Construction sector expecting at least P40 trillion of building works

THE Construction Industry Authority of the Philippines (CIAP) has approved a 10-year road map which projects domestic construction spending of at least P40 trillion in the 10 years starting 2020, with the maximum estimated at P130 trillion.

“Yesterday, this was presented to the board of CIAP and the board unanimously approved the road map. This will be launched in Clark March 28 during the Philconstruct,” Rowel S. Barba, supervisor of the CIAP, told reporters on the sidelines of a construction and infrastructure business-to-business event hosted by the German-Philippine Chamber of Commerce and Industry in Pasig City.

Barry G. Paulino, Philippine Constructors Association (PCA) executive director, said targeted total spending for the industry under the road map “is a minimum of P40 trillion and maximum of P130 trillion in the ten years.”

Data from the Philippine Statistics Authority indicate that construction spending in 2018 totaled P625.23 billion, up 15.9%.

The government has set a target of spending at least P8 trillion for big-ticket infrastructure projects up to 2022, when President Rodrigo R. Duterte will have ended his six-year term.

The road map, to be implemented starting 2020 through 2030, was prepared by the Reid Foundation and commissioned by the CIAP and the PCA.

Mr. Barba, also the Trade Undersecretary of the Competitiveness and Ease of Doing Business Bureau, said the objectives are expected to be bolstered by continuous infrastructure projects under the “Build, Build, Build” for public infrastructure while residential and hotel projects are expected to drive construction spending from the private sector.

Mr. Paulino said the road map identified a number of strategies to achieve these goals. Among these is the legislation of a master development plan for “Build, Build, Build” to achieve continuity even amid administrations turn over.

“What is happening is that our country, whenever there is new president, (will review) the projects that took three years to plan and come up with a set of new programs. That happens every six years .... We are challenging the government to legislate some sort of the infrastructure development program because other countries do so,” Mr. Paulino added.

PCA members’ current contracting capacity represents about 80% of the domestic total. The group has 33,000 contractors, including 140 major firms.

“There is a good momentum now and we have to continue that momentum beyond the present administration,” Mr. Paulino said.