Construction industry seen to continue growing this year

MANILA, Philippines - The country’s construction industry is seen to grow by more than a fifth this year from a year ago as the private and public sectors undertake projects to support the economy, the Philippine Constructors Association, Inc. (PCA) said.

“We expect the (value of the) construction industry to reach P380 billion this year. Last year, the value was about P300 to P310 billion,” PCA executive director Manolito Madrasto said in a press conference yesterday at the opening of the PHILCONSTRUCT show.

Most of the growth, he said, would  be accounted for by the private sector which already accounts for 55 percent of the industry.

“For a growing economy, the split should be 60-40, in favor of the public sector. But it is the reverse here, that is why we are pushing government for more pump-priming of the economy,” he said.

While the Department of Public Works and Highways (DPWH) is already spending for infrastructure projects this year, he said “what is missing is (implementation) in the area of transportation.”

PCA president Augusto Manalo added the DPWH is spending a little over P200 billion for infrastructure projects this year.

For next year, he said, the industry is expected to post double-digit growth.

“There are so many projects lined up by the private and public sector,” he said.

He estimates the DPWH is spending between P260 to P280 billion for infrastructure projects next year.

Among the public-private partnership projects which are seen to start next year and support the growth of the industry are the Cavite-Laguna Expressway and the Ninoy Aquino International Airport Expressway Phase 2.

Madrasto said that with the government seen to accelerate spending in the coming years, the total construction industry is expected to rise further to P650 billion by 2016, with P400 billion to be accounted for by the public sector alone.

To prepare for the Association of Southeast Asian Nations (ASEAN) economic integration, he said the PCA is already training people and making plans to do business in other countries in the region such as Myanmar and Cambodia.

In line with preparations for regional economic integration, the PCA making changes to the implementing rules and regulations of Republic Act 4566 or the Contractor’s License Law through the creation of a new license category known as AAAA, which would allow firms with 100 percent foreign equity to participate in big construction projects here, provided that the foreign contractor will invest at least P1 billion.

Madrasto said the proposal has been approved by the Construction Industry Authority of the Philippines (CIAP) but still needs to be taken up by the economic cluster.

The CIAP is tasked to promote, accelerate and regulate the growth and development of the construction industry.

“We expect the changes to be approved this year,” Madrasto said.

The PHILCONSTRUCT which is being held at both the SMX Convention Center and the World Trade Center in Pasay City until November 9, will feature up-to-date technologies, products and solutions.