The government is betting on big-ticket transport infrastructure projects to revitalize the domestic economy and create more jobs.
The Marcos administration committed to maintaining an annual spending on infrastructure of around 5 percent to 6 percent of the gross domestic product from 2023 to 2027. This is equivalent to about $20 billion to $40 billion per year.
Under the “Build-Better-More” program, the government identified 194 infrastructure flagship projects worth P8.3 trillion. The goal is to sustain economic growth, create more jobs and reduce poverty.
“The underlying logic to our infrastructure development is economic efficiency. We are opening up all gateways to mobilize goods and services at less cost and in less time and ultimately to drive the economy,” President Ferdinand Marcos Jr., said in his second State of the Nation Address.
Priority projects
Transportation Secretary Jaime Bautista committed to ramping up the construction of rail, maritime, road and aviation projects to provide socio-economic benefits to Filipinos.
“The department will speed up the momentum in completing more transport infrastructure projects aimed at moving people, products and services and trigger economic growth,” Bautista said.
Data showed that as of end-June 2023, the agency disbursed more than P43 billion covering payments for various priority transport infrastructure projects.
“The DOTr commits to further streamline its processes, work closely with other government agencies and contractors to ensure timely completion of portions of projects scheduled this year,” Bautista said.
Under the agency’s 2024 budget, a substantial portion of the proposed P214.3 billion will support the “Build Better More” program.
A total of P176.4 billion will be directed towards the DOTr’s public sector infrastructure budget, fostering high-impact transport projects approved by the NEDA board, including the North-South Commuter Railway System and the Metro Manila Subway Project Phase I under the Rail Transport Program; the Land Public Transportation Program; and the Aviation and Maritime Infrastructure Programs of the DOTr.
Railway projects
Bautisa said railway development is a priority of the agency. “Railway systems effectively address traffic congestion while providing increased passenger and freight capacity,” he said.
The DOTr chief said the government is looking for private investors in the PNR North Long-Haul Project that will link Metro Manila to Ilocos and Cagayan.
The North Long Haul project is an 800-kilometer inter-regional railway system in northern Luzon connecting the National Capital Region, Region 1, Region 2 and Region 3.
The project will include passenger railway stations, cargo terminals, maintenance depots, operations control centers, connectivity to seaports and transit-oriented developments. It is also envisioned to link strategic infrastructure such as Clark Freeport Zone, PuroPoint, Laoag International Airport, Port Irene and Lal-lo Airport.
Bautista said the agency also received an unsolicited proposal to build MRT 11, which would connect Caloocan City and Quezon City to San Jose de Monte City. The project would involve the construction of elevated structure from EDSA in Balintawak, Quezon City traversing Quirino Highway, Novaliches and Zabarte Road in North Caloocan City up to Barangay Gaya-gaya in San Jose del Monte.
A passenger transfer facility will be provided proximate to the EDSA-Balintawak station of LRT Line 1 and MRT 11 Balintawak station. The indicative cost of MRT 11 is about P81.79 billion.
Bautista said the agency received another unsolicited proposal to build the C5 MRT 10 project.
The project involves the design, construction, operation and maintenance of about 22.5 km. of mostly elevated light railway transit system consisting of 16 stations along Circumferential Road 5 connecting Ninoy Aquino Terminal Airport Terminal 3 in Paranaque City to Quezon City.
It would terminate at Commonwealth Ave. with possible interchange with MRT 7 at Tandang Sora Station and LRT Line 2 at Aurora Station. The indicative cost of MRT 10 is about P112.26 billion.
The other rail projects in the pipeline are a Skytrain to Fort Bonifacio, LRT 6 in Cavite, a Cebu monorail and the Metro Manila Urban Cable Car project.
The transport chief expects the public-private-partnership scheme to be a huge lift for ongoing railway projects such as the North-South Commuter Railway, Metro Manila Subway Project, MRT-7, LRT-1 Cavite Extension Project and South Long Haul Project.
Aviation projects
The DOTr’s aviation projects in the pipeline include the improvement of the Ninoy Aquino International Airport and adding airports in the Greater Metro Manila Area for possible PPP proponents such as in Clark, Bulacan and Sangley.
“We need additional airports to serve aviation requirements in Luzon. The Manila International Airport is very congested,” he said.
NAIA handles 42 million passengers, beyond its designed capacity of 32 million passengers a year.
The DOTr is also modernizing the Kalibo International Airport,Laoag International Airport, Tacloban Airport, New Zamboanga International Airport, Bukidnon Airport, New Dumaguete Airport Development Project and New Bohol Airport .
Budget constraints
The biggest obstacle to these projects is the fund sourcing, considering the strained national budget of the government after coming out of the pandemic.
That is why, Bautista said, the government is seeking the help of local and foreign investors in implementing these infrastructure projects.
“We have offered various infrastructure transport projects to international financial institutions, private investors and professional associations and industry groups,” he said.
Bautista cited the proposed privatization of the operations and management of the Ninoy Aquino International Airport and New Manila International Airport as an option for private sector investment.
“Other regional airports across the country are in the pipeline for privatization,” he said.
Bautista said the agency has a thick portfolio of major transport initiatives to keep the transportation department busy for the next five years and beyond.
“We believe that transportation is key to the post-pandemic national economic recovery efforts. A critical precondition for other sectors to quickly recover is a robust and well-established transport network,” he said.
