Transport projects to drive construction growth in PH
by Philippine Resources - September 07, 2021
Photo Credit: Juan Castro
Transport infrastructure is expected as the key driver for the Philippine construction sector growth, Fitch Solutions said Thursday.
In a commentary, the research unit of the Fitch Group said the Philippine construction industry is expected to grow by 24.2 percent year-on-year this year, and by 16.1 percent in 2022.
“We expect transport infrastructure, particularly rail and road development, to be the key driver of infrastructure and construction growth in the Philippines over the coming years,” it said.
Fitch Solutions added transport projects dominate pipeline construction projects.
Of the total value of ongoing projects, 33 percent are rail projects and 22 percent are airport development, while roads and bridges share 18 percent.
“(President Rodrigo) Duterte’s ‘Build, Build, Build’ program will remain a key policy driving investments in the construction sector, while the progress on the execution of projects will have a heavy influence on growth of the sector over the short term,” Fitch Solutions said.
It added that strong fiscal support is also evident in the government’s national budget.
Proposed budget for the Department of Transportation (DOTr) next year rose to PHP151.3 billion from PHP87.9 billion this year.
Of the said budget, PHP110.9 billion will go to rail projects, PHP13.9 billion for land public transportation, PHP1.7 billion for aviation infrastructure, and PHP720 million for maritime infrastructure.
“The Philippines construction sector grew by 25.7 percent year-on-year in real terms in (the) second quarter of 2021, marking one of the highest construction growth rates in its history. This is despite localised lockdowns across the market in recent months. We do stress that this is in large part due to low base effects from (the) second quarter of 2020 when the pandemic first hit, but signals a very strong recovery in the market in line with our initial expectations,” Fitch Solutions said.
However, the rising Delta variant cases in the country pose downside risk to the sector.
Fitch Solutions forecasted that the construction sector’s growth will weaken during the second half of the year. - By Kris Crismundo
Article Courtesy of the Philippine News Agency
Marcelle P. Villegas - December 16, 2020
Test runs at max speed and other development for MRT-3
By Marcelle P. Villegas The newly overhauled MRT-3 train was tested by running it at a maximum speed of 50 kph. Here is a view from the driver’s compartment on MRT-3 during test run last 29 October 2020. (Screenshot from Department of Transportation video) MRT-3 or the Metro Rail Transit Line 3 conducted test runs on its first newly overhauled train. The train was tested to run at a maximum speed of 50 kph. According to Department of Transportation Assistant Secretary Goddes Hope Libiran, the train is composed of three cars which was overhauled by Sumitomo-Mitsubishi Heavy Industries. The company is the maintenance provider of MRT-3. The test run was documented in a video blog of DOTr. Libiran said, “As part of the massive rehab and maintenance of Sumitomo from Japan, we can now overhaul train cars that have been long neglected and now, we are repairing them under the Duterte administration.” According to MRT-3 Director for Operations Michael Capati, aside from the three newly overhauled train cars, the MRT-3 also plans to overhaul the remaining 72 cars by July 2021. “In the past years, our trains broke down plenty of times. Now, one of the things Sumitomo is doing is to rehabilitate and do a general overhaul of our trains.” Capati mentioned that the MRT-3 management wants its trains to run at 50 kph by November 2020.  He said, “We have already increased our train operating speed to 30 kph to 40 kph in October. Now we are using this train to simulate a 50 kph operating speed, which we are hoping to implement by November.” Capati noted that the improved train speed was made possible by the overhaul of train cars and the rail replacements that were completed last September. He also said that MRT-3 increased the number of its trains running daily to a maximum of 22. “Our maintenance program is doing well and at the same time, this is the effect of our rail replacements.” MRT-3 tested the train operating speed at 40 kph last September. This reduces the average waiting time of passengers from nine minutes to seven minutes. Reference:  Dela Cruz, Raymond Carl (29 October 2020). Philippine News Agency. “MRT-3 conducts test runs on overhauled train at 50 kph”. Article and photo credit retrieved from - https://www.pna.gov.ph/articles/1120153
Marcelle P. Villegas - December 14, 2020
Right-of-way ordinance for Makati Intra-City Subway project
By Marcelle P. Villegas Last 21 October 2020, Makati City government passed and approved an ordinance authorizing the acquisition of right of way covering the underground portions of nine roads that are affected by Makati City government’s subway project. As per Ordinance No. 2020-204, the roads that will be affected by the project are: Sen. Gil Puyat Avenue, South Avenue, J.P. Rizal Avenue, J.P. Rizal Extension, Pablo Ocampo St. Extension (Vito Cruz Extension), Kalayaan Avenue, EDSA (Epifanio de los Santos Avenue), C-5 Road (a.k.a. Carlos P. Garcia Avenue), and San Guillermo Avenue. The city ordinance mentions of subsurface right of way need to be acquired for the “staging, construction, operation, maintenance and development of the Makati Subway Project.” The nine roads mentioned above are in the road and bridge inventory of the Department of Public Works and Highways (DPWH). Therefore, they fall under the jurisdiction of the department. “Considering the importance of acquiring the easement of the right of way of the subject roads for the benefit of the citizens of Makati, the City Government of Makati is constrained to acquire, through voluntary agreement or expropriation proceedings, an easement of right of way of the subject roads.”  Section 19 of the Republic Act No. 7160 or Local Government Code of 1991 stated the authorizing of expropriations if needed. The City of Makati has entered into negotiations with and made a “valid and definite offer” to the DPWH for the acquisition of right of way. Philippine Infradev is building a subway that is worth $3.5 billion that shall traverse the central business district of Makati City. There will be 10 stations across the 10-kilometer line. Last September, Philippine Infradev signed a $1.21-billion contract that covers engineering, procurement and construction with China Construction Second Engineering Bureau Co. Ltd. For the subway project. The subway project is expected to accommodate 700,000 passengers daily in order to reduce the traffic congestion in the city. They are targeting the subway’s completion in 2025.  About the Makati Subway Project The Makati Intra-city Subway is a planned underground rapid transit line in the City of Makati that spans out to 11 kilometers or 6.8 miles. This is designed to link establishments across Makati’s business district. The project is a partnership between the Makati City Government and a private consortium led by Philippine Infradev Holdings. The subway line’s stations will be connecting the existing Line 3 (Guadalupe Station), the Pasig River Ferry Service, and the approved Line 9 (Metro Manila Subway). It was on 12 December 2018 when the preparatory work was commenced. On the same day, ceremonial drilling took place in front of the Makati City Hall. The Makati City Hall is near the site of one of the proposed stations of the subway. On this day, the signing of the memorandum of understanding also took place. The memorandum was signed by Makati City Government and a consortium consisting of Philippine Infradev and Chinese firms Greenland Holdings Group, Jiangsu Provincial Construction Group Company Ltd., Holdings Ltd. and China Harbour Engineering Company Ltd. Soil testing and feasibility studies of the proposed locations for the subway line’s stations were done as part of the preparatory work. By June 2019, 8 out of the 10 proposed stations have been finalized. The two proposed stations along Ayala Avenue are yet to be finalized due to “non-response” from its owners. The proponents said that they may divert the subway towards PNR Buendia Station or the Mile Long property in Legaspi Village instead. For now, the first station will be located at the Makati Central Fire Station. The fire station will be demolished. From there, the line goes towards a Lucia Tan owned property near Circuit Makati and Makati City Hall. The remaining stations will be located near Rockwell Center, Makati Bliss Housing in Guadalupe, Century City, University of Makati, Cembo and the final station will be near Ospital ng Makati. In July 2019, soil testing related with the subway project was completed. Philippine Infradev and the Makati City Government signed a joint venture agreement for the subway project. By October 2019, the plan to move the terminus of the line to the Mile Long property has been finalized. The area is being redeveloped by the national government along Amorsolo Street. The soil test results were favourable and the route diversion meant that the cost of the project might be reduced to as low as $2.5 billion. Moreover, a joint venture with Megaworld Corp. was made to build a common station in Guadalupe for the subway system and for the planned SkyTrain. Based on a disclosure to the stock exchange, the Philippine Infradev’s subsidiary, Makati City Subway Inc. (MCSI) received the term sheet from Megaworld Corp. This joint venture will build access to the Line 3 Guadalupe Station and the Pasig River Ferry. Philippine Infradev has an agreement with China Construction First Group Corp. Ltd. (CCFG) to build a transit-oriented development. Based on this agreement, CCFG is responsible for the construction, materials, manpower, equipment and other requirements to complete the project. The construction is expected to last for 42 months.  References:  Balinbin, Arjay L (25 October 2020). Business World. “Makati passes right-of-way ordinance for subway project”. Retrieved from - https://www.bworldonline.com/makati-passes-right-of-way-ordinance-for-subway-project/  https://en.wikipedia.org/wiki/Makati_Intra-city_Subway (Photo credit: IRC Properties Inc.)
Marcelle P. Villegas - January 12, 2021
Dept. of Energy: Moratorium on New Coal Power Plants
By Marcelle P. Villegas A moratorium on the endorsements of greenfield coal power plants was issued by the Department of Energy (DoE). This announcement was made while allowing foreign investors to now have full ownership of geothermal plant projects in the Philippines. DoE’s decision to stop the endorsements of coal power plants is the result of an assessment that showed the importance of focusing on a “more flexible” power supply mix. According to Energy Secretary Alfonso G. Cusi while at a virtual conference with world leaders held in Singapore, “This would help build a more sustainable power system that will be resilient in the face of structural changes in demand and will be flexible enough to accommodate the entry of new, cleaner and indigenous technological innovations.” DoE is currently updating their Philippine Energy Plan for the next 20 years. Mr Cusi mentioned that DoE is committed to accelerating the development of the Philippines’ resources while “pushing for the transition from fossil fuel-based technology utilization to cleaner energy sources to ensure more sustainable growth for the country.”  According to Undersecretary Felix William B. Fuentebella of DoE, the ban on endorsing new coal-fired power plants will not affect those power plants that have received endorsements in the past. He said, “We need to prepare for the influx of RE (renewable energy) under the recent policies issued by the DoE. Hence, the need for more flexibility.”  On note, 3,436 MV of committed coal-fired power projects in Luzon are ongoing as of August 2020. This includes the Meralco Powergen Corporation and GNPower Dinginin Ltd. Co. which is a joing venture of the Ayala and Aboitiz groups. Additionally, a 135 MW coal-run power projects in Visayas and 420 MV in Mindanao have been endorsed by DoE. Overall, there are around 10,000 MV indicative coal-fired power plant projects in the Philippines which may receive government endorsements. Mr Fuentebella said these will need to be sorted out. The ban will continue until the country will require additional baseload power, according to DoE official.  In relation to the ban, Center of Energy, Ecology and Development (CEED) pointed out that there are still environmental concerns about the existing coal-run power plants in the Philippines. CEED Director Gerard C. Arances said, “That is still concerning and alarming vis-à-vis pollution, climate imperative, and costly electricity in the country.” Another important announcement made by DoE is the upcoming open bidding round of renewable energy service contracts that will now allow foreign companies to own large-scale geothermal projects. This includes exploration, development and utilization. Last 20 October 2020, DoE released a circular providing the guidelines for the third Open and Competitive Selection Process (OCSP3) in the awarding of renewable project contracts. Cusi said, “From an investment perspective, OCSP3 allows for 100% foreign ownership in large-scale geothermal exploration, development and utilization projects.” DoE clarified that big geothermal projects are those with an initial investment cost of about $50 million and are under Financial and Technical Assistance Agreements, signed and approved by the Philippine President. Reference:  Ang, Adam J. (27 October 2020). Business World. “DoE bans new coal-run power plants”. Retrieved from - https://www.bworldonline.com/doe-bans-new-coal-run-power-plants/
Philippine Resources - September 24, 2021
DOTr, Pasay City sign deal for monorail, flyover extension
Residents and those working in Pasay City will soon enjoy easier public transportation after the Department of Transportation (DOTr) and the city government signed a deal for the construction of a monorail and extension of the Epifanio Delos Santos Avenue (Edsa)-Tramo flyover. In a live broadcast on Facebook on Wednesday, DOTr Secretary Arthur Tugade and Pasay City Mayor Emi Calixto-Rubiano signed the memorandum of agreement (MOA) for the proposed Integrated Pasay Monorail and Edsa-Tramo flyover extension project. Tugade said the project will be interoperable with the Light Rail Transit Line 1 (LRT-1), Metro Rail Transit Line 3 (MRT-3), the Edsa Busway, and the Edsa Greenways. “[Ito ay] makapagbibigay ng mas mabilis at episyenteng biyahe sa mga pasahero. Magiging mas madali na rin ang access patungong central business district (CBD) ng Pasay (This will provide fast and efficient travel to passengers. Access to Pasay CBD will also be easier),” Tugade said. Aside from its benefits to commuters, he said the project will also create jobs. “Ang paulit-ulit kong sinasabi na karugtong ng mga proyekto para sa kaunlaran ay trabaho para sa Pilipino (What I have always been saying is that development projects go hand-in-hand with jobs for Filipinos),” Tugade said. He said the project is a partnership between the DOTr, Pasay City government, and SM Prime Holdings. “Makakaasa 'ho kayong magpapatuloy ang DOTr sa pagsusulong ng mga proyekto para sa ikauunlad ng pampublikong transportasyon sa bansa (You can be rest assured that the DOTr will continue to promote projects for the development of public transportation in the country),” Tugade said. The MOA signing was witnessed by Pasay City Vice Mayor Noel del Rosario, DOTr Undersecretary for Finance Giovanni Lopez, Undersecretary for Legal Affairs Reinier Paul Yebra, Undersecretary for Railways Timothy John Batan, SM Prime Holdings President Jeffrey Lim, and other representatives from the Pasay City government and the private sector. On Sept. 7, the Pasay City government and the SM Prime Holdings made a joint presentation on the project to the DOTr. By Raymond Carl Dela Cruz Article courtesy of the Philippine News Agency
Philippine Resources - September 24, 2021
DOTr eyes GenSan airport as alternate int'l gateway
Photo credit: Department of Transportation The Department of Transportation (DOTr) is pushing for the inclusion of the newly rehabilitated and expanded airport here as among the alternate gateways for returning Overseas Filipino Workers (OFWs) and international travelers. DOTr Secretary Arthur Tugade proposed the move on Thursday as he personally led the formal unveiling and inauguration of the city airport’s new passenger terminal building and other completed facilities. He said the city’s international standard airport can accommodate airline passengers coming in from as far as the Middle East. Tugade said it can be realized once the proposed increase in the daily cap for returning OFWs, currently at 2,000 for the Ninoy Aquino International Airport (NAIA), is approved. Once the cap is expanded, he said NAIA might “choke” with the influx of airline passengers from various countries. “If we will increase the cap, we need to expand our gateways and not limit them to Clark, Cebu, and NAIA. We can include GenSan among the gateways for travelers from Doha who are going to Manila,” he said in a press conference. He said they will propose such strategy with the airlines serving the international routes, including the Philippine Airlines, and seek the approval of the city government. The other possible alternate gateways could be the Laoag International Airport in Ilocos Norte and the Bohol-Panglao International Airport, Tugade said. The rehabilitated and expanded General Santos Airport passenger terminal building, which was completed early this month, is part of the PHP959-million upgrade implemented by the national government. The other completed components are the procurement and installation of navigational aids and the construction of the new Civil Aviation Authority of the Philippines (CAAP) administration building at the airport. Under the project, Tugade said the passenger terminal area has tripled in size from 4,000 to 12,000 square meters. “This will allow the airport to accommodate more passengers and provide them comfortable and convenient travel,” he said in his speech. A DOTr report said the larger passenger terminal building can now accommodate around 2 million passengers annually, a significant jump from the previous 800,000 per year. Tugade said the improvement at the city airport will continue next year with the upgrading of its air control tower, which he considered as “too low.” He said they will build a “higher and modernized” tower in 2022 to make it “more world-class” and can easily adjust to the needs of the airport. The official said the upgrading of the airport, which started in 2018, is among the agency and the national government’s top priorities in Mindanao. He said the initiative is part of the government’s efforts to bring more progress and economic opportunities in Mindanao, which “suffered from long years of neglect in terms of development.” Tugade said they endeavored to implement these projects despite the challenges posed by the continuing coronavirus disease 2019 (Covid-19) pandemic to pursue their goal of giving a “comfortable and convenient life” to Filipinos. “After the pandemic, we want all these developments in place and ready to benefit the people,” he said. In a video message, President Rodrigo Duterte commended the DOTr, the local government, and concerned stakeholders for completing the projects at the city airport amid the Covid-19 pandemic. He said the city has “gone a long way” in terms of the development of its air connectivity and airport facilities. “The rehabilitation and expansion of the airport passenger terminal building, among others, will truly boost General Santos City’s role as an agro-industrial and eco-tourism hub,” the President said. City Mayor Ronnel Rivera lauded the national government for helping the city realize its dream of having an international-standard airport. Aside from the expanded passenger terminal building, the airport is now capable of accommodating bigger aircraft like Boeing 737 and 747, as well as Airbus A330, A340, and A350. “(What) we are seeing now is a result of multisectoral commitment and dedication in various stages of the airport development, which includes coordination of several initiatives, preparation of the airport master plan, operations, and marketing,” he said. The mayor said the local government will continue to engage with prospective investors and airlines for the opening of more flights to and from the airport and the development of adjacent areas. He cited the proposed establishment of an aerotropolis or growth area centered on the city airport and its surrounding areas. “We are opening a wide array of opportunities, not only on the improvement of our infrastructure facilities but also in terms of investments that will generate more economic opportunities for the city and the entire region (Soccsksargen),” he said. Aside from the inauguration of the airport projects, Tugade also led the unveiling of completed initiatives at the Makar port here. The DOTr said it includes the construction of the Port Operations Building and other vital facilities, which includes a parking area, covered court, port manager’s quarter or Day Care Center, and drainage system. “The improved port of Makar will now offer safer, comfortable, and a more convenient port experience to passengers, while ensuring a faster turnaround for vessels, cargo trucks, and other ancillary service providers,” it said. Article courtesy of the Philippine News Agency
Philippine Resources - September 22, 2021
Cebu-Cordova Link Expressway 83% Complete
Photo credit: Cebu-Cordova Link Expressway As of August 31, 2021, the construction progress of the Cebu-Cordova Link Expressway (CCLEX) project was at 83.84 percent. The P30-billion toll bridge, which will be substantially completed by the end of 2021, will use a full electronic toll system when it opens to motorists in the first quarter of 2022 to enable faster traffic flow and seamless travel. The project recently marked a milestone with the completion of the installation of all 56 stay cables that hold the main bridge deck. On September 11, the Cebu Cordova Link Expressway Corporation (CCLEC), through its contractor, installed the last and longest stay cable, which is 219 meters long. The gap on the main bridge, on the other hand, is now down to only two meters before span closure and preparations are underway for the lowering of the form travelers. These form travelers, which weigh 500 tons in each tower, were used to construct the main bridge’s pier table and deck. Also, all 434 NU (Nebraska University) girders for the entire project have already been installed. With this, the mobile launching gantry used to install the girders have been demobilized. At the Cebu South Coastal Road (CSCR) on ramp and off ramp sections of CCLEX, construction of its substructures is complete. Ongoing works are now on the installation of precast planks and the concreting of deck slab. Also finished is the 200-meter pedestrian footbridge beside the CSCR with all six prefabricated steel walkways already installed. The footbridge will start near the U-turn slot of the South Road Properties’ welcome tower and will connect to the on-ramp sidewalk of CCLEX. At the Cebu viaduct, the construction of deck slab is ongoing. The Cordova viaduct, on the other hand, is now structurally complete with its substructure already done. Installation of handrails are underway. At the causeway, embankment works continue to progress with the placing of 20 vent pipes, which equalize the flow of seawater along the Cordova Channel, is finished. Also structurally complete are the four low-level bridges along the causeway, which will provide fishermen continued access to their fishing grounds. Aside from these, works are ongoing for the toll plaza and the CCLEX Operations and Maintenance Center. CCLEX, highlighted by its iconic crosses on top of the twin pylons of the cable-stayed main bridge over the Mactan Channel, is Metro Pacific Tollways Corporation’s (MPTC) first toll road project outside Luzon. CCLEX, which will be the third link to Mactan Island from Cordova Municipality to mainland Cebu through Cebu City’s South Road Properties, has a design speed of 80 kilometers per hour (kph) and a navigational clearance or height of 51 meters to allow large vessels to pass underneath the bridge. Not only is CCLEX seen to reduce traffic and make traveling more convenient but also spur trade activities and open greater economic opportunities for Cebu and the rest of the Visayas region. CCLEX is a project of Cebu Cordova Link Expressway Corporation (CCLEC), in partnership with the local government units of Cebu City and Municipality of Cordova. CCLEC is a wholly owned subsidiary of MPTC, the toll road arm of Metro Pacific Investments Corporation (MPIC), a publicly listed infrastructure holding company and a member of the MVP Group of Companies. MPTC is the largest toll road concessionaire and operator in the Philippines, which expansion goals include establishing toll operations in the Visayas, other parts of the Philippines, and in neighboring countries notably Vietnam, and Indonesia. Article courtesy of Cebu-Cordova Link Expressway