Construction industry players to submit new scheme to gov’t for infra works


Also published @ www.pna.gov.ph
The construction industry players are working on a scheme which they could partner with the public sector in support to the government’s implementation of infrastructure projects.
 
Levy V. Espiritu, president of Philippine Constructors Association, Inc. (PCA) said the association’s proposal would be presented to President-elect Simeon Benigno Aquino III during the Construction Industry Congress in Manila next month.

He said that details of the mechanism were the results of group discussion among stakeholders in the different regions of the country since January this year.

He said the association was looking at a model that was used in the neighboring Asian countries where private and public collaborated through the Public and Private Partnership (PPP) program.

He said a roadmap of the construction industry, which hopes to spur development of the country for the next six to 10 years, would also be presented to the President.

Espiritu said the financial institutions like banks were willing to finance the identified projects, in collaboration with the government, with their P7 trillion deposits and special deposit account.

He said the locals can fund these projects and the Philippines, through the PPP, is more than capable to do the projects on their own and funded locally.

He said while the government needs infrastructure to the development of the regions, it is also appropriate to tap the private sector for project development.

Espiritu cited that in public education, the Department of Education (DepEd) still needs several school buildings but DepEd does not have the resources which the private sector can pitch in.

He also cited the Tarlac-Pangasinan-La Union Expressway (TPLEx) as an example of a consortium where the PPP model has been applied.

In the PPP, the industry players collaborate with the government for the implementation of important projects.

He said they are optimistic that the new administration will consider the proposal as this will do away with sourcing out funds through loans.

He also said that when foreign funds come in, it would be 30 to 40 percent higher compared to projects funded locally, which is cheaper of about 40 percent and carries no risk.

Meanwhile, he said there is a boom in construction anywhere in the country as seen from the ongoing demand for housing units.

But, he said while there is demand for housing development, which he said is a multiplier effect in the construction business, homebuyers already shifted to their pattern of acquisition as they shifted to lifestyle buying.

He said developers now are not only building core houses but are already into semi-furnished units.

Manolito P. Madrasto, PCA executive officer, said buyers were now keen on items that were geared towards protecting the environment and these concerns were included in their advocacy of the Green Building.

He said the technologies are now into prioritizing environment protection. (PNA)
RMA/Digna D. Banzon/lvp

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