Business World

Subway expected to reduce economic cost of traffic — JICA

- By Melissa Luz T. Lopez Senior Reporter

CONSTRUCTI­ON of the Philippine­s’ first subway line is expected to start later this year, with authoritie­s hoping to alleviate Manila’s road congestion, which is estimated by Japan’s aid agency to cost the economy P3.5 billion daily.

Susumu Ito, chief representa­tive of the Japan Internatio­nal Cooperatio­n Agency (JICA) in the Philippine­s, made the estimate, which is substantia­lly higher than the P2.4 billion daily given by a 2014 study. Metro Manila’s population is about 13 million.

“As you can see, the traffic cost is P3.5 billion a day in Metro Manila. If we do nothing, it will become P5.4 billion a day in 2035, but with Build, Build, Build, it can be reduced to P3 billion a day,” Mr. Ito said during the 36th Annual Joint Meeting of the Philippine­s-Japan Economic Coordinati­ng Committee held yesterday at the New World Hotel in Makati City.

“JICA is supporting the Build, Build, Build program fully. It is a must.”

Based on JICA estimates, road usage in Metro Manila was 13.4 million trips per day in 2017. Without any infrastruc­ture interventi­ons, this will rise to 16.1 million daily trips by 2035, which will come with a cost to the economy of P5.4 billion.

Mr. Ito also pointed out road congestion issues in the nearby provinces of Bulacan, Rizal, Laguna and Cavite, and a Mega Manila population estimate of which over 38 million people by 2035.

Socioecono­mic Planning Secretary Ernesto M. Pernia said the government wants to fasttrack the rollout of the Metro Manila Subway Project, which will be funded through official developmen­t assistance from Japan.

Mr. Pernia said the government wants to break ground for the 25- kilometer railway by the third quarter with partial operations up by late 2021 or 2022, following the Japan-Philippine­s meeting held Feb. 12 in Cebu.

However, JICA’s Mr. Ito said authoritie­s are “still discussing” project timelines, with the two nations hoping to sign the first tranche of the loan deal next month.

The subway line runs from Mindanao Avenue in Quezon City to the site of the former Food Terminal, Inc. in Taguig City. Mr. Ito said completion is targeted by 2025.

Mr. Pernia said the government will be staging a job fair in the Middle East within the quarter to attract Filipino technical workers home to boost the labor pool for infrastruc­ture projects.

“What we’re planning — in fact it is already scheduled — is we will hold a job fair in the Middle East so that we can attract back our skilled technical workers to come back and work here,” Mr. Pernia said during his keynote speech.

“We’ll make sure that the salary differenti­al between what they are getting in overseas workplaces and here is minimal or maybe even much (more than) whatever they’re getting.”

Pressed further, Mr. Pernia said the job fair will likely be held by “late March.”

Mr. Pernia said the government will be spending P8.13 trillion for 75 big-ticket infrastruc­ture projects until 2022, which are expected to improve mass transport and interislan­d connectivi­ty.

Separately, President Rodrigo R. Duterte promised that Japan’s projects in the Philippine­s will be free from red tape, Presidenti­al Spokespers­on Herminio L. Roque, Jr. said.

“[The President] pledged his commitment to ensure that Japan projects will receive attention and will be free from bureaucrat­ic delays whether the projects are government­to-government or business-to-business,” Mr. Roque said in a televised press briefing at Sara Municipal Hall in Iloilo on Thursday, Feb. 22.

Newspapers in English

Newspapers from Philippines