Accelerating the transport infra agenda

When people are appointed to a position, they are usually expected to take some time learning the ropes, so to speak, or gathering knowledge on what the job entails. For some, the learning curve is steady; for others, it could be steep.

Newly appointed Transportation Secretary Vince Dizon has no such problem. He is most definitely hitting the ground running.

I have known Dizon for many, many years, starting from his days as an outstanding associate here at the Stratbase Institute. I never doubted that this young man would go places given his natural intelligence and leadership, and his keen sense of what is urgent and what will be the next big thing. His career path led to such key posts as presidential adviser for flagship programs and projects, and president and chief executive officer of the Bases Conversion and Development Authority.

In this latter role, his leadership was instrumental in projects such as the New Clark City and the Clark International Airport’s new passenger terminal building. He also had some experience in the private sector as chief regulatory officer of Prime Infrastructure Holdings.

All these will be instrumental as he takes the helm of the Department of Transportation (DOTr), which is saddled with numerous strategic challenges.

Dizon’s main task is to help implement the government’s flagship infrastructure program, “Build better more (BBM).” The BBM program seeks to sustain annual infrastructure spending at 5 to 6 percent of the Philippines’ GDP. It is composed of 186 infrastructure flagship projects on physical connectivity, water resources, agriculture, health, digital connectivity, power and energy, education, and other infrastructure, which are collectively worth P9.60 trillion.

The Marcos administration’s acknowledgment of the importance of public-private partnerships (PPP) represents a strategic shift toward more balanced and dynamic development strategies. It is through PPP that the infrastructure needs of the Philippines will be expedited. It is an avenue to build a culture of cooperation that can, in turn, drive long-term development and progress.

But while these plans are sound and good for the country, the administration does not have a lot of time; it appears that some prioritization is in order if officials truly want to make the best of the remaining half of the administration.

In the transportation sector alone, there are so many contending issues that need to be addressed. However, we believe that railway and mass transport projects must be its focus, given its potential contribution to the economy through the number of people and the volume of goods and services that would be affected.

Specifically, railway and mass transport projects will help address traffic congestion and mobilize products and services. Expanding rail networks—which face a significant number of challenges, particularly in terms of project execution, cost overruns, and the management of critical infrastructure developments—ensures long-term solutions to urban congestion and interregional connectivity.

We can think of at least three strategic railway projects that must be advanced.

The North-South Commuter Railway is currently experiencing delays due to issues in right of way (ROW) acquisition. There are also unpaid claims from contractors amounting to P26 billion. The PNR line was also closed last year, specifically the Alabang to Tutuban route. However, no construction has been made.

Thus, if the DOTr is committed to delivering high-impact projects such as this, addressing ROW is the first step to move the project forward.

Another rail project is the MRT 7, a project led by the San Miguel Corp. This has also been long delayed, with still no movements in the road component that includes a 22-kilometer highway to connect San Jose Del Monte, Bulacan to the Bocaue/Balagtas Interchange at North Luzon Expressway.

Finally, the LRT 1 Cavite Extension from Sucat Station to Bacoor Station must be pushed, as do projects to connect LRT-1 from Roosevelt (FPJ) Station to the Grand Central Station in Trinoma.

Thus, the main tasks would be to ensure that critical railway projects move forward in the project development cycle, resolve ROW issues and payment to contractors, and ensure interconnectivity among transport modes for a more seamless commuter experience.

Dizon will no doubt take stock of what have been accomplished by his predecessor to assess the progress of all projects across different stages of the project development cycle and build from there. He knows the demands of the job, and I can only wish him luck and assure him of our support.

—————-

Dindo Manhit is the founder and CEO of Stratbase Group.