The Philippines is known for its difficult traffic, lengthy commutes, under capacity in international airports, and port congestion. It falls behind many of its neighbors in infrastructure development.
The Duterte Administration's Build, Build, Build program, which was introduced in 2017 to solve the nation's infrastructure problems, would be continued under President Marcos Jr. The program's list of flagship projects includes 112 initiatives in the power and energy, water resources, ICT, health, and power and mobility sectors, with a total estimated worth of $88 billion. There are 76 transportation and mobility projects totaling roughly $81 billion on the list, with road, highway, expressway, and bridge projects accounting for nearly half of them. Other projects include those for rail, airports, BRT, subways, and ports. Infrastructure Flagship Projects - National Economic and Development Authority has a detailed list of all of the projects (neda.gov.ph).
Due to their low interest rates and lengthy repayment terms, projects associated with tied aid loans were preferred by the Duterte administration. In this field, Japan swiftly assumed the position of leader by snatching up the expensive rail projects. The Philippines also received concessional loans from the World Bank, the Asian Development Bank (ADB), and Korea for the flagship projects.
Only 12 of the 76 transportation and mobility projects are being or will be fully funded by government funding; the remaining 35 are being or will be entirely funded by development aid. Twenty out of the 24 Public-Private Partnership (PPP) initiatives are unsolicited ideas.
By June 2022, only 10% of the transportation and mobility projects had been finished, therefore there were still plenty of chances for American exporters in the transportation infrastructure market.
American businesses are urged to choose interesting projects, find out about them, decide how to get involved, and weigh the dangers. Due to the COVID-19 epidemic, project sponsors are still reviewing and revising uninvited PPP proposals, primarily for airport projects. It is anticipated that the Marcos Administration would update the list with new initiatives and delete those that they do not believe should receive priority. Many of the flagship list projects are not yet in the construction phase, therefore it is possible that they won't proceed.
Leading Subsectors Rail: The $3 billion North-South Commuter Railway Project (Philippine National Railway [PNR] North 1), the $12 billion North-South Commuter Railway Extension (PNR North 2 South Commuter Project), and the $7 billion Metro Manila Subway Project Phase 1 are projects that attracted significant U.S. interest at first. The subway project is being funded by the Japan International Cooperation Agency (JICA), and the rail projects are being funded by the ADB and JICA. For JICA-funded projects, U.S. companies are not permitted to be the principal contractor listed, however there are options for subcontracting and supply.
New Manila International Airport in Bulacan, a $14 billion greenfield PPP project with proposals for four parallel runways and a design capacity of up to 200 million people annually, is the country's largest airport project.
One of the most popular modes of transportation in the modern day is automotive travel, to the point where it has become ingrained in our way of life. Roadways are responsible for allowing people to access residential, commercial, and industrial properties via road transportation so they may carry out their daily activities and fulfill their basic needs.
The Philippines, in particular, has taken its time expanding and enhancing its meager network of expressways, but it has had some success.
A Rail Network's and Rail Transportation's Importance
A railway system is "a system running on metal rails and wheels," and it serves as "a system running on metal wheels," enabling economic growth because it transports goods and materials across regions and provides commute for people to travel. It is more than just a network for freight trains; it is a form of public transportation that transports large amounts of people and goods to-and-from specific areas within the country, making it "climate-smart and efficient."
Given that railways in the Philippines have the advantage of "moving more passengers in less space on a reliable time schedule at less expense," light rail lines are found in Metro Manila.
Project to Extend Light Rail Transit Line 1 (LRT-1)
The LRT-1, which is the first metro line of the Manila LRT system and runs between "Congressional Ave. in Quezon City and Baclaran in Paranaque city, is one of the noteworthy Philippine high speed railway systems. A recent extension project of the LRT-1 seeks to extend the railway line's reach from Baclaran to Bacoor city, Cavite.
This expansion project's other goals include easing traffic in the Paranaque-Las Pinas-Cavite corridor and promoting economic growth in the neighborhoods where the rail stations are located. Initially, the LRT-1 could accommodate 500,000 people, but the extension project will enable an increase to 800,000.
Market Possibilities
To finish the transportation infrastructure projects, a variety of goods and services are required, including construction supplies, tools, electrical and mechanical equipment, IT-related systems, and consultancy services. The Department of Transportation website has details on the contract packages for the rail projects and the successful bids.
The Department of Transportation is requesting P167.1 billion for 2023, an increase of 120.4% from its allocated amount for 2022.
President Ferdinand Marcos Jr. stated that the increase was intended to spur "economic change" and "propel the growth of the agriculture, trade, and tourism sectors" in his budget statement during the submission of the 2023 National Expenditure Program.
These are the areas where the majority of the DOTR's projected budget will be spent, according to the proposed budget for 2023 and Marcos' address to Congress.
- North-South Commuter Railway (P75.1 billion)
- Metro Manila Subway Project (P26.5 billion)
- LRT Line 1 Cavite Extension (P2.7 billion)
- PNR South Long Hail Project (P1.1 billion)
- EDSA Greenways Project (P0.77 billion)
- Cebu Bus Transit Project (P0.7 billion)
- EDSA Busway Project (P0.21 billion)
- Aviation Infrastructure Program (P2.5 billion)
- Farm-to-Market Roads Project (P13.1 billion)
- Philippine Rural Development Project (P4.2 billion)
- Sugarcane Industry Development Program (P500 million)
- Fuel Subsidies (P2.5 billion)