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The gross production value of mineral resources in Davao Region stood at PHP11.7 billion in 2023, an official of the Mines and Geosciences Bureau in the Davao Region (MGB-11) reported Tuesday.
During the Kapihan sa Bagong Pilipinas forum here, MGB-11 Officer-in-Charge Beverly Mae Brevante said the region is rich in mineral resources, particularly gold, nickel and copper.
The value is based on the production of four large-scale mineral companies with collective excise tax payments of PHP487.7 million last year.
“The excise tax goes to the national government,” Brevante said, adding that the region currently has 41 large-scale mining agreements and permits.
Department of Environment and Natural Resources in Davao Region Director Ma. Mercedes Dumagan said Davao Region is also rich in sand and gravel deposits, with 313 sand and gravel permits issued by the local government units.
President Ferdinand Marcos Jr. received resounding rounds of applause several times during his third State of the Nation Address 2024 (SONA), particularly on the final part of his speech when he announced the ban on Philippine Offshore Gaming Operators (POGO).
The SONA 2024 was held on Monday, July 22, 2024, at the Batasang Pambansa Complex in Quezon City.
Among other things, his State of the Nation Address covered various significant national issues from education, agriculture, defense, cybersecurity, tourism, and more.
“As we enter the mid-term, our infrastructure development remains sustained, strategic, and on schedule,” the President said.
“Aside from agriculture and disaster risk, our other vital sectors and pillars — such as education, health, energy, low-cost housing, transport, information technology — they all stand to benefit from our aggressive infrastructure development, as befitting our upper middle-income economic target.”
He mentioned that despite the challenges during the past two years into this Administration, there has been a steady progress towards the targets in the medium-term.
“Our power and internet services are continuously being upgraded in both capacity and connectivity.”
Unified Philippine Grid
The President mentioned that the energy sector looks bright and promising with completion of projects and new investments. With that, he expected that the nation’s power supply will increase steadily to meet the growing demands in the future.
He also mentioned that government is urgently addressing power shortages and the systemic causes of blackouts in unserved and underserved areas.
Through microgrids, off-grid systems, and missionary small power utilities that supports solar power, the President said these will provide solutions to places that need a steady supply of electricity.
“Running through Bataan, Pampanga, and Bulacan, the newly inaugurated Mariveles-Hermosa-San Jose transmission line will further strengthen the reliability of the Luzon power grid.”
He announced that in the Visayas, all stages of the Cebu-Negros-Panay backbone project have been completed.
“This project shall serve to stabilize the power situation in Western and Central Visayas, and avert recurrences of power outages experienced in the past,” he noted.
He said that because of these projects, blackouts at Panay Island were prevented from April until June despite the yellow and red alerts in the region.
The President noted that the Dumanjug-Corella Line of the Cebu-Bohol Interconnection Project was energized, enabling the transfer of power between Cebu and Bohol.
“With these systems currently operating at capacity, these major power lines shall contribute to the efficient power exchanges not only between Luzon and the Visayas, but also involving Mindanao. Energy sharing and transfers between, among, and within the three island groups have now been made possible with the energization last January of the Mindanao-Visayas Interconnection.”
“The energization of the Mindanao-Visayas Interconnection is a defining moment not only for the power sector but for the entire country. Finally, we have connected the power grids of all three major island groups.”
“The ‘unified Philippine Grid’ is a fulfillment of the dream, whose seeds were planted in the 80s, through a vision bolstered by R&D, which we accomplished by applying typical Filipino persistence and dedication,” he stated.
Addressing the high cost of electricity, President Marcos Jr. gave assurance that government will continue to add power infrastructure that will contribute to the lowering the electricity rates and providing fair charges to consumers.
Roads and Railway Renaissance
President Marcos Jr. reported that as of May of this year, 12,000 kilometers worth of roads and more than 1,200 bridges have been completed and upgraded across the country.
“Of note, we have provided the budget to upgrade 367 bridges and almost 1,600 kilometers of road along our country’s longest thoroughfare — the Maharlika Highway — from Luzon all the way to Mindanao.”
“Moreover, significant segments of major expressways, which are part of the Luzon Spine Expressway Network, have now been opened to the public.”
By the end of this year, he announced that the C-LEX, NLEX-SLEX Connector, and the Plaridel Bypass will be fully completed, while the CALAX and the C5 South Link will be fully operational by next year.
“Under our Inter-Island Linkage Bridge Program, we expect two major bridges to be opened to motorists this year. One is the Panguil Bay Bridge — touted as the longest water-spanning bridge in Northern Mindanao.”
“This bridge will connect Lanao del Norte to Misamis Occidental. The other is the Guicam Bridge in Zamboanga Sibugay, which shall connect Olutanga Island to the mainland of Mindanao.”
“In addition, travel to and from Clark Airport is now much faster and more convenient, with the inauguration of the 20-kilometer Airport-New Clark City Access Road in Pampanga.”
“We are in the midst as well of a ‘railway renaissance’. The Metro Manila Subway Project has logged significant accomplishments in its tunneling works.”
Additionally, other railway projects such as the MRT-7 and the North-South Commuter Railway are in progress.
He mentioned that government will make sure that the right of way issues are resolved in the most equitable, efficient, and expeditious manner, so that these will not get in the way of the infrastructure development.
As part of the LRT 1 Cavite Extension project, the route of LRT Line 1 in Metro Manila will be extended from Baclaran to Sucat in Paranaque City. This is expected to be open to the public within the year. After a few years, the route will further extent to Bacoor in Cavite.
He also reported that LRT 1 had an additional 76 new and modern trains. This upgrade will provide a faster and more comfortable commuting experience for passengers.
The recent reopening of the PNR Bicol Line is also a milestone achievement in the list of railway projects. This railway spans out to 100 kilometers from Naga to Legazpi.
President Marcos Jr. also talked about the improvement of the country’s airports and harbors for the benefit of travelers.
With the help of the private sector, the Ninoy Aquino International Airport is expected to improve and provide better services in the years to come.
“Soon, it will be capable of accommodating 48 flights per hour, servicing our ever-increasing local and international flight routes, and catering to more than 62 million passengers per year.”
“More than 70 airport and seaport development projects across the country have been completed, and another 350 ongoing projects are set to be completed by 2028.”
“Notably, the capacities of the Passenger Terminal Buildings of the General Santos Airport and the Bicol International Airport have been expanded by 300 and 500 percent, now catering to 2,000 and 1,600 passengers, respectively. Meanwhile, the Batangas Port PTB, our popular marine gateway to MIMAROPA, the Visayas and to Mindanao, can now accommodate 8,000 travelers at any given time.”
“Thanks to Congress, the Public-Private Partnership, as a crucial funding mechanism for big-ticket projects, is now institutionalized by force of law. PPP is seen to facilitate strategic investments and the timely development of projects under our Build Better More program, especially since around one-fourth of our flagship projects have been envisioned to be funded through this modality.”
He emphasized that the NAIA PPP will go down in history as being the largest and fastest approved PPP, as well as setting the standard in terms of transparency and competitiveness of the process.
“Through this partnership, our foremost aerial gateway is now primed for a revitalization. Once considered among the worst and most stressful airports in the world, it will soon be a world-class international airport that we can be proud of.”
Reference:
https://pco.gov.ph/presidential-speech/3rd-state-of-the-nation-address-of-his-excellency-ferdinand-r-marcos-jr-president-of-the-philippines-to-the-congress-of-the-philippines/
In observation of the celebration of 2024 Philippine Environment Month, the Mines and Geosciences Bureau (MGB) Central Office (CO) participated in a coastal cleanup for World Ocean's Day at BASECO Aplaya, Port Area, Manila on June 07, 2024.
With the theme: "Awaken New Depths,” the simultaneous nationwide coastal cleanup saw the collaboration of 14,000 participants from various sectors, including the Department of Environment and Natural Resources, private organizations, other national government agencies, local government units, youth groups, and community members.
Among the participants, 14 personnel from the MGB CO contributed their efforts to the massive cleanup drive-in.
The campaign aimed to address the alarming amount of waste accumulating along coastlines and riverbanks across the Philippines. In total, the initiative covered around 218 kilometers of coastal and riverbank areas nationwide.
The cleanup drive resulted in the collection of approximately 118,000 kilos of waste, equivalent to over 8,500 sacks filled with various types of litter. Commonly found items included plastic bottles, plastic bags, food wrappers, utensils, straws, sachets, styrofoam, cigarette butts, and discarded fishing gear. This substantial effort underscores the urgent need for continued environmental awareness and action.
World Oceans Day, first proposed in 1992 during the Earth Summit in Rio de Janeiro, is celebrated globally to emphasize the importance of ocean conservation and encourage initiatives that protect marine ecosystems.
This day highlights the vital role the ocean plays in human life and the myriad ways individuals can contribute to its preservation, fostering a deeper personal connection to the sea.
The success of various cleanup efforts underscores the power of community involvement and the positive impact of collaborative action in addressing environmental challenges.
The construction industry, a key contributor to the Philippine economy, generated about seven percent (7%) of the country’s gross domestic product in 2022. The recent COVID-19 pandemic affected the real estate and construction industry and caused financial burden due to additional health and safety requirements, project suspension and delays, and reduced productivity resulting from massive supply chain disruption, and material and equipment procurement difficulties. The construction sector is expected to see growth in the following years as the country’s economy recovers. However, raging inflation, high-interest rates, and global geopolitical instabilities are seen to challenge growth forecasts.
The industry has been characterized by declining efficiency and performance over the years. As the industry continues to evolve, it is likely that additional steps will be taken to address new and emerging issues. With economic activity in the country picking up, the Philippine construction sector is bound to face more challenges. This article discusses some of the major challenges faced by the industry and how they can be overcome.
Labor Shortage
The lack of skilled workers and professionals, ranging from architects and engineers to construction workers and equipment operators, create difficulties for contractors in hiring and retaining talent. The growing skills gap contributes to this labor shortage as the construction sector urgently needs skilled labor with the need to recruit over two million workers by 2025 to meet demand. This gap is attributed to limited training and educational opportunities, coupled with an aging workforce and Filipinos looking for better opportunities abroad. Incorporating construction technology may help in fixing the issue of labor shortage in the construction firms but the industry is also slow when it comes to adapting to new technology. By investing in training and modern recruitment strategies, construction firms can bridge the labor gap, bringing in fresh talent and new perspectives.
Cost Overruns and Construction Delays
Cost overrun occurs when a project exceeds its original budget due to unexpected expenses, delays, and other unforeseen factors impacting project management, construction firms, and the industry at large. The fluctuating cost of construction materials, including raw materials, challenges firms to forecast future expenses affecting project profitability. Poor productivity and lagging technological advancements lead to delays and increased costs.
Delays also pose a major challenge in the industry, significantly affecting construction firms and the entire supply chain, given the complex nature of construction projects, which involve numerous stakeholders like subcontractors, suppliers, and project managers. Supply chain disruptions are a leading cause of these delays. The construction sector depends on the prompt delivery of materials and equipment, and any interruption in the supply chain can lead to significant project setbacks. Factors such as natural disasters, transportation difficulties, or sudden regulatory changes can also disrupt material delivery.
Corruption
A report citing confidential interviews with industry players indicated that construction companies allot up to thirty percent (35%) of their budgets for infrastructure projects to pay off government officials and employees preventing them from causing any further delays. This causes companies to compromise other parts of the construction such as the quality of raw material, in order to accommodate the additional cost and to keep the projects moving.
Fifteen to thirty-five percent (15-35%) of the expenses were spent on “other costs of doing business” while construction companies have to maintain a net income margin of eight to fifteen percent (8-15%) no matter the costs. Since the budget for a project was already fixed, other parts of the project sometimes suffered for those “other costs”. Additionally, the poor quality of buildings, partly linked to corruption, makes the country vulnerable to natural hazards such as earthquakes and typhoons.
Other Emerging Issues and Challenges
Other risks and challenges include barriers to the implementation of green building practices, declining efficiency and performance of the industry, and occupational health and safety concerns. Occupational health and safety in construction projects is a critical concern, with a need for risk management and mitigation strategies. The rapid growth of construction projects has also led to the generation of high amounts of construction waste and excessive resource consumption, resulting in adverse environmental impacts. The industry's efficiency and performance have been declining, which has a significant impact on pollution. Moreover, there is a lack of infrastructure and connectivity that hinders inclusive growth and requires substantial investments.
The Future Outlook of the Construction Industry
Despite the challenges, the industry faces exciting prospects with key trends and potential opportunities that will ultimately determine its fate. While daunting, each of these hurdles presents an opportunity for growth and innovation. In a nation poised for significant transformation, the industry holds the key to economic progress, infrastructural advancement, and the adoption of sustainable practices.
Affordable housing. The government is ramping up efforts to address the shortage of affordable housing units in the country, particularly for the low-income sector. The government has launched several initiatives to address the shortage of affordable housing including the establishment of the Housing and Urban Development Coordinating Council, creation of a housing finance company, and implementation of various socialized housing programs. Additionally, the government has implemented tax incentives for developers engaged in building low-cost housing units and has also established a fund for housing financing.
Development of new urban centers. The government is pushing for the development of new urban centers outside Metro Manila to decongest the capital and spur economic growth in other regions. This includes investment in infrastructure and the creation of economic zones to attract investment and create jobs. Urban planning, in particular, is a critical aspect that will shape the industry’s future. However, the country is known for its unique set of laws and permits that can sometimes lead to delays and bureaucratic hurdles. Balancing this need for effective urban planning with environmental concerns, historical preservation, and infrastructure demands will require careful coordination.
Further, the industry faces challenges related to land use, zoning, and local government policies, which can vary from one region to another. These diverse regulatory frameworks demand a high degree of adaptability from construction firms, while they work effectively within this multifaceted regulatory environment. If the construction sector including the way the government handles business permits, were modernized and made digital, the value of the industry could reach up to P130 trillion from P2.3 trillion in 2018, which would increase the number of jobs in the industry. Without modernization, the industry’s value could go up to only P43 trillion in 2030.
Infrastructure development. The government aims to embark on a multi-billion dollar infrastructure development initiative that will upgrade the country's infrastructure, including airports, seaports, highways, and bridges by working with the private sector to finance, build, and operate these projects. With a rapidly growing population and the need for modernization, the government is setting aside substantial funds for ambitious development initiatives in infrastructure projects, which include road networks, public transportation, and utilities. These investments not only promise economic growth but also open doors for construction firms to secure major projects. Again, this rosy outlook is met with the real-world challenge of efficient project management and strict compliance with regulations.
Environment-friendly construction practices. The construction industry lags behind other sectors in its response to the problems of the environment. Construction companies should be encouraged to continuously search for inputs and ways of working which will minimize the negative impact of construction activity on the environment. There is a growing interest in green building and sustainable construction practices, as developers look to create projects that are more environmentally friendly and energy efficient. On its part, the government is promoting green building and sustainable construction practices through various initiatives, including the establishment of a green building council, the creation of a green building rating system, and the implementation of tax incentives for developers who build environmentally friendly projects. However, green building implementation is hindered by barriers related to social and economic aspects of sustainability. Additionally, the government is encouraging the use of renewable energy sources, such as solar and wind power, in construction projects.
Advancements in Construction Technology. The future of the construction industry is intricately tied to technological advancements. As the world embraces innovative construction methods and materials, the Philippines is poised to follow suit. Additionally, adopting these emerging technologies can enhance workers' and contractors' safety on construction sites. However, even when construction firms recognize the advantages of these technological solutions from design to execution, securing the necessary funding often presents a significant obstacle.
Integrating modern technology promises efficiency, cost-effectiveness, and safety improvements in the country. This includes the adoption of Building Information Modeling, drones for site inspection, 3D printing, and automation in construction processes. However, these advancements are met with the practical need for training the workforce and addressing infrastructure challenges, such as reliable internet access and a lack of funding. With some exceptions, the sector remains a technology laggard and is struggling to get to grips with data and analytics. Major technology players are already eyeing up the sector, seeking to use their data mastery and fast innovation to steal market share.
A Growing Focus on Safety and Compliance. The next few years in the Philippines would focus on safety and adherence to codes and standards in construction. The reason for this is a heightened awareness of improving employee welfare in the industry. Safety policies, conducting safety training and regulation at a high level, will be further implemented by both workers and investors. Moreover, as the industry expands, meeting these standards is critical not only for the well-being of workers but also for securing contracts and maintaining a positive reputation for the Philippines construction industry.
Skilled Labor and Workforce Development. As the demands of construction projects become more complex and diverse, the need for well-trained professionals also becomes more evident. From architects to tradespeople, the Philippine construction industry requires individuals with expertise in cutting-edge construction methods and technology. One solution is investing in training and education programs to bridge the skills gap, particularly focusing on younger, tech-savvy generations. Modernizing recruitment methods and offering competitive benefits can make the construction industry attractive to potential employees. Further, embracing technological advancements, such as automation and digital tools, can compensate for the workforce deficit and enhance productivity. In order to meet these demands, workforce development programs and educational initiatives have to emerge. A forward-looking approach recognizes that a skilled labor force is central to the industry’s success and the realization of its future potential.
Environmental, social, and governance (ESG): On the one hand, engineering and construction (E&C) companies aim to be at the frontline of delivering sustainable infrastructure, energy production, as well as carbon capture, biodiversity and other sustainability projects. On the other hand, the industry is a massive emitter of carbon, with concrete alone responsible for approximately eight percent of global CO2 annually. Hence, business leaders in the E&C sector must commit to their ESG goals through data-driven digital innovations, performance evaluation and risk management.
Throughout the 2020s the construction industry was responsible for building the next generation of sustainable infrastructure, including renewable energy facilities, and energy-efficient buildings with low lifetime carbon footprints and low water usage. The construction value chain has become equally sustainable, with a circular design, sensitivity to biodiversity, and strong support of local communities. Consultations with those impacted by projects will also result to sustainability.
Conclusion
The Philippine construction industry faces a pivotal juncture with both opportunities and challenges from labor shortages and technological adaptation to cost overruns, delays, and communication barriers. Factors like increased infrastructure investment and skilled workforce development will shape its future. However, the road ahead is not without its share of intricacies, particularly concerning the government’s complex regulatory landscape and the nuances of urban planning. This is why the Philippine construction industry must respond with resilience, adaptability, and a multi-sectoral vision to ensure a flourishing tomorrow for the country. The industry must navigate this path, balancing the allure of opportunities with the practicalities of execution to truly shape the future.
Fernando “Ronnie” S. Penarroyo specializes in Energy and Resources Law, Project Finance and Business Development. He is also currently the Chair of the Professional Regulatory Board of Geology, the government agency mandated under law to regulate and develop the geology profession. He may be contacted at fspenarroyo@penpalaw.com for any matters or inquiries in relation to the Philippine resources industry and suggested topics for commentaries. Atty. Penarroyo’s commentaries are also archived at his professional blogsite at www.penarroyo.com
References
“Corruption eats up 15-35% of construction firms’ budget”, Philippine Daily Inquirer, 09 January 2020, https://business.inquirer.net/286779/corruption-eats-up-15-35-%E2%80%8Dof-construction-firms-budget
Miyazaki, Emilou, “Hard Hats, Harder Challenges: The Hurdles Faced by Construction Consultancy Firms in the Philippines”, 05 February 2024, https://www.jcvassociates.ph/post/hard-hats-harder-challenges-the-hurdles-faced-by-construction-consultancy-firms-in-the-philippines
“What could the world of construction look like in 2030?”, KPMG Perspectives, 01 May 2023, https://kpmg.com/ph/en/home/insights/2023/05/construction-in-2030.html
“What does the future of the construction industry in the Philippines look like?”, https://metalexponents.com/blog/future-of-construction-industry-philippines/
Weir, a global leader in innovative mining technology, has launched the all-new ENDURON® Orbital range of vibrating screens. Engineered for sand and aggregate, construction, and small tonnage mining operations, the new screens are designed to meet the most demanding of applications.
Featuring an all-bolted construction, the screens significantly improve reliability by eliminating welding in high-stress areas, removing the leading mode of failure in vibrating screens. Locking bolts ensure structural integrity and durability, facilitating easy maintenance with quick replacement of individual components without the need for extensive downtime.
The ENDURON® Orbital range is available in two screen types: the E series: Elliptical Motion Horizontal Screens and the C series: Circular Motion Inclined Screens. Both screen types are designed with a commitment to innovation and quality, incorporating the latest technologies to deliver exceptional performance in a broad range of sand and aggregate and mining duties.
A wide operating window provides flexibility to adjust screen settings in line with changing applications or feed conditions, without compromising the equipment’s structural integrity and minimising the risk of structural failure related to harmonic resonance.
The modular screen construction ensures that individual components can be easily replaced. Common interchangeable screen parts reduce inventory overflow and simplify maintenance. Both screens are digitally enabled, including our modular exciter technology, which senses and reports on the condition of the exciter. The exciter itself features a bolt-on/bolt-off design, meaning they can be easily changed on site and refurbished in a mechanical workshop.
All ENDURON® products are fully supported by the Weir service network, offering unrivalled service, support, and local expertise across the globe. Weir continues to lead the industry in providing cutting-edge, high performance solutions that are tailored to meet the unique requirements of our customers.
Corné Kleyn, Global Product Manager for Vibrating Screens said:
“We at Weir are excited to bring this revolutionary new screening technology to the market. The team has worked hard for the past two years to bring our customers a product that is reliable with the lowest total cost of ownership. Our first screen has been successfully installed and commissioned at a large global customer and we are gaining momentum with more units planned for both the European and North-America markets”.
The Mind Museum in Bonifacio Global City, Taguig, is a venue where science and technology come to life. It is a state-of-the-art science museum where great minds of all ages are inspired to aim high and achieve excellence. It is a perfect place for sharing of knowledge and expertise, and to discuss smart strategies in addressing the effects of climate change in transport infrastructure.
On April 17, 2024, at The Mind Museum Auditorium, AnyWay Solutions organized and hosted an exclusive symposium addressing the importance of climate resiliency in mitigating the effects of climate change on transport infrastructure in the Philippines. The title of the symposium is “Climate Resiliency for Transport Infrastructure Symposium”.
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