatts, boosted by geothermal contracts in Leyte, Batangas and Compostela Valley with a combined capacity of 100 megawatts of electricity.

The country’s installed hydropower capacity of 3,289 megawatts will be greatly increased with the operation of mini hydropower plants adding 13.5 megawatts.

The government is promoting the development and operation of ports, terminals, machineries and post-harvest facilities.

The Subic port expansion began in 2008. In Clark, the government is implementing an open skies cargo policy coordinating with logistics operators, like UPS and Asia Overnight, expanding cargo-handling facilities and upgrading the passenger terminal and facilities.

The Subic-Clark-Tarlac Expressway, a 94-kilometer highway between Clark and Subic, has been operating for a year to accelerate logistical mobility in the region.

The government will soon start to develop a 167-hectare prime property adjacent to the Diosdado Macapagal International Airport into the $1-billion Global Gateway Logistics City in Clark.

The project will be the first fully integrated master-planned center for airport and aviation-oriented operations and businesses in the Philippines. — Elmer C. Hernandez, Manila Times