Two days from today, former Bases Conversion and Development Authority President and Chief Executive Officer and former Presidential Adviser for Flagship Programs and Projects Vince Dizon will be at the helm of the Department of Transportation (DoTr).
This piece of news brings great confidence and optimism to us at the Stratbase Group. Mr. Dizon was with us when we founded our organization more than 20 years ago. Then as now, he was a strong advocate of infrastructure development, with a bias for efficient project execution and strategic public-private partnerships (PPP).
In the subsequent phases of his career, Mr. Dizon has demonstrated his deep and nuanced understanding of infrastructure policy. I have no doubt that he will drive transformative transportation initiatives that would enhance connectivity and consequently stimulate economic growth.
It’s not just us at Stratbase who are saying this. No less that Senator Grace Poe has been quoted as saying that she believes Mr. Dizon would fast-track reforms and projects that are urgently needed at the DoTr. His performance in his previous assignments has been stellar.
I wish Vince the best of luck in this new challenge.
THE ROLE OF PPPTransportation has been a sore point in the Philippines’ growth story. Much has been said about the economic potential as well as the quality of life being compromised because of transportation woes. Here in Metro Manila, for instance, we are acutely aware of the debilitating effects of heavy traffic and the state of the public transportation system. Elsewhere in the archipelago, the movement of goods and people has been hampered by inadequate transport infrastructure.
This is not to say that these difficulties are being neglected. In response, the government has allocated P1.507 trillion for infrastructure projects this year, equivalent to 5.2% of our Gross Domestic Product. The amount is just slightly lower than the P1.51 trillion last year.
To close the gap, the government has been increasingly relying on PPP ventures.
In fact, over the past few years, our national leaders have been trying to realize the immense potential that investments and partnership brought by the private sector could contribute in this aspect. They have been taking concrete steps to bring this closer to reality.
Over the years, the private sector has been a steady and reliable partner as the country inches toward its objectives of driving the economy through building better, and more. As of this month, the PPP project pipeline has expanded to 176 projects worth P2.47 trillion.
These projects in the pipeline span several key sectors — transport, housing, water supply, and digital infrastructure.
Among these, however, transport projects hold a special significance.
The administration has signed contracts for five major transport initiatives. These include the concession agreement for the Bohol-Panglao International Airport with Aboitiz InfraCapital, Inc., which involves airport upgrades, expansion, and operations for 30 years; Transaction Advisory Services Agreements between the DoTr and the International Finance Corp. for the New Dumaguete and Siargao Airports, and the New Cebu International Container Port; and the Cebu Bus Rapid Transit project.
Additionally, the Civil Works Contract Package for the New Cebu International Container Port has been awarded to HJ Shipbuilding and Construction Co., Ltd.
Finance Secretary Ralph Recto described these projects as a “monumental gift” to Filipinos. The projects will no doubt increase the mobility of both people and goods, reduce travel time, and support economic activities within and across the regions.
INTERNATIONAL ASSISTANCEOn top of all these, the Asian Development Bank (ADB) is supporting the Philippines in bolstering its PPP capacity.
The ADB recently approved a $30-million loan that will replenish the Project Development and Monitoring Facility, enabling the government’s PPP Center to support up to 35 national and local projects from 2025 to 2029. These projects will focus on transport infrastructure, including railways and road networks, while ensuring climate resilience.
ADB is also funding capacity-building initiatives for implementing agencies and local government units, alongside the development of evaluation frameworks to enhance fiscal sustainability and project execution.
ADB Country Director for the Philippines, Pavit Ramachandran, also reaffirmed ADB’s commitment to supporting the country’s transportation infrastructure, emphasizing its role in the Build Better More agenda.
He highlighted the North-South Commuter Railway as a key priority, with ADB approving an additional tranche of funding exceeding $1 billion for the Malolos-Clark segment. He also noted that ADB is finalizing further transport-related loans for 2025, ensuring the completion of ongoing projects and the acceleration of infrastructure initiatives.
These new developments spell promising times for the Philippine transport sector. From a new secretary who champions PPP and who comes with a solid experience in infrastructure development and management, to a pipeline of PPPs in the administration’s agenda, to support from a multilateral institution that believes in the Philippine potential, we do not doubt that the Philippines will be able to move forward from where we currently are to where we intend to be.
Victor Andres “Dindo” C. Manhit is the president of the Stratbase ADR Institute.