Accelerating Infrastructure Development

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HIGH, SUSTAINABLE and INCLUSIVE GROWTHECONOMIC GROWTHInfrastructure is an enabler ofgrowth in the country’seconomic sectors: Tourism,Agriculture, and Industry, amongothers.HUMAN DEVELOPMENT andSOCIAL PROTECTIONInfrastructure is a critical supportto the provision of basic goodsand services and to ensuring asafer societyInfrastructure Development2

Progress made in the last 2 and ½ years inaddressing infrastructure bottlenecksLegalFrameworkfor PPP Revised IRR of RA 7718 or the BOT LawInvestmentPrograms/Projects 61 NEDA Board confirmed/ICC approvedprojects under President Aquino’s term, 70percent of which are infrastructure projectsamounting to PhP425 billionInfrastructureMaster Plans Proposed Amendments of the JointVenture (JV) Guidelines Master Plan for Flood Management inMetro Manila (MM) and Surrounding Areas High Standard Highway Master Plan for MMand 200 km radiusChallenges3

STRATEGIC ACTION:Accelerate InfrastructureDevelopment as Catalyst for Inclusiveand Sustainable Economic GrowthIncreaseinfrastructureSpending Increaseinfrastructurespendingfrom 2.6% toat least 5%of GDP in2016StrengthenCoordination inPlanning andImplementation Adopt a coherentand efficientintermodal transportroadmap Pursue institutionalreform, policydevelopment andimplementationFast Track Implementationof Other CrucialInfrastructure Develop new power sources,uprate existing power plants Develop and rehabilitateirrigation systems Provide flood control measures Provide infrastructure toenhance access to basicservices4

Increase Infrastructure Spending:Increase infrastructure spending from 2.6% to at least 5% ofGDP by 2016Public Infrastructure Spending as Percentage of 4%1.0%0.0%2011*as of November 2012201220135

Strengthen Coordination in Planning andImplementation:Implement a more efficient intermodal transport system basedon a coherent roadmap to connect major centers Develop additional commuter rail lines Provide Integrated Transport System (ITS) north and southterminals Accelerate the implementation of approved expressways Develop Bus Rapid Transit (BRT) lines Improve and extend the PNR line from North to South Develop the Roll-on Roll-off (RORO) Spine Project Fast-track the implementation of road projects under the DPWHDOT Convergence Program and approved airport projects Pursue construction, rehabilitation of roads connecting keycities and production areas6

Strengthen Coordination in Planning andImplementation:Pursue institutional reform, policy development andimplementationRecommended ActionsAgency Accelerate the approval and adoption of the NationalINFRACOMmemberagencies OP, NWRB,DBM Transport Policy (NTP) and the Transport Roadmap toimprove the efficiency and effectiveness of the transportsectorTransform the National Water Resources Board (NWRB)into a National Water Resources Management Office(NWRMO)Formulate and adopt the National Informal SettlementsUpgrading Strategy (NISUS) and National ResettlementFrameworkAddress issues to full realization of objectives of the PowerSector Reform Agenda Provide a coherent roadmap towards operationalizingeffective e-GovernanceNHA, HUDCCDOEDOST-ICTO7

Fast Track Implementation of Other CrucialInfrastructure:Developnew powersources anduprateexistingplantsDevelop andrehabilitateirrigationsystemsProvideflood controlmeasures Develop renewable energy sources in variouslocations in the country, and the natural gas industry Uprate, rehabilitate existing power plants toincrease generating capacity Pursue private-initiated projects to prepare forcritical periods Pursue multipurpose/major irrigation facilities Prioritize quick-gestating activities such as therehabilitation and improvement of existing irrigationsystems Implement the NEDA Board approved “Master Plan forFlood Management in Metro Manila and SurroundingAreas” Implement the Flood Risk Management Project alongSelected Principal Rivers (FRIMP)8

Fast Track Implementation of Other CrucialInfrastructure (cont’n): Provide adequate water supply infrastructureand capacity development support to 455SALINTUBIG waterless areas Electrify remaining 33,878 sitiosProvideinfrastructureto enhanceaccess tobasicservices Install 102.75 MW additional power capacity inoff-grid areas Install transmission lines and upgrade substationsto improve supply reliability in off-grid areas Complete 35,500 classrooms (by 2013) Upgrade 704 BHS, 2,349 RHUs and 566government hospitals Provide direct housing units to a millionhouseholds Complete 69 SLFs with an estimated capacity of8,600 MT/day of solid waste9



Implement a more efficient intermodal transport systembased on a coherent roadmap to connect major centersPrograms/ProjectsIASpatialCoverageDevelop additional commuter rail linesLRT Line South Extension Project (formerly LRT DOTC NCRLine 1 Cavite Extension, including JICA TA forRegion IV-AFS)LRT Line 2 East Extension Project (formerly LRT DOTC NCRLine 2 East Extension, including JICA TA forFS)MRT 7DOTC/ NCR, Region IIIULCDevelop Bus Rapid Transit (BRT) linesCebu Bus Rapid Transit (BRT) Section 1DOTC Region VII(Bulacao-Ayala section)12

Implement a more efficient intermodal transport systembased on a coherent roadmap to connect major e the implementation of approved expresswaysDaang Hari SLEX Link Road ProjectDPWH Region IV-ANorth Luzon Expressway (NLEX) - SouthLuzon Expressway (SLEX) Connector RoadDPWHNCRCavite-Laguna Expressway ProjectDPWHRegion IV-ANinoy Aquino International Airport (NAIA)Expressway (Phase 2),4.9kmDPWHNCRCentral Luzon Link Expressway (CLLEX)Phase IDPWHRegion III13

Implement a more efficient intermodal transport systembased on a coherent roadmap to connect major centersDevelop the Roll-on Roll-off (RORO) Spine Project Luzon Island-Panay-Negros-Cebu-Bohol-Mindanao route14

Implement a more efficient intermodal transport systembased on a coherent roadmap to connect major centersTourism Roads under the DOT-DPWH ConvergenceProgram: Road along Ambangeg Jct. National Road to Mt. Pulag, Benguet;Penablanca-Callao Cave Road, Cagayan;Taal Lake Circumferential Road (Laurel-Agoncillo), Batangas;Puerto Princesa North Road (Taytay-El Nido Section), Palawan;Donsol-Sta.Cruz Road leading to Tourist Attraction (Butanding),Donsol, Sorsogon;Panglao Island Circumferential Road, Bohol;Boracay Circumferential Road, Malay, Aklan;Service Road to Binangawan Falls Sagay, Camiguin;Island Garden City of Samal Circumferential Road (East Side),Davao del Norte; andJct. Osmena-Pilar Road, Siargao Island, Surigao del Norte15

Implement a more efficient intermodal transport systembased on a coherent roadmap to connect major centersPrograms/ProjectsIAFast track implementation of approved airport projectsSpatialCoveragePuerto Princesa Airport Development Project(PPADP)DOTCCAAPRegion IV-BBicol International Airport formerlyDevelopment of New Legaspi (Daraga) AirportDOTCCAAPRegion VNew Bohol Airport ProjectDOTC- Region VIICAAPDOTC- Region VIIMCIAAMactan Cebu International AirportConstruction of New Passenger TerminalTacloban Airport Re-Development ProjectLaguindingan Airport Air-Navigation Systemand Support Facilities Supply ProjectDOTCCAAPDOTCCAAPRegion VIIIRegion X16

Implement a more efficient intermodal transport systembased on a coherent roadmap to connect major centersPrograms/ProjectsIASpatialCoveragePursue construction, rehabilitation of roads connecting key cities andproduction areasRoad Improvement and Institutional Development Project(RIIDP)DPWHBukidnon-Cotabato RoadIloilo-Capiz RoadPalo-Carigara-Ormoc RoadFamy-Infanta-Dalahican Port RoadRegion XIIRegion VIRegion VIIIRegion IV-APalico-Balayan-Batangas RoadCaticlan-Malay-Nabas RoadSindanga-Liloy RoadMindanao East-West Lateral Road, Sta. Filomena-TacalaanRoadGuimaras Circumferential RoadToledo-Tabuelan-San Remigio RoadBacolod-Murcia-Benedicto-San Carlos RoadMindoro West Coast RoadSurigao (Lipata)-Davao RoadRegion IV-ARegion VIRegion IXRegion XRegion VIRegion VIIRegion VIRegion IV-BRegion XIRegion XIII17

Develop new power sources and uprate existing plantsPrograms/ProjectsUprate, Rehabilitate Power PlantsUprating of Agus 6 Units 1 &2IANPCRehabilitation, Operation and Maintenance of theAngat Hydro Electric Power Plant (AHEPP) Auxiliary MWSSTurbines 4 & 5 through PPP ProjectSpatialCoverageRegion XNCR18

Pursue private-initiated projects to prepare for criticalperiodsLUZONDemand ScenarioProjectedcumulative increasein demand andreserve (2013-2016)Excess capacityover peak demandand reserve (2012)Critical periods(assuming noadditional capacitystarting 2012)Minimum requiredcapacity addition(2013 - 2016)Committed privateprojects (2013 - 2016)VISAYASMINDANAOLow(AAGR 4.13%)High(AAGR 8.48%)Low(AAGR 4.52%)High(AAGR 8.48%)Low(AAGR 4.75%)High(AAGR 8.48%)1298 MW3442 MW328 MW657 MW337 MW562 MW1162 MW206 MW-47 MW201620152015201420122012136 MW2280 MW122MW450 MW384 MW609 MW869 MW310 MW588 MW19

Develop and rehabilitate irrigation systemsPrograms/ProjectsIASpatialCoverageFast track development of irrigation systems to enhance agriculturalproductivity and ensure food securityCasecnan Multi-Purpose Irrigation and PowerProject-Irrigation Component, Phase IIDA-NIABalog-Balog MPIP, Phase IIDA-NIA Region IIIJalaur River Multi-Purpose Project, Stage IIMalitubog-Maridagao Irrigation Project, Phase IIDA-NIADA-NIARegion VIRegion VIIIParticipatory Irrigation Development ProjectDA-NIANational Irrigation Sector Rehabilitation andImprovement ProjectDA-NIARegions I,III,IV, VI,X, XI,XII,XIIIRegions I,III,IV, VI,X, XI,XII,XIIIRegion III20

Provide flood control measuresPrograms/ProjectsIASpatialCoverageProvide flood control measures to mitigate disasterFlood Risk Management Project alongSelected Principal RiversDPWH Regions II, VI,XThree (3)selected principal river systems:1. Lower Cagayan2. Tagoloan3. Imus21

Provide flood control measuresPrograms/ProjectsIASpatialCoverageProvide flood control measures to mitigate disasterMaster Plan for Flood Managementin Metro Manila and SurroundingAreas1. Valenzuela-Obando-MeycauayanProject2. KAMANAVA Project, Phase I3. Manila Bay Seawall & Floodgates4. Upper Marikina River Improvement5. Napindan River Dredging6. Mangahan Floodway Dredging7. West Side of Mangahan FloodwayProject8. East Side of Mangahan Floodway Project9. San Juan River Rehabilitation ProjectDPWH MetroManila10. Bulacan Flood Project11. San Fdo.-Sto. Tomas-Minalin Tail Dike12. Balimbing Creek (Sn. Fdo) Dredging13. Orani Channel (Bataan ) Dredging14. Laguna Flood Project15. Proposed River Improvements atInflow Rivers to Laguna Lake16. Various Dredging Equipment22

Provide infrastructure to enhance access to vide Water Supply Infrastructure and Capacity DevelopmentSupport to Waterless Areas in the CountrySagana at Ligtas na Tubig saLahat (SALINTUBIG)DILG/ NationwideLWUA/DOH23

Provide infrastructure to enhance access to ctrify Remaining 33,878 SitiosSitio Electrification ProgramNEAInstall 102.75 MW additional Capacity in off-grid areasOff-grid Barangay ElectrificationAcquisition of Gensets and AccessoriesNationwideNPCRegions IV-B, V,VII, VIII, IX, ARMMNPCNationwideInstall transmission lines and upgrade substations to improve supply reliabilityin off-grid areasTransmission Lines and Substation ProjectsRegions IV-B, V,NPCVII, ARMMImprovement, Repairs, Maintenance and SpareNPC Nationwideparts24

Provide infrastructure to enhance access to er High Impact ProjectsBarangay Line Enhancement ProgramExpanded Rural ElectrificationMarket Transformation through Introduction ofEnergy Efficient Vehicle ProjectNEANationwideDOE NationwideDOE Nationwide25

Provide infrastructure to enhance access to plete 35,500 classrooms by 2013 and provision of additionalclassrooms to support the K to 12 ProgramClassroom Construction and SiteDepEd NationwideDevelopment Projects [1]Special Purpose Fund - Regular SchoolBuilding Program (SPF-RSBP)DPWH NationwideUpgrade 704 BHS, 2,349 RHUs and 566 government hospitalsHealth Facility Enhancement ProgramDOH Nationwide(HFEP)Provide direct housing units to a million householdsResettlement ProgramHUDCC NationwideandNHA26

Provide infrastructure to enhance access to elopment/Construction of Sanitary LandfillsDevelopment and operation of MMDAMMDA NCR,Owned and Controlled SLF and Final Closure,Region IV-ARehabilitation and Re-vegetation of existingSLFs (San Mateo, Rizal and Carmona, Cavite)27

STRATEGIC ACTION:Accelerate Infrastructure Development as Catalyst forInclusive and Sustainable Economic tructurespending as apercentage ofGDP, from 2.6percent to atleast 5 percentin 2016StrengthenCoordination inPlanning andImplementationFast Track Implementationof Other CrucialInfrastructure Adopt a coherent Develop new power sourcesand efficientintermodaltransport roadmap Pursue institutionalreform, policydevelopment andimplementationand uprate existing plants Develop and rehabilitateirrigation systems Provide flood controlmeasures Provide infrastructure toenhance access to basicservices28


Infrastructure Sector Challenges Sustaining High and Inclusive GrowthEconomic Growth Inadequate supply of infrastructureremains one of the top impedimentsto global competitiveness Low reserve level of power supply inMindanao Electricity prices among the highestin Asia Lack of coordinated, crossdepartment e-Government servicesHuman Development About 14M Filipinos still withoutaccess to clean water 95% of 4.7M HHs in MM and HUCsoutside MM not covered bysewerage systems Need for 5.7M units for socializedhousing from 2011 to 2016 Backlog of 35,500 classrooms as ofDecember 201230

Summary of Timelines in ProcessingBOT/PPP ProjectsOLD IRR (2006)NEW IRR (2012)Number of DaysReduced295243*224194*7149*pre-bid conferenceconducted 60 cd beforebid submission340273*254224*8649*pre-bid conferenceconducted 120 cd beforebid D PROJECTSFor projects less thanPhP300MFor projects PhP300Mand aboveUNSOLICITED PROJECTSNote: * - timelines for projects processed through simultaneous qualification andbidding (single-stage)

Bicol International Airport formerly Development of New Legaspi (Daraga) Airport DOTC-CAAP Region V New Bohol Airport Project DOTC-CAAP Region VII Mactan Cebu International Airport Construction of New Passenger Terminal DOTC-MCIAA Region VII Tacloban Airport Re-Development Project DOTC-CAAP Region VIII Laguindingan Airport Air-Navigation System

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