19

Accelerating
Infrastructure
Development
Chapter 19

Accelerating Infrastructure
Development
The Philippine Development Plan (PDP) 2017-2022 and the 0-10 Point Socioeconomic Agenda
identify infrastructure development among the top priorities of the government to sustain inclusive
economic growth, generate new jobs, and improve the quality of life in both urban and rural
communities.

The “Build, Build, Build” agenda of the government is seen to boost infrastructure development and
usher in the envisioned “Golden Age of Infrastructure” of the country in the medium term by intensifying
investments on public infrastructure whilst addressing implementation bottlenecks, ensuring the readiness
of infrastructure programs and projects (PAPs) in the pipeline, and enhancing the absorptive capacities of
implementing agencies in project preparation, development, and implementation.

Figure 19.1. Sector Breakdown of 2017-2022 Infrastructure Investment Targets

(in ₱ million and % share)

Chapter 19 Accelerating Infrastructure Development | 171

 A total of 4,490 infrastructure PAPs on transportation, water resources, energy, social, information
and communications technology (ICT), and other public infrastructure, with total investment targets of
₱7,738,279.75 million over the medium term,1 are deemed responsive to the goals and outcomes of the
infrastructure sector embodied in the PDP 2017-2022. Of the said total number of PAPs, 332 PAPs2 are
identified as big ticket PAPs or Core Investment Programs/Projects (CIPs), amounting to ₱4,865,496.26
million, which represent the pipeline of PAPs that shall require the review/approval of the National
Economic and Development Authority (NEDA) Board - Investment Coordination Committee (ICC) prior
to implementation.

Infrastructure development, as a cross-cutting strategy, plays an indispensable role in sustaining the growth
momentum, safeguarding a clean and healthy environment, and providing support to the other productive
sectors of the economy. Aside from the infrastructure PAPs in this Chapter, 494 additional PAPs amounting
to ₱1,317,825.00 million correspond to the goals and outcomes of the social development (including housing
requirements), peace and security, and environment and natural resources sectors, hence, are provided in
the other respective Chapters of the 2017-2022 Public Investment Program (PIP).

INFRASTRUCTURE FLAGSHIP PROJECTS

Of the priority infrastructure PAPs of the government, the NEDA Board approved the adoption of 75 high-
impact Infrastructure Flagship Projects that represent the major capital undertakings that the government
will implement within the medium term. These projects are envisioned to enhance the connectivity and the
promotion of growth centers outside the urban-industrial region centered around Metro Manila, and are
expected to significantly contribute to the government’s “Build, Build, Build” agenda. A Project Facilitation,
Monitoring, and Innovation (PFMI) Task Force was created to ensure efficient and timely implementation
of these flagship projects.

1
There are additional 91 PAPs submitted by the Department of Public Works and Highways (DPWH) but will be considered in the next updating of
the 2017-2022 PIP, pending the submission of the project details by DPWH.
2
As submitted by the implementing agencies and confirmed by the concerned Planning Committees/Subcommittees, some of the CIPs were
classified as Tier 1 (Ongoing) based on Department of Budget and Management’s Two-Tier Budget Approach, but have yet to commence actual
construction/civil works, secure ICC approval, etc.

172 | 2017-2022 Public Investment Program

Figure 19.2. Major Infrastructure PAPs

Chapter 19 Accelerating Infrastructure Development | 173

 LINKAGE WITH THE PDP AND ITS RESULTS MATRICES
The strategic framework of the sector as provided in the PDP identifies five infrastructure intermediate
outcomes that are responsive to the sector outcomes and to the overarching societal goal of providing the
underlying foundation for inclusive growth, a high-trust society, and a globally competitive knowledge
economy.

Figure 19.3. Strategic Framework to Accelerate Infrastructure Development

174 | 2017-2022 Public Investment Program

The major PAPs highlighted in the succeeding sections of this Chapter correspond to the following
infrastructure intermediate outcomes embodied in the Plan:

a. Efficiency, transparency, and participation in governance enhanced;

b. Competitiveness and productivity of economic sectors increased;
c. Gaps in basic infrastructure for human capital development reduced;
d. Safety and security against natural and man-made disasters, especially for the poor, improved; and
e. Innovative solutions and technologies encouraged/adopted to increase growth potential.

Efficiency, transparency, and participation in governance enhanced

Recognizing the role of ICT as a vital tool for good governance, the government will continue to enhance
the country's e-government system. The National Government Portal (NGP),3 with investment targets of
₱2,618.15 million for the period 2018-2022, is a one-stop shop portal to be implemented by the Department
of Information and Communications Technology (DICT) that will provide access to reliable government
online services, data, and information. The project further aims to provide a mechanism that will unite
all web-based government content to maximize efficiency, and provide rapid and high-quality services to
citizens.

Competitiveness and productivity of economic sectors increased

Road Transport

To provide an adequate, accessible, reliable, and safe access for the people and goods, and to increase the
travel speed in key corridors, the road network of the country will be improved through implementation of
several projects, among others:

a. Panguil Bay Bridge Project;

b. Cavite-Laguna Expressway;
c. Bonifacio Global City to Ortigas Center Road Link Project;
d. Widening/improvement of General Luis St.-Kaybiga-Polo-Novaliches Road;
e. Davao City Bypass Road;
f. Metro Manila Interchange Construction Project, Phase VI;
g. North Luzon Expressway-South Luzon Expressway (NLEX-SLEX) Connector Road Project; and
h. Central Luzon Link Expressway (CLLEX) Project, Phase I.

The quality of existing roads, including local, farm-to-market, and farm-to-mill roads, will be enhanced
through road rehabilitation and improvement programs. Provision of adequate access to tourism destination
and industrial sites will be ensured through convergence programs between the DPWH, Department of
Tourism, and Department of Trade and Industry. Further, accessibility throughout the country will be
improved through the construction of long-span inter-island bridges such as the Panay-Guimaras-Negros
Island Bridge and the Nationwide Island Link Bridges.

3
NGP is included in the list of PAPs under Chapter 5: Ensuring People-Centered, Clean, and Efficient Governance.

Chapter 19 Accelerating Infrastructure Development | 175

 Mass Transport Network

The movement of people and goods along high density corridors will be enhanced through the provision of
new mass transport facilities, among others:

a. Mindanao Railway Project;

b. Philippine National Railways (PNR) South Commuter Line;
c. PNR South Long Haul;
d. PNR North 1 (Tutuban-Malolos);
e. PNR North 2 (Malolos-Clark Airport-Clark Green City Rail);
f. MRT-LRT Grand Unified Station Project;
g. Metro Manila Bus Rapid Transit (BRT) - Line 1 (Quezon Avenue); and
h. Metro Manila BRT - Line 2 (EDSA/Central).

These projects are expected to reduce travel time and ensure that the passenger and cargo traffic can be
accommodated. Moreover, the construction of Integrated Transport System Terminals will reduce transfer
time due to more convenient and efficient passenger transfer.

Air and Water Transport

Further support to logistics will be provided through the construction, rehabilitation, and improvement of
airports and seaports. The capacity and efficiency of existing facilities will be enhanced to accommodate the
expected increase in traffic. The following projects, among others, will be undertaken to achieve the said outcome:

a. Clark International Airport New Terminal Building Project;

b. Development, Operations and Maintenance of Regional Airports (Bacolod-Silay, Davao, Iloilo,
Laguindingan, and New Bohol); and
c. New Cebu International Container Port.

Irrigation

Irrigation is an important component in improving productivity and ensuring sustainability of the agriculture
sector. To accelerate irrigation development, the PDP supports the establishment and rehabilitation of small-
scale and community-based irrigation projects in areas not served by national irrigations systems.

The National Irrigation Administration (NIA) will invest approximately ₱71,782.56 million within the next
five years in the construction of small reservoir irrigation projects (SRIP), such as the Asbang SRIP in Davao
del Sur, as well as ₱31,290.24 million for the repair and rehabilitation of existing communal irrigation systems.

Development of various multi-purpose irrigation projects, which include construction of storage and
diversion dams, transbasin tunnel, power plant, irrigation, and drainage facilities will also be implemented.
Among the projects that will provide water supply for irrigation, mitigate flooding, and generate additional
hydroelectric power are the following:

a. Gregorio Del Pilar Impounding Project;

b. Tumauini River Multipurpose Project;
c. Panay River Basin Integrated Development Project;
d. Bohol Northeast Basin Multipurpose Project; and
e. Ilocos Norte Irrigation Project, Stage 2.

176 | 2017-2022 Public Investment Program

Upon completion of the irrigation projects, it is expected that irrigation service coverage will increase by
452,167 hectares (ha), while 134, 270 ha and 117,742 ha will be restored and rehabilitated, respectively.

Power Generation

Demand for electricity continues to increase with growth in economic activities. Said demand for electricity
is expected to escalate up to 29,852 megawatts (MW), 9,210MW, and 10,225MW for the Luzon, Visayas, and
Mindanao grids by 2040, respectively.

To ensure adequate supply of electricity in the country, the government will need to provide an additional
capacity of 43,765MW from 2016-2040. The required additional capacity using the 70-20-10 baseload,
mid-merit, and peaking energy mix directive proposed by the Department of Energy (DOE) is shown in
the following table:

Table 19.1. Required Capacity Addition from 2016-2040

CAPACITY ADDITION (MW)

LUZON VISAYAS MINDANAO TOTAL
Baseload (coal, geothermal, existing natural gas, biomass, impounding
a
13,635 5,330 6,300 25,265
hydro, and nuclear)
Mid-merit (new natural gas) 8,300 3,000 3,200 14,500
Peaking (oil, solar pv,b wind, and run-of-river hydro) 2,450 850 700 4,000
Total per grid 24,385 9,180 10,200 43,765
Source: DOE
Notes: Baseload - running on a 24/7basis; aBiomass is baseload only during availability of feedstock;
Mid-Merit – running for long period but more flexible in operation compared to baseload; and
Peaking – fast start and can be used during peak periods; bSolar output during daytime only.

As of December 31, 2017, the country reached a total dependable capacity of 20,515MW (i.e., 98% and
2% of which are from on-grid and off-grid power plants, respectively) or about 90.26 percent of the total
installed capacity of 22,728MW. Meanwhile, DOE identified a total of 8,018MW and 8,990MW committed
and indicative capacities of power projects, respectively, of the private sector to be implemented from
2018-2025 to address the energy security concern. The timely completion of said projects will require the
support of concerned government agencies on the issuances of various permits and clearances.

As part of its mandate to explore, develop, and utilize indigenous and environment-friendly resources, DOE
will continue to closely monitor the development of private sector-led power projects to ensure that the
required capacity addition by the country will be met.

ICT Infrastructure

The government will continue to improve the connectivity of digital infrastructure systems in the country.
To increase the number of individuals with access to the internet and online government services, DICT will
embark on the implementation of the National Broadband Plan that aims to provide the overall development
framework for ensuring the availability, affordability, and quality of broadband internet access with a total of
₱ 77,881.33 million estimated investments targets from 2017-2020.

Another project of the DICT, the Juan Konek! Free Wi-Fi Internet Access in Public Places Project, will target
to deliver 99 percent internet connectivity in the country by investing ₱18,713.52 million from 2017-2020.

Chapter 19 Accelerating Infrastructure Development | 177

 Gaps in basic infrastructure for human capital development reduced4
Water Supply and Sanitation

The Sagana at Ligtas na Tubig para sa Lahat (SALINTUBIG) Program aims to provide water supply systems
to waterless municipalities, barangays with high poverty incidence, resettlement areas without water access,
and areas that have existing health centers without water supply facilities. The said program, which started in
2011 with investment targets of ₱28,289.13 million until 2022, will continue to increase access to safe water.

Meanwhile, to augment the increasing water demand in Metro Manila and adjacent areas, development of a
potential new water source will be pursued by the Metropolitan Waterworks and Sewerage System (MWSS)
through the proposed New Centennial Water Source – Kaliwa Dam Project. Outside of Metro Manila,
Construction of Level III Potable Water Supply Systems will be implemented by the Local Water Utilities
Administration (LWUA), wherein an estimated additional 290,909 persons will have piped access to potable
water after its completion. The said water supply projects of MWSS and LWUA have 2017-2022 investment
targets of ₱23,589.00 million. Also, a total of about ₱1,766.50 million is programmed for the implementation
of various water supply projects in the Autonomous Region in Muslim Mindanao (ARMM).

Moreover, to provide adequate sanitation services, LWUA, in coordination with the DPWH and the
Department of Environment and Natural Resources (DENR), will implement the Development of Sewerage
and Septage Management Systems in Water District Areas along Manila Bay with an estimated investment
targets of ₱2,524.00 million. By 2020, 78 water districts along Manila Bay are expected to have sewerage and
septage facilities through the said program.

Electrification

To achieve the goals of 100 percent electrification of all Philippine Statistics Authority (PSA)-identified
households (based on 2015 census) by 2022 and nationwide electrification by 2040, various electrification
PAPs utilizing appropriate electrification strategies and technologies will be implemented to provide access
to electricity to unelectrified, off-grid, island, remote, and last mile communities.

The National Electrification Administration (NEA) will continue to implement its Barangay Line
Enhancement Program5 and Sitio Electrification Program (SEP)6 to provide access to electricity to rural areas
within the franchise areas of electric cooperatives (ECs). The new program of NEA entitled the Strategized
SEP for Off-grid Rural Electrification through Renewable Energy (RE) is aimed at providing remote areas
with 24-hour access to electricity by integrating other RE systems to the original SEP design.

Meanwhile, the National Power Corporation – Small Power Utilities Group will implement various capacity
additions and transmission projects under its Missionary Electrification Plan to support off-grid and island
development. Furthermore, the Access to Sustainable Energy Programme of DOE is expected to provide
at least 100,000 households nationwide access to electricity, and at the same time enhance the capacity of
government agencies, regulators, and ECs involved in the energy sector to develop, implement, and monitor
electrification projects.

4
Refer to Chapter 12: Building Safe and Secure Communities for the investment targets for the housing sector.
5
A program of NEA that aims to connect previously electrified barangays to the grid.
6
A program of NEA that aims to provide electricity access to communities within the franchise area of ECs which are not yet being served by
generating sets for mini/micro grids and Solar Home Systems for isolated households.

178 | 2017-2022 Public Investment Program

School Buildings

The expansion of the Basic Educational Facilities Fund (BEFF) will be pursued by the Department of
Education (DepEd) to augment the requirements resulting from the implementation of the Kindergarten
to 12 (K to 12) Basic Education Program, particularly on the enrollment increments in existing schools and
establishment of new schools for Kinder, Grades 1 to 10, and Grades 11 to 12.

For 2018, the program will include the provision of 37,233 quality classrooms, rehabilitation of 20,000
existing classrooms, replacement of 1,681,325 seats, and procurement of 22,649 sets of furniture/fixture for
the workshops/laboratories.

Health Facilities

The Department of Health (DOH) will continue the construction and upgrading of health facilities
nationwide through the Health Facilities Enhancement Program, with 2017-2022 investment targets of
₱259,036.35 million. The program consists of the following:

• Upgrading of all current government infirmaries and municipal and district hospitals to Level 1
Hospitals with at least 50 bed capacity;
• Establishment of one Level 2 250-bed Provincial Hospital in all provinces;
• Upgrading of all Provincial Hospitals into Level 2 Hospitals with at least 250 beds;
• Upgrading of all current DOH infirmaries and Level 1 Hospitals into Level 2 Hospitals;
• Upgrading of all current Level 2 DOH Hospitals into Level 3;
• Establishment of Regional Specialty Centers in selected DOH Level 3 Hospitals; and
• Development of identified DOH Specialty Hospitals as Apex Specialty Center.

Solid Waste Management Facilities

To support the compliance of local government units (LGUs) to the salient requirements of Republic Act
No. 9003 or the Ecological Solid Waste Management Act, DENR will implement the Philippine Solid Waste
Management Sector Project (PSWMSP).

PSWMSP, with total investment targets of ₱3,572.10 million project for 2017-2022, aims to assist
LGUs through investments in solid waste management (SWM) facilities and equipment, which will be
complemented with technical assistance for capacity development. The project covers four pilot LGUs,
namely: (a) Malay, Aklan; (b) La Trinidad, Benguet; (c) Janiuay, Iloilo; and (d) Del Carmen, Surigao del
Norte, to showcase appropriate models for SWM in highly urbanized regions, tourist destination areas, and
cluster of municipalities.

Chapter 19 Accelerating Infrastructure Development | 179

 Safety and security against natural and man-made disasters,
especially for the poor, improved
Maritime Safety and Security Projects

To improve the responsiveness of the government to natural and man-made disasters, necessary facilities
and equipment of the Philippine Coast Guard (PCG), such as helicopters and multi-role response vessels,
will be procured through the implementation of the following projects, among others:

• Maritime Disaster Response Helicopter Acquisition Project;

• PCG and Port Capability Development Project; and
• Maritime Safety Capability Improvement Project Phases I and II.

Safer navigation will be achieved through the implementation of projects, such as the Development of
Maritime Aids to Navigation, rehabilitation of lighthouses, and provision of night-landing capabilities to
regional airports.

Disaster Risk Reduction Facilities

Improvements in disaster risk reduction (DRR) efforts will be pursued. Among these is the Volcano,
Earthquake, and Tsunami Warning Systems for Disaster Risk Reduction in the Philippines Project of the
Department of Science and Technology – Philippine Institute of Volcanology and Seismology (DOST -
PHIVOLCS), which aims to enhance the country’s tsunami warning system and real-time earthquake and
volcano monitoring.

Flood Management Structures

As flood management becomes more challenging due to the increasing frequency of flooding, implementation
of flood control measures to mitigate disaster risk and ensure the safety of the people is becoming more
urgent and necessary. To reduce frequency of heavy flooding and minimize flood damages, DPWH
earmarked over ₱600,129.51 million for the implementation of flood management projects in the next five
years, including, among others, Cavite Industrial Area Flood Management Project; Flood Risk Management
Project in Cagayan, Tagaloan, and Imus Rivers; and Metro Cebu Flood Control Project. On the other hand,
there is a total investment targets of ₱2,361.20 million for the implementation of various flood control
projects in ARMM.

Furthermore, part of the overall government strategy to expand the protected flood-prone areas in the
country is to complete, update, and implement flood control and drainage master plans and feasibility
studies (F/S) of major river basins and principal rivers. Currently, 11 out of the 18 major river basins7 have
completed master plans. The preparation of the master plans and F/S for the remaining seven major river
basins8 are underway. Meanwhile, DPWH intends to pursue the construction and maintenance of various
flood control structures within the major and principal river basins nationwide with investment targets of
about ₱31,063.05 million in the medium term.

7
Panay, Cagayan, Agno, Ilog-Hilabangan, Agusan (Upper), Bicol, Mindanao, Pampanga, Tagoloan, Cagayan de Oro, and Pasig-Laguna de Bay.
⁷ Abulug-Apayao, Abra, Jalaur, Ilog-Batiano Ranao (Agus), Buayan-Malungon, Davao, and Tagum-Libuganon.

180 | 2017-2022 Public Investment Program

Innovative solutions and technologies encouraged/adopted to
increase growth potential
In line with the government’s thrust to institutionalize research and development (R&D)9 in the country,
R&D centers will be established through the Niche Centers in the Regions for R&D Program of DOST. The
said program includes the upgrading, development, and acquisition of research equipment to facilitate R&D
activities and capacity building for both human resources, and science and technology infrastructure.

HIGHLIGHTS OF THE PIP CHAPTER

Implementing Agency
The following are the agencies with the largest share of infrastructure investment targets for 2017-2022.
Note that these agencies already represent 96.60 percent of the 2017-2022 total investment targets for the
sector. The biggest chunk of the investment targets will be for PAPs of DPWH (₱3,237,936.31 million) and
the Department of Transportation (DOTr) (₱1,954,674.45 million) to be implemented within the medium
term.

Table 19.2. Top Ten Implementing Agencies with Highest Infrastructure Investment Targets

NO. OF INVESTMENT TARGETS (IN ₱ MILLION)

AGENCY
PAPS 2017 2018 2019 2020 2021 2022 2017-2022
DPWH 465 369,473.04 478,900.99 527,255.31 615,634.57 628,760.20 617,912.20 3,237,936.31
DOTr 486 22,086.45 249,862.96 405,684.21 487,068.86 431,600.73 358,371.24 1,954,674.45
DepEd 6 118,782.51 78,152.07 78,152.07 78,152.07 78,152.07 78,152.07 509,542.84
DOF 53 81,000.00 86,291.73 81,065.58 81,043.90 81,000.00 81,000.00 491,401.21
DOH 61 29,313.57 154,971.06 126,750.27 106,290.20 27,789.56 23,354.40 468,469.06
OCS9 166 25,808.64 45,181.13 47,849.53 57,503.58 57,708.49 49,990.63 284,041.99
DILG 116 20,009.83 32,008.61 33,554.90 34,805.92 34,775.09 36,653.28 191,807.62
BCDA 25 7,897.75 24,864.19 22,716.50 20,010.00 25,000.00 31,000.00 131,488.44
DICT 34 2,299.07 46,712.87 39,995.21 16,669.56 - - 105,676.71
DA 6 6,010.17 43,937.80 12,513.90 12,513.90 12,513.90 12,513.90 100,003.57
TOTAL 1,418 682,681.02 1,240,883.41 1,375,537.47 1,509,692.55 1,377,300.04 1,288,947.71 7,475,042.20

Spatial Coverage
To improve the connectivity and the promotion of economic clusters in regional and sub-regional growth
centers consistent with the country’s National Spatial Strategy, 98 interregional and 4,231 region-specific
PAPs amounting to ₱3,319,167.92 million and ₱2,128,915.34 million will be distributed across the regions,
respectively. Furthermore, there are 161 nationwide infrastructure projects with investment targets of
₱2,290,196.48 million to be rolled out for implementation by the End-of-Plan period.

⁸ For other R&D initiatives, refer to Chapter 14: Vigorously Advancing Science, Technology, and Innovation.

Chapter 19 Accelerating Infrastructure Development | 181

 Table 19.3. PIP Investment Targets by Spatial Coverage

INVESTMENT TARGETS (IN ₱ MILLION)

SPATIAL NO. OF
COVERAGE PAPS % OF
2017 2018 2019 2020 2021 2022 2017-2022
2017-2022
Nationwide 161 196,508.04 424,869.64 472,612.99 443,754.11 390,937.29 361,514.42 2,290,196.48 29.60%
Interregional 98 315,422.39 473,041.65 546,330.96 663,674.61 663,831.28 656,867.04 3,319,167.92 42.89%
Region-specific 4,231 185,117.81 444,960.06 403,952.98 458,646.21 346,414.24 289,824.04 2,128,915.34 27.51%
ARMMa 1,340 636.52 28,453.15 8,892.56 21,822.14 1,497.13 1,938.40 63,239.89 0.82%

CAR 98 1,016.88 3,210.63 2,273.77 3,392.84 3,600.00 3,796.70 17,290.83 0.22%

NCR 320 93,686.98 171,712.26 187,161.29 187,705.28 166,374.19 158,040.90 964,680.89 12.47%

Region I 165 2,641.59 7,071.04 5,420.76 7,129.83 6,252.36 4,940.56 33,456.14 0.43%

Region II 288 1,158.53 7,685.90 6,532.34 11,194.53 9,856.52 5,057.64 41,485.47 0.54%

Region III 235 11,057.64 32,522.15 32,279.00 26,829.04 29,573.04 26,103.06 158,363.93 2.05%

CALABARZON 168 10,483.86 20,212.20 17,924.75 25,754.34 24,434.03 19,873.12 118,682.30 1.53%

MIMAROPA 172 2,707.29 6,244.96 5,015.96 4,783.36 940.13 790.13 20,481.82 0.26%

Region V 187 2,952.85 8,154.62 5,746.60 12,602.86 9,149.48 7,058.34 45,664.76 0.59%

Region VI 176 5,898.66 9,958.92 9,532.62 20,533.84 17,863.66 16,571.57 80,359.27 1.04%

Region VII 128 6,934.92 5,259.15 3,087.46 18,723.10 7,968.68 7,596.42 49,569.73 0.64%

Region VIII a
191 5,112.07 13,740.37 5,422.83 5,990.21 3,152.63 1,741.91 35,160.00 0.45%

Region IX 138 3,239.37 8,471.27 4,194.21 2,277.97 6,572.60 13,639.30 38,394.72 0.50%

Region X a
183 16,668.82 20,613.20 16,696.30 15,651.08 9,842.33 6,882.99 86,354.72 1.12%

Region XI 143 14,499.59 22,864.31 28,942.10 34,855.41 32,382.52 9,142.28 142,686.22 1.84%

Region XII a
62 1,987.54 3,342.77 1,737.40 4,010.26 4,715.49 3,566.76 19,360.22 0.25%

Caragaa 124 4,434.71 10,826.79 13,651.32 14,764.47 12,223.45 3,079.95 58,980.69 0.76%
No specified
113 - 64,616.37 49,441.72 40,625.64 16.00 4.00 154,703.74 2.00%
region
TOTAL 4,490 697,048.24 1,342,871.35 1,422,896.93 1,566,074.93 1,401,182.80 1,308,205.49 7,738,279.75 100.00%
a
Five regions with the highest incidence of poverty as of 2015, as per data from the PSA.

Table 19.4. PIP Investment Targets by Major Island Group

INVESTMENT TARGETS (IN ₱₱ MILLION)

NO. OF
SPATIAL COVERAGE % OF
PAPS 2017 2018 2019 2020 2021 2022 2017-2022
2017-2022
Nationwide 161 196,508.04 424,869.64 472,612.99 443,754.11 390,937.29 361,514.42 2,290,196.48 29.60%

Interregional 98 315,422.39 473,041.65 546,330.96 663,674.61 663,831.28 656,867.04 3,319,167.92 42.89%

Region-specific 4,231 185,117.81 444,960.06 403,952.98 458,646.21 346,414.24 289,824.04 2,128,915.34 27.51%

Mega Manila 723 115,228.48 224,446.60 237,365.03 240,288.66 220,381.26 204,017.08 1,241,727.11 16.05%

Rest of Luzon 910 10,477.13 32,367.16 24,989.44 39,103.43 29,798.49 21,643.37 158,379.02 2.05%

Visayas 495 17,945.65 28,958.43 18,042.91 45,247.14 28,984.97 25,909.90 165,089.01 2.13%

Mindanao 1,990 41,466.55 94,571.49 74,113.88 93,381.33 67,233.52 38,249.69 409,016.47 5.29%

No specified region 113 - 64,616.37 49,441.72 40,625.64 16.00 4.00 154,703.74 2.00%

TOTAL 4,490 697,048.24 1,342,871.35 1,422,896.93 1,566,074.93 1,401,182.80 1,308,205.49 7,738,279.75 100.00%

182 | 2017-2022 Public Investment Program

Table 19.5. Allocation of Infrastructure Investment Targets

2017-2022 NOMINAL GRDP 2017-2022 INVESTMENT TARGETSc INFRASTRUCTURE INVESTMENT

SPATIAL COVERAGE
(IN ₱ MILLION)b (A) (IN ₱ MILLION) (B) TARGETS TO GRDP RATIO (B/A)
ARMMa 936,425.91 163,927.28 17.51%
CAR 2,168,565.26 101,116.86 4.66%
NCR 46,390,046.53 1,952,682.92 4.21%
Region I 3,819,631.99 279,232.17 7.31%
Region II 2,217,850.83 206,156.12 9.30%
Region III 11,101,575.54 853,024.07 7.68%
CALABARZON 18,974,945.99 1,129,240.32 5.95%
MIMAROPA 1,922,137.39 163,695.21 8.52%
Region V 2,599,814.03 379,239.71 14.59%
Region VI 5,027,128.55 402,663.87 8.01%
Region VII 8,095,155.53 353,599.41 4.37%
Region VIII a
2,562,849.85 227,130.70 8.86%
Region IX 2,525,885.67 210,738.13 8.34%
Region X a
4,817,664.86 310,057.02 6.44%
Region XI 5,248,913.63 375,578.15 7.16%
Region XII a
3,339,097.64 240,739.66 7.21%
Caragaa 1,466,245.83 183,008.44 12.48%
No specified region - 206,449.70 -
6.28%
TOTAL 123,213,935.00 7,738,279.75
NATIONAL AVERAGE
a
Five regions with the highest incidence of poverty as of 2015, as per data from the PSA.
b
Source: Medium-Term Fiscal Program Fiscal Year 2017-2022
c
It is assumed that investment targets for nationwide and interregional projects are distributed equally according to their areas of impact
in proportion to their respective populations.

Mode of Implementation
Backed by robust macroeconomic fundamentals and dynamic fiscal strategy, 4,095 PAPs or 91.20 percent of
all infrastructure PAPs will be implemented by the national government through the traditional government
mode of procurement (i.e., RA 9184 or the Government Procurement Reform Act), while 68 PAPs will be
through official development assistance (ODA), and 39 PAPs through public-private partnership (PPP),
including joint venture agreements.

Chapter 19 Accelerating Infrastructure Development | 183

 Table 19.6. PIP Investment Targets by Mode of Implementation

INVESTMENT TARGETS (IN ₱ MILLION)

MODE OF NO. OF
IMPLEMENTATION PAPS % OF
2017 2018 2019 2020 2021 2022 2017-2022
2017-2022
LFP (RA 9184) 4,095 574,179.07 988,678.67 903,514.30 901,793.19 734,634.58 718,090.83 4,820,890.65 62.30%

ODA 68 21,989.22 82,870.96 165,118.02 276,680.15 264,627.07 194,049.31 1,005,334.73 12.99%

PPP 39 99,826.37 166,056.93 219,003.39 254,727.34 271,786.07 268,326.96 1,279,727.06 16.54%

Others a 227 981.58 101,090.75 134,871.44 132,570.92 129,667.00 127,601.30 626,782.99 8.10%

TBD 61 72.00 4,174.03 389.78 303.32 468.09 137.09 5,544.32 0.07%

TOTAL 4,490 697,048.24 1,342,871.35 1,422,896.93 1,566,074.93 1,401,182.80 1,308,205.49 7,738,279.75 100.00%
a
Corporate funds of government-owned and controlled corporations, and internally generated funds of government financial institutions.

Status/Level of Readiness
As shown in the table below, the infrastructure PAPs in the PIP are currently under various stages of project
development. To ensure the timely implementation of these PAPs, concerned implementing agencies must
secure project approval (where applicable), including the required funds for project preparation and the
necessary right-of-way (ROW) acquisition and resettlement activities, ahead of award of project contract.

Table 19.7. PIP Investment Targets by Status/Level of Readiness

PROJECT NO. OF INVESTMENT TARGETS (IN ₱ MILLION)

READINESSa PAPS 2017 2018 2019 2020 2021 2022 2017-2022
Ongoing 573 404,702.53 501,579.08 523,515.19 534,309.50 493,541.10 513,087.24 2,970,734.62
Approved (Level 1) 230 2,910.17 56,209.07 117,477.81 187,311.96 163,547.86 97,543.86 625,000.73
Undergoing
Approval Process 893 8,767.58 181,513.85 211,332.17 229,993.03 208,243.29 167,292.35 1,007,142.28
(Level 2)
For Submission
to the Approving
2,574 91,858.69 338,434.28 377,317.18 439,160.53 358,782.90 357,295.85 1,962,849.43
Body (Level 3 and
Level 4)
Deferred 59 233.24 1,751.51 1,072.22 1,670.00 33,483.46 45,607.94 83,818.37
TBD 161 188,576.03 263,383.56 192,182.36 173,629.91 143,584.19 127,378.25 1,088,734.31
TOTAL 4,490 697,048.24 1,342,871.35 1,422,896.93 1,566,074.93 1,401,182.80 1,308,205.49 7,738,279.75
a
Level 1 – with NEDA Board and/or ICC project approval but not yet ongoing
Level 2 – with F/S completed, for ICC processing in 2017 (where applicable) and for inclusion in the National Expenditure Program
(NEP) for 2018
Level 3 – with F/S currently being prepared and to be completed in 2017, for ICC processing in 2018 (where applicable) and for inclusion
in the NEP for 2019
Level 4 – with Concept Paper and F/S for completion in 2018, for ICC processing in 2019 (where applicable) and for inclusion in the NEP
for 2020
To be determined (TBD) – status to be determined upon further validation/confirmation of concerned agencies

184 | 2017-2022 Public Investment Program

ENABLING ENVIRONMENT
To ensure the timely implementation of major infrastructure PAPs in the PIP, the following actions/policies/
reforms will be pursued:

a. Conduct of F/S and other pre-investment activities. Availability of funds for project preparation
(i.e., pre-F/S, F/S, and Detailed Engineering Design) and the necessary ROW acquisition and resettlement
activities will be prioritized. In relation thereto, concerned implementing agencies must secure project
approval (where applicable), including the required funds for project preparation and the necessary
ROW acquisition and resettlement activities, ahead of award of project contract.

b. Absorptive capacities of implementing agencies and contractors. In view of the government’s endeavor
to accelerate spending on public infrastructure, the absorptive capacities of the implementing agencies,
as well as the availability of contractors to carry out infrastructure projects, will be critical in ensuring
that these projects are implemented as planned. In this regard, the necessary institutional support
(e.g., administrative overhead and manpower requirements) and capacity building to the concerned
agencies on project preparation and implementation should be prioritized.

c. Public Expenditure Management (PEM) and Public Financial Management (PFM) reforms. To
minimize underspending on infrastructure and to further strengthen the linkage between planning,
budgeting, and implementation, key PEM and PFM approaches/policies10 have already been incorporated
in the NEP process. Notwithstanding, continued support to the oversight agencies that are directly
involved in implementing PEM/PFM reforms (e.g., Department of Finance, Department of Budget and
Management, Commission on Audit, and NEDA) should be sustained to ensure that both national and
local governments adhere to the principles of efficiency, accountability, and transparency in the use of
public funds.

10
Such as Performance-Informed Budgeting, Program Convergence Budgeting, among others.

Chapter 19 Accelerating Infrastructure Development | 185