Saturday, September 4, 2010

Boom in RP ‘to continue for years’


UNLIKE other countries in the Asian region, the country’s private sector is “booming” and may continue to do so for the next few years, those in the construction industry said.

Philippine Constructors Association president Levy Espiritu said their organization is advocating for more private-public partnerships to continue this development, specifically on infrastructure projects.

“We are only lagging behind in infrastructure,” Espiritu said during the launching of the Philconstruct show yesterday.

He said the multi-national donors all want to come in but only if the private sector is in partnership with the government.

He said this can be done through solicited proposals, saying it is this way that donors can be assured that a project is open, competitive and transparent.

Espiritu said this was why the PCA is advocating for more private-public partnerships, adding that if these partnerships push through, the “boom” will continue for another four to six years.

PCA past president Emilio Tumbocan said the general outlook for the country is that there will be four to six percent growth in the GDP for the next few years while interest rates will remain stable.

He added that the government deficit is going down while remittances from Overseas Filipino Workers (OFW) continue to go up despite the global recession. He pointed out that 25 percent of OFW remittances are spent on housing.

Other good news for them is that the business process outsourcing will continue to grow “by leaps and bounds” and that the new administration is committed to an environment of transparency.

Tumbocan, however, pointed out that the country’s infrastructure is 20 to 25 years behind.

“We face a problem in delivery and execution of what is required of this country to move forward,” Tumbocan said.

PCA executive director Manolito Madrasto, meanwhile, said an indication of growth is that construction firms are beginning to have a hard time sourcing materials such as cement and steel.

He is convinced that the economy is moving because of real estate development.

“Investments are coming. That’s why we have to make sure we can deliver so they can keep on coming and we can keep on expanding,” Madrasto said.

He added that even Japanese firms are bringing in their money to the Philippines because interest rates in their country are “negative.”

“Let us take advantage of his unique situation,” Madrasto said.


Published in the Sun.Star Cebu newspaper on September 3, 2010.

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