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Philippines Infrastructure Report
Q2 2011

  • Publication Date:March 2011
  • Publisher:Business Monitor
  • Product Type: Report
  • Pages:93

Philippines Infrastructure Report Q2 2011

Since President Benigno Aquino's election at the end of June 2010, the Philippines has been trumpeting a plethora of infrastructure projects it plans to tout to private investors. The government intends to invite bids for PHP739.8bn (US$16.82bn) of projects in the next two years (to 2012) alone, as it continues to move expeditiously to tackle the country's substantial infrastructure deficit. After a spike in construction industry value growth this year, the Philippines will experience slower and steadier growth over the next four years, although with considerable downside risk as the market is fraught with political, regulatory and other business environment risks. Last quarter we revised up our forecasts, due to the Philippines' strong growth. We now broadly reconfirm this picture with an estimate 18.5% real growth for 2010 and 6.1% forecast for 2011.

Major recent developments include:

  • President Aquino is seeking policies to make the Philippines a more attractive place for publicprivate partnerships (PPPs) and investment. The Philippines is looking to offer PHP127bn (US$2.9bn) worth of projects, with at least 10 up for tender in September 2010. The government has also established an infrastructure fund to encourage and facilitate private investment, providing long-term financing for PPPs predominantly in the transport sector.
  • In November 2010, the Philippine government announced plans to initiate an Asian Development Bank (ADB)-sponsored US$1bn renewable energy and energy efficiency loan programme, which will provide investors with the necessary long-term financing for renewable energy projects. The ADB and the Philippine government were expected to finalise the loan programme by H111. Besides the loan program, the Philippines will also receive an additional US$250mn from the Clean Trust Fund (CTF), half of which will go to solar projects at 0.25% interest for 40 years.
  • Philippine President Benigno Aquino III has made fighting corruption and improving project transparency top priorities for the new government. Yet, these wider challenges persist at the moment, and will undoubtedly affect the new government's plan for PPPs. This is reflected by BMI's Asia Pacific Infrastructure Business Environment Ratings, where the Philippines achieves a score of only 44 out of 100, tanking in 11th place among 13 regional countries. Although we forecast real growth to drop off to 6.1% year-on-year (y-o-y) in 2011, we expect investments to drive construction industry value growth to an average of 7,7% per year between 2011 and 2015, reaching an industry value of PHP835.3bn (US$20.5bn) by 2015. Part of this will be driven by private investment, which the new government is hoping will take a substantial portion, if not all, of infrastructure development funding.
  • Executive Summary
  • SWOT Analysis
  • Philippines Infrastructure SWOT
  • Philippines Infrastructure Project Finance SWOT
  • Philippines Economic SWOT
  • Philippines Political SWOT
  • Market Overview
  • Philippines
  • Building Materials
  • Global Materials
  • Building Materials: Global Demand to Hit New Highs In 2011
  • Asia to accelerate in 2011
  • WORLD'S TOP STEEL PRODUCING COUNTRIES (MILLION METRIC TONNES - MMT)
  • Asia Overview
  • Building Materials: Asia Will Be Key Global Growth Driver In 2011
  • Industry Forecast Scenario
    • Table: Philippines Construction And Infrastructure Industry Data
    • Table: Philippines Construction And Infrastructure Industry Data
  • Construction And Infrastructure Forecast Scenario
  • Transport Infrastructure
  • Transport Infrastructure Overview
    • Table: Competitiveness Of Philippines Transport Infrastructure
  • Key Projects Table - Transport Infrastructure
    • Table: Major Projects - Transport
  • Energy And Utilities Infrastructure
  • Energy And Utilities Infrastructure Overview
  • Key Projects Table - Energy And Utilities
    • Table: Major projects - Energy & Utilities
  • Residential/Non- Residential Construction and Social Infrastructure
  • Residential/Non-Residential Construction and Social Infrastructure Overview
  • Key Projects Table - Construction and Social infrastructure
    • Table: Major Infrastructure Projects - Residential/Non- Residential Construction and Social Infrastructure
  • Business Environment
  • Philippines Business Environment
  • Rewards
  • Risks
  • Regional Overview
  • Asia Pacific Infrastructure Business Environment Ratings
    • Table: Asia Pacific Infrastructure Business Environment Ratings
  • Project Finance Ratings
  • Philippines Project Finance Ratings
  • Design And Construction
  • Commissioning And Operating
  • Overall Project Finance Rating
  • Regional Overview
  • Project Finance Ratings: Outlook For Asia Pacific
    • Table: Design And Construction Rating
    • Table: Commissioning And Operating Rating
    • Table: Overall Project Finance Rating
  • Macroeconomic Outlook
    • Table: Philippines - Economic Activity, 2008-2015
  • Political Outlook
  • Domestic Politics
  • Long-Term Political Outlook
  • Company Monitor
  • EEI Corporation
  • First Philippine Balfour Beatty Inc (First Balfour)
  • San Miguel Corporation (SMC)
  • Global Overview
    • Table: BMI's Core Views For Global Infrastructure
  • Methodology
  • Industry Forecasts
  • Construction Industry
  • Data Methodology
  • New Infrastructure Data Sub-sectors
  • Construction
  • Capital Investment
  • Construction Sector Employment
  • Infrastructure Business Environment Rating
    • Table: Infrastructure Business Environment Indicators
  • Project Finance Ratings
    • Table: Design And Construction Phase
    • Table: Commissioning And Operating Phase - Commercial Construction
    • Table: Commissioning And Operating Phase - Energy And Utilities
    • Table: Commissioning And Operating Phase - Transport
  • Sources
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