The Philippine Government

Infrastructure Programs and Policies

Financing Infrastructure Connectivity for Economic Corridor Development Bangkok, Thailand

30-31 August 2017

Presented by:

Engr. PELITA V. GALVEZ Department of Public Works and Highways

The Republic of the Philippines

THE PHILIPPINES – at a Glance

• Philippines is compose of three (3) major islands, Luzon, Visayas and Mindanao

• An archipelago of more than 7107 islands

*POPCEN 2015

Official Name : REPUBLIC OF THE PHILIPPINES

Capital : MANILA

Population : 100.981 Million*

Official Language : FILIPINO/TAGALOG and ENGLISH

Government : DEMOCRATIC REPUBLIC

Climate : TROPICAL. WEATHER IS DRY FROM NOVEMBER TO JUNE AND WET FROM JULY TO OCTOBER

Currency : PHILIPPINE PESO

Philippines has more than 80 Major Language Group and more than 500 dialects

FACTS ABOUT THE PHILIPPINES

FACTS ABOUT THE PHILIPPINES

Roman Catholic 80.90%

Muslim 5.00%

Evangelical 2.80%

Iglesia ni Kristo 2.30% Aglipayan

2.00%

Other Christians 4.50%

Others 1.80%

Unspecified 0.60%

No Religion 0.10%

RELIGION COMPOSITION Total Land Area (sq. km) 311,031.00

Total Overall Road Network (km) 210,366.00

Total National Road Length (km) 32,770.00

ROAD NETWORK TOTAL

National Road 32,770

Primary 7,067

Secondary 14,148

Tertiary 11,555

Local Road 177,596

Provincial 30,151

Municipal 15,349

City 15,331

Barangay 116,765

TOTAL 210,366

THE PHILIPPINE ROAD NETWORK*

* National Road Inventory – 2016 Provincial and City Road Inventory as of 2015 Municipal and Barangay Road Inventory as of 1999

http://www.un.org/sustainabledevelopment/sustainable-development-goals/

The Life We Want

The Philippines is a prosperous middle class society where no one is poor. People live long and healthy lives and are smart and innovative.

The country is a high-trust society where families thrive in vibrant, culturally diverse, and resilient communities.

Source: www.neda.gov.ph

Matatag (Filipinos are strongly rooted)

Family is together

Time with friends

Work-life balance

Volunteering

Maginhawa (Filipinos are comfortable)

Free from hunger and poverty

Secure home ownership

Good transport facilities

Travel and vacation

Panatag (Filipinos are secure)

Enough resources for day-to-day needs,

unexpected expenses and savings

Peace and security

Long and healthy life

Comfortable retirement

Ambisyon Natin 2040- The life of all Filipinos in 2040

Matatag, Maginhawa at Panatag na Buhay By 2040, Filipinos enjoy a strongly rooted, comfortable, and secure life.

Growth in gross domestic product (GDP) is expected to strengthen at 7 to 8 percent. Growth will be more inclusive as manifested by a lower poverty from 21.6 percent in 2015 to 14.0 percent in 2022. Unemployment rate will decline from the current 5.5 percent to 3-5 percent in 2022. Greater trust in government and in society. Individuals and communities will be more resilient. Filipinos will have greater drive for innovation.

Source: pdp.neda.gov.ph

2017-2022 Philippine Development Plan Strategic Framework

2017-2022 Philippine Development Plan Strategic Framework

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Quality of Roads (World Economic Forum):

Bottlenecks and Constraints

National Road Inventory – 2016 Provincial and City Road Inventory as of 2015 Municipal and Barangay Road Inventory as of 1999

311,031.00 Total Land Area (sq. km)

210,366.00 Total Overall Road Network (km)

32,770.00 Total National Road Length (km)

0.68 Road Density (km/ sq. km)

0.20 Paved Road Density (km/ sq. km)

0.30 Overall Paved Road Ratio

0.92 Paved Road Ratio for National Roads

ROAD NETWORK TOTAL PAVED (km) % OF PAVED

National Road 32,770 30,010 91.58%

Primary 7,067 7,066 99.99%

Secondary 14,148 13,088 92.51%

Tertiary 11,555 9,856 85.30%

Local Road 177,596 33,479 18.85%

Provincial 30,151 10,703 35.50%

Municipal 15,349 5,375 35.02%

City 15,331 9,458 61.69%

Barangay 116,765 7,943 6.80%

TOTAL 210,366 63,489 30.18%

TOTAL PERMANENT % PERMANENT

NO. LENGTH (lm) NO. LENGTH (lm) NO. LENGTH (lm)

National Bridges 8,161 364,162 8,079 361,390 99.0% 99.24%

Bottlenecks and Constraints

Poor Intermodal

Access

Poor Linkages between

National and Local roads

Archipelagic Geography

Concentration of Economic drivers in NCR, Regions

III & IV-A

Poor Logistics Road Linkage of Industry and

Trade

Inequitable access to

opportunities

Imbalanced Distribution

Calamities/ Disasters

Planning Prioritization and Criteria for Road

Linkage of Industry and Trade

BPO

Construction

Tourism

Manufacturing or Trade

Real Estate

No seamless & integrated

connectivity

Problem Map of Logistics Linkages

Bottlenecks and Constraints

Source: Philippine Statistics Authority

The Need for Geographically-Balanced Growth: Promotion of Regional Growth

Bottlenecks and Constraints

Metro Manila is already congested, by international standards

Country Total Surface Area

(km^2) Population (2014)

Population Density (People per km^2)

Brunei 5,770 0.4 72

Cambodia 181,040 15.3 85

Indonesia 1,910,930 254.4 133

Lao PDR 236,800 6.7 28

Malaysia 330,800 29.9 90

Myanmar 676,590 53.4 79

Philippines 300,000 99.1 330

Singapore 717 5.4 7,629

Thailand 513,120 67.7 132

Viet Nam 330,972 90.7 274

METRO MANILA 619 12.8 20,663

~20.0 Day-time population

~32,300

Source: World Bank Database, Day-time Population is an estimate, based on various sources

More areas for development outside Metro Manila

Region Population (2014) Land Area Population Density Per Capita GDP (in $)

Growth rate of Pop

Density NCR 12.8 619 20,663 8,235 1.90% CAR 1.7 19,611 89 2,987 1.80% I 5.0 12,974 386 1,755 1.30% II 3.4 28,265 121 1,539 1.50% III 11.0 22,015 501 2,344 2.00% IVA 14.2 16,644 853 3,196 2.90% IVB 2.9 29,621 99 1,623 1.70% V 5.8 18,139 318 1,031 1.50% VI 7.5 20,794 362 1,504 1.40% VII 7.3 15,886 462 2,554 1.80% VIII 4.3 23,254 187 1,344 1.40% IX 3.7 17,047 215 1,578 1.80% X 4.7 20,496 227 2,348 2.00% XI 4.8 20,357 237 2,421 1.90% XII 4.5 22,437 202 1,749 2.30% XIII 2.6 21,413 121 1,350 1.60% ARMM 3.5 33,511 104 689 1.60%

Source: Comprehensive National Industrial Strategy, Department of Trade and Industry – Board of Investment (2016)

Manifestation of Transport Infrastructure Sector Gaps in the Philippines

• PhP 2.64 billion per day (in 2016 Prices) economic cost of congestion in Metro Manila alone

• Lack of reliable and convenient public and high capacity mass transport options

• Poor Road Network Quality

• Congestion in the existing Railways

• Air traffic congestion among the major airports

• Inefficiencies in port operations

0. Peace and order.

1. Continue and maintain current macroeconomic policies, including fiscal, monetary, and trade policies.

6. Ensure security of land tenure to encourage investments, and address bottlenecks in land management and titling agencies.

2. Institute progressive tax reform and more effective tax collection, indexing taxes to inflation.

7. Invest in human capital development, including health and education systems.

3. Increase competitiveness and the ease of doing business, to draw upon successful models used to attract business to local cities.

8. Promote science, technology, and the creative arts to enhance innovation and creative capacity.

4. Accelerate annual infrastructure spending to account for 5% of GDP, with Public-Private Partnerships playing a key role.

9. Improve social protection programs, including the government’s Conditional Cash Transfer program.

5. Promote rural and value chain development toward increasing agricultural and rural enterprise productivity and rural tourism.

10. Strengthen implementation of the Responsible Parenthood and Reproductive Health Law.

SOURCE: www.build.org.ph

GOLDEN AGE OF INFRASTRUCTURE

P8-9 Trillion ($160-180 Billion)

(FY 2017-FY 2022)

Formulate/update and implement critical master plans/roadmaps that support

connectivity in order to spur development across the country

Ensure and monitor shovel-ready list of priority infrastructure investments

Improve capacities of implementing agencies in project development and

management, including project preparation, ROW acquisition planning, asset

management

Increase expenditure efficiency by enhancing the linkage of the planning,

programming and budgeting processes

Endeavour to optimize the utilization of funds allocated for infrastructure

development

Adopt 24/7 work schedule on major infrastructure projects

Close the infrastructure gap particularly in far-flung areas to ensure equitable

access to infrastructure services, even out social opportunities, and raise

overall living standards

Intensify research and development (R&D) efforts

Priority Strategies (Cross-cutting)

Enhancing quality of road network at the national and sub-national

levels;

Expanding rail network in Luzon and build rail systems in Visayas

and Mindanao;

Strengthening RoRo network and build inter-island bridges; and

Upgrading airports and ports to international standards.

Formulate and implement master plans for transport: Philippine

Transportation Systems Master Plan and Updated High Standard

Highway (HSH) Masterplan

Continue and expand convergence programs to provide access

to tourism areas, industrial and manufacturing hubs and agro-aqua

industries

Priority Strategies (Transportation Sector)

Traffic Decongestion Program Construct High Standard Highways/ Expressways;

Construct / widen national roads and bridges;

Construct by-pass/diversion roads;

Construct flyovers; interchanges and underpasses

Integrated and Seamless Transport System Construct/improve logistics infrastructure network in Northern Mindanao, Davao, SOCSARGEN and CARAGA (Mindanao Infrastructure Logistics Network);

Construct/improve roads leading to growth corridors in Western Mindanao;

Study and implement Inter-island linkage projects through long-span bridges;

Connect gaps along national roads;

Construct/replace bridges;

Initiate studies on tunneling technology

DPWH STRATEGIC INFRASTRUCTURE PROGRAMS AND POLICIES

Public-Private Partnership Program

Augment and complement Locally-Funded and Foreign-Assisted projects;

Construct High-Standard Highway Network based on Master Plan and Technical Studies.

Convergence and Rural Road Development Program Construct/upgrade local access roads to designated tourism destinations,

RORO ports / seaports and airports; Construct Farm to Market Roads (FMRs);

Construct/improve roads leading to industrial trade corridors.

DPWH STRATEGIC INFRASTRUCTURE PROGRAMS AND POLICIES

DOT-DPWH Convergence Program (Tourism Road Infrastructure Program, TRIP)

DTI-DPWH Convergence Program (Roads Leveraging Linkages of Industry and Trade (ROLL IT) Program)

DOTr-DPWH Convergence Program

DPWH STRATEGIC INFRASTRUCTURE PROGRAMS AND POLICIES

Livable, Sustainable and Resilient Communities

Integrated Water Resources Management Program (Construct/rehabilitate flood mitigation structures along major river basins and principal rivers; Construct water impounding projects to optimize water resources; Construct water supply/septage & sewerage/rain collectors; Upgrade/improve drainage capacity)

Disaster Risk Reduction and Climate Change Adaptation Program (Rehabilitate, retrofit and strengthen existing bridges; Provide safe access to highly vulnerable areas; Improve national roads vulnerable to flooding, landslide and slope failure; Build evacuation centers; Upgrade quality standards)

Infrastructure Support for Marginalized Sectors (Construct support facilities for marginalized sectors (senior citizens, physically challenged persons, women sector, etc.)

Create Environment-Friendly Communities (Build more bike lanes and pedestrian infrastructure.)

TRAFFIC DECONGESTION PROGRAM

Luzon Spine Expressway Network From 385 km to 1,040 km High Standard Highways in Luzon. La Union to Bicol in 8 hours and 15 minutes.

INTEGRATED AND SEAMLESS TRANSPORT SYSTEM

Inter-Island Linkage Project

MINDORO-BATANGAS SUPER BRIDGE, 15km

PANAY-GUIMARAS-NEGROS LINK BRIDGE, 19.2 km

CEBU-NEGROS LINK BRIDGE, 7km

PANGUIL BAY BRIDGE, 3.5km

GUICAM BRIDGE, 0.4km

LEYTE-SURIGAO LINK BRIDGE, 23km

BOHOL-LEYTE LINK BRIDGE, 35km

CEBU-BOHOL LINK BRIDGE, 27.5km

CAMARINES-CATANDUANES FRIENDSHIP BRIDGE, 10.7km

LUZON-SAMAR LINK BRIDGE, 25.4km

ON-GOING

START: 2015

COMPLETION: 2019

MINDANAO LOGISTICS INFRASTRUCTURE NETWORK (MLIN) Improvement / upgrading of 2,567 km road network in Mindanao

IMPROVING GROWTH CORRIDORS IN MINDANAO ROAD PROJECT Construction/Improvement of 277 km road network in Western Mindanao

COMING SOON

START: 2018

COMPLETION: 2022

Total Length: 276.50 kilometers

It will facilitate the economic development of Region IX and of Mindanao as a whole, while improving connectivity on international trade corridors.

It will transform the quality and connectivity of Western Mindanao’s road network.

It will improve security in conflict-affected areas and act as a catalyst for complementary public and private investment.

It will include construction of a number of missing links of the country’s national roads, providing more direct routes and opening areas for development.

IMPROVING GROWTH CORRIDORS IN MINDANAO ROAD PROJECT Construction/Improvement of 277 km road network in Western Mindanao

CONVERGENCE AND RURAL ROAD DEVELOPMENT PROGRAM

Agency Convergence Program

Department of

Tourism, DOT

Enhance access to tourism gateways, service

centers and tourism sites in support of the

development of the Tourism Clusters in the

National Tourism Development Plan (NTDP).

Department of

Transportation,

DOTr

Construct/upgrade access roads to RORO

ports/seaports and airports.

Department of Trade

and Industry, DTI

Construct/improve roads leading to

manufacturing, industries & trade corridors under

the Roads Leveraging Linkages of Industry and

Trade (ROLL IT) Program.

Department of

Agriculture, DA

Construct Farm to Market Roads in support to the

Agri-Infrastructure program.

Department of

Education, DepED

Implement school building program.

Convergence and Rural Road Development Program:

34

Cluster Approach

Defined a logical and spatial framework by:

- Linked to one or more gateways

- Interdependence between TDAs

- Range of destination offerings

National Tourism Development Plan

(NTDP) Framework

DOT-DPWH CONVERGENCE PROGRAM

Tourism Road Infrastructure Program (TRIP)

2016 - 2022

35

Physical Framework Trade and Industry Road Linkages

DTI-DPWH CONVERGENCE PROGRAM

Roads Leveraging Linkages of Industry and Trade (ROLL IT) Program

Industry 1. Electronic manufacturing services (auto electronics,

medical devices, telecommunication equipment, power storage, civil aviation/aerospace) and Semiconductor manufacturing service: IC design

2. Automotive and auto parts 3. Aerospace parts 4. Chemicals 5. Shipbuilding; RORO as well as small- and medium-sized

vessels 6. Furniture and Garments (manufacturing and design) 7. Tool and die 8. Agri-business: Food and resource-based processing (cacao,

coffee, mangoes, bananas, coconut, rubber, bamboo, fruits and nuts, palm oil, and other higher value crops)

Services 1. IT-BPM: Higher earning and more complex non-voice

services BPO, and Knowledge Process Outsourcing (KPO) segments in medical, financial, and legal services; game development; engineering design in manufacturing, software development and shared services.

2. Transport and Logistics 3. Tourism 4. Construction

DTI’s Priority Industries

36

Inventory of DPWH Programs

The following are the current programs of the Department that upgrade roads that support particular development

objectives. These programs do not distinguish national from local roads. These include the following:

1. Mindanao Logistics Infrastructure Network (MLIN)

2. Tourism Road Infrastructure Program (TRIP); 3. Access Roads to Ports

4. Access Roads to Airports 5. Access Roads to Trades, Industries and Ecozones;

6. High Standard Highway Master Plan (HSH-MP) which includes the By-Passes Program and Diversion Roads;

7. Payapa at Masaganang Pamayanan Program (PAMANA); and 8. Network Development for addressing missing gaps

National Budget Subsidy for Local Roads (Outside DPWH)

Provincial roads:

Supported by the DBM and the DILG through direct funding through the Konkreto at Ayos na Lansangan ang

Daan Tungo sa Pangkahalatang Kaunlaran (KALSADA) Program.

Municipal and barangay levels:

Bottom-Up Budgeting (BuB) Farm-to-Market Roads Program

Philippine Rural Development Program

The Challenge:

• How will the Philippine Government absorb and utilize the projected increase in infrastructure budget to support faster, inclusive, and balanced growth?

• How to ensure that transport projects are strategically built and operated to complement each other within an interconnected network of multimodal systems?

THANK YOU!