PDP 2017-2022 Midterm

1 Chapter 19
2 Accelerating Infrastructure
3 Development
4 Midway into the Plan implementation, the country’s overall infrastructure development managed
5 to pull off a respectable performance as game-changing reforms across a broad range of
6 infrastructure concerns have been instigated, grounded on the Duterte Administration’s solid
7 commitment to deliver its promise of a “Golden Age of Infrastructure.” The progress of the “Build,
8 Build, Build” agenda is a confirmation of the government’s strong resolve to strategically and
9 decisively advance the country’s infrastructure through the development a robust pipeline of
10 massive capital investments including priority high-impact projects while ensuring their timely
11 movement and completion, and the institution of policy measures to enable structural reforms and
12 improved sectoral governance.
13 The past year marked history as the infrastructure spending exceeded the benchmark of 5 percent
14 of GDP, twice as much the average spending over the past five decades. By 2020, this is expected
15 to rise even further to 7 percent to sufficiently support the investment requirements of our fast-
16 moving economy. Recognizing that increased spending should have sound basis, government
17 embarked on the formulation of sectoral master plans and roadmaps to guide infrastructure
18 interventions towards a more sustainable path to urbanization.
19 Majority of the Infrastructure Flagship Projects (IFPs) are now moving forward and are at various
20 stages of project implementation, albeit facing a number of emerging concerns. The priority
21 infrastructure projects are actively being pushed to effectively ease the flow of people, goods,
22 services, and information by establishing the physical and digital linkages to help decongest our
23 cities, interconnect our regional growth hubs, provide basic social services, and create inclusive
24 opportunities for the Filipinos to partake in various productive activities.
25 The evidence of our accomplishments over the past three years also signifies that there are still
26 larger goals that we have yet to attain. The country’s infrastructure development is in its
27 continuous ascent and the government is working hard to hurdle any possible roadblock that may
28 come in the way of its progress. Interesting times await the infrastructure sector and the game-
29 changing reforms and policy measures should help us move forward and build upon our recent
30 gains.
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CHAPTER 19: Accelerating Infrastructure Development

Philippine Development Plan 2017- 2022 Midterm Update
1
32 Assessment and Challenges
33 The promise of much-needed massive investments in infrastructure is finally taking ground. At
34 midpoint, remarkable feats have been recorded alongside the major thrust of ramping up investments in the
35 development and modernization of the country’s infrastructure. Amid hurdles that needed to be overcome,
36 the government has maintained to fulfill its commitment to increase public infrastructure spending from
37 PHP690.80 billion (4.4% of GDP) in FY2017 to PHP886.20 (5.1% of GDP) in FY2018, while PHP1,000.10
38 billion (5.2% of GDP) has been programmed for FY2019 to address gaps that hinder the provision of quality
39 services and adequate support for the projected expansion of the economy.
40 The linkage of planning, programming and budgeting has been enhanced for a forward-looking
41 infrastructure program. The Three-Year Rolling Infrastructure Program (TRIP) has been adopted across
42 government to project forward expenditure requirements and identify priority areas for spending. Budget
43 allocation is linked with the national development agenda such that priority PAPs contribute to the
44 attainment of the PDP.
45 To ensure that the objectives of the Build, Build, Build agenda are met and continuously move forward in
46 the future administrations, game-changing projects with the biggest impact on the lives of many Filipinos
47 were identified – the 100 flagship projects. These projects will cover five categories namely: Transport and
48 Mobility, as the top priority; Power; Water; Information and Communications Technology; and, Urban
49 Development and Renewal.
50 Monitoring and tracking of the priority PAPs has been strengthened to ensure timely movement and
51 completion. Various issues pertaining to right-of-way (ROW) acquisition continued to hamper the
52 development and implementation of infrastructure projects across all subsectors. There were also changes
53 in certain project components and specifications of projects arising from poor planning and project
54 preparation, among others.
55 Concerned agencies have been regularly monitoring the IFPs to identify bottlenecks in the completion
56 thereof and facilitate early resolution of issues. The Office of the President (OP), through the Executive
57 Secretary, issued Memorandum Circular (MC) No. 57 (s. 2019) reminding all agencies to ensure the timely
58 completion of infrastructure projects, while promoting the safety of, and mitigating inconvenience to, the
59 public. MC 57 also specifically tasked the Infrastructure Cluster (IC) to lead in this endeavor and serve as
60 venue to discuss and resolve any operational issues hounding the implementation of infrastructure projects.
61 A rational approach to planning was instituted through the formulation of sectoral master
62 plans/roadmaps and provision of support facilities for project development and preparation. Critical
63 master plans and roadmaps for the infrastructure sector have been formulated to guide the present and future
64 interventions towards a more harmonious, coordinated and sustainable path of development. The following
65 sectoral master plans/roadmaps have been pursued by the government over the past three years (Table 19.2):
66

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67 Table 19.2.Master Plans/Roadmaps for the Infrastructure Sector
Master Plan/Roadmap Description Status
Philippine Water Supply and Sets the water resources sector’s direction in attaining the water
Sanitation Master Plan supply and sanitation subsector targets through strategies, policy Completed
(PWSSMP) reforms, and priority programs and projects.
Aimed at formulating an urban development plan to improve the

competitiveness, safety/disaster-response, and general urban
Davao City Infrastructure
conditions of Davao City, and enhancing the capacity of NEDA, the
Development Plan and Completed
city government of Davao, and other relevant government agencies in
Capacity Building Project
planning, budgeting, and managing proposed urban development
plan.
Master Plan Study and
Serves as foundation for Metro Cebu in realizing transport projects
Institutional Development on
with strategic long-term viewpoint, thereby contributing to the Completed
Urban Transport System in
sustainable development of Metro Cebu.
Metro Cebu
An inclusive master plan for the sustainable development of Manila

Manila Bay Sustainable
Bay, envisioned to guide decision-makers in the assessment and
Development Master Plan Ongoing
approval of PAPs for implementation in the Manila Bay and in adjacent
(MBSDMP)
areas with significant influence on the bay.
Guides the rational development of an intermodal transport network in

Philippine Transportation the country and promote sub-regional economic cooperation or
Ongoing
System Master Plan (PTSMP) agglomeration and utilization of multimodal transport system for more
efficient connectivity.
Intends to ensure the integrated development of the maritime industry
Maritime Industry of the country by laying out a framework of practicable and
Development Plan (MIDP) coordinated interventions such as modernization and expansion of the Completed
2019-2028 Philippine merchant fleet, domestic capability for ship-building, among
others.
Sets the direction for irrigation subsector development by updating,

National Irrigation Master refining, and enhancing the current draft of the 10-year National
Ongoing
Plan (NIMP) Irrigation Administration (NIA) Irrigation Development Master Plan
(2017-2026).
Sets the necessary policy, regulatory and infostructure interventions

National Broadband Plan
to ensure the delivery of universal, fast, reliable, affordable broadband Completed
(NBP)
internet services to Filipinos in a digital economy.

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Master Plan/Roadmap Description Status
PEP provides for the blueprint to secure the country’s energy future
through the nine-point Energy Agenda and strategic directions. The
2018-2040 Plan Update provides the sectoral energy roadmaps which
Philippine Energy Plan (PEP) Updated annually
“focuses on securing the country’s reliable supply of energy, as well
as ensuring high level of satisfaction among energy consumers and
stakeholders.”
68
69 Facilities to support project development and preparation of infrastructure projects were made available
70 through the Project Development and Other Related Studies (PDRS) Fund (amounting to PHP1.595 billion)
71 being administered by NEDA since 2018; the Infrastructure Preparation and Innovation Facility (IPIF)
72 worth PHP7.92 billion to be financed through ODA being facilitated by DOF from 2018 until 2021; and
73 the Philippines-Korea Project Preparation Facility (PK-PPF) estimated at PHP3.70 billion, which is also
74 being facilitated by DOF.
75 Cognizant of the increasing threats to environmental integrity and quality of living conditions due to rapid
76 urbanization, the PDRS Fund also supported the formulation of sustainable urban development master plans
77 in 11 cities across the country that have been identified as growth centers under the National Spatial Strategy
78 (NSS). The formulation of the 11 sustainable infrastructure urban development master plans are ongoing
79 and are expected to be completed in December 2019 (Figure 19.1).
80

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81 Figure 19.1. Masterplans for Sustainable Infrastructure Development in Urban Areas under the PDRS
82 Fund.
1. Baguio City-La-Trinidad-
Itogon-Sablan-Tuba-
Tublay (BLISTT)
1 2. Butuan City
1 3. Calapan City
4. General Santos City
5. Pagadian City
1 6. Metro Bacolod
7. Metro Cagayan De Oro
8. Metro Iloilo
9. Metro Ormoc
10. Metropolitan Tuguegarao
11 Vi Ci
9
8 6
83
84
85
86 Philippine Development Plan 2017- 2022 Midterm Update
5
87 Government has been working to enhance the regulatory frameworks for engaging the private sector
88 in infrastructure provision. The proposed amendments to the Guidelines and Procedures for Entering into
89 Joint Ventures (JV) with Government and Private Entities, otherwise known as the 2013 Revised JV
90 Guidelines, are being pursued to eliminate ambiguities in its application/implementation and foster
91 heightened compliance/adherence to principles of competitiveness and transparency in processing and
92 approval of JV undertakings. On 23 August 2019, a public consultation on the proposed amendments was
93 conducted.
94 To make the Build-Operate-Transfer (BOT) Law more responsive to shifting real-world circumstances,
95 proposed amendments to the said Law were likewise pursued to consolidate all legal issuances relative to
96 public-private partnership (PPP), including JVs, as well as to address bottlenecks in the implementation of
97 programs and projects.
98 Updated, integrated, and comprehensive data for the infrastructure sector remain limited and thus
99 pose a challenge for planning and programming. The lack of updated data to assess sectoral performance
100 continue to persist in all infrastructure subsectors. Such sector data should be made available to guide the
101 decision-makers in crafting policies and plans.
102 Transportation
103 The National Transport Policy (NTP) was adopted by the Government. Among the priority legislative
104 agenda in the PDP 2017-2022, the enactment of NTP was identified to effect substantial impact in
105 improving the performance of the transportation sector as an enabler of growth. Pending legislative action
106 in the interim, and in response to the urgent needs of the economy for high quality transport infrastructure
107 and services, NEDA Board Resolution No. 5, Adopting the National Transport Policy, was issued on 12
108 September 2017 and its Implementing Rules and Regulations (IRR) was approved by the NEDA Board
109 Committee on Infrastructure (INFRACOM) on 14 December 2018. The NTP sets forth policies which guide
110 all entities in pursuing policy decisions and future investments in the development, management, operation,
111 and use of transport systems.
112 The Transport Vision, as espoused in the NTP, represents the goals of all transport-related initiatives, to
113 wit:
114 “A safe, secure, reliable, efficient, integrated, intermodal, affordable, cost-effective,

115 environmentally sustainable, and people-oriented national transport system that ensures improved
116 quality of life of the people.”
117
118

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119 Land-based Transport
120 Long-standing problems have constrained efforts to alleviate traffic congestion. Estimates in 2017 of
121 the daily economic cost of transport were valued at PHP3.50 billion in Metro Manila and PHP2.35 billion
122 in the adjoining provinces. Transport demand analysis of major corridors in the Greater Capital Region
123 (GCR), Metro Cebu, and Metro Davao showed heavy traffic as indicated by an average volume-capacity
124 ratio (VCR) of more than 0.71 in 2017, compared to the optimal 0.60.
125 Key activities to address such problem include widening of roads and integration of mass transit systems;
126 however, among the impediments to such initiatives are the following:
127 1. Inadequate absorptive capacity of implementing agencies—i.e. limited number of local skilled
128 and unskilled workers, technical and managerial skills to implement new technologies and
129 innovations, and number of organic employees vis-à-vis increased number of projects, among
130 others;
131 2. Encroachment along transport corridors—i.e. illegal structures are not easily or quickly removed
132 due to legalities and human welfare considerations;
133 3. Limited consideration of universal accessibility concepts in the design –i.e., lack of escalators
134 and/or elevators in some rail stations, and limited number of low-floored buses, among others;
135 and,
136 4. Unavailability of a unified transport network database and model to guide planning.
137 Continuous extension, expansion, and upgrading of the road network were undertaken. Out of the
138 33,012 kilometers (km) of national roads across the country, 96.20 percent have been paved, resulting in a
139 5.10 percent increase from the 2016 baseline. Similarly, toll expressways increased in length to 407.39 km
140 in 2019, a 5.56 percent increase from the 2016 baseline.
141 As of 2018, 393 km of national road were constructed to connect identified gaps to and from other transport
142 modes, growth areas, and economic centers outside metropolitan areas. This fell short of the target of 576
143 km for the same year. In terms of total connectivity via road transport, there are still 4,204 barangays, or
144 about 10 percent of the total 42,029 barangays nationwide, that remain unconnected to an all-weather road
145 and are not yet accessible by four-wheel vehicles.
146 Efforts are being exerted to decongest major thoroughfares through mass transit systems. Key mass
147 transit projects shown in the following table, have been approved and set into motion, and others are
148 underway to address the demand gap and provide fast, efficient, and sustainable means of transportation,
149 especially in the major urban areas. However, the implementation of many of these projects commenced
150 later than expected due to several changes in the technical configuration which were determined during the
151 design phase.
152

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Project Milestone/s Target Completion
Ongoing Implementation
Metro Manila Subway Project (MMSP) Phase 1 NEDA Board (NB) Approval: 12 September 2017 20222 (partial
operability)
Loan Agreement (Japan): 16 March 2018
2027 (complete
Ground Breaking: 27 February 2019 system)
North-South Commuter Railway (NSCR) System NB Approval: 15 November 2018 2025
Loan Agreement (ADB/Japan): 21 January 2019
Ground Breaking: 15 February 2019

Metro Rail Transit (MRT) 3 Rehabilitation Project NB Approval: 22 August 2018 2021
Loan Agreement (Japan): 08 November 2018
Ongoing Rehabilitation and Maintenance Works

MRT Line 7 NB Approval: 21 November 2013 2020
Concession Agreement (San Miguel Corp.):

14 July 2014
Ground Breaking: 20 April 2016
Project Status:
48.45% Complete (as of 30 September 2019)
New Configuration of the Light Rail Transit (LRT) NB Approval: 30 May 2017 2019
Line 1 North Extension Project – Common Station
/ Unified Grand Central Station Ground Breaking: 20 September 2017
Pipeline Projects
Mindanao Railway Project – Tagum-Digos-Davao ICC-CC Approval (Increase in Cost): 2022
(MRP-TDD) 10 July 2019
Ongoing Pre-construction Works

Manila Bus Rapid Transit (BRT) Line 1 ICC-CC Approval: 14 February 2019 2022
Loan Agreement (World Bank): 14 February 2019
Ongoing Pre-construction Works

Subic – Clark Railway Project NB Approval: 25 April 2018 2022
Ongoing Procurement of Contractor

Philippine National Railways (PNR) South Long NB Approval: 16 February 2015 2023
Haul
Loan Agreement (China): 30 August 2019
Ongoing Right-of-way Acquisition

Cebu Bus Rapid Transit (CBRT) NB Approval (Increase in Cost): 2021 (partial
12 September 2017 operability)
Loan Agreement (World Bank/ AFD): 2022 (complete

14 October 2014 system)
Ongoing Pre-construction Works.

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153
154 The number of private sector proposals for mass transit projects is increasing, indicating interest in the
155 delivery of such services. This renewed clamor for private sector participation, combined with
156 technological advances, requires strengthening of the current regulatory framework and building new
157 capacities that would address the corresponding growing demand for skills and expertise in mass
158 transportation.
159 Alternative transport modes are being integrated to augment the increasing passenger demand. To
160 supplement the traditional bus operations and existing urban rail services, Premium Point to Point (P2P)
161 bus services are now available with 40 routes plying the major thoroughfares to and from Metro Manila
162 and nearby provinces in Luzon—an increase from the 22 routes operating since 2017. The provision of
163 non-motorized transport infrastructure as an alternative mode for sustainable development is being realized
164 and being integrated in the design of the road network. However, the establishment of bicycle lanes and
165 elevated walkways, among others, are met with setbacks such as spatial constraints and fragmented policies
166 among local government units (LGUs).
167 Existing public utility vehicles are being enhanced to provide safe and comfortable transport services.
168 Aside from implementing new projects, efforts have also been undertaken to modernize the existing
169 transport assets. Activities under the Public Utility Vehicle (PUV) Modernization Program are ongoing
170 with some identified LGUs 1 on board for its preliminary implementation. To complement said effort, DOTr
171 and concerned attached agencies such as the Land Transportation Franchising and Regulatory Board
172 (LTFRB) issued the guidelines and forged cooperation with the Department of the Interior and Local
173 Government (DILG) to prepare the LGUs for the nationwide implementation.
174 Air Transport
175 The country’s civil aviation sector met its overall target, but with regional integration, it will need to
176 meet a significantly higher demand. Air passenger traffic grew by 18.38 percent, from 71.54 million in
177 2016 to 84.69 million passengers in 2018. Correspondingly, air cargo traffic increased consistently with
178 457.54 million Metric Tons (MT) shipped via air in 2018 as compared to 353.64 million MT in 2016.
179 Ninoy Aquino International Airport (NAIA) remains the country’s primary gateway, with 45 million
180 passengers served in 2018, 23 million of which are international while the rest are domestic passengers.
181 However, the congestion in NAIA resulted in frequent flight delays and reduced level of service for
182 passengers. Despite the interim solutions being implemented in the airport such as restrictions on general
183 aviation (GA) to prioritize commercial flights; enforcement of five-minute rule in departing aircrafts; and
184 opening of two (2) new Rapid Exit Taxiways to shorten runway occupancy time, NAIA’s runway
185 orientation prevents any further increase to its design capacity of 31 million passengers per annum.
186 With the utilization of Clark International Airport (CIA) by more airlines being actively promoted, aircraft
187 movements increased significantly by 97 percent while passenger traffic increased by 77 percent in 2018.
188 Increased influx of passengers in the airport should be anticipated with various ongoing developments in
189 Northern and Central Luzon, e.g., the Clark Green City. The ongoing expansion of the CIA and the expected
1
Davao, Cebu, Angeles, General Santos and Metro Manila Cities (Pasig, Mandaluyong, and Makati)

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190 higher level of service—with the private sector taking change of airport operations—will complement other
191 infrastructure projects in the area in an effort to spread growth outside of Metro Manila.
192 In view of these enhancements, eight (8) Philippine airports were awarded with a 1-star rating in terms of
193 on-time performance (OTP)2 by the Official Aviation Guide (OAG) in 2017 which increased to eleven (11)
194 in 2018. CIA remained steadfast with 2-star rating from 2017 to 2018. Efforts to reduce flight delays,
195 decongest the airport, and improve overall passenger experience propelled the NAIA from being the least
196 to one of the most improved airports in the world, ranking 10th in the Skytrax World Airport Awards in
197 2018.
198 Two (2) new international gateways in the Visayas Region started commercial operations in 2018, the
199 Bohol-Panglao International Airport, dubbed as the country’s first “eco-airport,” and the new world-class
200 terminal building of the Mactan-Cebu International Airport (MCIA), both of which are expected to facilitate
201 the direct connection of the Region to the rest of the world.
202 Improved facilities and operations in airports revamped the overall air traffic management system of major
203 regional gateways. In 2018, 100 percent of the Philippine air space is now being completely monitored via
204 the additional instalment of satellite-based Communication Navigation Surveillance/ Air Traffic
205 Management (CNS/ATM), a notable progress from the 30 percent coverage in 2016.
206 The number of airports with night-landing capabilities increased from 15 in 2016 to 21 in 2018. While
207 DOTr and CAAP aim to night-rate all 42 commercial airports in the country by 2022, CAAP noted the
208 constraints associated with obstacle limitation requirements that need to be addressed, e.g., removal of
209 obstructions and encroachments in the airport perimeter.
210 More international direct flights were inaugurated to improve the country’s global competitiveness and in
211 keeping with our regional commitments, e.g., ASEAN Integration, Brunei Darussalam-Indonesia-
212 Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA). Domestically, new routes across different
213 islands were launched to improve connectivity and enhance mobility amidst the archipelagic nature of the
214 country.
215 Major accidents in the past years paralyzed operations in NAIA for several hours, even days, which caused
216 severe inconvenience to many passengers. The rigid and incoherent protocols, processes, and procedures
217 between airport authorities and airlines slowed down emergency response. Nevertheless, the CIA and other
218 international airports in the country helped alleviate the situation by accommodating diverted traffic.
219 Maritime Transport
220 The nautical highway was strengthened through port facilities enhancements and opening of new
221 routes. Enhancement in port facilities to cater to larger vessels and efficient port operations led to increasing
222 cargo and container traffic that surpassed the targets set for 2017 and 2018, respectively. The Roll-On-Roll-
223 Off (RoRo) Highway remains a practical option for sustainable trade and tourism. Thus, ports are
224 continuously upgraded and equipped with facilities to handle RoRo vessels to complement the increased
225 traffic demand of 7 million in 2018 from 6.1 million in 2017.
2
Rating by the Official Aviation Guide (OAG)

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226 Although the country’s bid for opening the RoRo system to international operations was realized with the
227 opening of the Davao–General Santos–Bitung, Indonesia route in 2017, which decreased shipping time
228 from five (5) weeks to three (3) days, there is a need to come up with a more strategic action plan for
229 sustained operations.
230 From July 2016 to May 2019, the DOTr together with the Philippine Ports Authority (PPA), completed 163
231 commercial and 41 social and tourism port projects. Additional 130 projects are ongoing and by year 2022,
232 a total of 183 commercial and 172 social and tourism port projects are targeted for completion. These ports
233 will connect the remaining island municipalities and barangays nationwide, thereby facilitating growth in
234 local tourism and trade.
235 Similarly, as various modes of maritime transport remain available for inter-island travel (i.e., RoRo, fast
236 crafts, and motorized bancas), surges in passenger traffic are also evident. There were 93.3 million
237 passengers in 2017 and 98.9 million in 2018, surpassing the targets set for said years, ensuring a positive
238 response to the Government’s efforts to promote domestic eco-tourism. Port operations also ventured in e-
239 payment systems for cashless transactions which were piloted in three ports in 2017 and an additional 10
240 ports in 2018.
241 The freight movement in the Manila Ports was enhanced. The Ports of Manila, i.e., the Manila
242 International Container Port, North Harbor and South Harbor, remain to be the country’s busiest terminals
243 in terms of passenger and cargo traffic. Combined passenger traffic (excluding MICT) increased by more
244 than 4 percent from 2017 to 2018, while combined cargo traffic in metric tons (MT) increased by 6 percent
245 in the same period Domestic cargo [excluding MICT] in MT increased by about 3 percent, whereas
246 international cargo in MT increased by more than 8 percent.
247 To improve the container yard utilization in the Manila Ports, the PPA issued the “Guidelines on the
248 Immediate Transfer of Overstaying Import Cargoes from the Terminals to Designated Ports”. It has
249 expeditiously addressed high import dwell time, promoted optimal terminal efficiency in managing
250 increased trade and demand for cargo clearance facilitation at the MICT and the South Harbor, and caused
251 the immediate and accelerated transfer of all import cargoes already cleared for delivery/withdrawal (via
252 the Online Release System) from the terminal container yards to their designated ports 3.
253 PPA, DOTr, the Bureau of Customs, the Association of International Shipping Lines, and the container port
254 operators are working together to prevent containers from overstaying at the port (i.e., for more than 30
255 days beyond the allowed time after clearing) by transferring them to the designated inland container depots,
256 with the corresponding costs to be borne by the cargo owners, shippers, consignees, logistics operators, or
257 custom brokers. The “Empty Loadout Shipping Agreement (ELSA)” of South Harbor with participating
258 shipping lines mandates the latter to load empty containers already available at the port regardless of which
259 shipping line owned such container after every cargo discharge. With the optimal utilization of port
260 container yards, efficient flow of truck traffic going to/coming from the ports is also facilitated, contributing
261 to the efforts of alleviating traffic congestion in roads leading to the Manila Ports.
262 To help reduce truck trips in the surrounding access roads in Manila Ports, thereby reducing road traffic
263 congestion, the Cavite Gateway Terminal (CGT) was opened in 2018. The CGT is a strategic container
3
Any dry port inland container terminal, depot and sea port which is designated as alternative port other than the port of discharge and where
import cargo may be transferred for long-term storage.

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264 barge terminal that provides an alternative transport mode to trucking operations by moving cargo and
265 people out of the roads and into the waterways, as well as enable direct port-to-port services and seamless
266 cargo transfers to other major ports in Luzon. The CGT targets to reduce an estimated number of 140,000
267 trucks trips annually.
268 The utilization of other ports in the Greater Capital Region was increased. While the capacities of
269 Batangas and Subic ports remain underutilized, apparent increases in the utilization of the respective ports
270 were noted. For the first half of 2019, the Batangas Container Terminal was able to handle about 197,000
271 twenty-foot equivalent units (TEU) of container traffic out of its 300,000 TEU annual capacity. This will
272 be increased to 500,000 TEUs with the completion of additional berth and additional equipment. The
273 continued operation of the five-hectare inland clearance depot in Calamba, Laguna, which caters to both
274 Batangas and Manila Ports, facilitates the consolidation of logistics services – from handling of containers,
275 to trucking, storage, brokerage, customs-clearing and other ancillary services – for seamless and hassle-free
276 shipment deliveries.
277 With its proximity and accessibility to the major car manufacturing hubs, the Port of Batangas remains as
278 the preferred gateway for the country’s imports of completely built units. The port handles over 70,000
279 deliveries of cars for the biggest car brands in the country, accounting for more than half of national car
280 sales, annually. The new multi-level car storage facility increased the port’s capacity to 5,400 CBUs at any
281 given time. To further enhance the level of passenger service, the construction of a new passenger terminal
282 building is underway and is targeted to be operational in 2021.
283 In 2018, Subic Port reached its 200,000 TEU mark out of its 600,000 TEU annual capacity, bringing its
284 average utilization rate to about 33 percent. Its empty container depot continues to facilitate the
285 repositioning of empty containers to/from the Manila Ports. To attract more traffic, Subic Port actively
286 markets its one-stop-shop for clearing and loading of cargo; lower terminal charges of about 48 percent
287 compared to Manila Ports; and direct connection to expressways which allows transit within the Region in
288 one (1) day.
289 The vital role of the maritime sector in accelerating the national integrated development and global
290 competitiveness was realized. The first comprehensive plan for the development of the country’s maritime
291 industry was completed by the Maritime Industry Development Authority (MARINA) in 2018. The MIDP
292 2019-2028 identified the following key challenges in the sector: a) complexity of the maritime industry
293 involving multi-sectoral activities; b) difficulty in ensuring alignment of priorities of sector
294 agencies/entities despite inter-agency collaboration and cooperation; and c) absence of a lead government
295 agency to steer the sector towards a single direction because of the fragmented assignment of maritime
296 administration and governance functions in the past. The implementation framework and investment
297 program under the MIDP are being finalized.
298 The rehabilitation and improvement of Pasig River Ferry Service was initiated. To complement the
299 improvements in the road network, the Pasig River Convergence Program is currently focused on pre-
300 investment activities for the Pasig River Ferry System Project. It aims to rehabilitate/improve the existing
301 Pasig River ferry service with emphasis on intra-city connectivity within Metro Manila to help mitigate
302 traffic congestion and air pollution. It also aims to establish more ferry terminals along the existing route,
303 as well as expanding the existing ferry service towards the Manila Bay and Laguna Lake for improved
304 regional connectivity.

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305 Transport Safety and Security
306 Significant measures were instituted to guarantee the safe movement of people and goods. The
307 increasing demand for transport services requires a proactive posture in order to ensure a safe and secure
308 transport environment.
309 For the land-based transport sector, the Philippine Road Safety Action Plan was updated and aligned with
310 international conventions and standards to serve as an overall guide in curbing road transport-related
311 incidents. To complement such effort, the National Land Transportation Security Program (NLTSP) was
312 approved and adopted to address security challenges in road and rail systems, and other infrastructures.
313 In the maritime sector, the Philippine Coast Guard (PCG) has increased the number of operational
314 lighthouses from 540 to 594, resulting in 90.91 percent operational efficiency, up from 87.54 percent in
315 July 2016. These operational lighthouses are equipped with Global Positioning System (GPS) which
316 determines the position of marine vessels and guides seafarers, ports, and harbors. The installation of the
317 Automatic Identification System (AIS) in strategic ports across the country facilitates identification of
318 maritime vessels and impedes illegal activities and terrorism, reaching 67.78 percent coverage in 2017.
319 For air transport, the Communications, Navigations, Surveillance/Air Traffic Management (CNS/ATM)
320 systems which allow for more definite and established aircraft identification have improved passenger
321 safety and reliability and efficiency of air traffic in the country’s airspace. The system provides better air
322 traffic flow and space management, thereby optimizing airport capacity and harnessing efficient use of
323 airspace that will, in turn, minimize flight delays.
324 Water Resources

325 Reforms were initiated to address the institutional concerns that have impeded the effective
326 policymaking, planning, and development in the water resources sector. The long-standing issue of
327 institutional fragmentation in the sector, i.e., the existence of at least 30 agencies with specific but
328 overlapping or conflicting mandates, and the continued absence of a lead agency to coordinate the
329 development in the water sector raises difficulty of coordination and implementation of policies, programs
330 and projects. Likewise, the lack of updated and integrated data on the sector resulting from its fragmented
331 institutional structure has made it difficult to quantify the extent of many problems in the water sector (e.g.,
332 water resource availability or lack thereof, water stress levels, inefficiency in use, over/underutilization of
333 resources, extent of groundwater pollution, etc.). Consequently, planning and monitoring for the sector have
334 been ineffective.
335 As part of institutional reforms in the water sector, bills were prepared to address the sector’s fragmented
336 structure and lack of harmonized regulation in the water supply and sanitation (WSS) sector. Draft bills on
337 the creation of the Department of Water Resources (DWR), an apex body that would oversee overall
338 planning, programming, policy formulation, and management of the water resources sector, and the Water
339 Regulatory Commission (WRC), an independent body for economic regulation of WSS service providers,
340 have been submitted to the Presidential Legislative Liaison Office. Pending the approval of these draft bills,
341 and recognizing the possible length of time required for their legislation, an executive issuance on

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342 strengthening the National Water Resources Board (NWRB), mainly by augmenting its resources and
343 workforce as well as boosting its regional presence in the country, is also awaiting approval by the Office
344 of the President for implementation as interim solution.
345 Households with access to safe water supply increased and remained on target while the coverage of
346 improved sanitation did not meet the expected level. As of the latest available data by the Philippine
347 Statistics Authority (PSA) 4, 89.9 percent of households in the country have access to developed water
348 supply, which is slightly higher than the updated target for 2017 of 89.15 percent. Around 10.1 percent of
349 households, however, still access water through unprotected wells, tanker trucks, and natural sources such
350 as rivers, streams, pond, lake, and rainwater. In terms of sanitation, 89.2 percent of households use improved
351 facilities, of which about 74.0 percent use improved sanitation facility that is not shared with other
352 households and 15.0 percent use shared improved sanitation facility. The total is lower than the revised
353 target of 92.58 percent for 2017.
354 In addition, inefficiencies continue to be prevalent in many water service provider operations as reflected
355 in their non-revenue water levels. Climate-induced issues continue to threaten many cities and
356 municipalities, such as the El Niño phenomenon in 2019 which resulted in the reduced volume of reservoir
357 for domestic water supply and irrigation. The lack of access to sewerage and septage treatment services
358 continues to endanger human and ecological health.
359 Recognizing the issues and gaps under the WSS sector, the Philippine Water Supply and Sanitation Master
360 Plan was initiated in 2017 to serve as action plan to achieve universal access to safe WSS by 2030. The
361 conduct of feasibility studies and concept design studies aimed at determining the viability of dam projects,
362 identifying availability and potential of rivers and other sources for water supply, operationalizing existing
363 non-operational water districts, and institutionalizing non-revenue water reduction and control programs,
364 are likewise being undertaken since 2018 under the Project Development and Other Related Studies Fund
365 administered by NEDA.
366 Irrigation development increased but operations and maintenance remain a major challenge. As of
367 December 20185, irrigation service to support agricultural production stood at approximately 61.39 percent
368 of the relevant potential irrigable area in 2018, which is higher than the target of 60.43 percent for the same
369 year. Efforts should be sustained in order to meet the 65.07 percent target for 2022, especially with the
370 implementation of Republic Act (RA) No. 10969, otherwise known as the Free Irrigation Service Act, and
371 considering the continuing challenges involving conversion of irrigable lands into urban use and decrease
372 in availability of irrigation water supply due to climate variability and competition with other water uses.
373 Moreover, many irrigators’ associations still lack the capacity to operate and maintain their irrigation
374 structures and facilities to properly operate.
375 In view of the gaps and challenges faced by the sector, the formulation of the National Irrigation Master
376 Plan was initiated in 2018. Expected to be completed by 2019, this Master Plan maps out the strategies to
377 improve the organizational and institutional aspects of the sector as well as the detailed program of projects
378 that comprise the appropriate mix of new development and rehabilitation,.
4
Per APIS 2017 of the PSA. Updated data, which should be reflected in the FIES 2018 is not yet available.
5
Per CY 2018 Year-End Report of NIA

14
379 Flood control and drainage master plans and feasibility studies of projects in major river basins and
380 principal rivers are being developed and updated. Flood and drainage master plans for six major river
381 basins 6 are underway. Among the big-ticket projects in the sector, which have secured the approval of the
382 NEDA Board as of 2019, are the Ambal-Simuay River, Rio Grande de Mindanao, and Cavite Industrial
383 Area Flood Control Projects and the Pasig-Marikina River Channel Improvement Project Phase IV.
384 The development of flood management infrastructure is becoming more challenging due to climate change
385 and the growing need to adopt the Integrated Water Resources Management (IWRM) approach, which
386 promotes the coordinated development and management of water, land, and related resources. The lack of
387 comprehensive sector data for planning and monitoring, along with the need to coordinate efforts with solid
388 waste management and housing, also poses a big challenge. Watershed protection also needs to be
389 considered to mitigate the negative effects of downstream flooding.
390 Energy
391 Major reforms were implemented/initiated to address concerns in the attainment of energy security
392 in the country. The Philippines recognizes the urgency to address the bottlenecks in the bureaucratic
393 process for the entry of critical investments in the sector. In line with the Government’s strategies to foster
394 a better investment climate, Executive Order (EO) No. 30 was issued in 2017 and its IRR in 2018. EO 30
395 aims to develop an efficient and effective administrative process for major energy projects for power
396 generation, transmission and/or ancillary services identified/endorsed by the Department of Energy (DOE)
397 as “Energy Projects of National Significance (EPNS)”. As of October 2019, 144 Certificates of EPNS have
398 been awarded, translating to an estimated PHP 678.56 Billion worth of energy investments for the country.
399 On the other hand, RA No. 11234 or the “Energy Virtual One Stop Shop (EVOSS) Act” was signed by the
400 President in 2019. This mandates the creation of an online platform that allows for the paperless applications
401 for permits for new power generation, transmission or distribution projects. In the long run, this policy will
402 cut “red tape” in the energy sector through a simplified and fast permitting process.
403 To institutionalize disaster resiliency efforts, the Energy Resiliency Policy (ERP) was signed in January
404 2018 to help strengthen the energy systems and facilities, as well as ensure quick restoration of energy
405 services during and after calamities. This will lessen the adverse effects of disasters to people, the
406 environment, and the economy. Another initiative is the passage of RA No. 11039 creating the Electric
407 Cooperatives’ Emergency and Resiliency Fund (ECERF), which provides financial assistance to electric
408 cooperatives (EC) for disaster mitigation, preparedness, and the rehabilitation of damaged EC
409 infrastructures.
410 Furthermore, RA No. 11285 or the “Energy Efficiency and Conservation Act” was signed to serve as a
411 framework to boost the use of energy-efficient technologies for the promotion of energy efficiency and
412 conservation in the country. This law institutionalizes energy efficiency and conservation as a national
413 “Way of Life” in the country.
6
i.e., Apayao-Abulug RB, Abra RB, Jalaur RB, Buayan-Malungon RB, Agus RB, and Tagum-Libuganon RB.

15
414 In strengthening consumer welfare and protection, RA No. 11371 or the “Murang Kuryente Act” was
415 enacted in August 2019. This will enable the utilization of the Government’s share from the Malampaya
416 Fund to cover the payment of the National Power Corporation’s (NPC) stranded contract costs and stranded
417 debts, which are currently being imposed on consumers as universal charges, thereby providing consumers
418 savings on their monthly electricity bills.
419 Notwithstanding the reforms instituted/initiated, the high cost of electricity still remains one of the major
420 concerns in the sector. The country’s electricity rates are considered to be among the highest in Asia since
421 the Philippine government reflects the “true cost” of power without the use of subsidies. Moreover, taxes,
422 fees, and other charges are also levied on the generation, transmission and distribution sectors, which
423 constitute a portion of the Philippine electricity rates.
424 Power generation capacities increased. In 2018, the country’s peak demand reached 14,782 MW, which
425 is 7.2 percent higher than the 2017 level of 13,789 MW. Luzon recorded its highest/peak demand at 10,876
426 MW, Visayas at 2,053 MW, and Mindanao at 1,853 MW.
427 Power supply, on the other hand, reached a total of 23,815 MW of installed capacities, 21,241 MW of
428 dependable capacities, and 16,629 MW of available capacities. Installed capacity grew by 4.8 percent from
429 22,728 MW in 2017 to 23,815 MW in 2018. A total of 934 MW of new capacities were added to the
430 country's supply in 2018, which include coal-fired (720 MW), oil-based (87.3 MW), geothermal (12 MW),
431 hydropower (80.3 MW), and biomass (34 MW) power plants.
432 In terms of share by grid, Luzon contributed an additional capacity of 660 MW or 70.6 percent, and
433 Mindanao at 274 MW or 29.4 percent of the newly installed capacities. Despite meeting the current
434 demand, there is still a need to ensure that the power supply can sustainably cover the increasing demand
435 due to the projected continuous growth of the country’s economy.
436 Table 19.3. Capacity Mix, MW (Installed, Dependable and Available Capacity) as of 31 December 2018
2018 Installed 2018 Dependable 2018 Available

Grid 2018 Peak Demand, MW
Capacities, MW Capacities, MW Capacities, MW
Luzon 16,549 14,973 11,525 10,876
Visayas 3,450 3,000 2,969 2,053
Mindanao 3,815 3,269 2,485 1,853
Philippines 23,814 21,241 16,629 14,782
437 Source:https://www.doe.gov.ph/sites/default/files/pdf/energy_statistics/02_2018_power_statistics_as_of_29_march_2019_capaci
438 ty_per_plant_type.pdf
439
440 The development of the country’s indigenous energy resources was pursued. In 2018, the country’s
441 total primary energy supply (TPES) reached a 59.59 Million Tons of Oil Equivalent (MTOE), 2.8 percent
442 higher than its 2017 level of 57.96 MTOE. This is attributed to the increase in aggregate net import energy
443 sources from 28.44 MTOE in 2017 to 29.67 MTOE in 2018. The combination of renewable energy (RE)
444 and natural gas had the highest share of the primary energy supply mix amounting to 39.1 percent (23.32
16
445 MTOE), followed by oil and coal with 33.6 percent (19.99 MTOE) and 27.3 percent (16.28 MTOE) shares,
446 respectively.
447 In pursuit of energy security and sustainability, the energy sector is committed to “explore, explore, explore”
448 through the development of all local energy resources. In the country’s upstream oil and gas sector, a new
449 oil field in Alegria, Cebu was recently discovered which has an estimated 27.93 million barrels (MMB) of
450 oil and a possible production recovery of 3.35 MMB for said field. It also has natural gas reserves of about
451 9.42 billion cubic feet (BCF), with a recoverable resource estimated at 6.6 BCF that could fuel power plants
452 connected to the local power grid. To further support and strengthen investments in the upstream oil and
453 gas sector, DOE officially launched the Philippine Conventional Energy Contracting Program (PCECP) in
454 2018 which provides investors the option to propose potential areas for exploration and/or development.
455 However, the country remains heavily dependent on external sources for its petroleum supplies, importing
456 97 percent of the oil requirement. The development of the country’s indigenous energy remains a challenge
457 as its share in total energy supply decreased from 50.9 percent in 2017 to 50.2 percent in 2018.
458 The Government continued to push for sustainable energy through promotion of renewable energy
459 (RE) as well as efficient energy generation and utilization. Energy-efficient technologies and RE
460 resources, as well as transparent and fair electricity trading among all industry players need to be
461 extensively promoted. On energy utilization, DOE launched the nationwide “E-Power Mo Campaign” to
462 promote the intelligent use of energy resources. The Department is likewise working on the development
463 of particular product requirements (PPRs) for appliances (e.g., refrigerators and freezers, air-conditioning
464 units, lighting products, televisions, washing machines).
465 To further ensure the optimal use of RE, Department Circular (DC) 2018-07-0019 was issued in July 2018
466 to promulgate the rules and guidelines governing the Green Energy Option Program (GEOP) that
467 empowers end-users to choose RE resources as their sources of energy through distribution utilities.
468 Likewise, the Renewable Portfolio Standards (RPS) On-Grid Rules (DC 2017-12-0015) mandates all
469 electric power industry participants to source or produce a specified portion of their electricity requirements
470 from eligible renewable energy resources including biomass, geothermal, solar, hydro, ocean, and wind.
471 The RPS Rules for Off-Grid Areas (DC 2018-08-0024), on the other hand, were adopted to mandate the
472 off-grid power industry to obtain a specified portion of their electricity requirement from RE sources. In
473 addition, DC 2018-09-0027 was issued to establish and develop RE Zones and upgrade and expand their
474 required transmission facilities through policy initiatives and activities that shall enable the optimal use of
475 the RE resources of the country. To spur countryside development while promoting the use of clean energy,
476 the rules for the RE Trust Fund were issued to finance the research and development of RE, as well as the
477 conduct of related resource and market assessment studies. Another major development is the increased
478 installations of solar rooftops in residential houses and commercial establishments which contributed to the
479 energy efficiency program of DOE through peak shaving and, thus, contributed to lowering the cost of
480 electricity.
481 In terms of investments in RE, the DOE has awarded a total of 909 RE projects (as of December 2018) with
482 an equivalent potential capacity of 31,635 MW.
483 Moreover, the three (3)-year Feed-in-Tariff (FIT) Regime, which ended in December 2017, was extended
484 for two (2) years or until fully subscribed, whichever may come first, for the 98.18 MW installation targets

17
485 for biomass and 128 MW for run-of-river hydro technologies. Despite these achievements, however,
486 significant potential RE sources remain untapped.
487 The country is on track towards attaining full energization by 2022. As of December 2018, a total of
488 22.03 million households of the 22.98 million potential households (based on 2015 National Census of
489 Population) have access to electricity translating to a 96.12 percent household electrification level. With
490 electricity as a major catalyst for improving the lives of Filipinos, the Government embarked on a Total
491 Electrification Program and created the Task Force E-Power Mo (TFEM) to accelerate the electrification
492 of unserved and underserved areas through the implementation of the following programs, among others:
493 the Nationwide Intensification of Household Electrification (NIHE) scheme, the Enhanced NIHE scheme,
494 the Sitio Electrification Program (SEP), and the Barangay Line Enhancement Program (BLEP). On the
495 other hand, off-grid electrification strategies include the PV Mainstreaming Scheme, the Mini-
496 Grid/Qualified Third Party (QTP) Scheme, and the NPC Small Power Utilities Group (SPUG) Mini-Grid
497 Scheme.
498 Despite the Government's efforts to meet the target of 100 percent household electrification level by 2022,
499 many off-grid areas are still waiting to be served by the NPC SPUG. Further, increasing private sector
500 participation in these areas remains to be a challenge in spite of the Government’s provision of subsidy
501 through the universal charges for missionary electrification.
502 The use of alternative fuels and energy technologies (AFETS) is being promoted. In line with the
503 Government’s thrust to improve the country’s energy security and mitigate the adverse environmental
504 effects of energy utilization, DOE continues to implement programs that promote AFETs utilization. As an
505 overall guide for the sector, the Alternative Fuels and Energy Technologies Roadmap was formulated to
506 strategize the successful adoption and commercialization of alternative fuels and technologies through
507 strong and collaborative partnership between government and the private sector. Moreover, technology
508 demonstrations were conducted for hybrid vehicles, plug-in hybrid, and pure electric vehicles.
509 However, one of the major legislative issues is the proposed increase in excise tax for vehicles, including
510 alternative fuel vehicles (AFVs), making these vehicles more expensive. The resulting price increase
511 defeats the purpose of promoting and mainstreaming a more efficient transportation technology in the
512 country. Thus, DOE came up with a position paper that consequently granted tax incentives for AFVs to
513 make them more competitive.
514 Moreover, there is a need to promote advanced transportation technologies, such as, auto liquefied
515 petroleum gas (LPG), compressed natural gas (CNG), hybrid, plug-in hybrid, and electric vehicle
516 to reduce the country’s dependence on imported oil by providing energy consumers option on
517 advanced energy technologies and more environment-friendly fuel alternatives to conventional
518 fuels.
519 The Government envisions that the country as the Southeast Asian liquefied natural gas (LNG) Hub.
520 With the depletion of the Malampaya gas reserves by 2024, the DOE issued the Philippine Downstream
521 Natural Gas Regulation to attract investments in the downstream natural gas industry. And to make the
522 Philippines as the Southeast Asian LNG Hub, DC No. 2019-02-0004 was signed promulgating the rules to
523 regulate the importation, trading, supply and distribution of natural gas in the country. Under this policy,

18
524 DOE will require all businesses engaged in natural gas to submit the proper reportorial requirements in
525 compliance with the Philippine Downstream Natural Gas Regulation (PDNGR).
526 Information and Communications Technology (ICT)

527 Infrastructure
528 Digital connectivity steadily improved in the last three years but is still not enough. With increasing
529 demand for the public to stay informed and connected, the private sector continues to lead and invest in
530 ICT infrastructure and applications. The last three years saw steady improvement in the quality of
531 broadband Internet with average download speed for fixed broadband 7 reaching 23.6 Mbps in July 2019
532 (from 12.43 Mbps in July 2017). This, however, is a far cry from the global average, which is at 63.85
533 Mbps, and ASEAN average at 49.89 Mbps, with the Philippines consistently being outperformed by
534 Singapore, Thailand, Malaysia and Vietnam. The country’s Internet services are also considered costly with
535 the affordability level 8 of our fixed broadband services (at 6.5% in 2017) being above the internationally
536 recommended affordability threshold (at 2%).
537 Government interventions to improve broadband infrastructure are underway. To complement

538 private sector investments in ICT infrastructure, the National Broadband Program (NBP), which serves as
539 the blueprint for the development and modernization of the country’s digital infrastructure, called for the
540 government to also initiate investments in broadband infrastructure. The NBP seeks to address the need to:
541 (a) develop a neutral national fiber backbone; (b) establish an international cable landing station; (c)
542 accelerate tower build to increase tower density; (d) build fiber infrastructure in the last mile connectivity;
543 and (e) use satellite where land-based infrastructure deployment is not feasible.
544 As of August 2019, four of the five components corresponding to the above needs are ongoing and are at
545 various stages of implementation:
546 • Following the agreement between the Department of Information and Communications
547 Technology (DICT) and the National Grid Corporation of the Philippines (NGCP) to use the
548 latter’s fiber cores for the national fiber backbone, NGCP’s dark fiber segments (80 in Luzon, 48
549 in Visayas, and 35 in Mindanao) have been completely surveyed and tested towards the activation
550 of nodes in growth centers that are in close proximity to the existing substations of NGCP.
551 • The establishment of the international cable landing station is in full swing with the completed
552 construction of the two cable landing stations in Aurora and La Union, while the 240km
553 terrestrial roadwork is targeted for completion within the last quarter of 2019.
554 • A total of 24 tower companies signed an agreement with DICT in support of accelerating the
555 rollout of communication towers.
556 • The conduct of a feasibility study for the accelerated fiber build component is ongoing and is
557 targeted to be completed in December 2019. Meanwhile, the implementation of Government
7
Based on Ookla’s Speedtest Global Index. https://www.speedtest.net/global-index
8
Measured by the International Telecommunication Union (ITU) in terms of the cost of fixed broadband as a percentage of gross national income
(GNI) per capita. https://www.itu.int/pub/D-IND-ICTOI

19
558 Network (GovNet), which aims to interconnect government offices through a fast and reliable
559 fiber network, is ongoing and has already connected 868 agencies.
560 Alongside the implementation of the NBP is the provision of free Internet access to the public through the
561 continuous roll out of free WiFi in public places, such as in schools, universities, public hospitals, and
562 health units all over the country. As of August 2019, a total of 2,8219 WiFi hotspots have been installed
563 (from 2,163 sites in 2018) providing the public with ready access to information and online services.
564 The entry of a new major player in the telecommunications industry is expected to further enhance
565 investments in ICT infrastructure and improve the overall market competition. In July 2019, the new major
566 player was already granted a Certificate of Public Convenience and Necessity (CPCN), officially allowing
567 it to start operation.
568 Efforts to improve government online data, information and services were undertaken. The National
569 Government Portal (NGP), introduced in 2017 as “gov.ph” serves as a website for citizens to access
570 government information and services to make it more convenient for the public to search online government
571 transactions that they need or other information that they want to know from the government. The website
572 was further improved and has linked 173 e-government services 10.
573 Social Infrastructure

574 Education
575 The progress of addressing classroom backlogs has been very slow. Towards the full realization of the
576 objective of the K-12 Program, the government has continued to prioritize the allocation for the School
577 Building Program under the Basic Education Facilities Fund (BEFF), which is jointly being implemented
578 by the Department of Education (DepEd) and the Department of Public Works and Highways (DPWH), for
579 the construction, repair/rehabilitation of classrooms, school electrification program, school furniture
580 program and Gabaldon conservation program.
581
9
DICT Free WiFi for all (August 2019) http://freepublicwifi.gov.ph/livehotspots/
10
DICT data, as of July 2019.

20
582 Since July 2016, DepEd has reported that a total of 67,667 classrooms have been constructed, 66,654
583 classrooms have been repaired and reconstructed and electrical systems in 2,191 schools have also been
584 upgraded. However, 57,269 classrooms are still undelivered from the funds for FY 2014-2018, the status
585 of which are broken down as follows:
586 Table 19.4. Undelivered Classroom Facilities
FY Ongoing Construction For Mobilization Under Procurement Total

FY 2018 10,594 8,709 1,296 20,600
FY 2017 21,409 428 - 21,837
FY 2016 12,282 - - 12,282
FY 2015 1,718 - - 1,718
FY 2014 832 - - 832
TOTAL 46,835 9,137 1,296 57,269
587
588 Delays in the implementation of the BEFF can be attributed to poor planning by concerned agencies,
589 problems with site identification, issues in actual site conditions due to lack of validation of proposed sites,
590 among others.
591 On the other hand, classes and school operations in some schools are persistently disrupted due to the use
592 of schools as evacuation centers or the damages the schools incur during calamities. Based on the Enhanced
593 Basic Education Information System (EBEIS) SY 2009-2010 to SY 2017-2018, 17,937 schools were used
594 as evacuation centers. Moreover, 43,810 schools were affected by natural hazards (i.e., tropical cyclones,
595 floods, landslides, volcanic eruption, earthquake, tsunami) and 21,949 schools were exposed to human-
596 induced hazards (i.e., armed conflict, fires, and other hazards).
597 Health
598 The provision of health facilities remains inadequate. In line with the strategy of improving healthcare
599 service delivery and ensuring equitable access to healthcare services, as embodied in the Philippine Health
600 Facilities Development Plan (PHFDP) 2017-2022, the Department of Health (DOH) has supported the
601 continued construction and enhancement of health facilities in the country. While the PHFDP 2017-2022
602 has served as guide for government investments on health facilities, the Health Facilities Enhancement
603 Program (HFEP) has supported the provision of primary healthcare facilities [i.e., barangay health stations
604 (BHSs), rural health units (RHUs)/urban health centers (UHCs)] in delivering preventive health services
605 and, as a result, reduced congestion in DOH hospitals.
606 Notwithstanding the existing plans, programs and projects of DOH, facilities for the delivery of healthcare
607 services remain inadequate. Based on the National Objective for Health (NOH) 2017-2022, six [i.e.,
608 National Capital Region (NCR), Regions III, IV-A, V, VIII and Autonomous Region in Muslim Mindanao
609 (ARMM)] out of the 17 regions in the Philippines were unable to meet the BHS-to-population ratio of
610 1:5,000. On the other hand, gaps in the delivery of RHUs are more pronounced with only the Cordillera
611 Administrative Region (CAR) meeting the recommended 1:20,000 RHU-to-population ratio. The NOH

21
612 2017-2022 also reported wide regional disparity in the provision of RHUs, wherein Region II was reported
613 to have 653 facilities more than the required BHS while Region IV-A needs 562 BHS to meet the demands
614 of its population. As such, in order to meet its targets relative to the delivery of primary healthcare facilities
615 by 2022, DOH still has to put up 13,823 additional BHS and 2,739 RHU/UHC by 2022, which, at its current
616 pace, may not be achieved.
617 Table 19.5. Healthcare Facilities in the Country
Facility Baseline (2017) 2018 2019 Target (2022)

26,732
22,336
BHSs (20,045 existing; 6,687 22,512 (existing) 36,335
(existing)
ongoing)
2,961
RHUs/UHCs/City 2,586
(2,585 existing; 375 2,607 (existing) 5,700
Health Offices (existing)
ongoing)
618
619 Delays in the implementation/completion of healthcare facilities under the HFEP remains a major
620 concern for the sector. Based on the 2018 report of the Commission of Audit (COA), among the primary
621 causes of delay in the delivery of said facilities relate to issues on the acquisition of project sites (e.g.,
622 unavailability of site location, unpassable site, non-submission of proof of ownership documents for the
623 proposed sites), which should have been considered/addressed during the planning and development stages
624 of the projects.
625 Further, various HFEP facilities were reported to have been idle/unutilized/not fully
626 operational/underutilized due to lack of health personnel, manpower, equipment, supplies; non-availability
627 of water/lack of water connection; and deficient/lack of electrical connection, among others.
628 Meanwhile, overcrowding/congestion in provincial and regional hospitals remains due to inability of LGUs
629 to provide adequate healthcare services at the primary/local level. Various basic healthcare facilities, which
630 are being operated by LGUs, have become poorly maintained, ill-equipped and inadequately staffed due to
631 budgetary constraints. As a result, patients with simple illnesses have bypassed primary healthcare services
632 leading to the congestion of regional and provincial hospitals. Ultimately, the inefficiency brought upon by
633 the mismatch in the capability of tertiary facilities and the severity of cases they cater to have increased the
634 cost of healthcare services in the country.
635 Solid Waste Management (SWM)

636 Compliance of LGUs with RA No. 9003, or the “Ecological Solid Waste Management Act of 2000”
637 has improved but is still below targets. Population growth and rapid urbanization have led to continued
638 increase in waste generation especially in urban areas. Despite the enactment of the law almost two decades
639 ago, SWM remains as a major challenge in the country due to the huge capital investments associated with
640 the establishment of SWM facilities and the lack of technical capacity of LGUs in preparing their respective
641 local SWM plans and implementing integrated solid waste management facilities as required by the law.

22
642
643 Based on the 2018 Annual Report of the Department of Environment and Natural Resources - Environment
644 Management Bureau (DENR-EMB), out of the 1,589 cities, municipalities and provinces that have
645 submitted their respective 10-year SWM Plans, only 675 Plans have been approved by the National Solid
646 Waste Management Commission (NSWMC) while 914 Plans need further modification/updating. On the
647 other hand, 126 LGUs have yet to submit their respective local SWM plans. Nevertheless, the number of
648 illegal dumpsites has decreased from 511 in 2016 to 304 in 2018.
649 Most of the LGUs and barangays remain unserved by basic SWM facilities. As of 2018, 10,340 Materials
650 Recovery Facilities (MRFs) have been established servicing 13,612 (32 percent) barangays nationwide
651 while only 165 operational Sanitary Landfills (SLFs) are servicing 353 (22 percent) LGUs nationwide. The
652 following table summarizes the progress on SLFs, illegal dumpsites and MRFs from 2016 to 2018:
653 Table 19.6. Progress of SWM Facilities in the Country
Year Number of Number of Illegal Number of MRFs Number of Barangays

Sanitary Landfills Dumpsites Established Served by MRFs
2016 118 511 9,833 13,155
2017 135 385 10,052 13,324
2018 165 304 10,340 13,612
654
655 Action Plan

656 Under the Philippine Development Plan (PDP) 2017-2022, infrastructure development serves as a solid
657 bedrock for all strategies to work and upon which foundations for sustainable development may be built.
658 Foundations for sustainable development are characterized by strategic development of infrastructure,
659 while ensuring ecological integrity, healthy environment, as well as ensuring lasting peace and national
660 security.
661 Consistent with the 2030 Agenda for Sustainable Development, critical infrastructure will play a crucial
662 role in all the three dimensions of sustainable development – economic, social and environmental, allowing
663 the industries and economies to function, supporting social cohesion, and ensuring sustainability of
664 environmental conditions.
665

23
666 Targets
667 Table 1 below shows the success indicators and targets for infrastructure development.
668 Table 19.7 Updated PDP Targets for Infrastructure Development
Baseline Accomplishment
Indicator
Year Value (Year)
Public infrastructure spending increased (% share to GDP) 2016 5.1
Transport Infrastructure
Road Transport
Travel Time (decreased)/Speed (increased) via land per key
corridor
Road traffic accident rate reduced (in number of deaths per
100,000 population) – incidents of accidents
Air Transport
Air passenger movement increased
Cargo shipped via air increased (international and domestic) (MT,
cumulative)
Water Transport
Passengers transported by sea increased (in number of 89.16M 98.89
2016
passengers, cumulative) (2018)
Cargo shipped increased (international and domestic) (MT, 327.36M
2016 302.65M
cumulative) (2018)
Rail Transport
Passenger trips via rail in Metro Manila increased (in % share to
2014 11
total passenger trips via rail, cumulative)
Energy/Power
Power requirements met (% available capacity over peak demand) 2017 146
Luzon 2017 141
Visayas 2017 151
Mindanao 2017 172
Energy intensity (primary energy) reduced (tons of oil equivalent
2016 6.71
per million peso)
Energy intensity (electricity consumption) reduced (kWh per million
2016 11.18
peso)
Electricity consumption per capita increased (kWh per capita) 2016 879.46
Proportion of HHs with electricity to total number of HHs increased
2016 90.70
(%, cumulative)
Water Resources
Water Supply and Sanitation
Proportion of HHs with access to safe water supply to total number 89.90
2016 87.60
of HHs increased (%, cumulative) (2017)
Proportion of HHs with access to improved sanitation to total 89.20
2016 91.9
number of HHs increased (%, cumulative) (2017)
Irrigation
Cropping intensity increased (%, cumulative) 2015 143.58
Ratio of actual irrigated area to the total potential irrigable area 63.05
2016 63.01
increased (%, cumulative) (2017)
Flood Management

24
Baseline Accomplishment
Indicator
Year Value (Year)
Ratio of flood-protected areas to the total flood-susceptible areas
increased (%, cumulative)
Number of principal river basin flood master plan completed
ICT
23.60
Average broadband download speed increased (Mbps) 2016 4.30
(July 2019)
Social Infrastructure
Education
Proportion of public schools with connection to electricity to total
number of public schools increased (%, cumulative)
Proportion of public schools with adequate water and sanitation
facilities to total number of public schools increased (%,
cumulative)
Proportion of public schools with internet access to total number of
public schools increased (%, cumulative)
Water and sanitation (WatSan) facility to pupil ratio improved
Health
Proportion of Barangays with BHS, RHUs or UHCs to the total
number of barangays (42,036 as of 2016) increased (%, 2017 70.64
cumulative)
Solid Waste Management
334
Number of LGUs served by SLFs (1,634 LGUs) 2016 248
(2018)
669 Strategic Framework

670 Infrastructure development is an important bedrock strategy that contributes to enhancing the social fabric,
671 reducing inequality, and increasing the country’s growth potential, as each sector requires infrastructure.
672 Accelerating infrastructure development and sustaining operations while giving importance to the
673 environment will enable all other strategies to work effectively.
674

25
675 Figure 19.5. Strategic Framework to Accelerate Infrastructure Development
676

26
677 Strategies
678 The four major strategies for the infrastructure sector remain as follows: (a) increase spending on public
679 infrastructure; (b) implement strategic infrastructure for the various infrastructure subsectors; (c) ensure
680 asset preservation; and, (d) intensify infrastructure-related R&D on technologies. These major strategies
681 are key to the achievement of the overall sectoral objectives for the sector and the corresponding targets
682 over the remaining Plan period.
683 a. Increase spending on public infrastructure
684 The government will continue to ramp up public spending on infrastructure anchored on fiscal prudence
685 and discipline. With an ambitious infrastructure development agenda in place, the government will sustain
686 the upward trend in spending levels of at least 5 percent to 7 percent of GDP. At the same time, it will
687 ensure that massive investments on infrastructure come with exercising fiscal prudence and enhanced
688 capacity to efficiently utilize the available resources through cash-based (2019 and beyond) spending 11. To
689 achieve these, the following strategies will be implemented:
690 Strengthen forward-planning for infrastructure development interventions with information system
691 enhancements and inter-agency collaboration. Sustainable infrastructure development requires more
692 efficient and collaborative processes. The government will strengthen the synergy between the planning,
693 programming, and budgeting to efficiently accelerate approval of priority programs and projects, provide
694 leverage on all sources of funding, and promote innovative financing.
695 Enhancements on government information systems will be further explored in order optimize the utilization
696 of agency budget allocations for implementing priority programs and projects. Moreover, initiatives on the
697 harmonization of the different systems being used by agencies involved in the overall planning,
698 programming, and budgeting will be sustained.
699 Convergence programs and inter-agency collaborations will be further intensified, establishing multi-level
700 agreements to ensure that relevant actors are duly consulted and construction works coordinated,
701 minimizing disruption and promoting public safety.
702 The government will continue to provide assistance in formulating and updating infrastructure development
703 masterplans and roadmaps, which promote synergy and maximize strategic impact across all levels of
704 government.
705 Further enhance the performance management for the infrastructure programs and projects. With
706 only three years remaining in the Plan period, all possible means will be exhausted to ensure that the priority
707 infrastructure programs and projects are continuously moving forward. In this regard, the government will
708 continue to champion the timely movement and completion of priority PAPs, identifying operational issues
709 and aiming for the early resolution of bottlenecks.
710
11
Based on the 174th Development Budget Coordination Committee (DBCC) Meeting held on October 2018.

27
711 Encourage private sector participation. Recognizing the private sector’s efficiency and expertise in
712 project delivery and management, the government will continue to pursue the enhancement of the
713 regulatory framework for Public-Private Partnerships (PPP), to address various issues and challenges in the
714 implementation of priority projects and programs. Moving forward, the proposed amendments to the Build-
715 Operate-Transfer (BOT) Law, which aim to include joint venture as one of the PPP contractual
716 arrangements, will be pursued as a priority item for legislative agenda. However, pending the passage of
717 the revised BOT Law, the Government will amend the 2013 Joint Venture Guidelines in the interim.
718 Improve the collection, management and utilization of infrastructure data across all subsectors as
719 effective tool for planning, programming and policy-making. Updated, integrated and comprehensive
720 data for various subsectors of the infrastructure subsectors should be made available to decision-makers in
721 planning, programming and policy-making. Towards this, resources will be mobilized to identify vital data
722 and statistics for the infrastructure sector, with the intent of establishing comprehensive databases based on
723 available technological applications and platforms.
724 b. Implement strategic infrastructure
725 Public investment will be focused on transport, water resources, energy, ICT, and social infrastructure
726 which are strategic and crucial in achieving development goals.
727 Transport
728 The government will further enhance the efficiency of the transport sector to sustain economic growth and
729 increase competitiveness by providing adequate, accessible, reliable, and safe movement of people and
730 goods across the country, neighboring regions, and the world.
731 Enforce the National Transport Policy (NTP) and strengthen it through legislation. Following the
732 adoption of the policy by the NEDA Board, a law adopting it and creating independent regulatory bodies
733 for the railways, airports and seaports, among others, will establish a more streamlined transport sector that
734 is able to efficiently and effectively carry out the identified development strategies.
735 In line with the NTP, the conduct of evidenced-based studies and planning-related activities will be
736 continued to guide the rational development of an intermodal transport infrastructure network. Baseline
737 data and information will have to be consolidated and a unified database and transport model will be
738 sustained.
739 Ensure upkeep of existing infrastructure while expanding the transport network. To ensure that the
740 transport sector is able to support economic development, the physical state of existing infrastructure will
741 be maintained at a level that generates the optimal economic outcomes while the transport network is being
742 expanded to reach the rest of the country and the world. Projects that are implemented, especially those
743 identified as flagship projects, will be closely monitored to ensure the quality and timely delivery of output.
744 Adopt an integrated approach to transport planning, in line with the National Transport Policy and
745 the National Spatial Strategy. Following the strategies espoused in the NTP, an intermodal paradigm will

28
746 be used in transport network planning. Transport infrastructure and services based on land use and urban
747 planning methodologies, as well as sustainable construction technologies, that have been proven effective
748 in livable cities, will be considered and/or adopted to support new economic centers identified in the NSS.
749 In areas with high growth potential, a transit-oriented development (TOD) approach will be applied to
750 optimize ridership in public mass transit systems and promote people-oriented mobility.
751 With emphasis on improved connectivity and enhanced mobility, multimodal transport terminals will be
752 established, complete with ancillary facilities to provide smooth transition for passengers and freight from
753 one mode to another.
754 The development and enhancement of critical transport infrastructure (CTI), i.e., transport facilities that are
755 critical in ensuring continued economic activities during disaster operations, will be prioritized to secure
756 the backbone of transport planning activities in vulnerable areas. Applicable standards and best practices
757 on the adoption of resilient, efficient, and environmentally friendly designs and technologies and will be
758 adopted.
759 Transport agencies will continue to forge convergence programs with concerned agencies to ensure that
760 economic sectors are provided with adequate transport infrastructure support and services. Agricultural
761 areas will continue to be supported through the provision of farm-to-market and farm-to-mill roads,
762 according to the standards set for both design and construction.
763 To support development in Mindanao, road projects under the Mindanao Logistics Infrastructure Network
764 will be pursued along with the implementation of the Improving National Roads for Inclusive Growth in
765 Mindanao Projects in Western Mindanao. The capacity of the BIMP-EAGA road network will also be
766 increased.
767 Efficient coordination mechanisms among the different transport agencies and those representing the
768 interests of other economic sectors, as well as stakeholders and the general public, will be put in place to
769 prevent potential inconveniences while transport projects are being implemented. In the construction of
770 road projects for instance, there will be more collaborative efforts among DPWH, telecommunications
771 companies, water districts, electric cooperatives or distribution companies on projects, particularly on road
772 widening that requires the transfer of affected utility lines. Such collaboration will extend to all LGUs to
773 ensure that local plans and programs are aligned with the national agenda. LGUs and metropolitan agencies
774 will also need to take on more responsibility and accountability for traffic and public transport outcomes.
775 Ensure universal accessibility of transport facilities. As part of the government’s vision to improve the
776 quality of life of the people, universal accessibility design and accessibility principle will be considered in
777 the implementation of all transport infrastructure facilities and services to ensure an inclusive and people-
778 oriented national transport system. The Task Force on Accessibility created in 2007 will be revived to
779 develop initiatives that will address the unique needs of persons with disabilities, the elderly, and women
780 and children in terms of mobility within the transport network, particularly in public transport systems.
781 Land-Based Transport
782 Improve road-based transport through “engineering, enforcement, and education”, with priority
783 given to the movement of people and goods over private vehicles. The land-based transport network is
29
784 slated for road-widening and integration with mass-transit facilities through the implementation of
785 multimodal transport terminals. For a more efficient use of road infrastructure, high quality public transport
786 modes will be pursued such as public transport reform, fleet modernization, route rationalization, and
787 environmentally sustainable urban transport systems, among others, so that commuters will prefer public
788 over private vehicles and more people can be moved with less road space, thereby addressing traffic
789 congestion.
790 As far as practicable, non-motorized transport (e.g., bicycle and pedestrian infrastructure) will be integrated
791 in the existing network by retrofitting and in the design of new projects to encourage more walking and
792 cycling trips.
793 Appropriate traffic management measures will be enforced and updated to remain responsive to prevailing
794 situations. Traffic engineering solutions, such as the use of intelligent transport systems (e.g., signalized
795 intersections, advanced detection systems, incident detection), will be installed, particularly in urban areas.
796 Anti-overloading measures including penalties and putting up additional weighbridges and portable
797 weighing devices should be strictly enforced and strengthened to prevent the rapid deterioration of roads.
798 To ensure compliance with international standards on vehicle safety and environmental impact, the Motor
799 Vehicle Type Approval System and Motor Vehicle Inspection System will be implemented.
800 Training of drivers and traffic enforcers will be continued to ensure that investments in transport facilities
801 and other assets are preserved through proper use.
802 Sustain the expansion and enhancement of strategic corridors. Future developments will be pursued
803 for the national road network with the planned implementation of the Philippine High Standard Highway
804 Network Program, which shall add about 1,044.6 km of high standard national roads and expressways
805 across metropolitan areas (884.7 km in Luzon, 73.8 km in Metro Cebu, and 86.1 km in Metro Davao).
806 Where necessary and appropriate, bypasses, diversion roads, flyovers, interchanges and underpasses will
807 be constructed (e.g., using tunnel technologies) and existing roads will be improved and widened. Inter-
808 island bridges and bridges across smaller bodies of water will form part of the road network when deemed
809 viable.
810 Decongest local transport corridors. On the matter of encroachment along local transport corridors, DILG
811 will continue directives for all concerned units to clear all roads from illegal structures, abandoned
812 construction materials, and rehabilitate damaged road facilities, among others. The LGUs will also be
813 required to prepare an inventory of all roads within its jurisdiction as part of their GIS-based Local Roads
814 Network Development Plan, as well as their respective Local Public Transport Route Plans (LPTRP) as
815 part of their Comprehensive Land Use Plan (CLUP).
816 Expand the rail network and other mass transit systems and ensure their accessibility, affordability,
817 convenience, and reliability. The rail network will be expanded by developing new lines in high-density
818 corridors, taking into consideration the plans for road-based transport infrastructure, especially in cases
819 where projects will utilize the same right-of-way. Consistent with the objective of moving more people and
820 cargo rather than vehicles, priority on the right-of-way will be accorded to rail-based transport over road-
821 based transport.

30
822 Transport network operators, both private and public, shall continue to forge convergence undertakings in
823 order to achieve integrated fare collection systems, and stored value cards or similar electronic media will
824 be used to ensure maximum convenience for passengers and enable easy transfer between modes.
825 The policies and guidelines on the procurement activities in the railway sector will be customized to ensure
826 the availability of highly specialized spare parts and supplies.
827 To ensure that the quality of rail and mass transit systems are up to standards, the capacities of skilled
828 workers in mass transit systems especially rail will be upgraded. In view of the forecasted need for skilled
829 workers manning the planned public mass transit projects, a Philippine Railway Training Center will be
830 established to provide comprehensive technical training for train drivers and other rail professionals.
831 Air Transport
832 Exhaust all possible means to improve the operational efficiency of airports and to address
833 constraints to optimal capacity utilization. In particular, strategies will focus on decongesting air traffic
834 serving the Greater Capital Region (GCR), such as building a new international airport, guided by an
835 optimal airport strategy. In the interim, movements in both the land and air facilities at the NAIA will be
836 optimized through procedural measures which involve airspace management and adoption of collaborative
837 decision making among the air traffic control, airlines, and ground handlers (e.g., by using ground
838 movement radar and other technologies). Runway capacity will be optimized by cutting aircrafts’
839 occupancy times. Development plans for the CIA will be continued including the establishment of a fast
840 and direct access to Manila through a rail system providing non-stop and commuter services.
841 To serve the increasing passenger demand, the ongoing and planned improvements of regional airports will
842 be fast-tracked. Installing night landing capabilities of regional airports will be continued especially for
843 those identified to readily accommodate said technology. The remaining regional airports will be assessed
844 to determine night-landing viability while identifying appropriate design and operation measures to address
845 limitations in order to achieve the goal of 100 percent coverage for all regional airports catering commercial
846 flights.
847 Expand airport capacities at pace with growing demand in an optimal airports system strategy.
848 Cognizant of the need to supplement the constrained capacities of NAIA and CIA, the Government will
849 continue to push for the development of new gateways and improvements of existing airports in the GCR
850 under a multiple airport system that is at pace with the demand growth in the region. Passenger terminal
851 building (PTB) and airside infrastructure of other regional airports will continuously be expanded to address
852 increasing demand for both passenger and freight services. Existing provincial airports will be rehabilitated
853 while smaller/community airports will be upgraded to standard Principal Class 2 classification to cater to
854 commercial flights for better connectivity to various tourist destinations.
855 Strengthen and rationalize air transport regulations, policies, and protocols and modernize facilities
856 to enhance air passenger experience. In view of the role of the private sector in the operations and
857 maintenance (O&M) and future upgrading of airport facilities, leveraging on its financial capacity,
858 operational efficiency, and technological advantage complementing the government’s resources in the
859 initial development and construction of airport infrastructures to deliver an enhanced passenger experience,
860 the regulatory functions of air transport agencies will be strengthened.

31
861 To reduce the impact of interruptions in airport operations during natural and human-induced disasters,
862 existing intervention protocols between airlines and airport authorities will be reviewed, equipment
863 inventory will be modernized, and airport training modules will be further enhanced. To ensure that
864 passengers receive appropriate compensation or accommodation in case of flight cancellations pursuant to
865 the Air Passengers Bill of Rights (APBR), more public assistance officers will also be deployed.
866 Maritime Transport
867 Improve port facilities to ensure that inter-island shipping, including a stronger RORO network, will
868 remain a viable option for transporting people and cargo. Breakwater facilities will be developed for
869 wave protection and to prevent ports from deteriorating. International standards will be followed in the
870 expansion of port facilities. In addition, navigation channels to accommodate larger vessels will be
871 developed to ensure the sustainability and efficiency of ports. These approaches will yield economic gains
872 through lower transport cost, increased lifespan of products, and more profits and job opportunities,
873 especially for fishing communities.
874 Sustain the optimal utilization of existing and additional port capacities. The government commits to
875 optimize the utilization of existing ports. In the interim, the Government has undertaken precursory
876 measures in optimizing the utilization of container ports, such as development of a freight rail service
877 between Clark and Subic, promoting the use of inland container terminals, optimizing port container yard
878 utilization, as well as integration of port management plans in the intermodal and multimodal approaches
879 in the logistics network development. These efforts will be sustained with the implementation of additional
880 plans, programs, and projects that facilitate efficient flow of goods and services, e.g., dry ports, freight rail,
881 and construction/expansion of regional ports.
882 The direct connection between Manila and Batangas ports, through the Cavite Gateway Terminal, will be
883 further enhanced and co-loading (modified cabotage) will be promoted to encourage shipment between
884 domestic ports. Existing dry ports will be improved and new ones will be built to provide support to
885 manufacturers, importers, and exporters. Logistics hubs will be developed where applicable to connect
886 industrial and manufacturing zones as well as agro-industrial areas, to the major port areas. Further, the
887 BIMP-EAGA Transit Transport Route in Mindanao will be improved in terms of capacity to facilitate swift
888 intra-EAGA transport.
889 Promote maritime transport as an alternative sustainable mode. Taking off from the initiatives for the
890 revival of the Pasig Ferry System as a sustainable alternative to road-based transport, the development of
891 the Coastal and Inland Waterways Transport (CIWT) system will be pursued to further reduce urban traffic
892 congestion and pollution, expand the intermodal transport network, and create new business opportunities.
893 Implement the Maritime Industry Development Program (MIDP). The eight (8) priority programs, as
894 well as other strategies espoused in the MIDP, will be implemented. The government will also implement
895 the Nautical Highway Development Program, Maritime Tourism Program, and National Fishery Industry
896 Development Program to improve the capacity, efficiency, safety and security of shipping, as well as
897 shipbuilding and ship repair services (SBRS). These will be monitored and updated annually to ensure
898 sustainability of the efforts undertaken.

32
899 A global maritime hub for SBRS and related ancillary businesses with a world-class research and training
900 center in the country will be developed to bring together all maritime-related companies in one eco-
901 maritime industrial park. This will provide comprehensive services to domestic and international passengers
902 and crew, cruise and cargo ships plying the Philippine waters for maintenance, and other related services.
903 Safety and Security

904 Adopt a universally accepted security structure to improve safety and security of the public transport
905 system. An independent body will be created that will investigate transport accidents and provide transport
906 safety recommendations to minimize activities that may cause injury, death, loss, or damage to property. In
907 the interim, the Office of Transportation Security will continue to inspect and evaluate security plans of
908 public transport terminals while concerned agencies will ensure that projects are designed with appropriate
909 safety standards. Advanced security systems for land-based terminals, airports, and seaports will be
910 procured and installed. The Philippine Coast Guard will continue its capability-building programs to ensure
911 presence and control over the country’s vast maritime domain. New floating and air assets will be procured
912 and a sufficient well-trained personnel complement will be provided. To serve the growing tourism and
913 maritime industry, new bases or stations will be developed in strategic locations.
914 Strictly implement road safety measures. In modernizing the traditional PUVs and implementation of
915 new public mass transit systems, the following safety features will be incorporated, among others: side
916 entry/exits that can be easily opened from either side, emergency exits, speed limiting technologies,
917 dashboard camera, CCTV, and GPS. Other road safety laws and ordinances will be strictly implemented
918 including the use of dedicated bus lanes, motorcycle lanes and loading/unloading areas, Anti-distracted
919 Driving Act, Safety of Children Aboard Motorcycles Act, and Speed Limiter Act.
920 Water Resources

921 Pursue WSS policies, plans, and programs in accordance with the key reform agenda identified in
922 the Philippine Water Supply and Sanitation Master Plan. The reform agenda will focus on the
923 following areas: (a) establishing effective WSS sector institutions; (b) strengthening regulatory
924 environment; (c) balancing water supply and demand; (d) building climate resiliency; (e) creating and
925 ensuring effective WSS services; (f) enabling access to funding and financing; (g) managing data and
926 information; and, (h) driving research and development.
927 The creation of an apex body for water resources and the establishment of an independent
928 economic regulatory body for water supply and sanitation (WSS) will remain as priority reforms
929 in the sector. As envisioned, the apex body will be primarily responsible for the formulation and
930 implementation of a comprehensive water development and management plan for the Philippines
931 in accordance with the principles of Integrated Water Resource Management as well as Integrated
932 Coastal Management. The independent water regulatory body, on the other hand, will harmonize
933 regulatory practices, processes, and fees, among others, in order to facilitate and rationalize the
934 expansion, improvement, and efficient provision of WSS services in the country.
33
935 The Government will also continue with its efforts on pursuing in the interim the executive issuance that
936 will strengthen the National Water Resources Board to address fragmentation in the water sector by
937 providing the overarching framework for an integrated and coordinated policymaking, planning and
938 implementation of programs and projects.
939 Pursue initiatives on attaining water security. The Government will continue to support the development
940 of new water sources, and prioritizing surface water development where feasible. Groundwater recharge
941 system in the development of the surface water source for critical areas will be incorporated wherever
942 possible in accordance with prescribed standards. Measures to promote efficient water utilization, as well
943 as the use of eco-efficient water infrastructure such as, but not limited to, rainwater harvesting, and other
944 emerging technologies on WSS will continue to be promoted.
945 With the reactivation and reconstitution of the El Niño Task Force 12 pursuant to Memorandum Order No.
946 38 s.2019, the Roadmap for Addressing the Impacts of El Niño (RAIN) will be revised and updated.
947 Pertinent recommendations under the National Roadmap for Water Security, which is currently being
948 prepared by the NWRB, will also be supported.
949 Adopt the principles of the Water Convergence Program: Unified Financing Framework (UFF) for
950 WSS and review the National Sewerage and Septage Management Program (NSSMP) to accelerate
951 the provision of WSS services. Under the Water Convergence Program: UFF-WSS, National Government
952 shall ensure the availability of the required budget allocation for WSS projects across the country, which
953 shall include funding for project preparation and development activities, as well as capacity building on the
954 operation and maintenance of facilities. Likewise, in accordance with the Clean Water Act, sewerage and
955 septage management projects will be implemented. Given this, the Government will explore the expansion
956 or restructuring of the NSSMP, in line with principles of the Water Convergence Program: UFF-WSS to
957 accommodate more beneficiaries other than sewerage or septage management systems in highly urbanized
958 cities and first-class cities or municipalities. Such expansion and restructuring of the NSSMP may include
959 the review and restructuring of the cost-sharing scheme with the LGUs on the basis of absorptive capacities
960 as well as performance, as well as technical assistance and revision of cost-sharing schemes in the
961 preparation of feasibility studies.
962 Optimize funds for irrigation development and strengthen technical capacities for the
963 development and maintenance of irrigation facilities. With the passage of the Free Irrigation
964 Service Act in 2018, funds for development, rehabilitation, and restoration of irrigation infrastructure and
965 facilities shall be optimized in accordance with the recommendations of the NIMP, which is being finalized.
966 Such will be achieved through the integration of water-efficient technologies and the appropriate mix of
967 irrigation projects based on economic return, among other criteria. Other developments in the agricultural
968 sector, such as rice tariffication, support for diversified, non-traditional, and high-value crop farming, shall
969 also be taken into consideration in setting the direction for the irrigation sector under the said Master Plan.
970 Likewise, to ensure effective and sustainable operations and maintenance of irrigation facilities, there will
971 be capacity building activities to improve the technical skills and workforce of the National Irrigation
972 Administration (NIA), Department of Agriculture-Regional Field Offices (DA-RFOs), Bureau of Soils and
12
Created pursuant to Executive Order No. 16 (S. 2001)

34
973 Water Management (DA-BSWM), Local Government Units (LGUs), Irrigators’ Associations (IAs) and
974 Small Water Irrigation System Associations (SWISAs).
975 Improve coordination between flood management efforts and undertakings in other sectors and
976 establish a comprehensive database. Pending the creation of an apex body for the water sector, DPWH,
977 as the de facto lead agency for flood control and management, and other relevant agencies should intensify
978 coordination between flood management efforts and undertakings in other sectors, such as solid waste
979 management, reforestation and housing, among others, under the general framework of the Integrated Water
980 Resource Management (IWRM), as well as river-basin and land-use planning. Meanwhile, in anticipation
981 of the completion of the flood control master plans and studies for the major river basins, timely financial
982 support for the full implementation and maintenance of flood management and mitigation measures under
983 the said master plans should be provided through the inclusion of the priority projects in the investment
984 program of the National Government. Under the proposed creation of an apex body for the water sector, a
985 comprehensive database of all water-related data, including flood-related information, will be established
986 and regularly updated. Likewise, flood management infrastructure that shall also serve as potential source
987 for domestic water supply, irrigation, and/or hydropower generation, among other possible uses and where
988 feasible, shall be implemented.
989 Energy
990 Implement policy reforms to promote competition and encourage investment in the energy
991 sector. Amendments to RA 9136 or the “Electric Power Industry Reform Act (EPIRA) of 2001”
992 and its IRR will be pursued to enhance its effectiveness in driving down the cost of electricity and
993 meeting the increasing demand for energy. To encourage more entry of power generation investors,
994 EO 30 and the Energy Virtual One Stop Shop (EVOSS), which will streamline the permitting
995 process for energy projects, will be implemented. Government will also strengthen the competitive
996 selection process (CSP) in securing power supply contracts of all Distribution Utilities’ (DUs)
997 procurement of power supply agreements for their captive market. It will accelerate the evaluation
998 of retail electricity supplier power and of retail electricity supplier license application to broaden
999 the list of suppliers in the market. PSALM likewise needs to accelerate the privatization of power
1000 plant assets which include the contracted capacity of generating plants and independent power
1001 producer plants. In pursuing efficiency, system loss caps for distribution utilities will be lowered
1002 while caps for transmission will be established.
1003
1004 The Wholesale Electricity Spot Market (WESM) in Mindanao is being prepared for its full
1005 commercialization. An electricity market in Mindanao will provide a competitive market for buying and
1006 selling of electricity that are not covered by bilateral contracts while promoting efficiency in the scheduling
1007 and dispatch of generation capacities in the region. Meanwhile, new market features and enhancements to
1008 systems and procedures are being introduced to improve the existing WESM in Luzon and Visayas. Both
1009 the WESM in Mindanao and the enhanced WESM in Luzon and Visayas are expected to be rolled out in
1010 2020.

35
1011 To meet the increasing demand, the Government will explore all available energy supply, including further
1012 studies on nuclear energy infrastructure. It will also fast-track the implementation of Energy Projects of
1013 National Significance .
1014 Expedite the implementation of remaining policy mechanisms under the RE Act of 2008 to further
1015 encourage RE development in the country. To expedite the implementation of the Renewable Portfolio
1016 Standards (RPS), the establishment of the RE market will be pursued where trading of RE Certificates may
1017 be made. Through the RPS, electric power participants will be required to source a certain percentage of
1018 their power mix from eligible RE sources, such as wind, hydro, biomass, waste-to-energy technology, ocean,
1019 and geothermal, among others. DOE will continue to establish Affiliated Renewable Energy Centers
1020 (ARECs) which shall be need-driven and conducted in a competitive and cost-effective manner, as far as
1021 practicable.
1022 To strengthen the planning process and the implementation of various development plans to include RE in
1023 energy distribution and transmission, the Government will continue to identify and develop RE Zones.
1024 Transmission facilities will be expanded to enable the optimal use of the indigenous RE resources of the
1025 country.
1026 In implementing the net metering policy 13 , government will need to review the current pricing
1027 methodology and financing mechanisms that will help in the adoption of PhotoVoltaics (PV) in the country.
1028 DOE will continue to conduct policy studies, such as the NAMA Facility’s Enabling Distributed Solar
1029 Power in the Philippines, to accelerate the positioning of RE in the country.
1030 Pursue the development of the natural gas industry. Natural gas infrastructure development poses
1031 numerous challenges and will require a long-term vision for the industry. A Circular on the Regulation of
1032 the Philippine Downstream Natural Gas Industry should set the policy directions and guidance for
1033 developing a robust natural gas industry in the country. Considering the expected drop in domestic supply
1034 from Malampaya, the Circular aims to attract private investors, facilitate importation, and promote
1035 competition in the natural gas markets. Private investments will particularly be needed to construct facilities
1036 like import receiving and regasification terminal, network of transmission, and distribution pipelines.
1037 Continue to develop/implement transmission facilities/projects that will efficiently transmit

1038 electricity to various load centers and interconnect the entire grid. The Philippines’ Power
1039 Transmission Network will be unified to allow flexibility in the power grid system. Under “One Grid
1040 Philippines”, the three major grids will be able to share excess supply. This optimizes the use of available
1041 energy resources and additional generation capacities. To address potential grid reliability concerns,
1042 Government will harmonize the transmission development plan with RE targets. It will also support the
1043 development of the Philippine Smart Grid. The National Transmission Corporation (TransCo) and its
1044 concessionaire, the National Grid Corporation of the Philippines (NGCP), will coordinate with concerned
13
Net metering policy allows consumers who own RE facilities to use electricity whenever needed while
contributing their production to the grid. https://www.doe.gov.ph/1-how-net-metering-works-
understanding-basics-policy-regulation-and-standards

36
1045 agencies, e.g., DPWH, and explore the possibility of including in the design of proposed inter-island bridges
1046 the future installation of power transmission lines to connect island grids.
1047 Ensure timely implementation of electrification programs especially for remaining unelectrified off-
1048 grid island, geographically isolated and depressed areas (GIDAs), and last-mile communities.
1049 Implementation of three (3) major forms of electrification programs namely household electrification, grid
1050 electrification, and off-grid electrification will be fast-tracked to achieve total household electrification by
1051 2022. Household and grid electrification program includes the following electrification strategies: a)
1052 provide house-wiring subsidy for unenergized household in areas with distribution facilities such as DOE’s
1053 Nationwide Intensification of Household Electrification (NIHE) and b) extend distribution line facilities to
1054 unserved areas such as NEA’s Sitio Electrification Program (SEP), and the Barangay Line Enhancement
1055 Program (BLEP). On the other hand, off-grid electrification program includes the following strategies: a)
1056 Distribution Utilities to install of Individual PV SHS under DOE & EU ASEP’s Photovoltaic (PV)
1057 Mainstreaming program, b) implement Mini/micro-Grid system through potential entry of private sector as
1058 Qualified Third Party (QTP) Scheme, Joint Venture Agreement (JVA) through Private Sector Participation
1059 (PSP), and the entry of NPC-Small Power Utilities Group (SPUG) Mini-Grid Scheme.
1060 Further streamlining and enhancing of existing guidelines on the participation of QTPs will facilitate
1061 private sector participation in the achievement of total electrification target of the Government.
1062 Promote the utilization of alternative fuels and new advanced energy technologies to diversify the
1063 country’s energy resources and mitigate the adverse impact of energy use on the environment. The
1064 Alternative Fuel Roadmap will be implemented to provide incentives for the implementation of energy
1065 efficiency projects. The pricing of petroleum products by oil industry players and the
1066 assumptions/computations employed in their price adjustments will be made transparent to avoid
1067 unwarranted profiteering.
1068 Implement the Energy Efficiency and Conservation Act (RA 11285) and the Energy Efficiency and
1069 Conservation Roadmap. In April 2019, President R. R. Duterte signed into law RA 11285 (EE&C Law)
1070 to institutionalize energy efficiency and conservation as a national way of life for energy consumers. The
1071 law promotes the efficient and judicious utilization of energy and advocates the use of renewable-energy
1072 technologies.
1073 In line with this initiative, government will take the lead through the Government Energy Management
1074 Program (GEMP) involving efficiency and conservation measures in the government’s use of electricity
1075 and fuel.
1076 With the law in place, additional power supply for the country will not come from new power plants, but
1077 from energy savings as a result of EE&C measures.
1078 ICT Infrastructure

1079 To help advance the country’s ICT infrastructure, strategic measures need to be introduced from both the
1080 supply side (infrastructure provision) and demand side (up-take) to holistically and effectively address the
1081 challenges of digital inclusion.
37
1082 Facilitate investments in ICT infrastructure to expand existing network and address gaps in digital
1083 connectivity. That the country’s digital connectivity remains slow, unreliable, and costly shows that there
1084 are still not enough investments in ICT.
1085 To help offset the high costs of infrastructure rollout, the government will make strategic use of its existing
1086 government assets and infrastructure to supplement the domestic backbone and middle-mile segments. With
1087 this, the government fully commits to the timely delivery of the priority initiatives under the National
1088 Broadband Plan, It will form ICT convergence programs with relevant transport agencies to obtain right-
1089 of-way requirements and help minimize disruptions for roadworks as the fiber networks are continually laid
1090 down.
1091 The government will also facilitate infrastructure sharing between both the private and public sectors to
1092 enable more efficient use of existing network resources. To encourage more infrastructure investments
1093 (including communication towers) especially in unserved or underserved areas, the government will
1094 streamline tedious bureaucratic requirements and establish a one-stop facilitation service for securing
1095 licenses, permits and clearances for ICT projects.
1096 Private sector investments will continue to be the main vehicle for the development and growth of country’s
1097 ICT infrastructure. Thus, the government will more strongly push for necessary policy reforms to encourage
1098 stronger competition and level the playing field. Specifically, the issuance of an Open Access Policy is
1099 deemed a game-changing measure to foster competition. The Policy removes barriers to the entry of
1100 multiple competing and independent players in various layers of the broadband network, and provides
1101 access to the facilities of existing national backbone network operators under terms that are non-
1102 discriminatory and transparent.
1103 Promote and encourage the use and application of ICT towards efficiency, transparency, and citizen
1104 engagement. Beyond deployment of infrastructure and enhancing access, moving towards a digital society
1105 entails developing an ICT-enabled knowledge base and actively engaging people in a plethora of online
1106 activities that contribute to nation-building. These include services like e-education, e-health, and e-
1107 commerce, that can empower the poor and marginalized to be economically and socially active.
1108 As citizen engagement is founded on trust, the e-government system will be continuously built to expand
1109 the portfolio of e-services and online public information. Enhancing transparency in government through a
1110 reliable ICT infrastructure can ease transactions with government, keep the public informed, and cultivate
1111 a culture of citizen engagement in governance among Filipinos.
1112 To this end, the government will continue to build the robust physical infrastructure to interconnect
1113 government offices to facilitate communication, data exchange, sharing and collaboration. As the security,
1114 protection and preservation of government data and infrastructure remain of utmost priority, government
1115 will implement cyber resiliency measures, continuously build our capacity, and raise awareness on cyber
1116 risks.

38
1117 Social Infrastructure
1118 Provision of adequate basic social services through the effective implementation of social infrastructure
1119 projects is fundamental in achieving human capital development objectives of the country. The
1120 implementation of the social infrastructure projects will have to ramped up to make up for the slow progress
1121 in this area in the first three years of the PDP.
1122 Education
1123 Intensify efforts to address backlogs in the provision of education facilities. DepEd, in coordination
1124 with DPWH, shall endeavor to complete by December 2020 all abandoned/unfinished/programmed school
1125 projects under the Basic Education Facilities Fund (BEFF) since 2014. Furthermore, in order to enhance its
1126 School Building Program, DepEd has included the following in its “Public School of the Future” for
1127 implementation in SY 2020-2021:
1128  Clean and potable water supply, comfort rooms, wash and other sanitation facilities will be provided.
1129  Electrification of school buildings under the program will include utilization of renewable energy
1130 sources. Off-grid schools will be equipped with alternative sources of renewable energy through the
1131 installation of solar panels.
1132  Public school clinics will be established to also serve as multi-service hubs catering to the various
1133 health, nutrition, and medical needs of learners and DepEd personnel.
1134  The disaster response of the School Building Program will be made efficient through a streamlined
1135 warehouse scheme for storage and inventory of supplies and easier deployment and delivery of
1136 materials and equipment, such as Temporary Learning Spaces (TLS) or Classrooms Tents, to replace
1137 those damaged by calamities.
1138  Construction of mid-rise school buildings (i.e., 10 to 12 floors) in Metro Manila and other big cities
1139 and metropolis to address the lack of buildable spaces and the yearly increase in school enrollment.
1140
1141 DepEd will continue to strengthen the call for detailed School Improvement Plans (SIP) for all its schools.
1142 The SIP maps out how schools will undertake development gradually, such as where buildings will be
1143 located and what facilities are needed. DepEd will also enhance its capacity to identify gaps to better
1144 allocate resources for classrooms and other facilities and to avoid delays in classroom delivery. Moreover,
1145 DepEd will continue its long-term education plan, going beyond the usual medium-term plan to ensure the
1146 continuity of the country’s education agenda.
1147 Priority will be given for the implementation of the Last Mile School Program which is to be funded under
1148 the BEFF starting SY 2020-2021. The project aims to close the gaps between geographically isolated and
1149 disadvantaged and conflict-affected areas and their counterparts in the urban areas. Under the Program,
1150 government will establish schools in barangays without elementary schools and install solar panels in
1151 schools where electrification has not yet been provided. Together with the Last Mile Schools, the Open
1152 Educational Resources Program will make e-learning more accessible to the underserved areas.
1153 Further, DepEd will facilitate convergence initiatives with the DPWH, DOH, Department of Social Welfare
1154 and Development (DSWD) and other agencies in all governance levels, including LGUs, to address the
1155 broader needs that could not be addressed by DepEd, such as access roads.
39
1156 Health
1157 Sustain strategic implementation of health facilities. Under HFEP, hospitals and healthcare facilities will
1158 be provided in compliance with the National Structural Code of the Philippines (NSCP). DOH will support
1159 the comprehensive needs assessment of critical health facilities involved in service delivery networks
1160 (SDNs). The assessment will form the basis for determining what facilities will be created (especially in
1161 underserved areas where they are grossly lacking), upgraded, or expanded with support from the HFEP.
1162 To ensure continued operation/functionality of health facilities, concerned government agencies such as the
1163 Commission on Higher Education (CHED), Technical Education and Skills Development Authority
1164 (TESDA) and the Professional Regulation Commission (PRC) shall ensure adequate supply of quality
1165 human resources for health (HRH) and ensure their equitable distribution throughout the regions.
1166 The capacity of DOH personnel in project implementation and monitoring will be enhanced to ensure that
1167 expected target dates of completion are met. Should delays arise, the trained personnel would be able to
1168 carry out effective remedial steps to mitigate problems during project implementation, thus, preventing
1169 further delays or possible termination of contracts.
1170 Furthermore, pre-investment activities [e.g., including ROW acquisition, resettlement, and auxiliary
1171 services) will be prioritized and provided budgetary resources to ensure that healthcare facilities are well
1172 developed and readily implementable.
1173 Solid Waste Management
1174 Enhance technical and financial capacities of LGUs in implementing SWM initiatives in compliance
1175 with RA 9003. The DENR-EMB, together with the NSWMC, DILG and relevant stakeholders, will work
1176 towards enabling LGUs to implement the following solid waste management strategies:
1177 • Facilitate clustering or pooling of resources of LGUs for Common SWM facilities and services for
1178 enhanced economies of scale;
1179 • Explore innovative financing and improve access of LGUs to financing windows, such as those
1180 being provided by government financing institutions (GFIs) and through PPP, to finance SWM
1181 programs;
1182 • Pursue the adoption of alternative technologies, including waste-to-energy (WTE), as SWM
1183 solution considering institutional, legal, and technical limits;
1184 • Support knowledge management through increased investments in SWM-related innovation,
1185 research and development of appropriate technologies;
1186 • Operationalize the National SWM Fund and study the re-institutionalization of the NG-LGU cost
1187 sharing scheme for SWM; and,
1188 • Revisit RA 9003 and make necessary amendments thereto towards facilitating/expediting the
1189 provision of SWM facilities.
1190 c. Ensure asset preservation
1191 With emphasis on sustainability, safety, and resilience of infrastructure, asset management planning and
1192 innovative maintenance strategies will be implemented to improve the infrastructure system’s performance.

40
1193 The following measures will be undertaken in the medium term:
1194 Strengthen technical and financial capabilities for operations and maintenance. To keep the
1195 momentum of the administration’s efforts to deliver improved infrastructure, more support will be given
1196 for building the capacities of government agencies. Training facilities will be established for the upgrading
1197 of the technical and managerial skills of the country’s workforce and building their capacity to innovate.
1198 National and local level planning will be rationalized and processes streamlined to expedite program and
1199 project implementation. To optimize the use of funds for infrastructure development, value engineering and
1200 value analysis techniques at different stages of project development will continue to be applied.
1201 The country’s regions will be developed through better rationalization of the budget allocation and
1202 geographic location of infrastructure projects and programs. These will be guided by the masterplans and
1203 roadmaps being updated and formulated by pertinent agencies.
1204 Incorporate climate change adaptation and disaster resilience measures and ensure the security of
1205 infrastructure facilities. Given the country’s high vulnerability to disasters and effects of climate change,
1206 disaster risk reduction and climate change adaptation strategies will be employed to ensure the resiliency
1207 of infrastructure in the country. The Energy Resiliency Policy, issued to institutionalize disaster resiliency
1208 efforts, aims to strengthen energy systems and facilities such that these can quickly restore power and
1209 provide alternative sources of energy in times of emergency. To mitigate risks that threaten essential
1210 infrastructure services, there will be coordinated efforts to enhance the security of infrastructure facilities
1211 through the adoption of appropriate technologies, e.g., surveillance systems, satellite-based navigation
1212 systems, among others. Joint exercises in disaster response protocols and engagement of stakeholders in
1213 disaster-risk reduction and climate change adaptation will also be pursued.
1214 d. Intensify infrastructure-related R&D
1215 Recognizing that R&D can foster a more sustainable and efficient way of building infrastructure, the
1216 government will pursue R&D on renewable energy and technologies to meet the growing need for clean
1217 and affordable energy; cost-efficient technologies for management of wastewater and solid, hazardous, and
1218 healthcare wastes to protect public health and the environment; new transportation technologies; climate
1219 change- and disaster resilient infrastructure designs; and new methodologies for gathering and managing
1220 science-based data. In this regard, the establishment of R&D facilities will be supported.
1221
1222 Legislative Agenda

1223 To support and complement the government’s programs, projects and policy reforms for infrastructure
1224 development, some legislative measues will be needed.
1225 The following table shows the various legislative agenda in accelerating infrastructure development:

41
Legislative Agenda Purpose Updates
Cross-cutting
For filing / endorsement to the 18th
Introduces reforms to address bottlenecks in Congress upon harmonization of
Amendments to the Build-
PPP project implementation, further encourage comments/ recommendations from
Operate-Transfer Law and its
private sector participation, and keep the policies concerned government
IRR
attuned to the changing business environment. agencies
Transport
Aims to help achieve a safe, secure, efficient,
competitive, dependable, integrated,
environmentally sustainable and people-oriented
Philippine transportation system by setting forth Adopted by the NEDA Board on 12
policies that will serve as boundary conditions to September 2017 and its IRR was
guide all entities involved in the transportation approved by the INFRACOM on 14
Enactment of a National
sector in the exercise of their functions. December 2018.
Transport Policy
This policy will provide the parameters for For filing/endorsement to the 18th
planning at the agency level, e.g., the formulation Congress
of the “Philippine Transport System Master
Plan”.
Addresses the weak and fragmented institutional

setup of concerned transport agencies by
creating respective independent regulatory
Enactment of a Law Creating
bodies for the railway sector and maritime For adoption of the NEDA Board and
Independent Regulatory
transport sector, consistent with the NTP. The subsequent filing/endorsement to the 18th
Bodies for Railway and
existing dual roles of some agencies acting as Congress
Maritime Transport Sectors
both operator and regulator if transport facilities
will be effectively eliminated.
Places all transport safety and security matters

under a simple independent body that will, Various Senate Bills and House Bills
Enactment of a Law Creating among others, investigate transport accidents pertaining to the creation and
an Independent Body for and provide transport safety recommendations, establishment of a National
Transport Safety and Security thereby eliminating conflicting and overlapping Transportation Safety Board were filed in
functions of existing agencies or entities. the 18th Congress
Water Resources
Aims to address the weak and fragmented
institutional set-up of the water resources sub- The draft bill was submitted to the
Enactment of a Law Creating sector with the creation of an Apex Body that will Presidential Legislative Liaison Office
an Apex Body for the Water act as the single lead agency to (PLLO) to facilitate its inclusion in the
Resources Sub-sector oversee/coordinate overall policy and Administration's priority
project/program implementation. legislative agenda.
Harmonizes the regulatory practices, processes,

Enactment of a Law Creating fees and standards on water supply and The draft bill was submitted to the PLLO
an Independent Economic or sanitation while addressing the overlapping to facilitate its inclusion in the
Financial Regulator for Water functions or jurisdictions of existing regulatory Administration's priority
Supply and Sanitation entities. legislative agenda.
Energy

42
Legislative Agenda Purpose Updates
Aims to improve the implementation of the law’s
Amendments to RA 9136, the provisions and enhance its effectiveness to The following relative draft bills were filed
Electric Power Industry address high cost of electricity, alleged market in Congress: SB 16223, HB 942, HB
Reform Act collusion, and insufficient water supply. 2297, and HB 6341.
Provides an enabling legal and regulatory

Enactment of an Enabling
framework for the natural gas industry to guide
Law for the Natural Gas Filed in the 18th Congress as HB 3031
investments in the sector.
Industry
ICT
Aims to address interconnection issues in the
broadband market where players are provided
access to essential facilities of existing national
backbone network operators under terms that
are non-discriminatory and transparent, and at Filed in the 18th Congress as HB 57 and
Enactment of Open Access in
prices that are cost-oriented and subject to HB 4109 (pending with the Committee on
Data Transmission
regulatory oversight by the NTC. ICT)
This measure also entails strengthening the

power of NTC to encourage and promote a more
conducive environment for data networks.
Social Infrastructure
Addresses the weak administrative,
organizational and institutional dynamics of
LGUs in implementing SWM programs or
projects.
Amendments to RA 9003, the
Filed in the 18th Congress as HB 1598
Ecological Solid Waste The proposed amendments may include, among
(pending with the Committee on Ecology)
Management Act others, the mandatory creation of a local
environment and natural resources offices and
identification of dedicated focal SWM units with
corresponding organization structure, powers,
and functions.
1226
1227

43

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1 Chapter 19

CHAPTER 19: Accelerating Infrastructure Development

CHAPTER 19: Accelerating Infrastructure Development

Master Plan/Roadmap Description Status

Aimed at formulating an urban development plan to improve the

An inclusive master plan for the sustainable development of Manila

Guides the rational development of an intermodal transport network in

Sets the direction for irrigation subsector development by updating,

Sets the necessary policy, regulatory and infostructure interventions

CHAPTER 19: Accelerating Infrastructure Development

CHAPTER 19: Accelerating Infrastructure Development

114 “A safe, secure, reliable, efficient, integrated, intermodal, affordable, cost-effective,

CHAPTER 19: Accelerating Infrastructure Development

CHAPTER 19: Accelerating Infrastructure Development

Loan Agreement (ADB/Japan): 21 January 2019

Ground Breaking: 15 February 2019

Loan Agreement (Japan): 08 November 2018

Ongoing Rehabilitation and Maintenance Works

Concession Agreement (San Miguel Corp.):

Ground Breaking: 20 April 2016

Ongoing Pre-construction Works

Loan Agreement (World Bank): 14 February 2019

Ongoing Pre-construction Works

Ongoing Procurement of Contractor

Ongoing Right-of-way Acquisition

Loan Agreement (World Bank/ AFD): 2022 (complete

Ongoing Pre-construction Works.

174 Air Transport

CHAPTER 19: Accelerating Infrastructure Development

219 Maritime Transport

CHAPTER 19: Accelerating Infrastructure Development

CHAPTER 19: Accelerating Infrastructure Development

CHAPTER 19: Accelerating Infrastructure Development

324 Water Resources

CHAPTER 19: Accelerating Infrastructure Development

CHAPTER 19: Accelerating Infrastructure Development

CHAPTER 19: Accelerating Infrastructure Development

2018 Installed 2018 Dependable 2018 Available

CHAPTER 19: Accelerating Infrastructure Development

CHAPTER 19: Accelerating Infrastructure Development

526 Information and Communications Technology (ICT)

537 Government interventions to improve broadband infrastructure are underway. To complement

CHAPTER 19: Accelerating Infrastructure Development

573 Social Infrastructure

CHAPTER 19: Accelerating Infrastructure Development

586 Table 19.4. Undelivered Classroom Facilities

FY Ongoing Construction For Mobilization Under Procurement Total

CHAPTER 19: Accelerating Infrastructure Development

617 Table 19.5. Healthcare Facilities in the Country

Facility Baseline (2017) 2018 2019 Target (2022)

635 Solid Waste Management (SWM)

CHAPTER 19: Accelerating Infrastructure Development

653 Table 19.6. Progress of SWM Facilities in the Country

Year Number of Number of Illegal Number of MRFs Number of Barangays

655 Action Plan

CHAPTER 19: Accelerating Infrastructure Development

668 Table 19.7 Updated PDP Targets for Infrastructure Development

CHAPTER 19: Accelerating Infrastructure Development

669 Strategic Framework

CHAPTER 19: Accelerating Infrastructure Development

CHAPTER 19: Accelerating Infrastructure Development

683 a. Increase spending on public infrastructure

CHAPTER 19: Accelerating Infrastructure Development

724 b. Implement strategic infrastructure