Infrastructure delays may disrupt developers’ plans beyond Metro Manila

Further delays in mass transport projects may complicate property developers’ expansion plans outside the National Capital Region (NCR), as improved connectivity is a key factor in unlocking new growth areas, analysts said.

“One way to temper the lackluster demand in Metro Manila is to be more aggressive in expanding outside the capital region; developers are also hinging their expansion on these infrastructure projects,” Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said.

“These delays will likely stall the development strategies of developers outside Metro Manila,” he added.

Among the causes of delays in major mass transport projects are right-of-way (RoW) issues, budget constraints, and procurement and technical challenges.

“Infrastructure project delays may affect the credibility of the National Government in delivering economy-enhancing projects, which, in turn, could indirectly negate investor appetite for the Philippines,” Havitas Properties President and Chief Executive Officer Jonathan F. Caro said.

For instance, delays in the North–South Commuter Railway (NSCR) could affect key developments outside Metro Manila.

The Department of Transportation recently established a Flagship Project Management Office to accelerate the implementation of key mass transportation projects, including addressing RoW challenges.

Big-ticket projects under its monitoring include the NSCR, the Metro Manila Subway Project, the EDSA Busway Project, the EDSA Greenways Project, the Cebu Bus Rapid Transit, and the Davao Public Transport Modernization Project.

Both investor and buyer confidence rely on the timely delivery of public infrastructure projects, said Spike Alphonsus Ching, project director at PH1 World Developers.

“Delays or unmet expectations could erode confidence, particularly for developments meant to benefit from these projects. However, once these projects are completed, we expect a positive impact on the market, as enhanced connectivity unlocks new growth opportunities for both investors and property owners,” he said.

Delays in mass transport projects could also affect the development of luxury properties, which are primarily located outside the capital region.

“You can’t live there if you can’t get there,” Bill Barnett, executive director of Thailand-based hospitality consulting group C9 Hotelworks, said.

Mr. Barnett added that mass transportation infrastructure is necessary to further develop metropolitan areas in the countryside.

“For luxury real estate like branded residences, there is strong opportunity outside traditional areas like Makati, BGC (Bonifacio Global City), and the Bay Area, but the catalyst for change has to be a large-scale commitment to mass transport,” he also said.

Source: Business World

Poorest regions left out in transport projects

The National Capital Region (NCR) is set to receive 85 percent of the P181 billion budget of the Department of Transportation (DOTr) for 2025, raising concerns on the financing distribution for mass transit.

An analysis conducted by the Congressional Policy and Budget Research Department (CPBRD) showed that NCR will obtain 85 percent, or P153.61 billion, of the P180.89 billion allocation for the DOTr in the 2025 National Expenditure Program (NEP).

On the other hand, the CPBRD said the poorest regions in the archipelago—Zamboanga Peninsula, Bangsamoro, Bicol Region, Eastern Visayas, Northern Mindanao and Soccsksargen—would get below one percent.

Even Central Luzon and Southern Tagalog, which are closest to NCR, will pick up less than one percent of the DOTr budget next year. Central Luzon is allocated P531.7 million, while Southern Tagalog is earmarked with P397 million.

Based on the budget breakdown, tourist hotbed Western Visayas will secure the largest budget by region next to NCR at P7.15 billion. Central Visayas, home to metropolitan district Cebu, comes third with P6.41 billion, while the DOTr Central Offices ranks next with P4.16 billion.

Citing estimates from the Japan International Cooperation Agency, the CPBRD said it is crucial to speed up the movement of people and goods in NCR, as it is losing at least P2.4 billion a day to traffic congestion.

However, the CPBRD said the Metro Manila bias can only be justified if the DOTr expedites the completion of big-ticket projects in the capital, particularly railways.

For 2025, the DOTr will receive P63.91 billion for the North-South Commuter Railway (NSCR) and P39.37 billion for the Metro Manila Subway Project based on the NEP.

In 2023, both NSCR and MMSP posted obligation rates of more than 92 percent. In spite of this, the projects’ disbursement rates failed to surpass the 67 percent mark, signaling slow progress.

The CPBRD saw similar struggles in the construction of foreign-assisted railways, including the Light Rail Transit Line 1 Cavite Extension and Philippine National Railways South Long Haul. As a whole, the DOTr saw its obligation and disbursement rates fall to 71 percent and 41 percent, respectively, in 2023.

The DOTr justified the Metro Manila bias of its budget in a legislative hearing in August, saying the bulk of the funds are just parked in NCR because the agency is headquartered in the region.

Still, big-ticket projects like the NSCR, which will pass through Central Luzon, Metro Manila and Southern Tagalog, are supported by the allocation for NCR.

Source: Inquirer

Roads are for people

Because our roads and bridges are arguably our most visible, ubiquitous and valuable public asset and because their use is generally offered for free, it is important to ensure that they are developed and used in a fair and efficient manner that delivers the greatest good for the greatest number. Unfortunately, this is not the case because most of our roads and bridges have been designed to move mainly four-wheeled motor vehicles, often to the exclusion or endangerment of other travel modes.

While it is true that road and bridge development helps to reduce the cost and time of transporting goods and services, benefiting all Filipinos, there is a negative and harmful side to road development when it ends up mainly serving and benefiting people in cars, neglecting the transportation needs and safety requirements of those in the vast majority.

When roads and bridges are designed to serve mainly four-wheeled motor vehicles, it deprives other users of adequate and safe road space; it also ends up encouraging people to choose private motor vehicles as soon as they can afford to — a damaging trend that goes against the country's health, environment, road safety and mobility objectives.

This pattern of road development also delivers a huge subsidy for the more affluent and privileged segments of the Philippine population (Filipinos who own cars) at a time when limited public resources should prioritize the needs of the vulnerable and disadvantaged. This is an anomaly and injustice that needs to be rectified urgently, given that a huge part of our public spending continues to be devoted to road and bridge infrastructure.

Most roads are built without considering the travel needs and behavior of the majority of road users — those who travel on foot, by bicycle or by public transportation. Even though only 6 percent of Filipino households are car owners, Philippine roads and bridges are constructed as if the main road user is the person inside a car while the most efficient, clean and health-inducing modes of travel are hardly given any attention.

Despite road design standards that require safe and sufficient spaces for pedestrians, sidewalks even on the busiest roads are considered "optional" and often missing. Many new roads are constructed as simply high-speed carriageways for motor vehicles (excluding any sidewalk or bicycle lane). Pedestrians and cyclists are endangered because they are forced to mix in the same space with motor vehicles (this includes the numerous schoolchildren walking or biking to school daily).

When roads are expanded to create more lanes, sidewalks are removed or are reduced to almost nothing. The conversion of a sidewalk into parking spaces for cars is a violation of both the traffic and building codes, but such violations are committed everywhere with impunity. Safe and fully accessible sidewalks that can be used by persons with disability are a rarity in the Philippines, even though several long-standing laws have made it a requirement.

Not only is this practice of vehicle-centric road design unjust — it also means that our most significant infrastructure asset is dedicated to serving, and promoting the least efficient and most environmentally damaging mode of transportation — the private car — while the specialized road infrastructure needs of road-based public transportation, which can move large numbers of people efficiently, are largely neglected or ignored.

When roads are built or expanded, even the busiest urban ones, there is no thought to planning proper transit stops or stations. Even though more Filipinos use buses and jeepneys every day than private cars, the only example of a dedicated lane for public transport exists in the EDSA Busway. Apart from the waste and inefficiency related to this omission, it also sends the message that public transportation is not important and that the needs of those in private cars come first.

We have already observed our downward spiral of declining mobility and the many Filipinos who endure very long and costly commutes. With more motor vehicles on limited road space, traffic, heat and pollution get worse, affecting even those in cars. More Filipinos avoid walking, cycling and going outdoors, leading to physical and mental health issues. With so much inefficiency and hardship to move around cities, productivity diminishes and with it our competitiveness and attractiveness as an investment destination.

We need to be concerned, not only about the quantity of our road infrastructure, but more importantly its quality and inclusivity. Turning things around begins with recognizing that roads are for people. Roads and bridges need to serve the needs of different users. Roads need to be designed (or rehabilitated) to give full meaning to the directives in the National Transport Policy and in the Philippine Development Plan 2023-2028 that public transport, pedestrians and cyclists deserve priority over private motor vehicles.

We need roads that offer safe pathways for Filipinos to walk or cycle, especially in urban areas. We need roads that enable public transportation to move efficiently, as much as possible without friction with private vehicles. To reduce the volume of motor vehicles on already congested roads, we need to begin applying mechanisms to influence the travel modes that people choose — measures like road congestion pricing and parking charges. If we can do this, we will also be encouraging car users to leave their cars at home, which ultimately will deliver a better travel experience for those who have no option except to use a private car.

The future that we need, and the future that will be better for all in our society, is one where public transport, walking and cycling are the preferred travel options instead of a private motor vehicle, even if one owns one. We need to work toward that future.

Source: Manila Times