Big ticket projects seen as major leap for Cebu

CEBU, Philippines — The big infrastructure projects for Cebu in the pipeline are deemed to be a "game changer" for the province's economy.

Mandaue Chamber of Commerce and Industry vice president Steven Yu asserted that the planned island bridge projects will not only benefit Cebu but its neighboring islands as well.

"These three new big ticket projects will be a game changer for Cebu and its neighboring islands specifically Bohol and Negros islands for the bridge aspect," the chamber official said.

Yu was referring to the three infrastructure projects lined up under the government's ‘Build Build Build’ program seen to boost the province’s status as a major growth driver of the national economy.

In Cebu, the construction of the New Cebu International Container Port, which is expected to be completed by 2020, is being supported by Korean official development assistance (ODA), finance chief Carlos Dominguez III earlier said in a statement.

Two other big-ticket projects in Cebu, which are up for submission to the Investment Coordination Committee (ICC), are the “monumental” 24.5-kilometer Cebu-to-Bohol Link Bridge ?and the 5.5-kilometer Cebu-Negros Link Bridge, he added.

MCCI's Yu said these planned bridge projects will lead to lower logistics costs and increased flow of goods and services.

He also pointed out that these will definitely spur economic activities in the Central Visayas area.

"It will be a big win and a big leap for Cebu as well as for Bohol and Negros islands," he said.

"We hopefully await for the fruition of these legacy projects," Yu noted.

Dominguez said the strong support of the Philippines’ ODA partners has allowed the government to pursue “hybrid” public-private partnership (PPP) infrastructure projects faster and at lower costs.

Dominguez said the government will likewise push for new roads and a rapid bus transit system to dramatically reduce congestion in this city.

“These infrastructure investments are being made with the expectation that Cebu will continue playing a strong role as one of the reliable growth drivers of the national economy,” the finance chief said.

Aside from ODA, the government also counts on the fiscal space boosted by the Philippines’ investment-grade ratings and robust revenue flows from the Comprehensive Tax Reform Program (CTRP) to support massive infrastructure investment.

He said that following the passage last December of CTRP’s first package—the Tax Reform for Acceleration and Inclusion Act (TRAIN)—the government has seen significant improvements in its revenue flows even with the lower personal income tax (PIT) rates that now benefit salaried employees.

The second CTRP package that aims to reduce corporate income taxes (CIT) while reforming the investment incentives system is expected to be passed by the Congress this year.

Aside from the CTRP, expected to drive growth is the state's infrastructure buildup comprising not only the three multibillion-peso projects for Cebu but also the 72 other flagship projects that will develop growth corridors in other parts of the country.

“Twenty-three of the flagship infrastructure projects have passed the approvals process and are ready for execution. We expect the rest of the projects to clear the approvals process this year, and we aspire to complete the majority of these projects before President Duterte’s term ends in 2022,” he said.

For the entire Visayas, Dominguez earlier named three airport improvement projects under the infrastructure program–the construction of additional facilities and other necessary improvements for the Iloilo International Airport, the New Bohol Airport, and the Bacolod-Silay International Airport.

Dominguez underscored the need to address the income disparities across the country’s regions, pointing out that poverty rates in Western, Central and Eastern Visayas are all above the national average of 21.6 percent.

Moreover, in 2016, per capita income at current prices in Central Visayas stood at P127,757, while that in Western and Eastern Visayas stood far behind at only P76,459 and P67,638, respectively, compared to the national average of P140,259.

In terms of average regional share in the national GDP from 2010-2016, Central Visayas’ share was 6.3 percent compared with only 4.0 percent for Western Visayas and only 2.3 percent for Eastern Visayas. (FREEMAN)