This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 7/12/2017

Overview

Infrastructure Initiative

The Department of Commerce has named the Philippines as one of the three countries in its Infrastructure Initiative. The Initiative is designed to help attract U.S. companies to participate in infrastructure projects in the country. To that end, CS Philippines has held various webinars and conferences, and has organized Gold Key Programs to introduce U.S. firms to major local conglomerates that have won PPP projects or are interested in bidding on them.

High economic growth, combined with a rising population, has put increased strain on Philippine infrastructure.  The 2015-2016 World Economic Forum (WEF) Global Competitiveness Report ranks the Philippines 106th out of 140 countries in terms of infrastructure development. Improvements are needed across the board, from ports and airports to roads and railroads.
 
During the Aquino administration, the Philippines’ infrastructure budget increased from $3.3 billion in 2011 to $17.3 billion in 2016, or from 1.8 percent to 5 percent of GDP.  To accelerate infrastructure development, the Philippine Government tapped private sector resources and expertise to finance, design, construct, operate and/or maintain infrastructure projects under its public-private partnership (PPP) program.  As of April 2016, twelve PPP projects worth $4 billion had been awarded, three of which are complete.  In addition, there are 15 PPP projects that are under procurement (http://ppp.gov.ph/?page_id=26075) and others under construction.
 
The World Bank and the Asian Development Bank are critical players in Philippine infrastructure given the specialized financing vehicles they offer. These multilateral banks continue to finance Philippine infrastructure projects such as road improvement, water and sanitation, transportation, solid waste management, flood management projects, and energy-related projects. The Export-Import Bank of the United States of America offers a financing package for up to US$1 billion in guaranteed loans and direct-dollar loans to finance U.S. exporters in renewable energy and liquefied natural gas facilities in the Philippines.
 
Starting in 2017, the three-year rolling infrastructure program (TRIP) will be reinstituted. Under TRIP, infrastructure projects are assured of continuous government funding for three years.  Government agencies will submit their respective TRIPs for review, compilation, confirmation and/or approval by the National Economic and Development Authority (NEDA), the Philippines’ economic development and planning agency.  The approved consolidated TRIPs will then be submitted to the Department of Budget and Management to determine funding ceilings and levels.  Through the TRIP, NEDA hopes the government will be able to address gaps in the infrastructure sector, including pending projects from previous years, including the 4,710 kilometers of national roads that need to be paved, 366,014 units of socialized housing that are up for construction, and 1.2 million hectares of lands to be irrigated.
 

Sub-Sector Best Prospects

  • Companies that finance, design, construct, and/or maintain infrastructure projects;

  • Equipment, products, and technologies that can be used in airport, port, road, rail, and other infrastructure projects.

Please see Sub-Sector Best Prospects in the following CS Philippines’ CCG Leading Sectors: Electrical Power Systems, Information and Communications, and Water Resources and Equipment.


Opportunities

  • Infrastructure Projects Funded by the Philippine Government - In 2016, the Philippine Government will fund projects to improve road transport such as: Cebu Bus Rapid Transit, Metro Manila Bus Rapid Transit, and Integrated Transport Systems Projects.  It has allocated funds for the improvement of various air transport facilities in Clark, Panglao, Naga, Tawi-Tawi, and regional airports nationwide. Budget has also been allocated to extend and rehabilitate Light Rail Transit 1 and 2, Philippine National Railway North-South Projects and other repair and expansion projects.  In addition, the government will fund seaport construction and improvement projects.

  • PPP - There are airport, airport passenger terminal building, port, road, rail, integrated transportation systems, school building, hospital, prison facilities, information technology, and water source projects that have either been awarded or under procurement under the government’s PPP program (http://ppp.gov.ph/?page_id=26075). 

  • Infrastructure Projects Assisted by the World Bank - Among these are: Studies for Sustainable Flood Management and Cebu Bus Rapid Transit Project. The complete list of World Bank-assisted projects in the Philippines is at http://www.worldbank.org/en/country/philippines/projects/all.

  • Infrastructure Projects Assisted by the Asian Development Bank (ADB) - These include the Water District Development Project, Angat Water Transmission Improvement Project, and Expanding Private Participation in Infrastructure Program.  The complete list of ADB-assisted projects in the Philippines can be found at http://www.adb.org/projects/search/country/phi/status/approved.

  • Infrastructure Projects of the Private Sector - Major Philippine companies in the power generation and distribution sectors have announced large projects in natural gas, waste-to-energy, smart-grid, and rural electrification. Private water utilities are also undertaking major water and septage treatment projects.

 
Please see Sub-Sector Best Prospects in the following CS Philippines’ CCG Leading Sectors for U.S. Exports: Energy, Information, Communications and Technology, and Water Resources and Equipment for additional opportunities.
 

Web Resources

Asian Development Bank

http://www.adb.org/projects/search/
country/phi/status/approved

Department of Energy

http://www.doe.gov.ph

Department of Health

http://www.doh.gov.ph

Department of Public Works and Highways

http://www.dpwh.gov.ph

Department of Transportation and Communications

http://www.dotc.gov.ph

Information Communications Technology Office

http://icto.dost.gov.ph/

Public-Private Partnership Center

http://ww.ppp.gov.ph

U.S. Export and Import Bank of the Philippines

http://www.exim.gov

World Bank

http://www.worldbank.org/en/country/
philippines/projects/all


Post Contact Information:

Ms. Bebe Montesines, Commercial Specialist
(Construction and architecture, roads, bridges)
U.S. Commercial Service Philippines
E-mail: Bebe.Montesines@trade.gov;
businessphilippines@trade.gov

Ms. Dey Robles, Commercial  Specialist
(Hospital construction)
U.S. Commercial Service Manila
E-mail: Dey.Robles@trade.gov;
businessphilippines@trade.gov

Ms. Yna C. Quiambao, Commercial Specialist
(Railroads, ports)
U.S. Commercial Service, Philippines
E-mail: Yna.Quiambao@trade.gov;
businessphilippines@trade.gov

Ms. Thess Sula, Commercial Specialist (Energy)
U.S. Commercial Service Philippines
Email: Thess.Sula@trade.gov;
businessphilippines@trade.gov

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.



Philippines Design and Construction Trade Development and Promotion