If the Philippines wants to compete in the international marketplace for infrastructure investments from private investors it is essential to ensure that the public investment is appropriately handled. According to the IMF Public Investment Management Assessment evaluates the Philippines fairly well when compared with its regional counterparts, but has a huge efficiency gap that is around 23 percent.
To close this gap, it is necessary to increase public participation, improved project appraisals, and risk-reducing strategies that are identified early. Additionally, it could assist in encouraging private sector participation as well as improve the management of financial risks. A capital market that is developed in the Philippines will also allow for a greater amount of funding in the case of infrastructure Philippines initiatives.
The impact of climate change
The Philippines is becoming more vulnerable to climate changes due to extreme weather conditions and sea level rise escalating the vulnerability of the country.
These changes can have negative effects on cities, and the majority of people who are poor are likely to suffer the effects of rising sea levels much more than people with higher economic mobility.
By 2050, large regions of the Philippines are predicted to be submerged. Many cities are already feeling the consequences of these changes as well, with Pasay and Manila expected to be submerged by 2050.
Effects of natural catastrophes
Although the country is vulnerable to natural and climate-related catastrophes and natural disasters, the Philippines is particularly vulnerable to these.
The Philippines was devastated by Typhoon Yolanda that killed over 6,300 persons, and caused more than US$3 billion of economic damages and loss.
While improvements in infrastructure could lessen the impacts caused by natural disasters much more is required to ensure that the country is robust to the possibility of disasters in the future.
Enhancing the water management system and irrigation systems could improve agricultural production and assist in lifting many people from the poverty.
Problems with PPP model
Although it is true that the Philippine PPP program is still quite new but the country has moved ahead with its implementation by awarding 7 projects awarded to contractors from April within the area of infrastructure.
These projects span a vast variety of infrastructure sectors that include expressways and a hospital that is specialized for tertiary care as well as an international airport, an automated payment system to collect fares for metro railways and two projects for schools.
Although the PPP model is still an ongoing process however, it has come quite considerably from its first use for energy projects back from the early 1990s. In the present it is clear that the Philippines has the capability and the experience to take on massive infrastructure projects that have high impact.
Opportunities for collaboration with infrastructure-related projects within the Philippines
An increasing number of foreign businesses are looking to partner with local firms for construction projects for the Philippines. While local businesses lack the required know-how and financial resources required to complete huge, complicated infrastructure-related projects, they’re keen to collaborate with foreign companies that can help make up the difference by bringing specific construction expertise and experience.
Below are some reasons that foreign companies should look into collaboration with local companies from the Philippines. Learn more about ways to make the maximum of opportunities for collaboration within the infrastructure industry in the Philippines.
Opportunities for business expansion
International expansion can bring many advantages such as a better income stream and higher profits. There are also a variety of challenges, like choosing the best workplace and overcoming the barriers to communication. This article will provide a summary of the most important aspects for companies looking to expand into the Philippines.
Find out more here. We’ll also talk about how to maximize the advantages of international expansion to the Philippines. Here are five tips to consider when considering the expansion of your business internationally.
