Infrastructure and Basic Services (Social and Economic Overhead)
Situationer Ways forward.
In 1998, only 76 percent of the population had access to water supply, 79.45 percent, to sewerage, and 8.07 to telephone service. There was also a backlog of 1.10 million housing units, 30,087 classrooms and 117,842 hospital beds. Only 76 percent of barangays were electrified (32,218/42,082).
The country’s road network is sufficient and able to connect the major islands of the country through ferry linkages but only 88 percent of bridges are permanent. Cargo handling at the Port of Manila container terminal approximates international standards of 25 to 30 boxes per hour. Air traffic growth rates are below that of Indonesia, Thailand and Malaysia, both for international and domestic travel. Rail ridership has gone down for both commuter and long-haul (on account of bus and car competition and poor service) but light rail transits are the more environment- and user friendly transport modes in Metro Manila today. Mail is faster because of e-mail and courier services and by end of 1999, telephone density per 100 population had reached closed to 10.
While Central Luzon, Metro Manila and the Calabarzon area account for 30 percent of the
country’s population and about 55 percent of the country’s gross domestic product (GDP), these areas have lost or are fast losing their agricultural land. Food will have to be sourced from regions like
Cagayan Valley and Mindanao. The transport and logistics system should thus be adequate and
efficient to help bring down the cost of food for workers, especially in the country’s industrial
heartland. This will make food plentiful at reasonable prices and make the country’s wages
internationally competitive. The Philippines’ transport system relies heavily on the road network which handles about 90 percent of the country’s passenger movement and about 50 percent of freight movement. While national roads are extensive and serve priority production areas and population centers, roads that lead to many tourism destinations and conflict-affected areas are inadequate. Of the approximately 202,000 kms.
of roads nationwide, 15 percent are classified as national roads, and therefore provided for and maintained by the DPWH. Provincial roads account for 13 percent, while city/municipal roads constitute 11 percent of the total. The balance of 60 percent of the road network is classified as barangay roads, which are mostly unpaved and built in the past by DPWH. Farm-to-market roads fall under this last category. Barangay roads have been devolved to local government units (LGUs). National roads in the Autonomous Region in Muslim Mindanao (ARMM) have also been transferred from DPWH to the ARMM. National arterial and secondary roads are currently 70 percent paved while 93 percent of national bridges are permanent. There are more than 1,400 ports in the country but many of them are extremely small. There are 408 private ports, mostly dedicated for the private enterprises’ exclusive use. There are 213 fishing ports which are handled by the Philippine Fisheries Development Authority. The Philippine Ports Authority (PPA) operates 114 public ports. The remaining ports are very small and serve mainly as feeder ports. Interisland routes provide regular roll-on roll-off (RORO) vessel operations, connecting the main islands of Luzon, Visayas and Mindanao. The recent implementation of the Strong Republic Nautical Highway (SRNH) connected the islands of Luzon to Mindoro, Panay, Guimaras, Negros and Mindanao. In past years, social and economic opportunities have been concentrated in Metro Manila, prompting migration to the metropolis. Overpopulation, however, has depleted the resources of the region, deteriorated the environment and increased traffic congestion. Despite the decreased desirability of the living environment, people have continued to flock into the National Capital Region (NCR). Studies conducted for the Philippines’ transport sector identified several challenges, which include the need for efficient transport institutions; increased private sector participation in the implementation of transport infrastructure and services; and improved monitoring and maintenance of existing infrastructure, especially of roads.
Metro Manila, the most urbanized region in the country, needs a PhP7 B transport infrastructure program to support current service levels and where water supply is enjoyed by less than 80 percent of the population, sewerage is available to only 20 percent, telephone service to less than 50 percent of households and close to 5 percent live in flood-prone areas. Improvements are also urgent in the areas of security, fire protection and emergency and disaster management. These conditions can easily worsen given the lack of financial and other resources and when continuing population increases that outpace agricultural productivity and industrial growth and overall economic development. 1. As infrastructure projects are expensive and beyond the capacity of any one level of government, LGUs and the private sector shall be tapped as partners in the development and implementation of infrastructure. Amendment of Build-Operate-Transfer (BOT) Law to promote wider private sector participation.
2. Through the Department of Trade and Industry (DTI), creation of a Philippine Infrastructure Corporation (PIC) as a subsidiary of the National Development Company so that the government could build, among others, airports, seaports, railways, dams, irrigation systems, and express ways critical to economic growth.
3. Sale of government bonds; PIC to manage
the fund by bidding out and awarding construction projects to the most qualified entities.
4. Prioritization of infrastructure projects that are strategic and critical to stimulate trade and investments, such as: (a) RORO ports and the highways connecting them; (b) roads and rail
systems that will decongest Metro Manila, the Clark-Subic Highway, and highways that are catalytic
to development in Luzon, Visayas and Mindanao; (c) roads and airports to tourism hubs; and
(d) affirmative action projects for Mindanao and other highly impoverished conflict-ridden areas.
4. Prioritized program of airport development to serve as gateways to regional centers and major tourism destinations, e.g. Clark (Diosdado Macapagal) International Airport upgrading.
5. Deregulation and progressive liberalization of civil aviation ; enhancement of commercial viability of airports.
6. Expansion of Strong Republic Nautical
Highway (SRNH) through the completion of the vital links of the Western, Eastern and Central Nautical Highways.
7. Establishment of a Maritime Equity Corporation of the Philippines to support the full implementation of the Road-RORO Terminal System through the acquisition of modern RORO vessels to be leased to qualified operators under a lease purchase agreement; simplification of the guidelines and procedures in the processing/issuance of required Clearance to Develop/Permit to Construct and Certificate of Registration/Permit to Operate red.
8. Deregulation of routes and rates to make the maritime transport more cost-efficient and discourage monopolies/cartels; comprehensive review of the present port tariff system shall be undertaken and consequent development and implementation of a cost-based tariff shall be pursued.
9. Modernization of vessels by giving incentives as embodied in the newly enacted RA 9295, An Act Promoting the Development of the Philippine Domestic Shipping, Shipbuilding and Ship Repair and Ship Breaking, Ordaining Reforms in Government Policies Towards Shipping in the Philippines, and for Other Purposes.
10. Implementation of Communications, Navigation and Surveillance/Air Traffic Management with International Civil Aviation Organization standards. 11. Implementation of the Road Safety Action Plan formulated by the interagency Road Safety Committee
12. Nautical Highways to Link the Entire Country
13. Decongestion of Metro Manila
• Establish new centers for government,
business and housing in Luzon, in the Visayas,and in Mindanao
• Develop Clark-Subic
• Develop the Southern Luzon Corridor
• Improve transport within Metro Manila
• Address critical infrastructure bottlenecks
along national roads and bridges to speed traffic out of Metro Manila.
14. Tourism Infrastructure: Access to Major Tourism Destinations (Roads and Airports)
15. Affirmative Action for Peace and Development in Mindanao and Other Highly
Impoverished Areas
16. Bureaucratic and Legislative Reforms
• conversion of the Air Transportation Office into a corporate body
• restructure port institution to improve port service; regulatory functions to be transferred to independent regulators; amendment of the PPA Charter as port regulator and operator.
• establishment of Strategic Rail Authority/ Office; a Track Authority will also be established out of the existing PNR and LRTA; private concessionaires would provide all rail services.
• review of the role of the MMDA vis-à-vis transport agencies
17. Reforms to Resolve Financing Issues
• Review of BOT Law and its IRR
amended and guidelines
• Creation of an autonomous Highway
Authority out of the DPWH
• Expansion of the Road Fund
Reference
1. AIM Policy Center, ed. Luningning Achacoso-Sevilla , “The Ties that Bind: Population and Development in the Philippines 2nd ed.”2004
2. NEDA, Medium-Term Philippine Development Plan 2004-1010
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