Construction industry blames red tape

Published by rudy Date posted on November 7, 2010

THE Philippine Constructors Association Inc. (PAC) called on the Aquino administration to expedite the approval of construction permits, delays in which helped bring down the country’s ranking in the latest Doing Business Report of the World Bank Group. Levy Espiritu, PCA president, said the construction industry has long been wanting to shorten the process of applying for construction permits.

He said it usually takes a month to get a construction permit.

PCA also wants the government to strengthen the Construction Industry Authority of the Philippines (CIAP), and to authorize the agency to accredit and give licenses to construction companies that have reputable track records.

Such ‘green lanes’ should also be put in place in local government units (LGUs), Espiritu said.

He said construction permit fees account for only two percent of their total cost, but dealing with red tape jacks this up by 30 percent.

The industry official said the government should also take the lead in infrastructure development by amending the Build-Operate-Transfer (BOT) Law and aligning it with the requirements of its public-private partnership (PPP) initiative.

Espiritu said the government should tweak the guidelines on right of way acquisition to speed up the process.

“Ongoing projects are not being completed on time because of right of way acquisition issues,” he said.

Espiritu said bidding out of projects should be on a solicited mode to ensure transparency and fair competition, as “unsolicited bids are open to graft and corruption.”

The local construction industry plans to ramp up activity next year in line with the government’s PPP initiative.

Espiritu said the P500-billion construction sector is projected to expand 8 percent this year, and by double-digits next year as the government starts rolling out its PPP projects.

He said the private sector, which comprises about 60 percent of construction activities in the country, is responsible for much of the current boom.

Earlier, the World Bank and its private-sector investment arm, the International Finance Corp. (IFC), said the Philippines has become less business-friendly for local firms mostly because of its poor score in terms of dealing with construction permits.

In their report titled “Doing Business 2011,” the multilateral lenders said the country’s ranking in terms of ease of doing business fell by two notches to 148th from the 146th last year.

The report surveyed 183 economies.

Out of the nine criteria used in the study to measure a country’s competitiveness, the Philippines scored poor in terms of dealing with construction permits at 156th place from last year’s 111th.

“The Philippines made construction permitting more cumbersome through updated electricity connection costs,” the report said.

The report said getting construction permits takes 26 procedures from last year’s 24 procedures, while the cost rose 778.5 percent of income per capita from only 81.7 percent previously.

The number of days in accomplishing the construction permits, however, improved to 169 days from 203.

The report said 57 percent of new construction in the Philippines is considered illegal. –DARWIN G. AMOJELAR SENIOR REPORTER, Manila Times

September 18 –
International Equal Pay Day

“Increase wages now,
more than other cost items.
For widespread, practical equality!”

Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the recommendations of the 2021 ILO Commission of Inquiry
against serious violations of protocols of
Forced Labour and Freedom of Association.

Accept the National Unity Government (NUG) 
of Myanmar.  Reject Military!

#WearMask #WashHands
#Report Corruption #SearchPosts #TakePicturesVideos

Time to support & empower survivors. Time to spark a global conversation. Time for #GenerationEquality to #orangetheworld!

October –

   

Monthly Observances:

Industry and Commerce Safety Month 

National Statistics Month 

Local Government Month 

Consumer Welfare Month 

Cooperative Month

National Quality and Productivity Improvement Month 

National Health and Wellness Tourism Month
National Indigenous Peoples Month

 

Weekly Observances:

Week 1: Elderly Filipino Week 

Week 2: National Health Education Week 

Local Government Week 

National Mental Health Week 

October 17-23:

National Week for Overcoming Extreme Poverty 

October 18 – 24:

United Nations Week 

Last Week:

Nurses’ Week 

Consumers’ Protection Week 

Week of the 4th Sunday:

Barrio Farmers’ Week

 

Daily Observances:

First Monday (Oct 4): Universal Children’s Day i
n the Philippines 

Oct 5: National Teachers’ Day 

Oct 10: Local Government Day 

Third Thursday (Oct 14): Conflict Resolution Day 

Oct 21: Tenants’ Emancipation day 

Oct 24: United Nations Day 

Oct 29: National Indigenous People’s Thanksgiving Day

Categories

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.