Is Now a Good Time to Expand the Philippines’ Infrastructure?

There are many reasons why a time has come for the government to increase investment in the country’s infrastructure. From the Intercity rail to the ports, to the Foreign equity cap, there is no better time than the present to start building your dream infrastructure. Let’s take a look at these reasons and more! And while you’re at it, why is now the right time to start investing in the Philippines?

Intercity rail

The recent delays in the PPP tenders for the expansion and upgrading of Manila’s LRT line have led to the question of whether now is the right time to expand the country’s infrastructure. The World Economic Forum ranks inadequate infrastructure as one of the top challenges for businesses in the country. Meanwhile, delays in PPP projects have dampened prospects for an infrastructure boost, a key element in maintaining economic growth at 7 percent and reducing the country’s high unemployment rate.

Ports

The country is looking to expand its infrastructure for the benefit of its economy and the lives of ordinary citizens. Better transportation and improved internet services will help farmers sell their produce. Improving infrastructure in the country will lower business costs and enhance productivity, boosting the economy at the same time. But how can the Philippines make infrastructure projects a reality? Here are a few recommendations. First, increase public investment. Second, improve financial risk management. Third, create more private sector involvement. Finally, make the country easier to do business.

Electricity prices

With power prices at an all-time low, now is a good time to invest in the infrastructure Philippines. Moreover, additional investments in public infrastructure will boost the economy and improve the lives of ordinary citizens. For instance, farmers will gain more income from improved transportation and internet services. Improvements to public infrastructure will also lower business costs, attract more investment, and boost productivity. But, before we start promoting more infrastructure development projects, we must understand what the country needs.

Foreign equity limit

The Philippine Senate approved a bill in December to reduce the Foreign Equity Limit in critical infrastructure. Critical infrastructure is defined as those systems and assets that are critical to national security and are essential to the country’s economy. The bill limits foreign ownership to 40% in critical infrastructure. However, foreign nationals are not allowed to own more than 40% of the capital of SOEs that are not public utilities. Moreover, foreign nationals cannot own more than 40% of the capital of natural monopolies.

Long-term planning

The country’s plan calls for the rehabilitation of the existing radial-circumferential system and the completion of unbuilt links. These include the Pasig River connections and the southern linkages of the C3 expressway, as well as major renovations of EDSA. Suburban rails are also proposed, with Clark airport serving as the gateway to the country’s northern and central clusters.

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