Accelerating Development

Infrastructure

Christine Ham

Dianne

D.

Noemie Bui Angelica Mae Superales

The Plans infrastructure development program aims to contribute to inclusive growth and poverty reduction. It will support the performance of the countrys economic sectors and ensure equitable access to infrastructure services, especially as these affect the peoples health, education, and housing. Toward these ends, the government will accelerate the provision of safe, efficient, reliable, costeffective, and sustainable infrastructure.

The countrys inadequate infrastructure has been identified as a critical constraint to economic growth. This inadequacy, in both quantity and quality, is the result of low levels of public and private sector investments in infrastructure, which fall short of the requirements of a progressive economy and a growing population. Moreover, inequitable access to basic infrastructure services has also become an obstacle to poverty reduction and, more generally, to inclusive growth because it limits the opportunities for economic and social advancement available to marginalized sectors.

There are 5 sub sectors of infrastructure namely: transport, water, social infrastructure, energy and Information and Communications Technology Infrastructures.

Transport
The current state and performance of the transport sector indicates gaps and bottlenecks that need to be addressed to support the governments thrust toward competitiveness and its development goals. What is envisioned is a safe, secure, efficient, viable, competitive, dependable, integrated, environmentally sustainable, and people-oriented Philippine transportation system that will focus the sectors development objectives and strategies on resolving identified issues and challenges. Water Water is a basic need and everyone has the right to be provided with access to basic services related to water. In addition,economic growth itself must be supported,specifically by meeting the needs of priority growth and production centers for water supply, sewerage, sanitation, irrigation and flood management. The water sectors greatest challenge is to balance equity and efficiency in the management of water resources to ensure adequate, safe and sustainable water for all. ensuring a sustainable environment. Social Infrastructure Accelerate mass housing programs with alternative housing technologies, schemes and approaches to ensure decent and affordable homes. Integrate basic infrastructure support to resettlement sites and emerging regional sustainable communities, such as provision of potable water, safe and sufficient electricity, access roads to the nearest commercial Efficient and effective management of water resources is fundamental to achieving inclusive economic growth while

centers, and ICT, among others; Energy The Energy Reform Agenda (ERA) for 2010-2016 is guided by the vision of Energy access for more. Governments key priority is to ensure sustainable, diverse and reliable energy sources through consultation and the participation of multiple stakeholders. Increased economic efficiency in the use and distribution of energy services is critical to achieving energy access for the majority at competitive rates. Information and Communications Technology Infrastructure Technological innovations and commercial developments have expanded growth opportunities in the ICT sector,with private sector players continuing to invest in developing the countrys ICT infrastructure. The government, for its part, has been promoting the spread of ICT as a means to interconnect the country, even out social opportunities, raise overall living standards and attain global competitiveness. To accelerate infrastructure development and offer equitable access to infrastructure services, The following objectives and strategies shall be pursued across all infrastructure sub sectors:

To Optimize Resources and Investments

Low levels of investment in infrastructure are directly caused by the countrys tight fiscal situation. Notwithstanding the measures to address the narrow fiscal space. To make the most of available resources and investments in infrastructure the following strategies should be implemented: Improve Project Preparation, Development, and Implementation Inadequate project preparation, poor project quality-at-entry, and poor project execution cause delays and changes in project scope and raises costs in the course of implementation. All of these significantly reduce the projects value and hamper the attainment of project objectives. To assist

agencies in project preparation, a fund to support the conduct of feasibility studies may be established. This fund will ensure that feasibility studies are undertaken in a timely and correct manner. Synchronize Planning and Budgeting By synchronizing the prioritization of programs and projects on one hand and allocating appropriate funding across government agencies on the other, the government ensures that only programs and projects that are strategic and critical to the realization of developmental goals shall be prioritized for funding. As a prior step, however, government agencies must demonstrate that proposed projects indeed make positive net contributions to national economic and social welfare. Coordinate and Integrate Infrastructure Initiatives Development initiatives across infrastructure subsectors shall be coordinated and integrated. This ensures that the requirements of these subsectors are addressed within the fundamental levels of the infrastructure sector and that their contributions are fully utilized. Intended outcomes are better realized if there is a coordinated and integrated strategy for infrastructure initiatives. To aid planning and project development, the collection, management, and integration of key infrastructure and related data both at the national and local levels will be improved.

To attract Investments in Infrastructure

Improving investor confidence is necessary in order to generate additional financing and attract service providers. Both, in turn, ease the burden of government in providing infrastructure.The following strategies aim to make the country an attractive destination for investments by establishing a stable,consistent, and transparent policy environment and by reducing the money- and time-cost of doing business: Improve the Institutional and Regulatory Environment of the

Infrastructure sector Regulatory agencies play a vital role in infrastructure development since they strongly influence, for good or ill,the provision of existing infrastructure services and the levels of forthcoming investments. They also affect the accessibility of such services, particularly the rates at which these are made available. Regulatory agencies should pay special attention to vertical integration trends in supply and distribution utilities. These may facilitate transfer-pricing and result in inefficiencies from the supply side to the distribution side. This issue becomes critical in sectors where natural monopolies are present, such as energy and water, where returns on investment are guaranteed and where distribution is regulated while supply is not.

To Foster Transparency and Accountability in Infrastructure Development

Encourage Stakeholder Participation Government shall encourage the active participation of the public and civil society in governance, monitoring, and feedback. Transparency and accountability are integral to a predictable policy environment conducive for investment.

To Adapt to Climate Change and Mitigate the Impacts of Natural Disasters

The impacts of climate change and natural disasters add to the countrys infrastructure problems and hamper resolution of the constraints. Plans and designs should include the possible effects of climate change and natural disasters in order to develop disasterresilient infrastructure and help mitigate the adverse impacts of climate change.

To Provide Productive Employment Opportunities

Adopt a Labor-Intensive Scheme Where Applicable Infrastructure can contribute significantly to local employment generation and can harness skills and technical expertise of the workforce. To

provide productive employment opportunities that will contribute to inclusive growth, the infrastructure sector shall adopt an employmentintensive or laborbased at all times. scheme whenever it is most optimal in infrastructure development. Safety and health in public works undertakings shall be ensured