Philippines election will shift infrastructure focus

Subject

Post-election infrastructure policy priorities.

Significance

On January 14, the transportation and communications department listed 13 public-private partnership (PPP) programmes that will avoid election-related public spending restrictions on infrastructure and public works. Infrastructure development has been a key Aquino administration initiative, but elections on May 9 will bring a new president, and with it a new focus on infrastructure and development policy.

Impacts

• The next presidential administration may review or cancel some Aquino-era infrastructure projects.
• Competition between China and Japan will provide the Philippines with additional infrastructure funding.
• If the next government cannot improve road and energy infrastructure, manufacturing activity, mostly in Luzon, will suffer.
• Post-election infrastructure projects may emphasise ports, inter-city roads and perhaps urban rail.