DR. YANGA’S COLLEGES INC.
Wakas, Bocaue, Bulacan
College of Hospitality Management and Tourism
TRANSPORTATION MANAGEMENT
(DYCHTrm223)
THE OVERVIEW OF THE IMPACT IN “BUILD, BUILD, BUILD
PROGRAM” TO THE PHILIPPINE TRANSPORTATION AND TO ITS
ECONOMY
I. INTRODUCTION
II. DISCUSSION OF CONTENT
- Downside of BBB Program
-Problems in Transport Sector
-Opportunities
III. FLAGSHIP PROJECTS
IV. CONCLUSION & RECOMMENDATION
V. REFERENCES
CASTILLO, AUBREY JOY
BSTM-2A
MS. KATHLEEN PEARL BALOR
I. INTRODUCTION
In every project or plan there’s always an advantages and disadvantages. The
government is the one who is responsible to make a way for its people to have a better
life. The Build, Build, Build is the centerpiece program of President Rodrigo R. Duterte
that ushers in the “Golden age of infrastructure” in the Philippines that has generated
jobs and economic activities particularly in areas outside Metro Manila. Midway through
President Duterte’s term, his ambitious P8 trillion infrastructure plan has already built
roads, bridges, classrooms, flood control facilities, among others that improved the lives
of many Filipinos. The administration commits to spice up public spending for
infrastructure from the present 5.1 percent to 7.4 percent of gross domestic product by
end of his term.
Transportation is the bloodline of all the production, services etc. that happens in the
country. To sum it up, the economy growth of the country is relying to the transport
sector. If there’s no innovation or development happen to it for sure our economy is at
sake. The government should have a sustainable financial for the project that they may
be implement. Since, Philippines has poor transportation system this program may also
results in high transport costs for road users. Road users pay several taxes and fees in
the form of fuel tax, sales taxes on vehicles and parts, an annual energy tax on private
cars, registration fees, inspection fees, franchise fees, common carrier taxes, tolls, and
driver and conductor permit fees.
For the bigger picture, this project has a big effect or impact to the economy of the
Philippines. Primarily now that a big percentage of the budget will come from the GDP
that may result an inflation in the Philippines and it’s really devastating to its people
especially to those who are in the lower class of the economy,
II. DISCUSSION OF CONTENT
This is the program under the Duterte administration designed to modernize the
country’s infrastructure backbone by rolling out 75 flagship projects worth a combined
total of $36 billion in investments. This is in keeping with the government’s goal to
sustain rapid growth, attract investments and attain economic inclusion for all Filipinos.
Transport is an asset sector in the Philippine economy, as what the Philippines
have a numerous number of populations in the country. The transport system of the
Philippines consists of road, water, air, and rail transport. Water transport plays an
important role due to the archipelagic nature of the country, but road transport is by far
the dominant subsector accounting for 98% of passenger traffic and 58% of cargo
traffic. While the transport infrastructure has been developed and spread across the
country (about 215,000 kilometers [km] of roads, 1,300 public and private ports, and
215 public and private airports), the level of service has not been sufficient due to the
lack of sustainable financing. Improving transport infrastructure is critical for
strengthening the investment climate and enhancing economic growth. The Philippines
has seen modest improvement in the quality of its transport services, but a large part of
the road network remains in poor condition and intermodal integration is generally weak.
Poor sector governance also impedes efficient operation of the sector.
DOWNSIDE OF THE BBB PROGRAM
Investments
The foreign investors and lenders are the biggest gainers on this project. Truth is,
countries that are lending us money are not really doing this out of kindness and
genuine willingness to help. Everything is really shaped by economic and social gains
they can get from the Philippines. Aside from gaining a lot just by the debt’s interest,
they can earn profit by exclusively providing the needed materials and services we need
to build the roads and railways.
Mounting Job Opportunities
Even the Department of Labor and Employment is optimistic that it will spawn jobs
giving more opportunities to everyone giving priority to the people who are unemployed.
Even the Overseas Filipino Workers are envisioned to come home and work here.
National Economic and Development Authority (NEDA) Chief Ernesto Pernia, however,
clarified the infrastructure boost will add more than 1 million new jobs to the usual 1
million jobs created per year, resulting in 12 million jobs for the 6 years of the Duterte
administration. Most of the new jobs will be in the field of manufacturing and
construction, including carpenters, welders, plumbers, and electricians.
PROBLEM IN TRANSPORT SECTOR
In the Philippines transport system, road transport now accounts for about 80% of
passengers and almost 60% of freight movements. This development has been made
possible by the development of the highway infrastructure in the last decade in Luzon
and by limited competition from other modes. However, the road transport industry
suffers from two principal problems: (a) the absence of freight consolidation facilities
even in the major traffic generating centers; (b) the unequal treatment in matters of
taxation and licensing (turnover tax, registration tax, and franchise fee) of trucks for hire
and trucks for own use, although the latter by and large engage in providing the same
kind of services as the former. As a result, transport services cost more than they
should.
Chart 1: Problem in Transportation Sector
Source: Philippines: Transport Sector Assessment, Strategy, and Road Map (ADB)
OPPORTUNITIES
Development of urban transportation may result a connecting region to the
markets that will be more accessible for the people to exchange goods and to attract
more tourist to visit any tourist spots in the country with less hassle.
Attracting more Investment, generating jobs especially to those people who are
in the region areas.
It is convenient for the future students of the country to study in the cities in case
they’re area doesn’t have universities.
Improved regional economic growth. In this aspect not only the National Capital
Region will have the advantage benefits from the government but because of this easy
access for the regional areas, it will now have an equality in Luzon, Visayas and
Mindanao when it comes to their rights as a citizen of the Philippines.
III. FLAGSHIP PROJECTS
Table 1.0 The promising projects of Duterte’s Administration or “Dutertenomics”
Project Funding
Cost Source / Project
Project Description / Contractor
(in million Agency / Duration
pesos) Contractor
BGC to Ortigas 1,896.24 General 2017-2020 A bridge that will directly link BGC
Road Link Appropriations and Ortigas. The number of
Project, Sta. Act (GAA) / vehicles passing though EDSA
Monica-Lawton DPWH every day should be reduced by
Bridge and 100,000.
Viaduct (Phase
I & II-A) Persan Construction Inc.
[Philippines]
Sino Road and Bridge Co. Ltd.
[China]
Binondo- 4,607.04 China (Grant) / 2018-2020 A new steel bowstring arch bridge
Intramuros DPWH that will connect Intramuros
Bridge (Solana Street & Riverside Drive)
and Binondo (San Fernando
Street)
CCC Highways Consultant Ltd.
[China]
China Road and Bridge Co. [China]
Estrella- 1,367.04 China (Grant) / 2018-2020 The existing 2-lane bridge
Pantaleon DPWH connecting Rockwell Center,
Bridge Makati to Barangka Ibaba,
Mandaluyong will be replaced with
a 4-lane bridge
CCC Highways Consultant Ltd.
[China]
China Road and Bridge Co. [China]
Panguil Bay 7,375.34 South Korea 2018-2022 This bridge will connect Tangub
Bridge (Loan) / DPWH City, Misamis Occidental and
Tubod, Lanao del Norte
Yooshin Engineering Corp.,
Pyunhwa Engineering Consultants
Ltd. [South Korea]
Kyong-Ho Engineering and
Architect Co. Ltd. [South Korea]
Metro Manila 4,789.08 World Bank & 2018-2021 A fast, high-quality bus-based
Bus Rapid Agence mass transportation system with
Transit (BRT) Française de definite schedules along major
System Développement roads in Metro Manila.
(Loan) / DOTr
Line 1 (Quezon
Avenue BRT)
Metro Manila 37,760.00 Asian 2018-2021
Bus Rapid Development
Transit (BRT) Bank (Loan)
System / DOTr
Project Funding
Cost Source / Project
Project Description / Contractor
(in million Agency / Duration
pesos) Contractor
Line 2 (EDSA
Central
Corridor BRT)
BGC to NAIA 46,030.00 Official 2018-2021 A part of the Metro Manila BRT
Bus Rapid Development system that will help ease traffic
Transit (BRT) Assistance congestion.
(ODA) BCDA /
DOTr
Unified Grand 2,800.00 General 2017-2022 A common station that will connect
Central Station Appropriations LRT Line 1 North Extension, MRT
Act (GAA) / 3, MRT 7 on the corner of North
DOTr Avenue and EDSA
BF Corporation – Foresight
Development and Surveying
Company Consortium [Philippines]
Mega Manila 356,964.17 Japan (Loan) / 2018-2025 A 25 km. underground mass
Subway DOTr transportation system connecting
major business districts and
government centers
OC Global (Oriental Consultants
Global Co. Ltd; Tokyo Metro Co.
Ltd; Katahira and Engineers
International; Pacific Consultants
Co. Ltd; Tonichi Engineering
Consultants Inc.; & Metro
Development Co. Ltd) [Japan]
PNR North 2 283,815.00 Japan (Loan) & 2019-2025 An extension of the PNR North 1
(Malolos-Clark Asian from Malolos, Bulacan to Clark
International Development International Airport, and then to
Airport-New Bank (Loan) / New Clark City in Pampanga.
Clark City) DOTr
PNR South 344,606.00 Japan (Loan) & 2018-2023 The PNR South Commuter Line,
Commuter Line Asian which will be a dual-track,
(Tutuban- Development electrified and standard-gauge
Calamba) Bank (Loan) / railway, will link Manila and
DOTr Laguna.
PNR South 175,318.00 China (Loan) / 2018-2022 This railway will connect Manila to
Long Haul DOTr Lagina, Quezon, Camarines Sur,
(Manila-Bicol) Albay, Sorsogon, and Batangas.
Subic-Clark 50,031.00 China (Loan) 2019-2022 Railway connecting Subic port to
Cargo Railway & GAA BCDA/ Clark Int’l Airport and other major
Project DOTr economic hubs in Central Luzon.
Mindanao Rail 35,257.00 Official 2018-2022 This railway, which will link major
Project (Phase Development cities, seaports and economic
1) – Tagum Assistance zones, is anticipated to serve at
Davao Digos (ODA) / DOTr least 100,000 passengers per day
Segment upon completion and opening.
Project Funding
Cost Source / Project
Project Description / Contractor
(in million Agency / Duration
pesos) Contractor
Clark 9,360.00 Public-Private 2018-2020 This project aims to construct a
International Partnership new passenger terminal building to
Airport (New (PPP) BCDA/ accommodate 8 million passengers
Terminal DOTr every year.
Building)
Megawide GMR Consortium
[Philippines]
Bacolod-Silay 20,260.00 General 2019-2025 This project will improve the
International Appropriations existing Bacolod-Silay International
Airport Act (GAA) / Airport by expanding the terminal
DOTr building and upgrading the airport’s
existing facilities.
New Clark City 1,780.00 Public-Private 2018-2022 New Clark City, which is meant to
Partnership be the “next big metropolis,” will be
Clark Green (PPP) / BCDA the “hub of agro-industrial
City activities, as well as home to
Government cutting-edge technology and
Center (part of logistics companies”. This project
the National also includes the development of
Government back-up offices of different
Administrative government agencies and the
Center construction of world-class sports
(NGAC): facilities, which will be used for the
Southeast Asian Games to be held
New Clark City 850.00 Public-Private 2018-2022 in November 2019. This is the
Partnership long-term solution for traffic and
Clark Green (PPP) / BCDA congestion in Metro Manila.
City
Commercial MTD Capital Berhad [Malaysia]
Center (part of
the NGAC):
New Clark City 3,331.00 Public-Private 2018-2022
Partnership
Mixed Income (PPP) / BCDA
Development
Housing:
Sources: Philippine Infrastructure Transparency Portal (n. d.; 2016); Department of Transportation
(2017); New Clark City (2018); Nicolas (2018); The World Bank (n. d.); Department of Public Works
and Highways (2017); National Economic and Development Authority (2018); Delavin (2017)
IV. CONCLUSION & RECOMMENDATION
The Informant come up to the idea to entrust the decisions to the government. All
that the people have to do is to know more about the project. Reading about the said
program will help students or researcher a lot to understand it better. We all have our
own perspective when it regards on what step or plan that the government has. Some
will disagree and oppose to the promotion but there’s some who will give effort and time
to see it the way the administration did. The lack of openness to the public is one of the
barriers to a great management. Transparency is the answer for some citizen who’s
questioning the steps or plan of the government for its country.
The informant would recommend that the government includes the citizen more and
develop ways to endorse the program or they can make an updated website where all
the projects, budget etc. are orderly listed. It will be more organized and beneficial if it is
reached out to everyone especially to those who will be needing the welfares more. If it
is known to the community that the “Build, Build, Build Plan,” will open more job
opportunities to many people and will help our economy grow, they will be more
involved and supportive of the projects. Reaching your people more less cost and more
convenient in a way of using technology is the fastest way to disseminate information.
V. REFERENCES
ADB, (2019). Biggest Philippine Project to Improve Transport from Northern Provinces
to Manila: Retrieved: https://www.adb.org/news/features/adbs-biggest-philippine-
project-improve-transport-northern-provinces-manila
BUILD.GOV.PH. (2018). Build Build Build Project DOTr: Retrieved:
http://build.gov.ph/Home/Projects/agency=DOTr
Navarro, A. & Llanto, G. (2014). Financing infrastructure in the Philippines: Fiscal
landscape and resources mobilization (Discussion Paper Series No. 2014-
01). Philippines: Philippine Institute for Development Studies.
Palei, T. (2015). Assessing the impact of infrastructure on economic growth
and global competitiveness. Procedia Economics and Finance, 23, 168-
175.
Philippine Infrastructure Transparency Portal. (2016). Build, Build, Build: The
Duterte administration’s infrastructure plan. Retrieved from
http://build.gov.ph/SFTFiles/Documents/BuildBuildBuild%20Presentation_DOTr
%20DP WH%20BCDA_FINAL%20PDF.pdf
Philippine Infrastructure Transparency Portal. (n. d.). Projects.
Retrieved from http://build.gov.ph/Home/Project
RIVAS, R. (2019). LIST: Duterte's revised lineup of Build, Build, Build projects:
Retrieved: https://www.rappler.com/business/244769-list-duterte-revised-lineup-
build-build-build-program-projects
Tuquero, L.(2019). Railway projects get 98% of DOTr infra budget, but require P191B
more: Retrieved: https://www.rappler.com/nation/239453-railway-projects-
allotment-dotr-infrastructure-budget
World Economic Forum. (2017). The global competitiveness report 2017-2018.
Geneva: World Economic Forum.
“Some of the Success Stories”
Philippine's Pedestrian Link Bridge Mandaluyong's Main Drainage NAIA Expressway
The Infrastructure Plan.
Cover Page of the Build Website Discussion of Dutertenomics Duterte with Some
Foreign Investors
