RP urged to hike infra investments

Multilateral lending agencies led by the World Bank (WB) urged the government to increase the level of investments in infrastructure to accelerate economic growth in the country.

At the close of the 2008 Philippines Development Forum in Clark, Pampanga, participants stressed the importance of a strategy that focuses on high priority investments, World Bank country director for the Philippines Bert Hofman said.

However, Hofman, in his report on the results of the conference, said that for the government to fulfill the infrastructure gap, it should act on six critical areas.

The government, in particular, should adopt a comprehensive integrated infrastructure plan for infrastructure projects in the country.

Hofman said the government should improve project preparations and pave the way for the faster resolution of technical and legal issues such as right of way and land acquisition.

The government, Hofman added, “should also introduce clear competition policies and economic regulation in infrastructure provision and should separate operations from regulation in key areas such as toll roads, ports and aviation.”

Another way by which the government can boost infrastructure spending in the country is to improve quality management systems and to increase the skills and knowledge needed to develop public-private sector partnership projects at the local and national level.

Finally, Hofman said the government should also ensure that user charges and recovery considerations are duly taken into account so as to strike a balance between affordability for the poor and industry  competitiveness.

“In expanding infrastructure investment, it will also be important to ensure social and environmental sustainability,” Hofman said.

At the same time, the World Bank and other multilateral lenders have noted that the government has made considerable progress on its infrastructure reform agenda, especially in the power and communication sector.