The\nPhilippine economy contracted 16.5% in the second quarter of 2020\nwhich was attributed mainly to declines in manufacturing,\ntransportation and storage, and construction. The Duterte\nadministration is counting on infrastructure to stimulate the\nPhilippine economy\u2019s recovery. To do this, the Development Budget\nCoordination Committee (DBCC) is allotting Php1.1 trillion for the\ngovernment\u2019s infrastructure budget in 2021. \n<\/p>\n\n\n\n
Are\nthe planned infrastructure projects really what the economy needs\nright now after everything that\u2019s happened this year? How much of\nthe infrastructure helps fight the COVID-19 pandemic? Or is the\ngovernment just building the same road and transport infrastructure\nfrom its pre-pandemic plan?<\/p>\n\n\n\n
Unchanged priorities<\/strong><\/p>\n\n\n\n Long\nbefore COVID, the Duterte government\u2019s Build, Build, Build (BBB)\nProgram planned Php8-9 trillion in infrastructure projects from\n2017-2022. This included supposed high-impact projects such as\nrailways, urban mass transport, airports and seaports, roads and\nbridges, and \u201cnew and better cities\u201d. \n<\/p>\n\n\n\n The\ngovernment\u2019s priority for such infrastructure projects and economic\ninfrastructure stays, as reflected in the proposed 2021 budget. The\nbudget for the Department of Public Works and Highways (DPWH) is\nPhp613 billion for roads (Php59 billion), bridges (Php157.4 billion),\nand flood management projects (Php125.8 billion). There are also\nallocations for local programs (Php176.1 billion), and the\nconvergence and special support program (Php50.2 billion). \n<\/p>\n\n\n\n Interestingly,\nPhp23.9 billion of the convergence and special support program is for\naccess roads leading to tourism destinations, Php1.9 billion on\naccess roads to airports, and Php2.5 billion on access roads to\nseaports. \n<\/p>\n\n\n\n \nThe Department of\nTransportation\u2019s (DOTr) proposed 2021 budget meanwhile spends\nPhp107.4 billion on railways, aviation, and maritime infrastructure\nprograms. Of this, Php107.2 billion will be spent on railways. The\nRail Transport Program includes projects from the 100 infrastructure\nflagship projects (IFP) such as Metro Rail Transit (MRT) 3\nRehabilitation, the Metro Manila Subway, North-South Commuter Railway\nSystem, and the PNR South Long-Haul Project. The DOTr also proposes\nPhp1 million on aviation infrastructure and Php166 million on\nmaritime infrastructures.<\/p>\n\n\n\n \nThe National Economic and Development\nAuthority\u2019s (NEDA) 100 IFP list includes 15 infrastructure projects\ntargeted to be completed in 2021 worth Php181 billion. Eleven of\nthese are in the transport and mobility sector, one is in information\ntechnology, one is in urban development and redevelopment, and two\nare for water resources. This affirms transportation and mobility as\nBBB program priorities. \n<\/p>\n\n\n\n However,\nthe infrastructure priorities are puzzling and the government seems\nto be getting ahead of itself with all that interconnectivity\ninfrastructure. \n<\/p>\n\n\n\n As\nit is, the coronavirus still hasn\u2019t been contained over seven\nmonths since the pandemic broke out in the country. Many businesses\naren\u2019t able to reopen and many families are still jobless or have\nlow incomes even with lockdown restrictions eased. It is not just\nunclear but actually doubtful that many of the infrastructure\nprojects proposed will help all those who will remain distressed next\nyear.<\/p>\n\n\n\n The\npandemic also exposed how inadequate the country\u2019s public health\nsystem is. First, in containing the pandemic with insufficient mass\ntesting, contact-tracing, isolating and smart quarantining. And,\nsecond, in treating all COVID-19 and non-COVID-19 patients needing\nhealth care. \n<\/p>\n\n\n\n Health neglect<\/strong><\/p>\n\n\n\n What is the state of the country\u2019s health facilities? Government data shows that there are 1,236 hospitals as of 2017, 65% of which are private-run. Privatization has resulted in there being more private hospital beds (54,317) than public hospital beds (47,371) as of 2016.<\/p>\n\n\n\n These\nprivate hospitals that dominate the country\u2019s health system are the\nsame ones that are now charging exorbitant rates to COVID-19 and\nnon-COVID-19 patients to attain their desired profitability. For\nthem, health care is about returns to investment more than returning\nthe sick to good health.<\/p>\n\n\n\n Privatized\nhealth is also the reason why bed capacity is falling further and\nfurther behind the country\u2019s needs. For a profit-seeking hospital,\nexcess bed and healthcare capacity is in effect idle capital and\ncorrespondingly a drain on profits.<\/p>\n\n\n\n The\nPhilippines has never reached the World Health Organization\u2019s\nrecommended ratio of 20 beds per 10,000 population. Philippine\nStatistics Authority (PSA) data shows that the situation has even\nworsened from 14.4 beds per 10,000 population in 1990 to only 9.9\nbeds per population in 2014. In terms of community health services,\nonly 47% of barangays across the country had health stations in 2018.<\/p>\n\n\n\n The\ncountry is very much in need of healthcare workers as well. The PSA\nreports a ratio of one government physician to 33,000 Filipinos,\nwhich is far from the WHO-recommended 1:1,000 doctor to population\nratio. The number of public health nurses is also concerning at a\nratio of 1 to 50,000 Filipinos. Add to this how Filipino health\nfrontliners are themselves succumbing to COVID-19 due to poor working\nconditions and lack of equipment, facility, and financial support.\nThe dearth in health facilities and health care workers will persist\nif the government continues to neglect the health sector.<\/p>\n\n\n\n Has\nthe government\u2019s infrastructure program been adjusted to meet\ndeficiencies in health infrastructure highlighted by the pandemic?\nThe government has actually touted some health-related infrastructure\nto help fight COVID-19.<\/p>\n\n\n\n \nThe latest IFP list is yet to be\nreleased. In a recent interview though, Secretary Vince Dizon,\nPresidential Adviser for Flagship Programs and Projects, announced\nthat 8 projects that could not be completed anytime soon had been\ntaken out from the 100 IFP. These were replaced by 13 projects\nrelated to the digital economy, water projects, and healthcare. \n<\/p>\n\n\n\n Dizon\nsaid that the most important healthcare project is the Virology\nInstitute that would be built in New Clark City. A Virology Institute\ncould really complement the Philippine healthcare system, if only\nthere were enough healthcare facilities to begin with. But the\nopposite is true.<\/p>\n\n\n\n A\nlook at the Department of Health\u2019s (DOH) proposed 2021 budget shows\nthat the Health Facilities Enhancement Program (HFEP) only gets\nPhp4.8 billion. This is a huge cut from its Php8.4 billion budget\nthis year and especially compared to its Php30.3 billion budget in\n2018.<\/p>\n\n\n\n The\nproposed HFEP budget is just as much as the DPWH\u2019s Priority Bridges\ncrossing Pasig-Marikina River and the Manggahan Floodway Bridges\nConstruction Project valued at Php4.8 billion, which is just one of\nthe agency\u2019s projects in Metro Manila. \n<\/p>\n\n\n\n