The Philippine government is aware of the importance of engaging the private sector in the development of infrastructure, but past infrastructure projects have been dominated by government-run entities. As a result, the bulk of projects still follow the traditional procurement model. However, the government is now working to increase the participation of the private sector in infrastructure projects, as this can be a great way to improve the quality of such projects. Here are some of the benefits of engaging the private sector in infrastructure Philippines development:
Infrastructure needs to be modernized to improve national competitiveness
President Biden’s initial proposal for infrastructure spending outlined a $2 trillion investment in our nation’s transportation networks and public transit systems. The plan included tax increases on corporate inversions and book income, along with substantial amounts of funding for transportation networks. Other priorities in President Biden’s bill include workforce development and an increase in caregiving services. While this plan focuses on modernizing America’s infrastructure, it is still an ambitious undertaking.
The state of U.S. infrastructure is well past its original life span due to underinvestment. Since the 1960s, the population of the U.S. has nearly doubled. In addition to resulting in crumbling infrastructure, deteriorating infrastructure costs businesses and individuals money. Explicit costs include lost productivity and time due to traffic congestion, delayed shipments, and disruptions. And while infrastructure investment is critical to our national competitiveness, it is not without its risks.
It lacks in ICT, transport and mobility, water resources, power and energy
Africa faces several challenges, mainly in terms of the availability and affordability of power and water. While many developing countries have the infrastructure required for energy and water services, some countries are lagging behind in these areas. Africa’s aging infrastructure, limited access to affordable power and water, and high levels of pollution pose significant risks. Fortunately, some innovative solutions are being developed to address these issues.
The development community must aggressively explore ICT solutions to address these challenges. The use of ICT can make a significant impact on the global public good by providing a platform for more efficient and reliable energy supply. ICT can improve the efficiency of energy systems and reduce the environmental footprint of the sector. The adoption of ICT in the energy sector will improve grid efficiency, power effectiveness, and the integration of renewable energy resources.
It lacks in power and energy
The country faces operational challenges, which are a major hindrance to attracting foreign investment. Last May and June, the country was hit by a spate of power outages in the capital, Luzon. The economy was crippled, with days without electricity. The Ramos administration resolved the problem by exercising emergency powers granted by the 1991 Energy Crisis Act and concluding contracts for new power generation. But it will still take years before renewable energy is priced on par with coal fuel.
This shortage has affected the country’s economy since the late 1990s. Over 30% of the population is living without electricity, and many households are experiencing brownouts – intentional drops in voltage. Brownouts happen when the system is overloaded with increased demand. Energy providers respond by reducing power to avoid a blackout, which affects the lives of Filipinos. The Philippines has the largest population of people living without electricity.
It lacks in ICT
The Philippines’ government has placed great importance on ICT as a key factor in the country’s development. The government enacted the Department of Information and Communications Technology Act of 2015, which aims to promote and strengthen Filipinos’ access to modern technology. To take full advantage of the information economy, the Philippines must ensure that it has adequate and reliable ICT infrastructure. The lack of such infrastructure is a key barrier to inclusion.
The Philippines’ telecommunications and electricity systems are crucial for access to computers. According to the National Electrification Administration, 80 percent of the country’s barangays are energized. In contrast, Western Mindanao and Central Mindanao have no electricity. According to the National Telecommunications Commission, the Philippines has an average of nine telephone lines per 100 residents. But only 3 million subscribers are actually using these lines.