THE lack of infrastructure has always been one of the weak spots of the Aquino administration and, with the Philippine economy expanding at rates that the country’s current facilities could no longer accommodate, the government had vowed to be more aggressive in pushing key infrastructure deals out of its rich pipeline of projects.
Signs of overheating are discernible with the congestion of major arteries, aviation hubs and seaports, not to mention a looming energy crisis by summer of next year.
To address these, the government has been rolling out key infrastructure deals and drumming up support from the private sector to aid the government in plugging the holes in the country’s infrastructure.
Through mid-2015, the government aims to auction off 17 public-private partnership (PPP) deals amounting to roughly P553 billion, the bulk of which, or 13 projects, will be under the Department of Transportation and Communications (DOTC).
A document from the Public Private Partnership Center showed that at least P463.2 billion worth of contracts involving rail-, air- and sea- transport developments will be auctioned off by June 2015.
Listed in the document are the auctions for the operations and maintenance, and the development of a number of aviation hubs, such as the Panglao Airport (P2.3 billion); Laguindingan Airport (P15.9 billion); Puerto Princesa Airport (P5.2 billion); Davao Airport (P40.6 billion); Bacolod Airport (P20.3 billion); and Iloilo Airport (P30.4 billion).
All of these air hub deals are still awaiting the approval of the National Economic and Development Authority (Neda) Board, which is chaired by President Aquino.
In the rail sector, the government has started the bidding for the operations and maintenance of the Light Rail Transit (LRT) Line 2, which runs from Santolan in Pasig to Recto in Manila. The winning concessionaire will also run the extension of the line to Masinag in Antipolo, which is expected to be completed by the time President Aquino bows out from office in 2016.
The agency is currently reviewing the draft feasibility study of the LRT Line 1 Dasmariñas Extension whose indicative cost has yet to be formally announced.
The DOTC, according to the document, is also nearing the completion of the feasibility study for the P176.7-billion North-South Commuter Railway, which is an 89.7-kilometer mass-transport system that will run along the tracks of the dilapidated Philippine National Railways.
Also, the department is also set to complete the feasibility study of the P135-billion Mass Transit Loop, a 12-kilometer underground railway that will link the central business districts of the cities of Makati, Pasay and Taguig.
The study on the possibility of setting up a ferry system along network of the Manila Bay, Pasig River, and the Laguna Lake is also nearing completion.
The approval of the Neda Board is also being sought for the P19.3-billion Motor Vehicle Inspection System deal, and the P17.5-billion development of the Davao Sasa Port.
The port is being eyed as a regional hub come the integration of the economies of the Asean nations next year.
Transportation Secretary Joseph Emilio A. Abaya said that some of these projects are part of his office’s 34 priority ventures for 2014.
Included on the list are the redevelopment of the Ninoy Aquino International Airport (Naia) and the auction for its operations and maintenance, the P62.7-billion Metro Rail Transit (MRT) Line 7, the three terminals of the P7.7-billion Integrated Transport System, and the P10.62-billion Cebu Bus Rapid Transit System, among others.
All these ventures are aimed at reducing the cost of transportation in the country by 8.5 percent.
To do this, Abaya said that the State intends to increase urban mass-transport ridership from 1.2 million to 2.2 million by 2016, amid the development of intermodal facilities.
The government also aims to lessen logistics costs to 15 percent from 23 percent by improving transport linkages and efficiency.
“All these infrastructure that we’re doing such as the reforms in shipping, making airports jet-capable and night-rated, containerizing port operations that would further bring down logistics cost, as well as the Transport Dream Plan that will address congestion in Metro Manila—everything that we’re doing in DOTC contributes to that,” Abaya said, referring to the lowering of transport and logistics costs.
Currently, the government is rolling out a transportation dream plan that costs about P4.76 trillion through 2030. The road map was laid out by the Japan International Cooperation Agency, who said around P539 billion must be invested in traffic infrastructure beginning 2014 up to 2016, and another P1.52 trillion must be invested from 2017 to 2022. The biggest investment requirement was seen in the period 2023 to 2030, costing at least P2.69 trillion.
These investments, the agency said, will translate to a reduction in transport fares and reduced travel time, resulting in gains and savings.
If the measures laid out by the Japanese consultants were not realized, the country is set to lose some P6 billion a day in productivity losses. Currently, the Philippines is said to be losing some P2.4 billion daily due to the gridlock around the country’s major arteries.
Some of the proposals in the road map are currently being undertaken by the private sector and the State under the Aquino administration’s key infrastructure thrust.
So far, the government has awarded eight PPP deals since the flagship infrastructure program was launched in 2010, involving: the P2.01-billion Daang Hari-South Luzon Expressway; the P16.42-billion first phase of the PPP School Infrastructure Program (PSIP); the P15.68-billion Ninoy Aquino International Airport Expressway; the P3.86-billion PSIP Phase II; P5.69-billion Modernization of the Philippine Orthopedic Center; the P17.5-billion Mactan Cebu International Airport New Passenger Terminal; the P1.72-billion Automatic Fare Collection System; and the P64.9-billion Light Rail Transit Line 1 Cavite Extension.