Stimulating economic growth through big-ticket transport projects

Stimulating economic growth through big-ticket transport projects
Raymond Carl Dela Cruz July 22, 2023 https://www.pna.gov.ph/articles/1206167

MANILA – President Ferdinand R. Marcos Jr. is looking to further stimulate economic growth through big-ticket transport infrastructure projects that are effective at creating jobs.

Before Marcos’ 2nd State of the Nation Address (SONA) on Monday, the Department of Trransportation (DOTr) bared the status of these projects, with 71 infrastructure projects and a cumulative cost of more than PHP4 trillion – all approved by the National Economic and Development Authority (NEDA).

In his speech at the A Year After Build Better More event of the British Chamber of Commerce - Philippines on July 13, DOTr Undersecretary For Legal Affairs Rainier Yebra said these projects are “bound to stir the status quo” once completed.

Transport is key to development and good quality of life and so improving public transport is essential to economic growth.

Airport privatization

He noted that to improve airport operations for both passengers and airlines, the planned privatization of the Ninoy Aquino International Airport (NAIA) is ongoing.

The Asian Development Bank (ADB) is helping identify the “most qualified company or consortium to manage, operate, upgrade, and modernize the NAIA.”

“Despite structural limitations, we believe Manila’s main gateway can still be improved using the latest airport operations technology,” Yebra said.

On the other hand, he said, the New Manila International Airport (NMIA) in Bulacan – meant to help decongest NAIA and complement operations of the Clark International Airport (CRK) -- is more than three-fourths complete.

“We expect structures to rise starting the second quarter of 2024. This airport will cost San Miguel PHP735 billion to build,” he said.

Yebra noted that the CRK and the Mactan-Cebu International Airport (MCIA) are “successful models of airport privatization” that they are hoping to emulate in several other airports in the country.

“We are planning to privatize 10 other provincial airports, beginning with Bohol-Panglao airport in the Visayas, the Bicol International Airport in Luzon, and Laguindingan airport in Mindanao,” he said.

The Sangley Airport in Cavite will soon be developed by the provincial government, with SPIA Development Consortium tapped for its redevelopment to complement NAIA.

“Another four regional airports will be improved and transferred to new locations. These are in Dumaguete, Siargao, Zamboanga, and Masbate,” he said.

To date, Yebra said, the country has a total of 90 airports – 45 having commercial operations, nine are international gateways, and 25 are night-rated.

Fewer cars, better roads

In the road sector, he said the government’s goal is to “address traffic congestion” by shifting focus on public transport and other alternative modes of transport such as trains, buses, taxis, bicycles, and motorcycle taxis.

A prime example, he said, is the Epifanio de los Santos Avenue (EDSA) Busway, which serves an average of more than 450,000 passengers per day, with 550 buses currently authorized to operate on the exclusive lane.