Aside from easing the traffic situation in Mega Manila, the development of subways under the government’s ‘Build, Build, Build’ infrastructure initiative is also boosting a positive growth in the country’s construction, railway, and transport sectors.
Fitch Solutions, a global provider of financial information service, has raised its growth forecast for the Philippines’ construction sector to 10.9 percent in 2019 and 10.5 percent for next year. On the other hand, it projected a 9.1 percent growth for the railway sector for this year and 8.6 percent next year.
Fitch Solutions made the said forecast as the government begins work on the $7-billion, or P355.6-billion, Metro Manila subway.
The Metro Manila Subway
The construction of the first phase of the 30-kilometer underground railway connecting Mindanao Avenue in Quezon City to the Ninoy Aquino International Airport (NAIA) in Pasay City is said to boost the growth of the Philippines’ construction sector.
Dubbed as the most massive project under the ‘Build, Build, Build’ infrastructure program, the subway will partially open its first three stations in 2022 and is projected to be fully operation by 2025.
Positive outlook for the transport sector
Photo Credit: Build, Build, Build
A positive outlook is also seen for the country’s transport sector in the next five years, as Fitch Solutions noted that there are 64 transportation projects in the country which are currently in the pre-construction phase. These projects include the New Manila International Airport in Bulacan, Makati City Subway, and Metro Cebu Expressway Project, to name some.
Photo Credit: Build Build Build
The global research firm also stated that easing the ownership restrictions for foreign contractors from 25 to 40 percent is a factor that helped increased foreign direct investment to the construction industry.
Furthermore, Fitch Solutions added that it would also encourage the inflow of foreign capital allowing the country to benefit from a larger pool of funding to fill the expanding financing gap in the transport sector.