Faster pace needed for infra

program
Philippine Daily Inquirer / 05:09 AM September 24, 2018

Two main economic issues confronting the Duterte administration today will define the
Philippine landscape for years to come.

The first and more urgent issue is the inflation rate, which currently stands at the
highest level in almost a decade.

Measures are being put in place to solve this problem, although the pain will surely be
felt by the people in the succeeding months.

The second issue — and arguably the more important one over the long term — is how
to grow the Philippine economy in a way that is equitable and sustainable.

Thankfully, the Duterte administration’s economic managers already have a template

for this in the form of the P9-trillion “Build, build, build” infrastructure program that
centers on 75 flagship projects identified by the National Economic and Development
Authority.

The problem is not that the program isn’t moving. There are many examples of long-
running projects that are slowly but surely coming online. But there is a growing
perception that it isn’t moving fast enough. And today, more than at any other time in
history, perception is reality.

According to the Neda timetable, 31 projects were originally scheduled for

groundbreaking this year. But with less than four months left before 2018 ends, only
seven have actually entered the construction phase. Eight are under review, and 60
remain in the development stage.

There is no doubt that Filipinos would be benefited more if the “Build, build, build”
program were to be made to move faster.
Finance Secretary Carlos Dominguez III earlier said there were some roadblocks to the
funding of these projects; he cited those that were set to be financed by official
development assistance from China but were stymied by a bureaucratic revamp.

If these roadblocks are slowing down the infrastructure program, the administration
should consider letting the private sector step in and fund the projects itself.

The biggest of these projects are commercially viable, anyway. It is true that funds
sourced from the private sector will be more expensive than government-to-government
loans, but the economic costs of delays are the most expensive of all.

Meanwhile, a substantial number of the infrastructure projects are bogged down by real
estate access issues, especially those involving new roadways and transportation
schemes that would have to pass through private property.

Right-of-way problems have historically been the Waterloo of big-ticket infrastructure

projects, with the government and private owners often taking years to negotiate a fair
price for the property in question, and sometimes years more in legal challenges in the
courts. And in the meantime, everyone suffers because of the delays.

This is one area where the administration can bring President Duterte’s vaunted iron
will into play. The resolution of right-of-way problems can be done easily and quickly
with the blessing of the President, who has a surplus of political capital and has used it
to address some of the stickiest economic issues in recent years, such as massive tax
evasion cases or the unpaid liabilities of the biggest businessmen in the country.

Indeed, Mr. Duterte won the presidency in 2016 due largely to public frustration over
the previous dispensation’s inability to deliver more substantial economic gains to a
wider portion of the Filipino populace.

The administration can correct this imbalance by redoubling its efforts toward getting
the “Build, build, build” program moving faster.

The benefits of accelerating the infrastructure program are quite evident: Millions of
direct and indirect jobs will be generated, which will support all kinds of allied
industries that will, in turn, put more money in the hands of more Filipinos. This money
will be spent to boost domestic demand and help the Philippines grow faster, not only
for the wealthy but for the entire spectrum of the local economy.

Read more: https://opinion.inquirer.net/116292/faster-pace-needed-infra-

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