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Sunday, July 7, 2024

Accelerating infrastructure development

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“In 2018, JICA updated the figures, noting money lost due to traffic congestion had already reached P3.5 billion per day”

The Marcos Jr. administration is taking a big leap forward in accelerating the country’s economic growth and development with the implementation of 185 flagship projects all over the country under its P9.14-trillion Build Better More Program.

This is a major component of the Philippine Development Plan 2023-2028 that seeks to expand and upgrade the country’s infrastructure to backstop government efforts towards economic and social transformation.

Of the 185 flagship projects, 81 are financed through official development assistance, 51 through the General Appropriations Act, 45 through public-private partnerships and seven through hybrid financing modalities.

But the efficient implementation of vital infrastructure projects faces big hurdles, including red tape, a problem repeatedly cited by both foreign and local entrepreneurs as a deterrent to investing in the country.

It’s true we already have RA 9485, or the Anti-Red Tape Act of 2007, intended precisely to speed up transactions with government offices at various levels.

This was amended by RA 11032 which renamed the law as the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.

The new Executive Order complements both RA 9485 and RA 11032 but with a definite goal: to expedite the implementation of the 185 infrastructure flagship projects already approved by the National Economic and Development Authority.

Malacañang’s issuance of the EO follows closely a survey by Pulse Asia from March 6 to 10, 2024 showing that 56 percent of Filipinos cited complicated rules and regulations like red tape and changes in government policies and regulations as factors hindering the entry of foreign investment to the country.

But sustained infrastructure development requires a whole-of-government approach, not just intervention by the executive branch.

We’re glad the legislature is proactively helping the executive branch in this regard.

Up for consideration by the Senate is a bill that would require round-the-clock operations for government infrastructure projects to avoid wastage of funds and to maximize the benefits these projects will bring.

The 24/7 operations for infrastructure projects as proposed by Senate Bill 2716, also known as the Accelerated Infrastructure Delivery Act, would cover priority projects of the national government, local government units, and government-owned and controlled corporations.

If passed into law, the measure would speed up the construction, repair, and maintenance of roads and bridges.

The bill’s exploratory note wants the government to work tireless day and night to expedite the completion of critical infrastructure projects, reduce delays and meet the needs of intended beneficiaries.

Another benefit of the proposed law is that the country will not incur any more penalties and purchase construction materials at inflated prices due to delays.

The millions of pesos saved through this 24/7 operations policy can be reallocated to the government’s public services programs where they can make a big difference.

Contractors who implement the 24/7 working schedule will be given incentives.

Contractors and implementing agencies will be required to coordinate with each other in formulating an efficient schedule that is safe for workers.

:28The proposed law seeks to turn the Philippines into a leader in infrastructure development and highlight the country’s ability to innovate, adapt, and adjust with changing conditions.

A similar bill filed at the House of Representatives. House Bill 9666, or the proposed Accelerated Infrastructure Development Act of 2023, also seeks to require 24/7 operations for government infrastructure projects.

Under the proposed measure, implementing agencies would be tasked to ensure that suitable working schedules for workers would be adopted, with a minimum of three shifts in a day.

The House bill seeks to address the traffic congestion caused by infrastructure projects near or along major thoroughfares.

The country’s urban centers now face horrible traffic jams, sometimes exacerbated by ongoing construction projects.

Studies have given staggering estimates about how much income is lost due to Metro Manila’s traffic congestion.

In 2014, the Japan International Cooperation Agency said Metro Manila’s traffic jams were costing the Philippine economy P2.4 billion per day in potential income, which can balloon to P6 billion a day by 2030.

In 2018, JICA updated the figures, noting money lost due to traffic congestion had already reached P3.5 billion per day.

Closer collaboration between the executive and legislative branches is a welcome development as this would no doubt facilitate the infrastructure development crucial to long-term economic growth. (Email: ernhil@yahoo.com)

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