Construction industry to reach P1.7 T this year

MANILA, Philippines - The country’s construction industry has the potential to reach P1.7 trillion this year if the government would be able to implement its infrastructure projects, the Philippine Constructors Association (PCA) Inc. said.

“For this year, government said they are increasing their budget for infrastructure…Because of that, when you consider the share of the private sector, that means our annual turnover for the year should be about P1.7 trillion,” PCA executive director Manolito Madrasto told reporters.

Hitting that amount however, would depend on whether the government would be able to carry out its infrastructure projects.

“If not, we will just reach P1.2 to P1.3 trillion,” Madrasto said.

The government is expected to spend P562.3 billion or four percent of the gross country’s domestic product (GDP) for infrastructure projects this year, in line with the aim of achieving the international benchmark of five percent of GDP for infrastructure investments by 2016.

The government wants to ramp up spending for infrastructure to sustain the country’s economic growth.

In a report, the PCA said it expects more infrastructure projects to be rolled out particularly toward the end of this year given the country’s hosting of the Asia Pacific Economic Cooperation (APEC) 2015 meetings and as elections would be held next year.

“We also expect acceleration from the government side in relation to construction or rehabilitation efforts in Yolanda-affected areas amid pressures from various groups,” it said.

Last year, public construction declined mainly due to underspending of the government given delays of infrastructure projects in relation to the Supreme Court’s decision declaring major provisions of the Disbursement Acceleration Program as illegal.

On the part of the private sector, the PCA expects a sustained increase in residential construction projects this year and in the coming years to meet the demand from the growing population.

The Housing and Land Use Regulatory Board has set a target to construct one million housing units by 2016 and announced that over 300 condominium projects will be built in Metro Manila, with most to be allocated to the mid-market segment.