Philippine Development Plan 2023-2028 - Infrastructure PDF

CHAPTER 12 Expand and Upgrade Infrastructure Enabling economic transformation builds on sustainable, resilient, integrated, and modern infrastructure systems as a solid foundation. Anchored on the long-term vision, the government will steer the nation toward a future where movement of people and g...

CHAPTER 12 Expand and Upgrade Infrastructure Enabling economic transformation builds on sustainable, resilient, integrated, and modern infrastructure systems as a solid foundation. Anchored on the long-term vision, the government will steer the nation toward a future where movement of people and goods is safely and efficiently facilitated by adequate and accessible transportation. Filipinos are empowered through cost-effective and reliable flow and exchange of information and are able to partake opportunities in the digital economy. Families have access to safe and adequate water and sanitation services; to reliable, clean, and affordable fuel and electricity; and to quality education, health, solid waste management and other social infrastructure facilities. Communities and industries are served by green infrastructures that are not only adaptive and resilient against shocks and natural disturbances, but also contribute toward a low-carbon future. Assessment Annual public infrastructure spending in facilities and services remain inadequate 2017–2021 during the administration of in terms of accessibility, quality, safety, former President Rodrigo Roa Duterteranged and affordability. Moreover, the country’s from 4.2 percent to 5.8 percent of gross domestic continuing vulnerability to climate change product (GDP), which is nearly double the already threatens infrastructure provision average annual spending over the previous and operation and thereby undermine decades. Overall, however, infrastructure significant infrastructure investments. Connectivity Mobility of majority of Filipinos is hampered New mass transit railways were also approved by inadequate transportation facilities. in the last six years, with the two largest now There is a shortage in public transport supply. under construction. While a drop of 68 percent This is evidenced by long queues of commuters in total rail ridership was recorded from 2019 and passengers who spend long hours waiting (327.68 million) to 2021 (103.79 million),2 for their rides, and, when they get one, stand ridership increased by at least 23.45 percent inside buses or trains overcrowded with from January (9.14 million) to May 2022 other commuters. (11.94 million).3 Should this trend continue and as the economy opens up after the coronavirus The Philippine rail system’s capacity disease (COVID-19) pandemic, the existing rail is inadequate to meet the ridership network will not be able to accommodate the post-pandemic. The country has four increasing demand, which rose as high as 29.4 operational rail lines with a total length of million monthly ridership in 2019 to the 2022 76.9 km.1 Meanwhile, the number of train cars total capacity of about 31.8 million per month.4 increased to 978 in 2022 from 224 in 2016. Chapter 12 Expand and Upgrade Infrastructure | 265 Transport facilities deemed inaccessible and Board Service Contracting Program (SCP) unsafe, especially for vulnerable groups. Phase III, versus the target of 93,000,000. According to the National Council on Disability While the SCP has provided a means for public Affairsin in 1982, the physical design of the transport operators and drivers to sustain their rail infrastructure falls below the standards set operations as more economic sectors open in the 1982 Accessibility Law,5 and thus makes post-pandemic, the program does not cover them difficult to access and use by pregnant the whole country and cannot be sustained women, parents with very young children, given the tight fiscal space. older people, and persons with disabilities (PWD). Stations with non-functional Use of active transportation is still not elevators and escalators, defective restrooms, popular. The Department of Health (DOH) missing signages, poor security measures such has issued guidelines promoting the safe use as lack of security cameras, overcrowding, of active transport, while the Department of and insufficient lighting in passenger set Public Works and Highways (DPWH) has down further aggravate the risks of accidents, issued an order prescribing the standards on crime, and violence faced by commuters, the design of bicycle facilities along national especially females. Gender-based violence, roads.7 To fund the building and maintenance sexual exploitation, abuse, and harassment of bike lanes and other active transport and discrimination are common and possibly facilities, the government allocated total of under-reported in public spaces including the PHP 3 billion from 2020 to 2022. While there transport sector.6 are four households that own bicycles to each household that own a car,8 only 29 percent of Shortage of road-based public transportation households use their bicycles to go around persists in many urban areas. Since 2003, public transport services franchising has been Road traffic fatalities are increasing in the under a moratorium. This has not helped Philippines. Road traffic accidents exact a reduce the shortage of public transport in heavy toll. Approximately 12,000 Filipinos many cities. Besides being obsolete, most of die on the road each year, while the resulting the public transport fleet in 2022 also do not injuries cost about 2.6 percent of the country’s comply with modern design and emission GDP in 2018.9 The government does not have standards. Meanwhile, the rollout of the a yearly budget allocation for road safety. Public Utility Vehicle Modernization Program While progress has been made in maritime launched in 2017 has progressed slowly since transportation, issues on infrastructure many vehicle owners found the financial terms quality remain. Improvements were pursued of the program unattractive and the funding with the opening of the Matnog, Sorsogon support from the government in the form of to Bogo City, Cebu roll-on/roll-off (RORO) subsidy for vehicle procurement was limited. route, and the issuance of the revised rules As of September 14, 2022, a total of 174,164,758 in the grant of missionary route status for riders have benefitted from the Land RORO passenger ships, and the development Transportation Franchising and Regulatory of the Maritime Route Rationalization and 266 | Philippine Development Plan 2023-2028 Information System.10 Nonetheless, only in prolonged or repeated closure of roads and a limited number of RORO vessels can be higher construction costs. accommodated under the size of the country’s RORO ports in 2022. RORO vessels that serve There are no operational cargo and/or medium-sized ports are smaller compared to freight rail services in the country. The RORO ships that use the Port of Manila. The movement of goods over land is limited to fleet of inter-island ferries is also aging, posing road-based transportation options; rail-based safety risks to commuters. transportation options are non-existent. As such, long-, medium-, and short-distance Little progress has been made to improve shipping by land is done by trucks, which adds airport infrastructure. The country has a total to road traffic congestion and to logistics cost. of 90 airports in operation—comprising 11 The roads leading to ports and airports often international, 41 domestic, 38 community— experience congestion and deteriorate faster and 3 airports not in operation in 2022. due to heavy truck loads. However, not all the country’s international airports and principal Class 1 and principal Port and ancillary facilities are insufficient Class 2 airports comply with modern safety and underdeveloped. As of December 2021, design thresholds, particularly the minimum about 336.56 million metric tons (MMT) of runway strip threshold width and night cargo was transported through the country’s landing capabilities. Proposed improvements port system compared to 133.74 MMT through to major gateways in the country were put airports. Meanwhile, 99.98 percent of the total on hold and are being re-assessed to consider domestic trade in 2021 was transported by sea, new projections in aviation demand. Travel and the rest (0.02%) via air.11 limitations, lockdowns, and hampered Despite the maritime sector’s critical role in business operations due to the COVID-19 the transport of goods, most of the country’s pandemic caused the decline in passenger ports are operated inefficiently due to their traffic by 33.47 percent from 2020 to 2021. inadequate equipment and ancillary facilities. Over the same period, air traffic movement Such inefficiency is evident in the long queues likewise decreased by 54.70 percent. of cargo trucks at port areas. Cargo trucks sometimes wait for days before they are able Civil works and utilities installation along to board a RORO vessel. Such delays result roads are not coordinated. Road widening in poor reliability in the delivery cargoes and activities are not in sync with the relocation spoilage of perishable goods, further straining of electrical and communication poles, as well the food supply chain, among others. as pipe laying and other waterworks, causing traffic jams, road accidents, and other roadside Government-operated ports, especially friction. Prevalence of overhead electrical and those of local government units (LGUs), telecommunications cables and poles along have insufficient cargo-handling equipment. major thoroughfares poses hazards to road Existing LGU-operated ports have limited users. Meanwhile, the lack of coordination financial resources to procure the necessary between road works and waterworks results equipment and support infrastructure such Chapter 12 Expand and Upgrade Infrastructure | 267 as cold chain facilities leading to increased (Mbps) in September 202213 (from 4.3 logistics costs. Mbps in 2016). In this aspect, however, the Philippines consistently lags behind Automated logistics processes are not yet Singapore, Thailand, Malaysia, and Vietnam. integrated. To upgrade the country’s logistics Moreover, the domestic prices of fixed and network, Unified Logistics Pass (ULP) mobile broadband prices14 remained high, at was launched in 2022 that features a quick 11.56 percent and 2.04 percent of monthly response (QR) code issued to cargo trucks. gross national income per capita, respectively. This ensures unhampered movement of goods Both rates are above the global affordability and eliminates the various permits, licenses, threshold target (of below 2%). As evidence and pass-through stickers being required by of the persistent digital divide, only about 18 economic zones, ports, and local government percent of Filipino households have internet units. In addition, a single Transport connections,15 far below the average household Accreditation Permit and Pass for Ports penetration rate of 53.40 percent in the Asia- (TAPPP) is being implemented in all ports Pacific region in 2019.16 under the jurisdiction of the Philippine Ports Authority. While these initiatives have already Climate change is not systematically been introduced and implemented, their integrated in planning, design, operation, application is not yet integrated well in port and maintenance. Climate change does not operations across the country. Thus, trucks adversely affect connectivity alone, but also operating in both PPA and non-PPA ports, places a strain on the country’s economy. The such as those in the economic zones, need to resulting economic losses could be massive and have the two systems installed. This translates would require significant additional financing into additional overhead cost that could have to rehabilitate the damaged infrastructures. been avoided in an integrated system. Due to Typhoon Odette in 2021, 36 percent of seaports were rendered inoperational, Movement of information through digital creating logistics challenges and disruptions infrastructure steadily improved, but still in supply chains, especially for isolated islands. not enough. Driven by increasing demand In addition, some municipalities had limited of Filipinos to stay informed and connected, access to communication services for six recent years saw steady improvement in the weeks, which further hampered disaster relief quality of internet services with broadband and recovery operations. speed,12 reaching 78.69 megabits per second Water Resources The country has limited water resources. The groundwater. Based on the water permits annual freshwater potential of the Philippines issued by the National Water Resources is estimated to be about 146.0 billion cubic Board (NWRB) about 86 billion m3 (or 58% meters (m3), of which roughly 125.8 billion of the total freshwater available) is allocated m3 is surface water and 20.2 billion m3 is annually for various uses, whereby about 7.6 268 | Philippine Development Plan 2023-2028 billion m3 (5.6 billion m3 from surface water Irrigation service provision remains and 2.0 billion m3 from groundwater sources) inefficient and wasteful. National irrigation is used for domestic and municipal water use. systems (NIS) use about 68 billion m3 of water annually (about 80 percent of the country’s Universal access to safe, affordable, and annual available freshwater) to irrigate around sustainable water supply and sanitation 1.9 million hectares (ha) of farms (mostly services has yet to be achieved. Based on planted with rice). In comparison, only around the 2020 Annual Poverty Indicators Survey 52 billion m3 annually on average is used in (APIS) of the Philippine Statistics Authority, other countries to irrigate the same area and the main sources of water supply for Filipino crop type (for two cropping seasons per year). families were water piped into their dwelling This suggests that about 25 percent of the (54.1%), sourced from protected wells water delivered by the NIS is wasted that can (21.5%), communal sources such as public be otherwise saved with proper management. taps, and developed springs (16.0%). Less than 10 percent of them rely on “unsafe sources” such The country is highly vulnerable to as unprotected wells, undeveloped springs, water-related hazards. In a typical year, the rivers, ponds, lakes or rainwater, or bought Philippines experiences about 20 typhoons, from tanker trucks and/or water peddlers. of which eight make landfall and often hit several regions. Major typhoons such as In terms of access to sanitation facilities, about Odette (international name: Rai) in 2021 and 80.4 percent of Filipino families had “basic Ompong (international name: Mangkhut) sanitation service level” (i.e., used an improved in 2018, to name a few, have devastated the sanitation facility not shared with another country. These two typhoons led to 487 households), 13.5 percent had “limited-service fatalities, about PHP63.6 billion in damages level” (i.e., used an improved sanitation to infrastructure, and PHP44.4 billion in facility shared with two or more households). damages to agriculture. Besides typhoons, Again, less than 10 percent had no sanitation monsoon rains, the inter-tropical convergent facility (i.e., practicing open defecation), or zones and severe thunderstorms also visit and use “unimproved service level” (i.e., used pit leave damages in the country. latrines without a slab or platform, hanging latrines or bucket latrines). Energy Affordability, accessibility, and reliability are domestic manufacturing growth has lagged the three aspects of energy security. in recent decades relative to its neighbors. A previous study18 shows that high electricity The Philippines, historically, has one of the prices are one of the contributory factors why highest electricity prices17 in the Asian region the economic transformation of the Philippines (See Table 12.1). Consequently, the country did not follow the usual development patterns fails to attract foreign direct investment (FDI), seen in high-income countries.19 especially energy-intensive FDI—one reason Chapter 12 Expand and Upgrade Infrastructure | 269 As a net importer of energy, the Philippines (See Table 12.1). Electricity consumption per is highly susceptible to volatility in the capita in the Philippines is the lowest compared prices of fuel in the international market. to the other countries in the Association of Any major event affecting the value chain of Southeast Asian Nations (ASEAN). The lower fuels, such as the attack on two Saudi Aramco electrification rates and high prices in the oil facilities in 2019 and the Russia–Ukraine Philippines partly explain the low per capita war, impacted domestic prices. The continuing consumption. As of 2019, the Philippines escalation of fossil fuel prices in 2021 and had a 26.2 gigawatt (GW) capacity serving 2022 increased the risk of fossil power plants 111 million Filipinos. In comparison, Thailand, becoming stranded assets. Malaysia, and Singapore each has large power capacities serving smaller populations than Power supply is limited and per capita the Philippines. Transmission and distribution consumption is low. Comparing key economic losses have also been relatively high (9.4% of and energy indicators in select economies20 the total electricity output), suggesting an reveals that the Philippines has limited power inefficient grid and distribution system. supply and low per capita consumption Table 12.1 Key Economic and Energy Indicators in Select Countries Per capita Per capita Net Share of Population Per capita Electricity Residential electricity electricity installed renewables (million), GDP transmission Electricity generation consumption electricity in electricity 2021 (constant and Prices (MWh/ (MWh/cap), capacity production* 2015 US$), distribution (USc/ cap), 2020 2019 (GW), 2019 (%), 2020 2021 losses** (% of kWh,) output), 2014 Dec 2021 Philippines 0.88 0.90 26.2 23.5 111.0 3,412.6 9.4 16.3 Indonesia 1.00 1.00 66.8 13.2 276.4 3,855.8 9.4 9.6 Thailand 2.53 2.90 45.3 14.8 70.0 6,270.4 6.1 10.4 Malaysia 4.69 5.10 34.2 12.2 32.8 10,827.3 5.8 5.00 Singapore 8.60 9.50 12.6 2.0 5.5 66,176.4 2.0 18.3 China 5.37 5.10 2,064.7 28.3 1,412.4 11,188.3 5.5 8.1 Japan 7.44 7.90 346.5 24.6 125.7 35,278.4 4.3 32.6 South Korea 10.75 10.90 132.1 8.9 51.7 32,644.7 3.3 10.0 New Zealand 9.28 8.40 9.4 78.8 5.1 40,779.0 6.5 18.6 GDP = gross domestic product, GW = gigawatt, MWh/cap = megawatt-hour per capita. * Renewables include electricity production from hydropower, solar, wind, biomass and waste, geothermal, wave, and tidal sources. ** Electric power transmission and distribution losses include losses in transmission between sources of supply and points of distribution and in the distribution to consumers, including pilferage. Notes: Per capita electricity generation from Our World in Data; per capita electricity consumption are from International Energy Agency; and net installed electricity capacity are from United Nations Statistics Division. Population data, per capita GDP, and electricity transmission and distribution losses are from World Development Indicators. Residential electricity prices are from Global Petrol Prices. Sources: Our World in Data. https://ourworldindata.org; International Energy Agency. https://www.iea.org; United Nations Data. http://data.un.org; UN Statistics Division. https://unstats.un.org; World Development Indicators. https://data.worldbank.org Global Petrol Prices. https://www.globalpetrolprices.com Shocks brought changes in supply and gas plants decreased, but its percentage share demand patterns. Electricity consumption in terms of total generation increased. The dropped during the lockdown at the height of generation of other sources stayed at about the the COVID-19 pandemic. Coal generation fell same levels prior to the pandemic, with solar dramatically. Power generation from natural and biomass generation growing slightly.21 The 270 | Philippine Development Plan 2023-2028 indigenous Malampaya gas generates a third Right-of-way issues exacerbate the problems of the electricity in Luzon. With its impending and delays in completing transmission projects. depletion and absence of an indigenous There is also continuing threat to the resiliency replacement, there is an aggressive push of the grid due to disasters, both natural and to develop the liquefied natural gas (LNG) man-made. With insufficient level of ancillary industry. Two of the six projects approved services that helps maintain the proper flow by the Department of Energy (DOE)22 are and direction of electricity and address expected to supply the requirements of the imbalances between supply and demand, existing anchor markets of Malampaya. the problems on reliability of energy supply continue to persist. The national grid remains The frequent forced and unplanned outages of fragmented with the delayed implementation power plants resulted in supply deficiency that of the Mindanao–Visayas Interconnection. disrupted business operations. Total electrification is yet to be achieved. As Restrictions on foreign ownership of of 2021, 5 percent of Filipino households still inexhaustible energy projects have been live without electricity, bereft of the benefits relaxed. The Implementing Rules and including increased welfare and productivity, Regulations of the Renewable Energy Act of education, and improved indoor air quality.23 2008 restricts the exploration, development Majority of these unenergized households are and utilization of renewable energy (RE) located in Abra, Albay, Masbate, Basilan, Sulu, resources to companies or corporations that Tawi-Tawi, and Lanao Del Sur and are being are at least 60-percent owned by Filipino catered by ailing and problematic electric citizens, following the provisions of Article XII cooperatives (ECs). Nonetheless, as electricity of the Constitution. access is viewed a tool to uplift the lives of Filipinos, the government issued Executive Nonetheless, the Department of Justice (DOJ) Order (EO) No. 156 series of 2021 and recently released a legal opinion exempting RA 11646 or the Microgrid Systems Act.11. inexhaustible RE sources from 60:40 foreign equity/ownership restriction. On Many ECs are ailing financially. Outside of November 15, 2022, Department Circular No. the Meralco franchise area, electricity is mainly 2022-11-0034 was issued allowing 100 percent supplied by ECs. Most ECs face management foreign ownership of RE projects where issues, such as lack of long-term power supply applicable. This move is aimed at achieving the agreement, high incidence of power pilferages, government’s target to increase the share of RE unreliable distribution system (due to obsolete, in the power generation mix to 35% by 2030 aged or dilapidated distribution facilities), and 50% by 2040. and inability of customers to pay. Some ECs charge lower rates than private distribution Grid congestion continues to hamper utilities, but more brownouts and low-voltage the reliability of the energy supply. The episodes attend their power supply.24 To modernization of the grid to accommodate avoid unreliable power supply, firms that can more renewable energy is moving at a slow pace. potentially provide jobs and contribute to Chapter 12 Expand and Upgrade Infrastructure | 271 rural development choose to locate instead in the cost of doing business. Processing and areas served by private distribution utilities. approval of energy projects takes an average Consequently, the failure to attract more of 1,876 calendar days with 359 signatories investments that would increase demand in from 74 agencies required. The enactment of their services areas, in turn, contributes to the RA No. 11234 established the Energy Virtual low financial viability of these ECs. One-Stop Shop System to streamline the permitting processes for new power generation, Delays in the processing and approval of transmission, or distribution projects. energy projects unnecessarily increased Social Infrastructure The health system is characterized by an For instance, during Typhoon Odette in 2021, inadequate and inequitable access to health 210 health facilities were destroyed while the facilities. While the country has a total resulting water shortage increased the risks of capacity of 109,346 hospital beds in 2021, disease outbreaks. this translates to about one bed only per 1,000 population. As of October 2021, only Meanwhile, inadequacies in infrastructure 68 percent of barangays are covered by a rural support continue to hamper the attainment health unit and health center as opposed to of the goals in the education sector. As of DOH’s target of 80 percent. As reported in August 2022, there is still a shortage of around the Philippine Health Facility Development 91,000 classrooms, which is about 10 percent Plan (PHFDP) 2020–2040, only 50 percent of of the total needed classrooms.27 There are Filipinos in 2020 have access to frontline health still 2,298 “Last Mile Schools” in remote or facilities, i.e., within 30 minutes of travel time. marginalized areas with substandard and/or inadequate facilities and services.28 There are lingering inefficiencies still in the implementation of the Health Facilities The outbreak of the COVID-19 pandemic only Enhancement Program, wherein unutilized, exposed the insufficiency of infrastructure unimplemented, and improperly executed investment in the sector, particularly in contracts have been identified as a source information and communications technology of wastage in the use of funds, per a 2021 (ICT) support for learners, which made report from the Commission on Audit.25 distance or blended-learning more difficult Project implementation was also sidelined at for them. As of 2021, only about 80 percent of the height of the pandemic in 2020 and 2021 schools have functional computers while 65 to when temporary treatment and monitoring 70 percent have stable internet access. 29 facilities and other COVID-19-related health facilities (e.g., isolation and quarantine Nevertheless, there have been some gains facilities) were prioritized over frontline in the provision of other basic facilities. facilities.26 In addition, climate-related events For instance, 92 percent of public schools have also negatively affected the health sector. have access to electricity in 2021. Meanwhile, 272 | Philippine Development Plan 2023-2028 in terms of water, sanitation, and hygiene recovery facilities (MRF), and only 29 percent facilities, the ideal ratios for all levels of basic by sanitary landfill facilities (SLF)31. Solid education were achieved in 2021. The ratio for waste diversion (i.e., recycling, composting) the primary levels (K to 6) of 1:25 surpassed remained low at 54 percent as of 2021. the target of 1:30. Meanwhile, at 1:39 for junior high school level and 1:35 for senior high The National Solid Waste Management school level, both ratios have already met their Commission (NSWMC) passed a resolution common ideal ratio of 1:40. adopting Total Solid Waste Management Solution that will maximize waste diversion Damages to or suboptimal use of classrooms and optimize use of waste disposal sites. caused significant disruptions in classes. Nonetheless, diversion of plastic waste has From 2015 to 2020, the Department of been very low at nine percent with only Education reported 10,675 schools as heavily 489 LGUs adopting ordinances to regulate damaged by natural disasters (e.g., tropical single use plastics. cyclones, earthquakes). Meanwhile, 35,648 classrooms in 11,522 schools in the country The Department of Environment and Natural have been used as temporary evacuation Resources (DENR) has issued guidelines centers, thus displacing or suspending the governing waste-to-energy (WtE) facilities usual teaching or learning activities in them.30 for the Integrated Management of Municipal Solid Wastes. Likewise, DOE has issued Solid waste continues to be a significant policies and implemented programs that aim environmental issue. In 2020, the estimated to promote WtE facilities as baseload RE and volume of waste generated was close to prescribed policies and programs to enhance 17 MMT, with almost a third of the materials the participation of the electric power industry coming from Metro Manila. Only 39 percent players in the development of WtE facilities.32 of all barangays are served by material Challenges Infrastructure is critical to the economic but also for adequate maintenance and transformation of the country. The provision of rehabilitation. Thus, the major challenges for adequate, quality, sustainable, resilient, and safe the sector include financing of investments, infrastructure will require well-coordinated, coordination of plans and programs across huge investments not only for new agencies and across levels of government, and constructions, expansions and improvements, ensuring asset preservation and resiliency. Chapter 12 Expand and Upgrade Infrastructure | 273 Connectivity The implementation of the National and potholes), and lack separate lanes for Transport Policy is difficult without active transport. a National Master Plan and sufficient data. Due to limited transport-related Pursuing or expanding the current PUV data and guidelines for data collection and Service Contracting Program requires management, most of the existing demand appropriate balancing between enhancing data do not reflect evolving travel patterns service standards and fiscal sustainability. under new normal conditions. Transport Implementation of innovative transport demand surveys and master plans are not schemes such as service contracting first regularly undertaken or updated, and usually introduced in Metro Manila have yet to done only when assistance from development be replicated in other parts of the country. partners is available. Meanwhile, most transport operators and drivers remain strapped financially since they Public high-capacity transportation is unable are mandated to keep fares affordable despite to meet current and future demand. Mass high inflation and rising fuel costs. Extending transportation supply in the form of modern them coverage under the service contracting public utility vehicles (PUVs), busways, scheme however will require huge fiscal railways, and ferry systems is still inadequate. resources, which may not be sustainable, and As a result, the use of lower-capacity transport therefore needs to be carefully considered. modes like private vehicles is still prevalent and contributes to worsening traffic congestion, Air traffic congestion is likely to persist, if especially in highly urbanized cities. Transit not worsen, without the needed investments stations and intermodal interchanges lack in developing, upgrading and improving service standards and remain inconvenient, airports. Airport capacities in 2022 will uncomfortable, and inefficient. Poor last-mile be inadequate to cater to domestic and connectivity also discourages private motorists international aviation demand, which is from shifting to public mass transportation. expected to recover by 2025. Aggravating the congestion in many domestic airports is their Active transport will remain nonviable for lack of night landing capabilities. Meanwhile, commuters without adequate infrastructure the expansion of some existing airports may and support facilities. Although most not be technically and/or financially feasible. Filipinos are not car owners, for them active transport is still a nonviable commute option. Achieving universally accessible and For one, support facilities (e.g., bike storage gender-responsive transport facility designs and parking, shower facilities, and lockers) needs a shift in construction priorities and are insufficient. Moreover, transport corridors practices, and in carrying out coordination are designed to serve private motorists, are and advocacy. Although there have been many non-climate-responsive and unsafe (e.g., with laws and regulations that require transport poor lighting, uneven pavement, road hazards, facilities to be accessible for people with 274 | Philippine Development Plan 2023-2028 special mobility needs, compliance has been This is largely due to low-quality infrastructure, incomplete due to minimal investments in inconsistent regulations, and inefficient past decades. The physical designs of various operations. Flow of goods to and from infrastructure do not conform to the standards ports is limited by low on-site capacity for of the Accessibility Law, which is supposed to container storage and management. Funding ease the access to and use of such facilities by to modernize and equip government-operated those with special needs. Addressing the needs ports and LGU-operated ports is inadequate. of pedestrians, cyclists, PWDs, and public Intermodal transport facilities must be transport users by modifying the priorities prioritized to move goods effectively and and changing existing policies of road efficiently. However, there are only a few projects by national and local agencies are inland container terminals, and none of them the major challenges. Despite the enactment is connected to the port by freight rail. of the Safe Spaces Act and other laws, efforts have been weak and uncoordinated in Transport corridors supporting airports and addressing gender-based violence-sexual ports will continue to impede movement of exploitation, abuse and harassment and goods if not upgraded. Movement of goods discrimination in public spaces, especially in and services from gateways and production the transport sector. areas to markets is currently limited to road-based transportation options. However, Ensuring travel safety on road transport the roads leading to ports and airports are corridors while aiming to increase travel often congested and deteriorate faster due speeds poses a challenge. Travelling along to heavy truck loads. Moreover, lack of existing primary national roads could be coordination among government entities slower than 30 kilometers per hour when results in non-uniform and fragmented passing through an urban area with over regulations such as truck ban policies and 100,000 people. Adding to the travel delays pass-through requirements. Addressing these and to the hazards faced by road users, if not issues as well pursuing the plans to establish addressed, are the slow-moving vehicles plying long-haul freight rail and waterway transport along the national roads, uncontrolled PUV lines will speed up the transport of goods loading and unloading in road intersections; across the country. faulty traffic signals; illegally parked vehicles; on-going construction, maintenance, and The disparity in access to and high water works; electric and telecommunication costs of digital services in the country poles erected in roadside kerbs; and ambulant indicate inadequate investments in digital vendors plying their trade along carriageways. infrastructure. The outdated laws and existing regulatory regime are ineffective Low-quality infrastructure, inconsistent to address high entry barriers in the digital regulations, and inefficient operations leads services market, thereby limiting competition to high logistics cost. The Philippines has among service providers, affecting broadband one of the highest logistics costs and rates of prices, and restricting investments for congestion among ASEAN member-states.33 infrastructure buildup and expansion, Chapter 12 Expand and Upgrade Infrastructure | 275 especially in geographically isolated and disabilities) also remains digitally excluded disadvantaged areas (GIDAs). A segment of with the existing digital services not designed Filipino population (including persons with to cater to their special needs. Water Resources Effective management of the country’s water when comprehensive land use plans are resources is faced with numerous challenges. divorced or unharmonized from water use These include the multiplicity of water-related and resource plans. agencies without a clear and/or unified objective, increasing hydrologic variability Hydrologic variability and erracity further and irregularity under a changing climate, the complicates water resources management inadequacy of water-related information, the and planning. The increase in hydrologic poor planning and financing of infrastructure, variability (i.e., large fluctuations of seasonal the unaddressed competing and changing rainfall or extreme weather events) as an priorities of water infrastructure uses, and the impact of climate change is another major inefficient water utilization and delivery of challenge to the sector. Extreme weather events irrigation systems. such as intense rainfall (resulting in floods), strong winds and typhoons (resulting in storm The weak and fragmented institutional set-up surges), and prolonged hot seasons (resulting continues to be a fundamental hindrance in droughts and decreased agricultural in the sector. As of 2021, there are over 30 productivity) have become more frequent in water-related agencies with overlapping and recent years. Weather patterns fluctuate over at times conflicting mandates or functions time and vary widely in different parts of the over the country’s water resources. The lack country, thus requiring location-specific flood of coordination between said government and drought mitigation schemes, as well as agencies and the varied users of the resource water infrastructures that are adaptable to results in unintegrated or “siloed” planning and changing climate conditions. Climate change policy-making, characterized by subsector-, effects on the water cycle will continue to program-, or project-specific government strain built infrastructures through increased interventions in water supply, sewerage and evaporation, salinization, and physical sanitation provision, irrigation delivery, flood damages. These will not only affect service management, watershed management, and provision efficiency, but also incur recovery coastal management, without proper regard costs, economic losses, and societal impacts. for the other uses of the resource. Water decisions and financing priorities are often Water-related data collection remains made according to political jurisdictions and inadequate. The inability of the government influences without due regard for hydrologic to properly assess the state of water resources boundaries such as river basin or aquifer in the country is due to insufficient and boundaries as planning or management units. scant water-related data collection, in as Said fragmentation issue is further aggravated far as time–space sampling frequency and 276 | Philippine Development Plan 2023-2028 consideration of climate projections on water Competing and changing priorities of cycle are concerned. For instance, the DPWH’s water infrastructures remain unaddressed. Bureau of Design only has a total of 249 A challenge in multi-purpose water streamflow gaging stations all over the country. infrastructures is the competing priorities Groundwater data is also scarce and generally of the different water users involved with collected either on project basis or during the its operations. For example, when a dam’s conduct of well development pumping tests design is built for the purposes of water for one-time water permit applications. There supply, irrigation, and hydropower, the are no proper management or surveillance reduced irrigation water allocation due to the techniques to detect users that extract surface conversion of agricultural areas to residential, water or groundwater excessively. The impacts commercial, and industrial areas, results in of watershed degradation especially by the under-utilization and reduced power deforestation, which results in excessive soil generation of its hydropower plant. Likewise, erosion and reduced water infiltration, are not a multipurpose reservoir with water supply as properly monitored. its primary purpose will prioritize conserving water for the dry season by accumulating Poor water infrastructure planning, water during the wet season, and yet its flood financing, and management persists. The control function would require ensuring absence of an updated and comprehensive available reservoir capacity for flood allocation inventory of all water-related infrastructure storage by releasing water before the expected (e.g., water supply, irrigation facilities, and heavy rainfall. flood control infrastructures) hinders the facilitation of a harmonized rehabilitation Existing irrigation infrastructure facilities and maintenance program, leading to require significant overhaul or redesign. The the unmanaged deterioration of many use of open irrigation ditches or canals is prone water-related infrastructures. Said challenge to leakage due to damages during the typhoon is exacerbated by the inadequate financial season. Likewise, open canals are susceptible and technical capacities of institutions in to sedimentation, thus, reducing the canal’s planning and implementing water related capacities resulting in water spillage and slow infrastructure projects. water conveyance. Energy The challenges in the sector are making energy of the Electric Vehicle Industry Development more secure and cost-competitive, achieving Act is desirable for low-carbon growth, the an optimal energy mix and adequate energy switch to electric vehicles is expected to supply, and ensuring efficient delivery of increase electricity demand. Thus, there is an electricity and judicious use of energy. With urgent need for a replacement to the depleting Ambisyon Natin 2040, electricity consumption Malampaya gas to avoid supply shortage. was projected to grow to nearly four times its Mandatory and preferential dispatch of RE34 2019 level by 2040. While the implementation is expected to boost RE investments; however, Chapter 12 Expand and Upgrade Infrastructure | 277 such policy must not conflict with the objective is also an immediate challenge. Achieving of reducing energy costs. Likewise, cushioning energy security likewise requires resiliency the impact on low-income households of against climate-related events that cause rising energy prices brought about by the power disruptions. continuing disruption in the global value chain Social Infrastructure The state of the Philippine health inadvertently constrains the public’s access to infrastructure has to catch up with globally health care. accepted standards. The country’s public spending on health is at 1.69 percent of GDP Poor implementation and disasters resulted (in 2019), which is among the lowest in the in the weak delivery and inefficient use of ASEAN35 and is very far from the 4–6 percent education facilities. Disbursement of the of GDP level of spending needed to attain Basic Education Facilities Fund remains low universal health coverage.36 The country’s with an average rate of 48.4 percent from health system remains hospital-centric. 2017 to 2021.38 This resulted in the actual Hospital care accounted for 50 percent of delivery of only 44 percent of the targeted total health spending in 2018. Primary care classrooms from 2018 to 2021.39 Among the accounted for only 4 percent in same year.37 problems encountered in the implementation Corollary to this, average bed density in of school infrastructure projects include the Philippines is way below the four beds site unavailability, rigid pricing and per 1,000 population recommended for an specifications, procurement issues, and upper-middle-income country. delayed identification of project list.40 As proven during the COVID-19 pandemic As the country is highly vulnerable to natural and in times of natural disasters, the health disasters, the lack of infrastructure dedicated infrastructure is still not ready to respond for disaster and calamity preparedness and to public health emergencies. In addition to resilience will continue to exacerbate the the continued provision of essential services, inadequacy of classrooms, which are used as capacities for basic epidemiology and disease temporary evacuation centers. surveillance, especially at the subnational level, need to be enhanced. Solid waste management (SWM) facilities remain inadequate to cope with the increasing While the Philippine Health Facility rate of waste generation, especially in urban Development Plan 2020–2040 was formulated areas. Majority of local areas are still unserved to guide the equitable development by common waste facilities, including material of the country’s health infrastructure, recovery facilities and by sanitary landfill its implementation is challenged by facilities. The sector continues to be hampered uncoordinated planning and lack of sustained by the following challenges, among others: financing causing substantial delays and 278 | Philippine Development Plan 2023-2028  (a) lack of updated data on sources and (e) availability, suitability, and social composition of waste; acceptability issues in site selection for (b) lack of clear policy direction on common waste disposal facilities; and clustering of LGUs; (f) limited segregation-at-source (c) lack of technical and financial due to low awareness on capacities of LGUs in implementing waste recycling, recovery solid waste management projects; and composting technologies. (d) low willingness of LGU constituents to pay for SWM services; Strategy Framework To enable economic transformation for a sector over the medium term is to “Build prosperous, inclusive, and resilient society, the Better More.” overarching objective for the infrastructure Figure 12.1 Strategy Framework to Expand and Upgrade Infrastructure SUSTAINABLE, RESILIENT, INTEGRATED, AND MODERNIZED INFRASTRUCTURE FACILITIES AND SERVICES DELIVERED PLANNING, PROGRAMMING, WATER SECURITY, SEAMLESS AND INCLUSIVE AFFORDABLE, ECOLOGICAL INTEGRITY OF ENHANCED SUPPORT AND ASSET MANAGEMENT CONNECTIVITY ACHIEVED WATER SYSTEMS, AND ACCESSIBLE, RELIABLE, AND TO SOCIAL DEVELOPMENT IN INFRASTRUCTURE (VIA LOCAL AND RESILIENCY TO WATER CLEAN ENERGY PROVIDED PROVIDED ENHANCED INTERNATIONAL LINKAGES) HAZARDS ATTAINED Implement integrated Move people, goods, Upgrade and expand Implement Ensure equitable master-planning and information water infrastructure game-changing access to health development and through modernized reforms to bring down and education covergence programs and expanded transport Strengthen the cost of electricity infrastructure, in and digital integrated water partnership with Embed resilient and infrastructure resources Enhance delivery of the private sector innovative solutions in mangement (IWRM) energy by infrastructure design Address universal implementation coordinating Improve resiliency mobility and investment in to support health Fully implement asset connectivity needs Invest in water generation, and educational management and infrastructure transmission, and outcomes preservation Modernize the fleet and services provision distribution provide quality ancillary Pursue optimal services Provide accessible Provide an enabling solid waste Undertake partnerships financing for water environment for the management for financing Invest in advancing and supply and sanitation market to deliver an (SWM) solutions investments expanding access to projects optimal fuel mix digital infrastructure, Invest in or provide and support open Enhance demand side financing for social access through management infrastructure strategic collaboration Invest energy innovation to respond to increasing demand and new markets for clean technology goods and services The strategic framework for Chapter 12 corresponding to each of the infrastructure (Figure 12.1) is geared toward the delivery subsectors: connectivity (physical and of sustainable, resilient, integrated, and digital), water resources, energy, and modern infrastructure systems. It comprises social infrastructure. cross-cutting strategies and specific strategies Chapter 12 Expand and Upgrade Infrastructure | 279 Strategies Outcome 1: Planning, programming, and asset management in infrastructure enhanced Implement integrated Embed resilient and innovative master-planning development and solutions in infrastructure design convergence programs The Philippines is highly vulnerable to climate As master plans provide a sound basis for change and natural disasters. For this reason, rational prioritization and a holistic approach mainstreaming resiliency and sustainability to socioeconomic development, master considerations in the present infrastructure plan formulation for infrastructure will be planning and investment is imperative to harmonized and strategically integrated to withstand future economic shocks and to guide the planning, programming, budgeting, reduce additional costs and financial burdens and implementation of infrastructure projects. caused by climate change and natural disasters. The different government master planning Enhancing the resilience of infrastructure to processes will be enhanced and rationalized the impacts of climate-related extreme events to ensure that master plans are coordinated can also protect lives and human health, as across all government levels, and remain well as help sustain economic growth. synergistic, responsive to the emerging issues Resilient infrastructure will ensure continuous and consistent with priority development service delivery and extend the useful life of strategies of the sector. assets. Climate resilience will be mainstreamed Moreover, the government will continue to in infrastructure planning and investment implement convergence programs to ensure so that climate risks are considered and complementarity of efforts in the roll out of managed across all types of infrastructure infrastructure identified in sectoral or spatial and throughout the lifecycle of infrastructure master plans. assets and operations. Moreover, innovative technologies, including nature-based solutions Over a reasonable transition period, the (NBS), will be employed in infrastructure responsibilities for local infrastructure planning and design. planning and development will be fully devolved to local governments. Capacities of Fully implement asset management local governments to assume the responsibility and preservation and accountability for infrastructure outcomes To ensure the cost-effective management of within their jurisdictions will be built. assets, the government will analyze the lifecycle, capacity, and utilization of infrastructure assets individually and collectively, with the view to optimizing government funds and targeting scarce resources to the most critical 280 | Philippine Development Plan 2023-2028 asset needs. The government will ensure that development priorities. While reinvigorating infrastructure assets will be efficiently and PPPs, the government will clarify allocation effectively maintained and rehabilitated, as of responsibilities to integrate climate risks necessary, to maximize their economic life. in planning, management, or operation of infrastructure. To attract additional private Undertake strategic partnerships for investors, the government will develop financing investments projects and promote infrastructure plans with prospects of good financial returns. Annual public infrastructure spending in 2017–2021 ranged from 4.2 percent to The government will continue to strategically 5.8 percent of GDP, which is about twice engage multilateral and bilateral development as much as the average spending over the partners for external financing to capitalize on previous five decades. Over the next Plan their comparative advantages and benefit from implementation period, annual spending on knowledge and technology transfers. infrastructure will be sustained at 5 percent to 6 percent of GDP. In line with this, the To ensure that the increase of available government will continue to tap viable funding financial resources of LGUs pursuant to mechanisms to augment the public resources the Mandanas-Garcia ruling contributes in financing critical infrastructure projects. maximally to socioeconomic development, the national government will assist LGUs by By leveraging the private sector’s efficiency, providing technical assistance and setting resources, expertise, and innovativeness, service delivery standards. Together with the government can reinvigorate PPPs in LGUs, the national government will explore financing priority infrastructure projects. This appropriate cost-sharing arrangements in the will ensure the sustainability of operations implementation of devolved infrastructure of infrastructure facilities and free up projects. LGU capacity to prepare and fiscal space for other social programs and structure PPPs will also be improved. Connectivity Outcome 2: Seamless and inclusive connectivity via local and international linkages achieved Move people, goods and information will integrate land use and urban planning through modernized and expanded methodologies (e.g., transit-oriented transport and digital infrastructure, development, township approach, and with active participation of the high-density development), will guide the private sector rational development of an intermodal transport infrastructure network that takes A National Transportation Master Plan into consideration compatibility, economic will be formulated and adopted. The feasibility, comparative advantages, climate National Transportation Master Plan, which Chapter 12 Expand and Upgrade Infrastructure | 281 risks, and linkages of desired transportation Safe and well-connected active mobility modes. Baseline data and information will networks will be established. This will be regularly collected, updated, consolidated, involve, among others, widening of sidewalks; and managed. adding segregated micro-mobility corridors; developing greenways, car-free zones and Intermodal transport facilities will be bike-only roads, and other public open spaces; constructed and upgraded to achieve redesigning and reconstructing existing seamless connectivity. Rationalizing intersections; and re-evaluating interchanges intermodal linkages and hubs will provide order and grade separators to accommodate at-grade in passenger movement and decrease traffic pedestrian crossings and bike turning spaces. congestion inside urban centers and across regions. Trains and buses shall serve medium- Local government units and private developers and long-distance travel demands. Last mile will be incentivized to have pedestrian-friendly connectivity through active transport shall be and bikeable developments and programs. enhanced to improve access to transit stations LGUs will also be encouraged to measure walk and encourage mass transportation usage. scores, walkability, bikeability, and accessibility within their jurisdictions. Design standards for transit stations and interchanges shall be adopted with emphasis Applicable mass transportation systems (i.e., on convenient transfers, high levels of service, railways, road-based, and ferry systems) will universal accessibility, gender inclusivity, and be developed in metropolitan areas. Mass sustainability. The standards and regulation transportation systems will be prioritized. for a national automated fare collection system The roll-out of the planned rail infrastructure shall be adopted to establish interoperability projects will be pursued aggressively. Railways across all transport modes. will be expanded from north to south and from east to west, connecting growth nodes Active transport networks will be developed. and strategic infrastructure. Inter-city rails Pedestrians and cyclists will be accorded will be built in metropolitan regions across highest priority in the hierarchy of road the country. Policies will be adopted to ensure users. Provisions for active mobility will be availability of highly specialized spare parts integrated into the transportation system. and supplies. Existing thoroughfares and bridges will be redesigned and retrofitted for the protection Bus rapid transit systems will be adopted to and expansion of bikers and pedestrians. enhance the efficient use of public transport Shade trees will be planted in urban areas to vehicles and existing road spaces. Existing lessen the urban heat island effect, improve ferry systems will be upgraded and other climate resiliency, and improve biodiversity. coastal and inland waterways transport Ancillary infrastructure such as segregated systems will be established as an alternative active mobility corridors, showers, widened sustainable transport mode to further improve sidewalks, lockers, and storage facilities the connectivity of ports to the national will be constructed. transport system. 282 | Philippine Development Plan 2023-2028 Reforms in the provision of public transport nautical highway network will be pursued. services will be strengthened. Performance- The missing links in the road network will and incentive-based service plans and be completed and viable inter-island bridges alternative financing arrangements will be will be constructed. Road transport corridors explored. Transition of public transport leading to airports and ports will be upgraded, operations from competition among individual including installation of weighbridges to operators toward industry consolidation and prevent overloading. common fleet management using higher capacity and environmentally sustainable Existing airports will be improved and vehicles will be facilitated. new ones will be strategically developed to address future demand. Existing airports The Public Utility Vehicle Modernization will be upgraded to meet aerodrome design Program will be re-designed so that the supply safety standards set by international and local of modern public transport can be increased airport authorities, including development while managing its resulting fiscal impact. and improvement of access roads. Bundling of airports as possible PPP projects will be pursued The nautical highway will be improved. to encourage private sector investments. Seaports will be constructed and expanded to support economic sectors such as agriculture Gateway airports will be developed and and trade. New linkages and strategic location connected to feeder airports to facilitate access of new ports will be assessed to create new rural to the country’s various tourist destinations. growth areas. The capacity of RORO facilities Development of new airports will consider will be increased and processes digitized to optimal sites outside urban areas to allow address congestion and delays. Larger RORO rooms for future expansion and possible ports will be constructed to accommodate upgrade to international airports. larger-capacity RORO vessels. These will be supported with modern ancillary facilities Level of service standards will be adopted in all for passengers. The application of electronic airports to quantitatively measure the adequacy terminal management systems such as of airport passenger facilities and plan for the electronic ticketing and manifest submissions applicable interventions. To alleviate airport will be streamlined. Aging fleets will also be traffic congestion, “night-rating” of airports replaced or retrofitted to mitigate the risk of will be continued. maritime accidents. Implementation of the Cargo and freight rail infrastructure to Maritime Industry Development Plan will connect strategic infrastructure such as be continued to achieve a more sustainable ports will be developed and expanded. and globally competitive maritime sector Railway development for cargo and freight will through maritime education, technology, be prioritized, particularly for long-distance and innovations. deliveries. Meanwhile, truck routes will The construction, expansion, and upgrading be established to service medium- and of roads and routes that are aligned with the short-distance deliveries. Dry ports and other Chapter 12 Expand and Upgrade Infrastructure | 283 inland cargo terminals will be connected by Underground utility corridors for electricity freight rail to ease the movement of goods to and telecommunications cables, water supply, or from the ports. sewage, and other utilities will be established to secure public safety. Through these corridors, Cold chain logistics and management utility lines will be placed in accessible spaces facilities will be developed. Government so as to minimize traffic disruptions and other will implement cold chain logistics projects surface activities when system upgrades or to secure the transportation throughout repairs will be done. the supply chain of temperature-sensitive commodities and products, such as perishable Digital infrastructure will be modernized food products, medical supplies, and other and expanded. Advancing the country’s pharmaceutical supplies. digital infrastructure entails effective government stewardship of the sector, in order The implementation of the ULP and to facilitate private sector investments toward Transport Accreditation, Permit and Pass modernizing digital infrastructures, to expand for Ports (TAPPP) will be made seamless access in GIDAs, and to encourage strategic and well-integrated. To facilitate the transport collaborations for pursuing open-access of basic goods and necessities, the ULP and networks that will benefit all market players. TAPPP will be implemented cohesively throughout the country. This will further To foster effective competition and level the streamline the varying and burdensome playing field, the government will strongly pass-through requirements and restrictions push for necessary reforms and undertake the of ports, economic zones, and LGUs, as following: well as promote a more business-conducive environment in the logistics sector. 1. Review the regulatory landscape and strengthen the policy and regulatory Transport safety and security will be environment to encourage just and ensured. The government will ensure that transparent interconnection among the transport hubs are equipped with additional industry players and establish effective safety features such as closed-circuit television, open-access network, baggage scanner, proper lighting, and real-time passenger information system. The Philippine 2. Nurture and promote facilities-based Coast Guard will pursue its modernization competition so that industry players program involving, among others, the consistently invest to advance their digital procurement of modern air and floating assets infrastructures, thereby benefitting the and interoperable communication systems. general public, and, Safety audits on transport corridors will be 3. Streamline bureaucratic processes and continued to inform the allocation of sufficient relax the administrative procedures budgetary support. Other potential financing and licensing requirements to ease sources from congestion pricing and parking market entry. levies, among others, will be explored. 284 | Philippine Development Plan 2023-2028 To facilitate the roll-out of broadband Facilities for the mobility needs of women and infrastructure in less profitable or remote men commuters from all sectors (i.e., PWDs, areas, the government will strategically use senior citizens, , and indigenous peoples) of its existing assets and adequately invest to will be provided. Gender mainstreaming, help meet the requirements in the domestic inclusion, and accessibility will be integrated backbone and middle-mile segments. It will in the monitoring and evaluation (M&E) also encourage infrastructure sharing among mechanism. Collection of sex-disaggregated industry players. data and other gender and social inclusion data will be strengthened. Address universal mobility and connectivity needs Universal digital connectivity needs will be addressed. To help in building a Gender mainstreaming, inclusion, and digitally connected and inclusive society, the accessibility will be main considerations in all government will promote accessibility and stages of transport project implementation. assistive technology innovations. This will The Philippine Harmonized Gender and further ensure equal access such that all people Development Guidelines (HGDG) will be are encouraged and empowered to use digital integrated in all phases of infrastructure services (See Chapter 8). project development and implementation. Water Resources Outcome 3: Water security, ecological integrity of water systems, and resiliency to water hazards attained The strategy in the water sector is to implement (d.) ensure good sanitation and drainage effective water governance through integrated (including proper disposal); water resource management (IWRM) as applied in the planning and management of (e.) protect land, water and coastal resources; land, water, and coastal resources. The major (f.) protect life and property from water and pillars in this strategy are as follows: coastal hazards including dam-related (a.) ensure water availability through efficient hazards; and water infrastructures and management; (g.) manage flood effectively (with sediment (b.) allocate and utilize water efficiently control) and mitigate droughts. especially over competing water uses; Upgrade and expand water (c.) maintain and enhance surface and ground infrastructure water quality; 1. Implement the Philippine Water Supply and Sanitation Master Plan (PWSSMP), the National Irrigation Master Plan Chapter 12 Expand and Upgrade Infrastructure | 285  (NIMP), the National Water Security (e) Flood control and coastal protection Road Map (NWSRM) and various Flood infrastructures with hybrid systems, Master Plans for Metro Manila and major that is, a combination of nature-based river basins. As necessary, the master solutions (NBS) and engineered or plans should be revised and modified gray structures. In NBS, floodplains, based on location-specific conditions and wetlands, and forests are to be prioritization and timing of investments. restored and enhanced to store In essence, the plans shall be adaptive, and attenuate flood waters, while and the planning process iterative engineered structures such as flood and interactive. walls, embankments, and detention ponds should be skillfully designed 2. The following infrastructure will in combination with the NBS. be prioritized: 3. Country-wide guidelines shall be (a) Effective and sustainable WSS developed for rainwater harvesting services with cost-efficient and considering seasonal availability and well-designed WSS structures. regional variability of rainfall associated Adequate institutional capability with water use, storage requirement, to efficiently operate and maintain and economic benefit. In urban areas WSS systems in terms of service in particular, rainwater harvesting can coverage, performance, and financial be multipurpose, e.g., for household sustainability will be developed. water supply, stormflow reduction and (b) Water storage reservoirs for water groundwater recharge. Investments in supply and drought mitigation, or smart metering and pricing of household multi-purpose dams with flood water use and demand management shall control functions. Reservoirs should be promoted. Public–private partnerships be planned with infinite life so (PPP) shall be encouraged to enhance that sediment deposition can be and strengthen investments in managing avoided through sediment flushing and developing water infrastructures (built-in facility and operations), and services. Obstacles to private sector and integrated with climate risks participation shall be managed. assessments to increase the reliability of service provision and asset life; Strengthen implementation of integrated (c) Irrigation systems with pipe or closed water resource management conduits or conveyance systems. These will be prioritized rather than For integrated water resource management open channel or gravity canals to (IWRM), management instruments include eliminate sedimentation problems. water resources assessment, data collection (d) Proper flood drainage systems in networks, allocation and conflict resolution, irrigation service areas. allocation through market instruments, risk management tools, regulatory instruments, 286 | Philippine Development Plan 2023-2028 communication and information for informed be easily understood by decision makers stakeholder participation, and use of and stakeholders or citizens. technology for research and development. (d) University- or college-based water The following priority strategies in terms of resource centers will be tapped to management instruments will be pursued: undertake problem-oriented research, development, extension, and training (a) The institutional fragmentation of activities related to the water sector on the water resources sector shall be a sustained basis. These centers provide addressed. The main motivation of regional or local presence and can applying institutional reforms within the proactively engage in developing the water bureaucracy is to efficiently orchestrate, research program in the country taking coordinate, and integrate the development cognizance of the public interest in general and management of water resources using as well as facilitating interaction with IWRM principles (covering integrated local or regional agencies, policymakers, management and harmonization of land and stakeholders. Outsourcing to and coastal resources with water resources university-based water resource centers is including control of water-related more sustainable and efficient for provision hazards) and science-based decision of scientific and technical support support systems. especially with their experiences and knowledge in water resources development (b) The government’s capacity to conduct and management in the countryside. continuous scientific studies will be ensured. The institutional capacities of (e) Investments in data monitoring systems existing agencies to conduct continuous will be made. A rationally designed scientific studies (i.e., data analyses, sampling network for long-term data modeling, scenario simulations) will be monitoring of surface water, ground water, enhanced, with adequate and regular water quality, and sediments data will be funding provided. established all over the country. Proper (c) Decision support system for purposes (statistically and/or physically based) of science-based water resources temporal and spatial sampling frequency planning and management as well as of data collection shall be ensured for multi-stakeholder consultation and throughout the said network. Inefficient public participation will be developed irrigation water utilization especially and maintained. Such decision support for upland rice production may be system shall be based on digital ecosystem addressed with “smart monitoring” of soil framework with interoperable set of data, moisture conditions to optimize irrigation algorithms, methods, and analysis tools scheduling, and by timing the cropping to provide real-time information and season according to type of water calendar, actionable knowledge and insights that can which is location-specific in the country Chapter 12 Expand and Upgrade Infrastructure | 287  (i.e., the rice cropping season cannot be poorly enforced, and low-coverage regulatory uniform for the entire country). regime in the WSS sector. This entails, among others, the consolidation and harmonization (f) Dam safety measures shall be prescribed of tariff-setting methodologies, setting and operations shall be stringently of performance and technical standards, monitored. A dam safety body shall be and establishing policies and processes for created through executive action, with the the granting and revocation of licenses. A goal of ensuring that all dams are safely credible and effective economic regulatory operated, thereby protecting lives and regime is seen to induce the expansion property particularly in times of extreme and improvement of services, encourage weather events. All dam operators shall further private sector participation, protect be made to comply with established safety the interests of consumers, and address the standards in dam operations through conflicts of interest inherent in the current rigorous monitoring and assessments. regulatory agencies. Invest in water infrastructure In addition, a framework for rationally services provision and provide allocating resources for WSS will be accessible financing for water supply established, where government support and sanitation projects will be provided for viability gap funding to Public–private partnerships will be tapped economically viable but financially unviable to deliver needed water infrastructure projects, performance-based grants to enable facilities and services. In particular, for water equitable access to WSS services, and funds or supply and sanitation projects, the economic subsidies to leverage access to market-based regulatory environment will be rationalized lending or private equity. and strengthened to address the fragmented, Energy Outcome 4: Affordable, accessible, reliable, and clean energy provided Implement game-changing reforms Open Access (RCOA). The end goal is to to bring down the cost of electricity set up a competitive retail sector serving households and commercial customers by Reforms stipulated in the Electric Power relaxing the requirements for participation of Industry Reform Act (EPIRA) will be end-users in RCOA. The full implementation completed. The primary strategy to reduce of the Green Energy Option Program— cost and make energy more cost-competitive RCOA’s counterpart with emphasis on RE— is to ensure the completion of the reforms also empowers consumers with a 100-kilowatt as stated in EPIRA and fast-track the full (kW) demand to choose RE as their preferred implementation of Retail Competition and power supply. 288 | Philippine Development Plan 2023-2028 The tax (value-added tax) base will be responsible for incorporating the proposed rationalized so that consumers are not taxed transmission projects in the Competitive for the electricity they do not consume. The Renewable Energy Zones. government shall endeavor to accelerate the privatization of assets, strengthen the The government will enhance the reliability competitive selection process in securing of existing power plants and improve their bilateral power supply contracts, and revisit maintenance scheduling. Complete adherence the rules and regulations on cross-ownership to the Grid Operation and Maintenance between retail electricity suppliers and Program (GOMP) is critical as it establishes generation companies or distribution utilities. the timetable of scheduled outages of power These measures will foster transparency and generating units and transmission facilities. promote fair competition in the implementation The government will also pursue the conduct of the retail competition and open access. of the Performance Assessment and Audit for power generation facilities and distribution The government will explore ways to open utilities to identify the issues, challenges, and and set up new windows of competition: the appropriate policy measures to improve power forward market, reserves market, and capacity systems operations. Finally, the government market. Such measures can help approximate will take measures to incorporate climate the full benefits of competition even with risks in energy infrastructure operations a concentrated generation sector, provided and maintenance. retailers and generators actively use them instead of bilateral contracts. Nonetheless, Enhance the delivery of energy these will be introduced in phases to allow by coordinating investment in greater participation and adjustments as generation, transmission, and challenges arise. distribution The government will endeavor to enhance The entry of more players in renewable the market’s ability to coordinate energy due to the relaxation of the 60–40 investment in generation, transmission, ownership restriction will likely result in and distribution infrastructure and achieve increased generation capacity, consequently total electrification across the country. contributing to cost reduction.41 The recent A well-conceived master plan, oriented to issuance on the Renewable Portfolio Standards coordination, not coercion, of key industry furthers utilization of renewables as the policy players and that accounts for the existing provides a quota for consumers (through the assessment of the industry and provides mandated participants) to purchase RE from incentive-compatible arrangements will 1 percent to 2.52 percent annually starting attract investors to bet on the country for the 2023. As more entrants venture into the sector, long term. the country’s transmission network will need to be prepared as well. The DOE’s exercise of The government will rationalize bureaucratic oversight on the transmission concessionaire processes and remove local-central government is necessary. The concessionaire will be impasse when undertaking investments in Chapter 12 Expand and Upgrade Infrastructure | 289 generation. The LGU Energy Code42 also will implement the Comprehensive Roadmap espouses a convergent framework to facilitate for Electric Vehicle Industry. While the switch putting-up energy projects. The passage of the to electric vehicles is expected to increase the Ease of Doing Business and the Energy Virtual electricity demand, such increase may also One-stop Shop43 are promising ways forward. encourage the entry of more investments in However, the implementation and practices the electric vehicle markets. of the various permit-issuing agencies will be reviewed to ensure the realization of the law’s Provide an enabling environment for true intent. the market to deliver an optimal fuel mix The government will facilitate