Friday, 5 November 2010

Construction industry headed for even better times

by Julito G. Rada
Manila Standard
http://www.manilastandardtoday.com/insideBusiness.htm?f=2010/november/5/business2.isx&d=2010/november/5

THE construction industry sees continued growth next year with the scheduled implementation of big-ticket infrastructure projects under the public-private partnership scheme, an industry official said in a press briefing Thursday.

Levy Espiritu, president of Philippine Constructors Association, said the industry will surpass its growth target of 8 percent this year as outlook remains bullish for the next three to four years.

“Next year, [growth] would be more than that [eight percent] because growth will be faster with the implementation of PPP projects,” Espiritu said.

He said that in the last three to four years, public infrastructure comprised 60 percent of the total projects while the remaining 40 percent belonged to private undertakings.

The trend has since changed to 60 percent private and 40 percent public.

But he expressed optimism that with the scheduled implementation of the 10 big-ticket infrastructure projects next year under the Aquino administration, the trend will revert back to 60 percent for public and 40 percent for private projects before 2012.

The top 10 projects in the list are: the P70-billion MRT3-LRT expansion; the P11.3-billion MRT Line 2 east extension; the P7.43-billion Panglao airport; the P4.36-billion Puerto Princesa airport; the development of the city terminal of the Diosdado Macapagal international airport; the privatization of the Laguindingan airport in Misamis Oriental; the P21-billion NLEX-SLEX link; P10-billion CALA expressway in Cavite; the supply of treated bulk water for Metro Manila; and the P3-billion Daraga international airport in Albay.

Seventy-three other PPP projects with an investment requirement of P612 billion will be implemented in 2012 and beyond.

Espiritu also said the PPP Coalition, composed of the Philippine Constructors Association, PCA Foundation Inc., Bankers Association of the Philippines, and the Research, Education and Institutional Development Foundation Inc., have already identified ready-to-go projects among the PPP projects of the government.

These were the CALA expressway project, the LRT-1 extension from Baclaran to Kawit, Cavite, and the LRT-2 east extension.

Espiritu also said the build-operate-transfer law should be amended to attune its thrusts with those of the PPP Center which was recently formed by the present administration.

Meanwhile, PCA was scheduled to hold its 20th Philippine Construction Show on Nov. 11 to 14 at the SMX Convention of the Mall of Asia.

Over 75,000 local and international consumer and trade buyers are expected to attend this event.

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