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TO KEEP
up with its Asian neighbors, the Philippines is
expediting various infrastructure projects and is trying
to increase its investments in road networks, highways,
rails, airports and seaports.
Speaking
before Tuesday’s launch of the 4th Ports and Shipping
Conference held in Manila, Department of Transportation
and Communications (DOTC) Secretary Leandro R. Mendoza
said the country’s logistics costs make up about a third
of the actual prices of goods, owing to the lack of
infrastructure which has dismayed industry stakeholders
for so long.
“Our
[the Philippines] infrastructure and capital outlay
performance vis-à-vis other Asian countries is lowest,
averaging 3.3 percent of our gross domestic product. We
view this as the main challenge,” Mendoza said. “With
massive infrastructure investments, the government hopes
to narrow the gap with its Asian neighbors and divert
sizable foreign investments from other more preferred
investment destinations in the region. With the trend
veering towards integrated logistics/door-to-door
delivery, the government will exert efforts to provide
seamless transport network spanning our entire
archipelagic nation.”
According to President Arroyo’s state of the nation
address delivered last year, government will spend P372
billion mainly for the Southern Tagalog Arterial Road
Project, the Subic-Clark Expressway, the Northrail and
Southrail Projects, among others.
However,
nearly half of the total funds will go to rail projects
such as the first phase of the North Luzon Railway
project which will link Manila and Subic Bay in Bataan
and Clarkfield in Pampanga. He said they expect the
project to take off by 2008. The department which
Mendoza heads is also rehabilitating the debt-saddled
Philippine National Railways, which links Manila and
southern Luzon.
Meanwhile, seaports and airports only take up some 17
percent of the total project cost, estimated at P64
billion. Most of the seaport projects will be carried
out by the Philippine Ports Authority, funds of which
will come from the state-owned firm’s coffers and not
from the national government.
Meanwhile, road infrastructure makes up 27 percent, or
about P102 billion of the total. |
