POLICY ARTICLE ON

UPDATED 2017 TO 2022 PHILIPPINE DEVELOPMENT PLAN

FOR
ACCELERATING INFRASTRUCTURE DEVELOPMENT

Lucky Charles O. Almonia

MSDA Candidate
University of Southeastern Philippines
Asia Peopleworks/HXPT Philippines Inc.,
[email protected]

Gabrielle Franz P. Crucio

MSDA Candidate
University of Southeastern Philippines
Provincial Government of Davao de Oro – PPDO,
[email protected]

Charles Dave C. Salazar

MSDA Candidate
University of Southeastern Philippines
Department of Education - IGACOS,
[email protected]

Brayll B. Torrefiel
MSDA Candidate
University of Southeastern Philippines
Monark Equipment Corporation- Caterpillar,
[email protected]

May 2022
INTRODUCTION

President Rodrigo Roa Duterte issued an Executive Order No. 5 series of 2016, "Approving and
adopting the twenty-five-year long-term vision entitled AMBISYON NATIN 2040 as a guide for
development planning".

Ambisyon Natin 2040 represents the Filipino people's collective long-term vision and aspirations
for themselves and the country in the next 25 years.

"By 2040, the Philippines shall be a prosperous middle-class society where no one is poor. Our
peoples enjoy long and healthy lives, are smart and innovative, and live in a high-trust society."

It describes the kind of life that Filipinos want to live.

• Filipinos are firmly rooted: matatag

• Filipinos are comfortable: maginhawa
• Filipinos are secure: panatag

Under AmBisyon Natin 2040, this is the Vision of every Filipinos for SELF: That by 2040 we
will all enjoy a stable and comfortable lifestyle, secure in the knowledge that we have enough for
our daily needs and unexpected expenses, that we can plan and prepare for our and our children's
future. Our family lives together in a place of our own, and we have the freedom to go where we
desire, protected and enabled by a clean, efficient and fair government.

Figure 1. The PDP Framework

PHILIPPINE DEVELOPMENT PLAN (2017-2022):
ACCELERATING INFRASTRUCTURE DEVELOPMENT

Infrastructure deficiency has been described as the "Achilles' heel" of Philippine

progress. Based on statistics, from Ferdinand Marcos Sr. to Benigno Simeon Aquino III,
only an average of 2.6 percent of GDP was the country's infrastructure spending-to-Gross
Domestic Product (GDP) ratio.

During President Rodrigo Duterte's term, infrastructure spending was raised,

doubling the allocation from the immediate past administration. In his State of the Nation
Address in 2017, he announced the government's plan to make his entire term as the
"Golden Age of Infrastructure"; to build structures for mobility and connectivity
improvement. The Build! Build! Build! (BBB) Program is the core program of the Duterte
administration that paved the way for the “Golden age of infrastructure” in the Philippines.
(SCAD, 2021)

The Plan's infrastructure development program intends to promote poverty

reduction and inclusive growth in the Philippines. It will aid the performance of the
country's economic sectors and guarantee equal access to infrastructure services,
primarily as these affect the people's health, education, and housing. To achieve such,
the government will accelerate the provision of safe, efficient, dependable, economical,
and sustainable infrastructure.

The Build, Build, Build (BBB) Program progress confirms the government’s firm
resolve to strategically and decisively advance the Philippines’ infrastructure by
developing a robust pipeline of substantial capital investments, including the priority high-
impact projects and the execution of pioneering reforms.

However, the COVID-19 pandemic had brought unusual challenges is anticipated

to change the overall infrastructure development agenda. The resource necessities of the
pandemic response are expected to cut the financial wallet primarily allotted for the
investments portfolio and could decelerate progress and implementation of programs and
projects. On the other hand, the government is also keen in using BBB as an instrument
for socioeconomic recovery.

The reopening of activities under the Build, Build, Build (BBB) Program and the
continuous infrastructure investments are significant stimulants to the economy, and
assisting recovery with their potential multiplier effects on creating employment and
stimulating progress. In safeguarding business continuity, agglomeration economies
development, new urban centers development, essential government services
distribution, and shifting into the digital economy, the strengthening infrastructure is
instrumental. Thus, the government reevaluated its strategies and targets for the residual
plan period to guarantee that these remain apropose and attainable in a post-pandemic’s
new normal environment, and in order to achieve a safe, healthy and resilient Philippines.
The Philippine government will keep recognizant of the longer-term development goals
demanding primary interventions, despite fronting COVID-19 pandemic constraints.
A. ASSESSMENT AND CHALLENGES

Based on NEDA’s Updated 2017-2022 PDP, throughout the first half of Plan
implementation, frameworks, laws, and policies were presented for various infrastructure
sub-sectors:

a. National Transport Policy (NTP) and its implementing rules and regulations (IRR);
b. streamlining of regulatory procedures for energy projects;
c. formulation of the framework for use of energy-efficient technologies;
d. enactment of the means to lower electricity costs;
e. adoption of the framework for the Public School of the Future;
f. Philippine Health Facility Development Plan to guide and ensure the rational
allocation of investments for public health facilities, upgrading and development,
including the Health Facilities Enhancement Program; and
g. government-initiated investments in the improvement of the digital infrastructure
through the National Broadband Program.

The COVID-19 pandemic has set-out pressing challenges to supply mobilization and
implementation of the BBB Program, mainly in terms of:

a. availability of fiscal space for the target infrastructure program;

b. conceivable delays in project preparation, procurement, and/or implementation
due to disruption of work of contractors, professionals/experts/engineers, and
workers/laborers involved in the projects;
c. possible interruption of importation of construction materials due to disruption to
labor and materials supply; and
d. change in demand for infrastructure services, which could affect the financial
viability and therefore appetite of investors, particularly in public-private
partnership (PPP) projects. In addition, increase in costs of infrastructure projects
may be expected due to requirements for social distancing and other health
precautionary measures and protocols.

The government will have to continue and scale up efforts, in the midst of the
pandemic and transitioning to the “new normal” challenges, to address growing demand
for infrastructure, such as health and water facilities, which have been and continue to be
critical in the fight against COVID-19, road right-of-way matters, deficiency of updated
and integrated infrastructure data, and regulatory environment issues. At the same time,
the balance of the reform agenda will still be tracked — development of an apex body for
water resources and an independent economic regulator for water supply and sanitation;
and amendments to the National Economic and Development Authority (NEDA) Joint
Venture (JV) Guidelines
B. TARGET AND STRATEGIES

The Philippine Development Plan aims for fiscal year 2020-2022 were resurfaced
and updated considering infrastructure development, as a key strategy to stimulate
progress in the economy and with the strong acknowledgment that each sector of the
economy essentially necessitates infrastructure arising from the COVID-19 pandemic
and shifting more into and resiliency and recovery.

Figure 2. Strategic Framework to Accelerate Infrastructure Development

The Philippine government will prioritize the continuous recommencement of the

BBB Program, which is envisioned as a key component in taking the necessary push
to aid the country recover from the COVID-19. Herewith, the key strategies aimed at
accelerating infrastructure development have been updated as:
a. re-program activities and projects for the new normal;
b. implement strategic infrastructure for various infrastructure subsectors;
c. ensure asset preservation; and
d. intensify infrastructure-related research and development (R&D) on
technologies, including monitoring and evaluation of critical outcome
indicators.

Acknowledging the limited resources in 2020, the government was restrained in

the deployment and implementation of the infrastructure program. However, the
deployment of infrastructure projects is expected to commence in 2021.

Sustaining operations and accelerating infrastructure development:

• Re-programming activities and projects for the new normal

o Invest in necessary infrastructure under the new normal.
o Pursue PPPs in infrastructure development.
o Continue to push for reforms and convergence programs.
• Implementing strategic infrastructure under the new normal in the following
areas:

o Transport
 Enforce the NTP and strengthen it through legislation.
 Adopt an integrated approach to transport planning, in line with the
NTP and the National Spatial Strategy (NSS).
 Develop an efficient and resilient national supply chain network
system
 Ensure the upkeep of existing infrastructure while expanding the
transport network.
 Ensure the universal accessibility of transport facilities.

o Land-based Transport
 Prioritize mobility of people and goods over private vehicles by
improving land-based transport networks through engineering,
enforcement, and education.
 Sustain the expansion and enhancement of strategic corridors.
 Decongest local and national transport corridors.
 Expand the rail network and other mass transit systems and ensure
their accessibility, affordability, convenience, and reliability.

o Air Transport
 Improve the operational efficiency of airports and address constraints
to optimal capacity utilization.
 Implement an optimal airport system strategy to expand airport
capacities at a pace with growing demand.
 Support the role of airports in spurring local tourism development and
new growth centers.
 Strengthen and rationalize air transport regulations, policies, and
protocols and modernize facilities to enhance air passenger
experience.
 Consider environmental impacts of airport operations.

o Maritime Transport
 Improve port facilities to ensure that inter-island shipping, including a
stronger roll-on/roll-off (RORO) network, will remain a viable option for
transporting people and cargo.
 Sustain the optimal utilization of existing and additional port
capacities.
 Promote maritime transport as an alternative sustainable mode.
 Implement the Maritime Industry Development Plan (MIDP).

o Safety and Security

 Adopt a universally-accepted security structure to improve safety and
security of the public transport system.
 Strictly implement road safety measures.
 Mainstream risk-based health protocols at the country’s gateways.
o Water Resources
 Pursue water supply and sanitation (WSS) policies, plans, and
programs in accordance with the key reform agenda identified in the
Philippine Water Supply and Sanitation Master Plan (PWSSMP).
 Pursue initiatives on attaining water security.
 Adopt a common/unified framework for resource allocation for WSS
and review the National Sewerage and Septage Management
Program (NSSMP) to accelerate the provision of WSS services.
 Optimize funds for irrigation development and strengthen technical
capacities for the development and maintenance of irrigation facilities
guided by the National Irrigation Master Plan (NIMP).
 Improve coordination between flood management efforts and
undertakings in other sectors.

o Energy
 Integrate and enhance the energy plans.
 Implement policy reforms to promote competition and encourage
investment in the energy sector.
 Expedite the implementation of remaining policy mechanisms under
the Renewable Energy Act of 2008 (RA 9513) to further encourage
RE development in the country.
 Continue to develop transmission and distribution facilities, and
projects that will transmit electricity efficiently to various load centers
and interconnect the entire grid and other areas.
 Ensure timely implementation of electrification programs, especially
for remaining unelectrified off-grid islands, geographically-isolated
and depressed areas, and last-mile communities.
 Promote the utilization of alternative fuels and new advanced energy
technologies to diversify the country’s energy resources and mitigate
the adverse impact of energy use on the environment.
 Implement the Energy Efficiency and Conservation (EE&C) Act (RA
11285) and the Energy Efficiency and Conservation Roadmap.
 Encourage investments in the upstream energy sector.
 Pursue the development of the natural gas industry.
 Pursue the establishment of a strategic petroleum reserve.
 Adoption of the Energy Resiliency Policy.

o ICT Infrastructure
 Fast-track the government’s digital connectivity program.
 Pursue ICT policy reforms to support the digital connectivity agenda.
o Social Infrastructure
As a primary in the provision of adequate basic social services to
attain the human capital development goals of the country, the
implementation of social infrastructure projects will have to be elevated to
catch up for the sluggish progress in the first three years of the Plan
implementation.

Significantly, with the national government, LGUs must also be

able to elevate the establishment of decentralized social services,
including education, health, and sanitation.

 Education
Prioritize alternative learning platforms for formal education.

 Health
• Sustain strategic implementation of health facilities.
• Improve epidemiological and surveillance capacities for COVID-19
and other infectious diseases.

 Solid Waste Management

• Enhance technical and financial capacities of LGUs in
implementing solid waste management (SWM) initiatives in
compliance with the Ecological SWM Act of 2020 (RA 9003).

Protecting a clean and healthy environment

• Ensuring asset preservation

o Strengthen technical and financial capabilities for operations and
maintenance.
o Incorporate climate change adaptation and disaster resilience measures
and ensure the security of infrastructure facilities.
• Intensifying infrastructure-related R&D
o Improve the collection, management, and utilization of infrastructure data
across all subsectors for planning, programming, and policy-making.
C. LEGISLATIVE AGENDA

In achieving the desired plan for infrastructure development, the proposed agenda
is as follows:

Legislative Agenda Rationale

Transport

Enactment of the This aims to help achieve a safe, secure, efficient, competitive,
National Transport dependable, integrated, environmentally sustainable, and people-
Policy (NTP) oriented Philippine transportation system by setting forth policies
that will serve as boundary conditions to guide all entities involved
in the transportation sector in the exercise of their functions.
This policy will provide the parameters for planning at the agency
level, e.g., the formulation of the Philippine Transport System
Master Plan. The NTP was adopted by the NEDA Board on
September 12, 2017 and its IRR was approved by the INFRACOM
on December 14, 2018.

The proposed law is for filing/endorsement to the 18th Congress.

Enactment of a law This will address the weak and fragmented institutional setup of
creating independent concerned transport agencies by creating respective independent
regulatory bodies for regulatory bodies for the railway sector and maritime transport
the railway and sector that is consistent with the NTP. The existing dual roles of
maritime transport some agencies acting as both operator and regulator of transport
sectors facilities will be effectively eliminated.

The bill is for the adoption of the NEDA Board and subsequent
filing/endorsement to the 18th Congress.

Enactment of a law This seeks to place all transport safety and security matters under
creating an a single independent body that will, among others, investigate
independent body for transport accidents and provide transport safety
transport safety and recommendations, thereby eliminating conflicting and overlapping
security functions of existing agencies or entities.

Various Senate Bills (SB) and House Bills (HB) pertaining to the
creation and establishment of a National Transportation Safety
Board were filed in the 18th Congress.

Enactment of a law This aims to shift the role of bicycles and other forms of non-
institutionalizing the motorized and active transportation, from being an “alternative
use of bicycles and mode” towards an institutionalized mode of transport that is
other active and integrated in the transportation network of the country. This will be
sustainable modes of done by providing the necessary infrastructure and support
transportation services, establishing safety and design standards, and increasing
public awareness on road safety and road sharing among
motorists, cyclists, and pedestrians.

Various SBs and HBs on the proposed measure were filed in the
18th Congress (SBs 66, 285, 319, 332, 948, and 1518, and HBs
1251, 1893, 2520, 4493, 5374, and 5435).
Water Resources
Enactment of a law The apex body will act as the lead agency to oversee/coordinate
creating an apex overall policy and project/program implementation to address the
body for the water weak and fragmented institutional set-up of the water resources
resources subsector; subsector.
and independent
economic or financial Meanwhile an independent economic regulator for the water supply
regulator for WSS and sanitation is envisioned to harmonize the regulatory practices,
processes, fees, and standards on water supply and sanitation
while addressing the overlapping functions or jurisdictions of
existing regulatory entities.

A substitute HB creating the Department of Water Resources

(DWR) and the Water Regulatory Commission (WRC) was jointly
approved by the HOR Committee on Government Reorganization
and Committee on Public Works and Highways on November 12,
2019. Said HB was likewise approved by the House Committee on
Appropriations on November 18, 2020.

Energy
Amendments to the The proposed amendments to the EPIRA aim to improve the
Electric Power implementation of the law’s provisions and enhance its
Industry Reform Act effectiveness to address high cost of electricity, alleged market
(RA 9136) collusion, and insufficient power supply.
The following relative draft bills were filed in 18th Congress: HBs
466, 469, 2339, 2784, 3802, 7059 and 7341.

Enactment of an This will provide an enabling legal and regulatory framework for the
enabling law for the natural gas industry to guide investments in the sector.
natural gas industry The bill has been filed in the 18th Congress as HB 3031.

ICT
Enactment of the This measure aims to lower the barriers to entry and allow
Open Access in Data participation of more diverse set of providers to compete in the
Transmission various segments of the data transmission industry.

Open access is envisioned to pave the way for promoting physical

infrastructure sharing among service providers and access
network segments based on fair, reasonable, and
nondiscriminatory terms.

The bills have already been filed in the 18th Congress as HBs 57,
4109, and 5341 and are currently pending with the Committee on
ICT.

Social Infrastructure
Amendments to the The proposed amendments aim to address the weak
Ecological Solid Waste administrative, organizational, and institutional dynamics of LGUs
Management (SWM) in implementing SWM programs or projects.
Act (RA 9003)
The proposed amendments, filed in the 18th Congress as HB 1598
and currently pending with the Committee on Ecology, include,
among others, the mandatory creation of a local environment and
natural resources offices and identification of dedicated focal SWM
units with corresponding organization structure, powers, and
functions.
CONCLUSION AND POLICY IMPLICATIONS

The Build! Build! Build! (BBB) Program was intended to convey substantial
developments in infrastructure growth in the Philippines to keep ahead of the fast
sprawling urbanization and population. Though, the BBB program has been affected by
difficulties that caused delays in project accomplishment which include the right-of-way
acquisition problems, deficiency of technological advancement, poor project groundwork
and identification and procurement difficulties, and many others.

The start of COVID-19 pandemic in 2020 which seized a substantial cost on the
global economy has not spared the Philippines’ Build, Build, Build Program. Aside from
the interruption in construction activities, fiscal pressures were loaded on the government
and its development partners’ capacity to increase financial funds and guarantee the up-
to-date accomplishment of these important infrastructure projects, prioritizing more
COVID-19 responses, including health and digital infrastructure. Not to mention the
insufficient capacity of key infrastructure agencies, substantial losses agonized by the
country’s huge businesses as an effect of the global health emergency similarly shed
reservations in numerous BBB projects for public-private partnership funding.

Aside from refining the actual provision of infrastructure, the Philippine

government should support and device reforms on policies that would guarantee a
conducive built environment for both public and private investments in the infrastructure
sector, especially in the post-pandemic age. Critical to these reforms is the enactment of
the Public-Private Partnership Act, the National Transport Policy, the Amendments to the
Right-of-Way Law, and the Sustainable Transportation Act.(CPBRD, 2020)

REFERENCES

National Economic and Development Authority. 2021. Updated Philippine Development Plan
2017-2022, https://pdp.neda.gov.ph/updated-pdp-2017-2022/

SCAD (2021, May 31, 2022). "BUILD BUILD BUILD PROJECTS." from https://scad.gov.ph/build-
buildbuild/#:~:text=The%20Build!,Build!,heel%E2%80%9D%20of%20Philippine%20eco
nomic%20development.

CPBRD (2020). "The New Build! Build! Build! (BBB) Program: Risks, Challenges and Policy
Options." Retrieved 2020-2, from
https://cpbrd.congress.gov.ph/images/PDF%20Attachments/CPBRD%20Notes/CN202
0-02_BBB_Revised.pdf.