Construction seen to grow at faster pace

The country’s construction business may grow at a faster pace next year compared to this year because of increased demand from the public sector, an industry association said.

“Construction will grow next year at a much higher pace than this year,” Philippine Constructors Association executive director Manolito Madrasto said in a text message.

He said construction is seen to grow conservatively, by 10 percent next year.

For this year, he said construction is expected to expand by nine to 10 percent from the seven percent growth posted last year.

While growth this year has been mostly due to high demand for residential properties and office spaces, next year’s performance will be driven mainly by an increase in government infrastructure projects.

“Private sector demand is going to be the same as this year. However, public sector demand is expected to be at least double this year’s production,” Madrasto said.

He said the Department of Public Works and Highways’ Ninoy Aquino International Airport (NAIA) Expressway project and the Cavite-Laguna (CALA) Expressway project are both expected to be auctioned by next year.

The P15.8 billion NAIA Expressway Project would improve access to the NAIA.

The project is expected to provide a seamless link between the South Luzon Expressway (SLEx) and the Manila-Cavite Toll Expressway (CAVITEX) as well as the upcoming Philippine Amusement and Gaming Corp. City.

The P43.33 billion CALA Expressway project meanwhile, will connect the CAVITEX and SLEx through the Cavite and Laguna provinces.                   

The Department of Health is likewise expected to roll out the modernization of the Philippine Orthopedic Center project in the first quarter, followed by at least two public private partnership projects on health facilities by the second semester.

The modernization of the Philippine Orthopedic Center, estimated to cost P5.70 billion, will involve the construction of a 700-bed capacity hospital within the National Kidney and Transplant Institute in Quezon City.

The Department of Transportation and Communications has also said it expects to award the contract for the extension of the Light Rail Transit (LRT) Line 1 project by the second quarter of next year.

The P60-billion LRT Line 1 extension project will involve increasing the existing 20-kilometer (km) railway to 32.4 kms.