THE government’s “Build, Build, Build” infrastructure program could suffer delays as the construction sector is currently operating at full capacity, according to the Ateneo Center for Economic Research and Development (ACERD).
In an interview, ACERD Director Alvin P. Ang told the BusinessMirror that more than financing the Build, Build, Build infrastructure program, the current situation of the construction sector would not only delay projects, but also make them more expensive.
“There is a capacity problem—the capacity of firms to do these projects,” Ang said. “It’s not that there are no more contractors, but they are currently maxed out. That is what they are saying. Maybe that’s true because you can see it. You can try looking for a carpenter and you won’t find one.”
Despite this, the ACERD remained optimistic about the country’s growth prospects this year. The ACERD projected full-year GDP expansion to average 6.4 percent to 6.7 percent in 2018.
In the first quarter and third quarters, GDP growth could fall within the 6.3-percent to 6.6-
percent range.
In the second quarter, GDP growth could be anywhere between 6.5 percent to 6.7 percent. In the last quarter of the year, the increase may average 6.5 percent to 6.8 percent.
Inflation is expected to average slightly higher at 3.8 percent. This is mainly due to the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN). The Acerd estimates that the TRAIN will add 0.9 percentage points to inflation. Their base estimate for 2018 is 2.9 percent.
In a recent forum, the National Economic and Development Authority said the government will spend P4.82 trillion for 4,095 infrastructure projects, which are expected to create 6.27 million jobs, until 2022.
Last November the Department of Budget and Management (DBM) said the national government is open to the idea of importing workers if it means completing infrastructure projects on time.
Budget Secretary Benjamin E. Diokno told the BusinessMirror that his recommendation is merely “a last resort.”
However, Diokno said he is confident that, no matter the size of the infrastructure program, the government will have sufficient manpower to hire and complete megastructures.
Diokno said some 1.5 million Filipinos join the labor force every year, and this is partly due to the steep population growth in the country. He said that, as a nation, the country produces about 2 million babies a year.
Apart from the new entrants to the work force, he said overseas Filipino workers who would like to come home and work in the country can consider jobs in the government, construction sector or allied industries.