• ‘PH needs over $125B in infra investment’


    At HK roadshow, DOF chief urges PH integration into global markets

    The Philippines requires more than $125 billion in investment to build efficient infrastructure that would integrate the country into the global supply chains and cope adequately with the impact of climate change, the country’s Finance secretary said.

    “The Philippines is estimated to need at least $125 billion in infrastructure investments.

    My own estimate is that it’s more, because to be connected to the world, to be part of the global supply chains and tourist networks, you must have world-class infrastructure,” Finance Secretary Cesar Purisima said in a speech during the Philippine Infra and Public-Private Partnership Roadshow in Hong Kong last week. Copies of the speech were released to the media on Tuesday.

    Being an archipelago, the country needs ports, airports and other inland means of transport to be interconnected so that the movement of people and goods within the country becomes much more efficient than it is at present.

    “So again, this is something that we cannot avoid and therefore, I’d like to look at it not as a cost but as an investment in the future, an opportunity to drive further the growth of the country to an even higher level,” he said.

    The Department of Finance (DoF) chief also sees infrastructure as a growth driver for the economy, stressing that the country’s fiscal space is dedicated to its development not only to help the country catch up with its neighbors, but also to face the challenges posed by climate change.

    “If you look at climate change, it’s double edged. It’s a problem, but we like to look at it as an opportunity, to again leapfrog the infrastructure [development]of our country. Again, being a late mover, we can build better infrastructure,” he said.

    This year, the government is aiming to raise the share of infrastructure spending to gross domestic product (GDP) to 4 percent, before ramping it up further to 5 percent next year.

    The government had said it was on track toward meeting its goal of raising infrastructure investment to 5 percent by next year, having augmented its allocations for public works and communications under the proposed 2016 national budget.

    It said public works and communications infrastructure would be getting a total of P829.6 billion under the P3.002-trillion proposed budget.


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    1. Roralidrakkonis on

      Now how can we attract $125B of investmentments when the Noynoy administration has proven time and again that infrastructure investments invariably grind to a halt. Aquino signed about 50 PPP infra projects since his term started, and all that has been completed near the end of that term is four puny kilometers of the Daang Hari Expressway when the DPWH says we need 135km. Most of those other projects have not even reached the bidding stage. The NLEX-SLEX Connector Road that would have cut travel time between the two expressways from over one hour to a mere 20 minutes was ready to be bid out in a Swiss Challenge (a delay in itself) since 2010, but Aquino only approved it this year. And even with that approval new delays have come up, thanks to poor planning and coordination by the different government agencies involved. But instead of clearing all those delays, Aquino goes and signs NEW projects to improve his image in the popularity polls. No wonder the DBM says there is massive underspending. None of the infra projects are moving.

    2. That is showing how small mind this Cesar is. Either he does not know what he is talking about or he thinks only of barriotic infrastructure that lacks world class character. I made some simple calculations for world class airports in at least 20 locations and at least 30 high speed train systems traversing certain provinces with accompanying new townships in every train station and it has surpassed USD150 Billion already. For me, these will just be a fraction of the support infra for the military industrial complex I will create when I am president. The best part is that I know where to get all the money for these pursuits which all the other hopefuls lack – and we do not need foreign investments nor do we need to raise taxes to achieve these.

      • You are correct L.A., $125b is probably just enough to build world class highway to Isabela province from Manila.