Other regions have to wait as govt moves funds to rebuild E. Visayas

The Philippines was already playing catch-up with neighboring countries in infrastructure. Super typhoon Yolanda has pushed back plans to improve and add roads, bridges and schools in other parts of the country, as authorities devote government resources to rebuilding flattened towns and cities.

 

Neri said a significant infrastructure boost in Yolanda-stricken areas is only “seen to start second quarter.”

 

In a separate telephone interview Friday, Metropolitan Bank & Trust Co. research head Ildemarc Bautista said: “Most efforts are focused on relief. The private sector and the government are still evaluating what needs to be done.”

Healthy fiscal space and an accommodating financing environment allow elbow room to fund reconstruction.

 

Counting the costs

 

Some P38.8 billion in government funds have been “approved in principle” by President Benigno Aquino III to bankroll “critical and immediate interventions” that include housing assistance and repair of classrooms, public markets and hospitals, Socioeconomic Planning Secretary Arsenio Balisacan said in a press briefing Thursday. 

 

Cabinet secretaries have been huddled in meetings to firm up a longer three- to four-year rehabilitation plan that could include tedious mapping of affected areas and even the relocation of infrastructure. 

 

“Agencies continue to conduct damage and loss assessments, gathering more detailed information and validating available data, in cooperation with local government units and development partners working on the ground,” the National Economic and Development Authority said in a statement Thursday. 

 

As of Friday morning, the National Disaster Risk Reduction and Management Council estimated damage to infrastructure, mostly transport networks and schools, at P12.283 billion. The price tag is only expected to go up as more reports come in. 

 

The state can fund immediate rebuilding, said Balisacan, but cautioned: “What we need, perhaps, are resources for the medium-term interventions that will require facilities.”

 

While a liquid financial system, below-cap budget deficit, and soft loans and realignments from development partners could ease financing for rehabilitation of Yolanda-stricken areas, these only serve to “take away from funds that could be used for new infrastructure,” said Neri. 

 

The Aquino administration wants to hit the 5-percent ratio between infrastructure spending and the country’s gross domestic product by the time its term ends in 2016 to address an infrastructure lack, which the World Economic Forum says is the country's top problem in attracting investors. 

 

This is on top of infrastructure projects under the Aquino administration's public-private partnership (PPP) program. 

 

PPPs post-Yolanda 

 

In an interview Thursday night, PPP Center executive director Cosette Canilao said the agency has been meeting with economic managers and private sector participants on how the flagship infrastructure program can expedite the rebuilding. 

 

“From the PPP side, tinitignan namin kung papaano makakatulong yung private sector ma-accelerate yung reconstruction, especially the schools,” she noted. 

 

Of the roster PPPs, the second phase of the nationwide classroom building project meant to address a classroom shortage took the brunt from Yolanda. 

 

“Talagang magbabago yung specifics. For example, yung location. May mga areas na hindi na pwedeng tayuan. Tapos, imbis na how many classrooms lang ang i-coconstruct... Yung iba, buong school na ang kailangan,” Canilao said. 

 

Some proposed PPP projects have to reviewed, but those in advanced stages and others that were bid out are still seen to hurtle forward as these are mostly in Metro Manila and the Northern Philippines. 

 

Balisacan said: “We really need the private sector to come in quickly.”

 

Build better, lasting infrastructure

 

For all the pain and destruction it has caused, Typhoon Yolanda has at least served to open the gate for improved infrastructure in a region left behind. 

 

“It may be an opportunity for the government to significantly upgrade infrastructure, to come out with grander plans and better outlays,” said Neri. 

 

Balicasan said the unified post-Yolanda recovery and rehabilitation plan, which is a work in progress, includes building infrastructure that “are structurally sound. 

 

“It's a full range of activities from early recovery and reconstruction toward better, resilient communities,” he noted. — JDS/HS, GMA News