Metro Manila (CNN Philippines) — With national elections about two months away, groups from the business sector believe that the next administration should address the country’s infrastructure needs, so that the Philippine economy would become more competitive with other emerging economies.
According to the World Economic Forum’s 2015 Global Competitiveness Index, an “inadequate supply of infrastructure” is the second most problematic factor for doing business in the country, next to “inefficient government bureaucracy.”
In a policy note published on Tuesday (March 1), the Joint Foreign Chambers suggested dozens of short-term and long-term recommendations that cover infrastructure policy, transport, power, telecommunications, and water, sewage, and sanitation.
“Building modern, efficient infrastructure to make the Philippines competitive with other competing emerging market economies is critical to sustaining a high level of economic growth that is inclusive and will enable more domestic as well as foreign investment in the Philippines,” the note said. Here are a few of its suggestions:
Infrastructure Policy
The note said that the next administration should continue existing infrastructure policies and projects. Although it expects infrastructure spending to reach 5 percent of the country’s GDP by this year, it believes that the next administration should increase investments to above 10 percent of GDP.
Likewise, it suggested that the government develop new commercial and residential hubs to decongest Metro Manila, especially in the Clark area and Eastern Luzon. It said that airport infrastructure and road networks are underutilized in Clark and Subic. “Attractive incentives for business and individuals should be provided to encourage transfers.”
Transport
According to the policy note, the country needs to “urgently” invest in a new terminal at Clark International Airport for Central and Northern Luzon. It also suggested that Clark and the Ninoy Aquino International Airport (NAIA) be placed under a single airport authority, “to coordinate best usage of the twin facilities for Greater Metro Manila.”
With regard to seaports, it pushed for the increase use of the Batangas and Subic ports in order to ease congestion in Manila ports. The policy note called for the reduction of truck bans and the connection of Manila ports to the Metro Manila skyway system.
For roads and railways, it called for the merger of the Department of Transportation and Communications with the Department of Public Works and Highways. The development of mass transit systems was also presented, as well as the construction of a third Mactan-Cebu bridge. Over the long term, it called for the creation of a new railroad regulatory body.
Power
The power situation in Mindanao was discussed in the note, as sought for the privatization and rehabilitation of hydro power plants, the construction of non-hydro plants, and the maintenance security of transmission towers. “Connect [the] Mindanao grid with the national grid.” Over the long term, it said that coal, gas, and renewables should each take up a third of the country’s energy supply.
Telecommunications
The note believe that the government should aim to make broadband in the country inexpensive and reliable, “thereby bringing digital benefits to all Filipinos and increasing national competitiveness.” It recommended the removal of foreign investment restrictions in telecommunications.
Water, Sewerage, and Sanitation
According to the policy note, the government should enact a Water Reform Act to establish necessary legal and institutional framework to guide development of water sources throughout the country. It also called for the passing of the proposed Water Regulatory Commission (WRC Bill) to develop and regulate the country’s water system and address institutional fragmentation.
