Local businessmen are disappointed over the slow movement of investments geared to modernize the country’s infrastructure, with just P31.77 billion worth of four projects out of the 37 identified under the Public-Private Partnership scheme.
Only a handful of projects from among the foreign projects generated by numerous state visits that started in 2016 are moving after gaining the nod of approving agencies.
The presidential visits resulted in several investment agreements amounting to $37 billion, official development assistance commitments of $18 billion and trade worth $4.3 billion as of June 2017.
“I think we should give the government at least until the first quarter of 2018. By then, contracted projects from China should be coming in,” said Philippine Chamber of Commerce and Industry chairman emeritus Francis Chua.
China and Japan were among the first to offer developmental programs on infrastructure, such as roads, bridges, seaport and airport improvements. The projects could come in as PPP, ODA or special projects.
The most advanced among the ODA projects are the two bridges set to be constructed in Pasig City to be undertaken by Chinese contractors.
Chua noted a seeming distrust on China-related projects, while none of the projects were contracted to Japanese companies.
“Once the Chinese projects have started rolling in, we hope that this culture of distrust for anything Chinese will soon dissipate,” he said.
The government, he added, wants to all projects, whether PPP or ODA, to be completed in the face of unexpected adversities.
As of September 15, 2017, only four PPP projects were approved and operational. These are the P2.23-billion Daang Hari-SLEX Link Road Project 2, the P9.89-billion PPP for School Infrastructure Project (PSPI) Phase I, P1.72-billion Automatic Fare Collection System and the P17.93-billion NAIA Expressway (Phase II) Project 4.
Under construction are the P3.86-billion PSIP phase II, P7.52 billion Mactan-Cebu International Airport Passenger Terminal Building, P37.43-billion Metro Manila Skyway (MMS) Stage 3 Project 6, P37.43-billion Metro Manila Skyway (MMS) Stage 3 Project 6, P2.5-billion Southwest Integrated Transport System (ITS), P62.7-billion LRT Line 7, P24.41-Bulacan Bulk Water Supply Project, and the P1.59-billion Civil Registry System Information Technology Project phase II.
Those under pre-construction stage include the P64.9-billion LRT Line 1 Cavite extension and O&M, P35.43-billion Cavite-Laguna Expressway, P5.2-billion South Integrated Transport System Project 9, and the P23.2-billion and NLEx-SLEx connector road.
PPP projects in the pipeline are the O&M of LRT Line-2, road transport IT infrastructure project, regional prison facilities, LRT line 6, Manila Bay Integrated Flood Control, Coastal Defense and Expressway, East-West Rail project, Clark International Airport expansion project;
New Nayong Pilipino at Entertainment City project, Philippine National Railways Commuter System Operation and Maintenance Component 10, Integrated Transport System-North Terminal Project, San Ramon Newport Project;
Cebu Bus Rapid Transit-system manager and operator contracts, Duty Free retail development project, One DTI building complex project, Motor Vehicle Inspection System Project, Clark International Airport Operations and Maintenance, Judiciary Infrastructure Development through PPP project;
Metro Manila Bus Rapid Transit-system manager and operator contracts, New Bohol (Panglao) Airport O&M, Bonifacio Global City-NAIA BRT Project and the National Broadband Plan-Accelerated Tower Build project.
“The counterpart funding for these projects, if there is any, had been allocated as a component of the Build Build Build program. Infrastructure spending may reach P9 trillion until 2022,” Chua said.
“By then, all businesses will be empowered by the benefits of modern infrastructure topped by a state-of-the-art digital infrastructure, as well,” he added.