1 Chapter 19 2 Accelerating Infrastructure 3 Development 4 Midway into the Plan implementation, the country’s overall infrastructure development managed 5 to pull off a respectable performance as game-changing reforms across a broad range of 6 infrastructure concerns have been instigated, grounded on the Duterte Administration’s solid 7 commitment to deliver its promise of a “Golden Age of Infrastructure.” The progress of the “Build, 8 Build, Build” agenda is a confirmation of the government’s strong resolve to strategically and 9 decisively advance the country’s infrastructure through the development a robust pipeline of 10 massive capital investments including priority high-impact projects while ensuring their timely 11 movement and completion, and the institution of policy measures to enable structural reforms and 12 improved sectoral governance. 13 The past year marked history as the infrastructure spending exceeded the benchmark of 5 percent 14 of GDP, twice as much the average spending over the past five decades. By 2020, this is expected 15 to rise even further to 7 percent to sufficiently support the investment requirements of our fast- 16 moving economy. Recognizing that increased spending should have sound basis, government 17 embarked on the formulation of sectoral master plans and roadmaps to guide infrastructure 18 interventions towards a more sustainable path to urbanization. 19 Majority of the Infrastructure Flagship Projects (IFPs) are now moving forward and are at various 20 stages of project implementation, albeit facing a number of emerging concerns. The priority 21 infrastructure projects are actively being pushed to effectively ease the flow of people, goods, 22 services, and information by establishing the physical and digital linkages to help decongest our 23 cities, interconnect our regional growth hubs, provide basic social services, and create inclusive 24 opportunities for the Filipinos to partake in various productive activities. 25 The evidence of our accomplishments over the past three years also signifies that there are still 26 larger goals that we have yet to attain. The country’s infrastructure development is in its 27 continuous ascent and the government is working hard to hurdle any possible roadblock that may 28 come in the way of its progress. Interesting times await the infrastructure sector and the game- 29 changing reforms and policy measures should help us move forward and build upon our recent 30 gains. 31 CHAPTER 19: Accelerating Infrastructure Development Philippine Development Plan 2017-2022 Midterm Update 1 32 Assessment and Challenges 33 The promise of much-needed massive investments in infrastructure is finally taking ground. At 34 midpoint, remarkable feats have been recorded alongside the major thrust of ramping up investments in the 35 development and modernization of the country’s infrastructure. Amid hurdles that needed to be overcome, 36 the government has maintained to fulfill its commitment to increase public infrastructure spending from 37 PHP690.80 billion (4.4% of GDP) in FY2017 to PHP886.20 (5.1% of GDP) in FY2018, while PHP1,000.10 38 billion (5.2% of GDP) has been programmed for FY2019 to address gaps that hinder the provision of quality 39 services and adequate support for the projected expansion of the economy. 40 The linkage of planning, programming and budgeting has been enhanced for a forward-looking 41 infrastructure program. The Three-Year Rolling Infrastructure Program (TRIP) has been adopted across 42 government to project forward expenditure requirements and identify priority areas for spending. Budget 43 allocation is linked with the national development agenda such that priority PAPs contribute to the 44 attainment of the PDP. 45 To ensure that the objectives of the Build, Build, Build agenda are met and continuously move forward in 46 the future administrations, game-changing projects with the biggest impact on the lives of many Filipinos 47 were identified – the 100 flagship projects. These projects will cover five categories namely: Transport and 48 Mobility, as the top priority; Power; Water; Information and Communications Technology; and, Urban 49 Development and Renewal. 50 Monitoring and tracking of the priority PAPs has been strengthened to ensure timely movement and 51 completion. Various issues pertaining to right-of-way (ROW) acquisition continued to hamper the 52 development and implementation of infrastructure projects across all subsectors. There were also changes 53 in certain project components and specifications of projects arising from poor planning and project 54 preparation, among others. 55 Concerned agencies have been regularly monitoring the IFPs to identify bottlenecks in the completion 56 thereof and facilitate early resolution of issues. The Office of the President (OP), through the Executive 57 Secretary, issued Memorandum Circular (MC) No. 57 (s. 2019) reminding all agencies to ensure the timely 58 completion of infrastructure projects, while promoting the safety of, and mitigating inconvenience to, the 59 public. MC 57 also specifically tasked the Infrastructure Cluster (IC) to lead in this endeavor and serve as 60 venue to discuss and resolve any operational issues hounding the implementation of infrastructure projects. 61 A rational approach to planning was instituted through the formulation of sectoral master 62 plans/roadmaps and provision of support facilities for project development and preparation. Critical 63 master plans and roadmaps for the infrastructure sector have been formulated to guide the present and future 64 interventions towards a more harmonious, coordinated and sustainable path of development. The following 65 sectoral master plans/roadmaps have been pursued by the government over the past three years (Table 19.2): 66 CHAPTER 19: Accelerating Infrastructure Development Philippine Development Plan 2017-2022 Midterm Update 2 67 Table 19.2.Master Plans/Roadmaps for the Infrastructure Sector Master Plan/Roadmap Description Status Philippine Water Supply and Sets the water resources sector’s direction in attaining the water Sanitation Master Plan supply and sanitation subsector targets through strategies, policy Completed (PWSSMP) reforms, and priority programs and projects. Aimed at formulating an urban development plan to improve the competitiveness, safety/disaster-response, and general urban Davao City Infrastructure conditions of Davao City, and enhancing the capacity of NEDA, the Development Plan and Completed city government of Davao, and other relevant government agencies in Capacity Building Project planning, budgeting, and managing proposed urban development plan. Master Plan Study and Serves as foundation for Metro Cebu in realizing transport projects Institutional Development on with strategic long-term viewpoint, thereby contributing to the Completed Urban Transport System in sustainable development of Metro Cebu. Metro Cebu An inclusive master plan for the sustainable development of Manila Manila Bay Sustainable Bay, envisioned to guide decision-makers in the assessment and Development Master Plan Ongoing approval of PAPs for implementation in the Manila Bay and in adjacent (MBSDMP) areas with significant influence on the bay. Guides the rational development of an intermodal transport network in Philippine Transportation the country and promote sub-regional economic cooperation or Ongoing System Master Plan (PTSMP) agglomeration and utilization of multimodal transport system for more efficient connectivity. Intends to ensure the integrated development of the maritime industry Maritime Industry of the country by laying out a framework of practicable and Development Plan (MIDP) coordinated interventions such as modernization and expansion of the Completed 2019-2028 Philippine merchant fleet, domestic capability for ship-building, among others. Sets the direction for irrigation subsector development by updating, National Irrigation Master refining, and enhancing the current draft of the 10-year National Ongoing Plan (NIMP) Irrigation Administration (NIA) Irrigation Development Master Plan (2017-2026). Sets the necessary policy, regulatory and infostructure interventions National Broadband Plan to ensure the delivery of universal, fast, reliable, affordable broadband Completed (NBP) internet services to Filipinos in a digital economy. CHAPTER 19: Accelerating Infrastructure Development Philippine Development Plan 2017-2022 Midterm Update 3 Master Plan/Roadmap Description Status PEP provides for the blueprint to secure the country’s energy future through the nine-point Energy Agenda and strategic directions. The 2018-2040 Plan Update provides the sectoral energy roadmaps which Philippine Energy Plan (PEP) Updated annually “focuses on securing the country’s reliable supply of energy, as well as ensuring high level of satisfaction among energy consumers and stakeholders.” 68 69 Facilities to support project development and preparation of infrastructure projects were made available 70 through the Project Development and Other Related Studies (PDRS) Fund (amounting to PHP1.595 billion) 71 being administered by NEDA since 2018; the Infrastructure Preparation and Innovation Facility (IPIF) 72 worth PHP7.92 billion to be financed through ODA being facilitated by DOF from 2018 until 2021; and 73 the Philippines-Korea Project Preparation Facility (PK-PPF) estimated at PHP3.70 billion, which is also 74 being facilitated by DOF. 75 Cognizant of the increasing threats to environmental integrity and quality