On the right track? Reviewing Marcos' 'Build Better More' infra program | ABS-CBN

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On the right track? Reviewing Marcos' 'Build Better More' infra program

On the right track? Reviewing Marcos' 'Build Better More' infra program

Andrea Taguines,

ABS-CBN News

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Updated Jul 30, 2024 02:39 PM PHT

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The photo shows the progress of the Metro Manila Subway project in Valenzuela City during a media tour on February 26, 2024. According to the Department of Transportation, the project is aimed to operate partially by 2028, depending on passenger demand, ahead of the targeted full operations in 2029. - Mark Demayo, ABS-CBN NewsThe photo shows the progress of the Metro Manila Subway project in Valenzuela City during a media tour on February 26, 2024. According to the Department of Transportation, the project is aimed to operate partially by 2028, depending on passenger demand, ahead of the targeted full operations in 2029. - Mark Demayo, ABS-CBN News 

MANILA - Metro Manila started out the year topping a global list of metro areas with the worst traffic congestion.

According to multinational transportation data specialist Tomtom, motorists got stuck in Metro Manila traffic for an average of 117 hours out of the 240 hours they were out on the road. That’s nearly five days.

Many experts have repeatedly said that the solution to this perennial problem is an efficient mass transit system.

That’s why when Philippine President Ferdinand Marcos Jr. was elected into office in 2022, and vowed to expand the so-called “Golden Age of Infrastructure” that his predecessor had promised to usher in, his administration prioritized the continuation of various big-ticket railway projects aimed at facilitating the faster movement of people, goods, and services.

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During his last State of the Nation Address in 2023, Marcos said the rebranded Build Better More (BBM) program was in progress and was vigorously being implemented.

What has been accomplished over a year later?

METRO MANILA SUBWAY PROJECT

CONSTRUCTION PROGRESS: 15%

FUNDING: OFFICIAL DEVELOPMENT ASSISTANCE FROM JAPAN

Out of the 69 projects being implemented by the Department of Transportation (DOTr), one third or 23 of them are railway improvement and expansion initiatives, meant to bring about a “railway renaissance” that would bolster the economy in the National Capital Region and beyond.

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Among these projects is the P488-billion Metro Manila Subway, dubbed as the Project of the Century, which will be the Philippines’ first-ever underground rail system.

On January 9, 2023, Marcos himself led the launch of the first tunnel boring machine that would begin drilling operations for the 33-kilometer subway starting from the depot in Valenzuela City.

Fast forward to July of this year, the construction of the subway is 15 percent complete. The ABS-CBN News team was able to visit the depot last July 9, 2024 to check on the progress.

Two tunnel boring machines are now operational and they have since excavated some 1.3 kilometers of land towards the first station in East Valenzuela --even crossing underneath the Tullahan River along the way. They are expected to reach the second station at Quirino Highway in Quezon City by August.

“Dito mismo sa ilalim ng Tullahan River, meron tayong soil cover of around nine meters. May lupa pa in between nung tubig at ng tunnel. And yung design ng concrete na ginagamit natin ay twice (na mas matibay) sa usual na ginagamit natin sa mga buildings,” explained Mikee Mendoza, the project manager of the Metro Manila Subway. 

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(Here under the Tullahan River, we have a soil cover of around 9 meters–there’s soil between the water and the subway tunnel. And the concrete we use is twice stronger than what is used in buildings.)

Mendoza added that the concrete is waterproof and earthquake-resistant.

We also got to tour the North Avenue station where the subway platform is already being built.

The other stations are in varying stages of construction and pre-construction except for five which are under contract packages that have yet to be awarded:

•    CP 105: Kalayaan and BGC stations

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•    CP 108: Lawton and Senate-DepEd stations

•    CP 109: NAIA 3 station

The DOTr is confident it will be able to award the remaining contract packages before the year ends despite lingering right-of-way issues, like for the Senate-DepEd station which would run into a recently-designated important cultural property.

“Kasama din sa dine-design kung paano maging convenient pa rin para sa (passengers) kahit na mas malayo na ngayon yung station,” said Mendoza.

(We are designing it to be convenient for passengers even if the station is now farther.)

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Following years of delays, the DOTr is now eyeing partial operations from East Valenzuela to Ortigas Avenue by 2028 before Marcos steps down from office. Full operations are expected by 2030.

Transportation Secretary Jaime Bautista said they want to start operating the subway as early as possible to help alleviate the plight of commuters in the capital.

Once complete, the subway will have 17 stations connecting Valenzuela City to Bicutan in Parañaque City, spanning seven cities, municipalities, and three business districts.

It will also have a spur line to the Ninoy Aquino International Airport, reducing the travel time from Valenzuela to the airport from 1 hour and 10 minutes to just 41 minutes.

The subway is expected to cater to a daily ridership of 519,000 on its opening year but the system can service up to a million before additional trains are needed. 

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“Right now we’re using (an) eight-car configuration pero yung infrastructure natin is ready for a 10-car configuration, which adds more capacity doon sa ating system,” said Mendoza.

Another perk is that the subway is designed to interoperate with the North-South Commuter Railway (NSCR) system at the Senate, FTI, and Bicutan stations.

“For example, you live in the North Avenue area. You get on a subway train. That same train can get you all the way to Calamba (in Laguna) because FTI will be the last underground station. It starts going up and connecting into the North-South Commuter Railway,” said DOTr Undersecretary TJ Batan.

Construction continues at the Balagtas Station of the North-South Commuter Railway in Bulacan. Andrea Taguines, ABS-CBN News

Construction continues at the Balagtas Station of the North-South Commuter Railway in Bulacan. Andrea Taguines, ABS-CBN News


NORTH-SOUTH COMMUTER RAILWAY

FUNDING: OFFICIAL DEVELOPMENT ASSISTANCE FROM ADB, JAPAN

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Bautista said the construction of the NSCR is also “on full blast” even though it has also faced delays.

The NSCR is a 147-kilometer elevated railway line that will traverse three regions in Luzon from New Clark City in Tarlac to Pampanga, Bulacan, Metro Manila, and up to Calamba in Laguna.

It is expected to service up to 800,000 passengers daily and halve travel time from Clark Airport to Calamba to less than 2 hours from the current 4 hours.

The northern line of the NSCR, which would run from Clark, Pampanga to Valenzuela City will be the first to open in the first quarter of 2028, over one year later than initially stated.

Meanwhile, the Manila to Calamba, Laguna segment of the project, is expected to operate by 2029, from the previous target of 2028.

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The delay comes as the DOTr continues to face challenges in right-of-way acquisition. 

“Sometimes it’s very difficult to deal with the landowners,” Bautista said, noting that the is always disagreement about the market value of the property. 

But as much as possible, the government does not want to resort to expropriation, he said.

“Kailangan mag-agree yung mga landowners para naman maging smooth yung turnover (The landowners need to agree so that the turnover is smooth),” said Bautista.


The brand-new trains for the Metro Rail Transit Line 7 (MRT-7) along Commonwealth Avenue in Diliman, Quezon City during its unveiling on December 16, 2021. Alberto Alcain, Presidential Photo

The brand-new trains for the Metro Rail Transit Line 7 (MRT-7) along Commonwealth Avenue in Diliman, Quezon City during its unveiling on December 16, 2021. Alberto Alcain, Presidential Photo

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MRT-7

CONSTRUCTION PROGRESS: 71%

FUNDING: PUBLIC-PRIVATE PARTNERSHIP WITH SAN MIGUEL CORPORATION

The MRT Line 7 will be partly operational by the fourth quarter of 2025, after years of causing traffic along Quezon City due to its construction.

The project is a 22-kilometer rail transit system that aims to connect dense areas of Northeast Metro Manila to Bulacan province.

It is expected to reduce travel time from North Avenue in Quezon City to San Jose Del Monte in Bulacan from two to three hours to 35 minutes.

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According to the DOTr, the MRT-7’s Quezon City portion, which consists of 12 stations, will be up and running towards the end of next year. 

Meanwhile, the Tala Station in Caloocan City will be completed by 2026.

The agency hopes the construction of the 14th station in San Jose del Monte can be finished by 2027 once alignment issues are resolved. 

The local government unit recently proposed 3 alternative route alignments for the project, saying the existing plan would have negative traffic implications, and would affect the quality of living, as well as disrupt the delivery of essential services, among others.

While the government understands the LGU’s request, the DOTr’s planning department and the operator of the MRT-7 will need to study this because it entails additional construction costs, Bautista said. 

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He noted that the DOTr has yet to inspect the proposed locations.

The train system is projected to accommodate 300,000 passengers during the first year of operations. This will go up to 850,000 daily passengers in its 12th year.


An LRT-1 train runs on the new tracks of the line's Cavite extension. Courtesy Light Rail Manila Corp.

An LRT-1 train runs on the new tracks of the line's Cavite extension. Courtesy Light Rail Manila Corp.

 

LRT-1 CAVITE EXTENSION

CONSTRUCTION PROGRESS: 73.5%

The first phase of the LRT-1 Cavite Extension is on track to open before Christmas.

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This includes five stations, connecting the Baclaran Station in Pasay City to Dr. Santos Station in Sucat, Parañaque. 

The DOTr said this would make the Parañaque Integrated Terminal Exchange (PITX) and NAIA more accessible to the public since there will now be stations located near those two major transportation hubs.

It is expected to ferry up to 50,000 passengers upon opening.

But operations for the entirety of the project, which would extend until Bacoor in Cavite, is still a bit far off in 2031.

During a site inspection in Parañaque in June, the Light Rail Manila Corporation (LRMC) said some right-of-way and utility relocation issues still need to be addressed before they can begin construction of Phases 2 and 3.

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RIGHT-OF-WAY LAW

Different projects, all bogged down by right-of-way concerns.

That’s why the Legislative-Executive Development Advisory Council (LEDAC) has listed the amendments to the Right-of-Way Act as one of the priority bills Congress should pass.

Special Assistant to the President for Investments and Economic Affairs Frederick Go said the bill is not just crucial for the speedy implementation of rail projects but all kinds of infrastructure.

“Huge infrastructure projects of the government will benefit millions and millions of people. And it’s being held by, shall we say, one unreasonable landowner. So I think the government should be able to exercise its eminent domain,” said Go in an interview with ABS-CBN News.

“Fair market value or just compensation can always be discussed by the government and by the private owner but that should not stop the project,” he added.

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The bill expedites the process of expropriation, according to Department of Finance Undersecretary Rolando Tungpalan during the Build Better More Infrastructure Forum in New Clark City.

“It’s a very long and tedious process. We’re finding ways to speed it up that will be fair both to the landowner and to the government enjoying the benefits of development,” he said.

The measure also requires that, before bidding out a contract for a project, the implementing agency must already have prepared a Right-of-Way Action Plan which includes accurate technical surveys of properties, realistic estimates of right-of-way costs, as well as resettlement plans.

In the meantime, the government has also created an Inter-Agency Committee composed of the DOTr, the Department of Public Works and Highways (DPWH), the Department of Justice, and other relevant offices dedicated to addressing right-of-way issues concerning railway projects.


DISPLACEMENT

Many informal settler families are also being displaced due to various infrastructure projects.

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Vicente Gochingco and his family have lived in Barangay Bagumbayan in Quezon City for as long as his eldest daughter has been alive: 24 years. But because of the subway construction, they will be forced to leave their home before the end of the year.

Gochingco said the government has promised to provide compensation, but it does not make the move any easier.

On top of having to look for a new place to stay, Gochingco is also caring for his 13-year-old son who has lost his ability to walk due to juvenile arthritis. His wife died last year too following a heart attack.

“Ayoko sanang lumayo dahil nandito ang trabaho ko. E kung lumayo ka, may trabaho ba doon? Wala,” he shared while in tears.

(I really don’t want to leave because my job is here. If we move away, will I have a job there? None.)

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Mary Ann Bueno and her children, who live nearby, also have to leave the only place they have ever called home.

She’s grateful, at least, that the planned relocation site for them will still be within the city.

Apart from housing and compensation, the government said it is also providing affected residents with other forms of assistance such as livelihood and skills development training.

“It’s a requirement by JICA (Japan International Cooperation Agency) and ADB (Asian Development Bank) that yung mga affected families should be compensated well,” Bautista said. 

If these families are transferred to another property, their standard of living must not be lower than what they currently enjoy. 

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'RAILWAY RENAISSANCE'

Once all these projects are finished, the DOTr said that by 2030, the length of railways in the Philippines would total to 1,233.08 kilometers, a 356.43-percent increase from the existing 270.16 kilometers.

Bautista sees this interconnected railway network as key to solving the traffic woes in Metro Manila and all the problems that come with it.

A 2017 study by JICA estimated that the traffic congestion in the capital region alone cost the Philippine economy P3.5 billion pesos daily in lost opportunities.

Bautista believes the new railways will solve the capital’s traffic problems.

“If we can operate these at the capacity, at the rate we want it, maraming mga hindi na magdadala ng kanilang mga cars( many won’t need to bring their cars),” said Bautista.

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But Economist Alex Escucha, president of the Institute for Development and Economic Analysis (IDEA) said the government and its contractors should put as much thought and effort into the maintenance of these new railway projects. He noted that while the large budgets are rolled out for their construction, not enough is set aside to maintain these projects when they are already operating. 

“And that leads to the eventual breakdown of the system,” he said.

“Our MRT-3 is only, what, less than 30 years old, diba?” he added, noting how it already needs to undergo a P30 billion rehabilitation.


LUZON ECONOMIC CORRIDOR

There are also more railway projects in the pipeline like the planned cargo train connecting four of the country’s biggest ports and airport along the Luzon Economic Corridor in a bid to reduce logistics costs and the prices of goods in general.

“One of the most important things that the economic team is working on now is managing inflation. By connecting these four ports, which represent, by the way, 80 percent of container traffic in the Philippines, it should reduce the cost of doing business which would result in the reduction of consumer goods prices,” said Secretary Go.

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The US and Japan have committed to invest in the proposed projects within the Luzon Economic Corridor following a trilateral summit with Philippine President Marcos.

“There’s political commitment. The next step for us to do is the feasibility study. We need to select our feasibility study consultant for that,” said Transportation Undersecretary Batan during the BBM Infra Forum.


MEGA BRIDGE PROGRAM

During Marcos’ SONA in 2023, he also highlighted the Mega Bridge Program under which 12 bridges totaling 90 kilometers will be constructed, connecting islands and areas separated by waters.

Speaking at a forum, DPWH Undersecretary Maria Catalina Cabral said one of these bridges, the Panguil Bay Bridge in Mindanao, is poised to open by October or November this year.

It’s a 3.17-kilometer bridge that would cut the travel time between Tubod, Lanao Del Norte and Tangub City in Misamis Occidental to just 7 minutes from the current 2 hours and 30 minutes it would take by boat.

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Meanwhile, the construction of the Bataan-Cavite Interlink Bridge could again be pushed back to early or mid-2025 from the initial 2023 target.

At 32 kilometers, the bridge is the DPWH’s biggest and most expensive project.

Though the ADB has already approved the $2.1 billion funding for it back in December 2023, Cabral said that process took longer than expected.

“Sourcing the funding has been really a challenge because the government, the Department of Finance, specifically, is trying to get the best financing packages for this biggest project of DPWH,” said Cabral.

As for the detailed engineering design for the bridge, Cabral said that has already been completed. 

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The bridge is expected to cut travel time between Cavite and Bataan to around 45 minutes from 5 hours at present.


ECONOMIC IMPACT

Overall, out of the 185 Infrastructure Flagship Projects being implemented under the Marcos Administration’s P9.5-trillion Build Better More program, 134 or 83 percent are geared towards physical connectivity.

This includes expressways and farm-to-market roads.

“The underlying logic to our infrastructure development is economic efficiency. We are opening up all gateways to mobilize goods and services at less cost and in less time, and ultimately, to drive the economy forward,” Marcos had said during last year’s SONA.

For the National Economic and Development Authority (NEDA), infrastructure development is one of the most important ways the Philippines can become more competitive and attract massive investments that would lead to more jobs and higher wages for Filipinos.

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“The unemployment numbers are already very low. But clearly, it’s not so much just the opening up of more jobs, it’s the quality of the jobs-- jobs that will open up more stable employment, more secure, higher earning, more productive, and, of course, that requires nothing less than investment,” said NEDA Secretary Arsenio Balisacan.

INFRASTRUCTURE SPENDING

That is why the Marcos administration vows to sustain the level of infrastructure spending at 5 to 6 percent of the country’s gross domestic product (GDP) during the second half of its term.

In 2024, P1.5 trillion out of the P5.8 trillion national budget was allocated for infrastructure, which is equivalent to 5.7 percent of GDP, according to the Department of Budget and Management (DBM). 

DBM Assistant Secretary Romeo Balinquit said this is P180.2 billion or 13.5 percent higher than the 2023 budget for infrastructure.

For Escucha, the Marcos administration is on the right track.

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“Everybody that you talk to is worried about oh, ang laki na ng deficit natin, lumalaki na yung utang natin. It’s always in relation to the size of the economy because if you spend on the right infrastructure and you spend it the right way, you will put up the foundations for faster economic growth,” he said.


DEVELOPMENT FOR WHOM?

Economic think tank Ibon Foundation however disagrees and thinks the government is overstating the benefits that the Build Better More program would bring.

Ibon Foundation Executive Director Sonny Africa noted that even before the Marcos administration began, infrastructure spending had already been growing and yet it has not been able to address the country’s fundamental economic problems.

“Kailangan ng active policies to develop domestic agriculture, domestic industry so that Filipino farmers and Filipino firms can benefit from that infrastructure,” said Africa.

“Totoo na kung merong farm-to-market road, mas mabibili yung produkto doon sa palengke. Pero ano ba yung kakayanan nilang mag-produce kung wala pa ring patubig, kung mahal pa rin sa kanila yung abono at pestisidyo?” he added.

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(Yes, there are farm-to-market roads. Their produce can be bought in markets. But what is their capacity to produce if there’s no irrigation, and fertilizers and pesticides remain expensive?)

He also doubted the claims of economic managers that infrastructure projects would lead to the most multiplier effects, like more jobs and more inclusive development, especially considering that most of them are concentrated in areas that are already developed. 

Africa said the biggest problem with the Build Better More program is that it is concentrated in the NCR, Southern Tagalog and Central Luzon regions. He said that if the government wants to help ordinary Filipinos, it should disperse these funds to other regions that also need infrastructure. 

“At kailangan nakatuon doon sa pagpapalakas ng agrikultura at industriya,” he said.

(And it should strengthen agriculture and industry.)

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PUBLIC-PRIVATE PARTNERSHIP PROJECTS

Apart from rebranding former President Rodrigo Duterte’s Build Build Build into the Build Better More (BBM) program it is today to fit Marcos’ nickname, the current administration is also pivoting towards more Public-Private Partnerships (PPP) as a way to fund various infrastructure projects.

While Official Development Assistance (ODA) borrowings still constitute 58 percent of the funding source of infrastructure flagship projects, the government has instituted several reforms like the new PPP Code to convince and make it easier for the private sector to come in and participate. 

InfraWatch PH said this pivot back to PPPs is one of the highlights of Build Better More.

“May problema tayo sa fiscal space today so instead of us spending on infrastructure, we can spend more on social services, public services, health services pag pumasok yung private sector operating several of these flagship projects,” said InfraWatch PH Convenor Terry Ridon.


NAIA MODERNIZATION

A prime example of this is the P170 billion NAIA Rehabilitation PPP project, which was one of the fastest to be processed from investment approval, awarding, and contract signing.

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It is set to be turned over to a consortium led by San Miguel Corporation in September for much-needed upgrades.

The project aims to nearly double the capacity of the Philippines’ main gateway from 32 million passengers at present to 60 million, among others.


TOO SLOW?

The government is also in the process of studying PPP projects to build and improve regional airports, as well as the EDSA Busway, or the exclusive bus lane in EDSA.

But for Ridon, the government is not moving fast enough.

“Yung busway PPP, ang tagal na nating pinag-uusapan yan, 2022 pa. They cannot say that we’re focusing on the PPP of the airports. These are entirely different divisions and departments within DOTr. Pwede naman pagsabay-sabayin,” said Ridon.

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The DOTr meanwhile emphasized the need for thorough feasibility studies.

“We don’t think of a project then decide to implement it the next day. It doesn’t work that way. There’s a long, very detailed process where we have to demonstrate that a project is viable,” said Batan.

On the implementation front, NEDA Secretary Balisacan said the cabinet is able to monitor the progress of these projects and adjust when there are delays.

“If they are being delayed, the implementing agency is asked to explain and we resolve the issues. They need to provide a catch up plan. That’s also the work of our DBM in ensuring that even the budgets are implemented on time,” said Balisacan.


GOING BEYOND THE MARCOS ADMINISTRATION

Balisacan and other agencies leading the infra push such as the DOTr and the DPWH acknowledge that many of the projects currently lined up will not be completed within Marcos’ term.

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“Ang importante is it can be completed by the next administration, hindi na sila masyadong mahihirapan,” said Bautista.

“We are already preparing the groundworks, including possibly getting the financing. So that when the next administration comes, they also have something to work on right away,” echoed Balisacan.

So although the Build Better More infrastructure program will continue to go “full speed ahead”, as per the President’s orders, they know that the goal is not necessarily to relish in the glory of reaching the finish line but to pave the way to a so-called Bagong Pilipinas-- a Philippines that is more interconnected despite having more than 7,100 islands.

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