12

Expand and Upgrade

Infrastructure
CHAPTER 12

Expand and Upgrade Infrastructure

Enabling economic transformation builds on sustainable, resilient, integrated, and modern infrastructure
systems as a solid foundation. Anchored on the long-term vision, the government will steer the nation
toward a future where movement of people and goods is safely and efficiently facilitated by adequate and
accessible transportation. Filipinos are empowered through cost-effective and reliable flow and exchange
of information and are able to partake opportunities in the digital economy. Families have access to safe
and adequate water and sanitation services; to reliable, clean, and affordable fuel and electricity; and to
quality education, health, solid waste management and other social infrastructure facilities. Communities
and industries are served by green infrastructures that are not only adaptive and resilient against shocks
and natural disturbances, but also contribute toward a low-carbon future.

Assessment
Annual public infrastructure spending in inadequate in terms of accessibility, quality,
2017-2021 during the Duterte administration safety, and affordability. Moreover, the
ranged from 4.2 percent to 5.8 percent of country’s continuing vulnerability to climate
gross domestic product (GDP), which is change already threatens infrastructure
nearly double the average annual spending provision and operation and thereby
over the previous decades. Overall, however, undermine significant infrastructure
infrastructure facilities and services remain investments.

Connectivity
Mobility of majority of Filipinos is hampered New mass transit railways were also approved
by inadequate transportation facilities. in the last six years, with the two largest now
There is a shortage in public transport supply. under construction. While a drop of 68 percent
This is evidenced by long queues of commuters in total rail ridership was recorded from 2019
and passengers who spend long hours waiting (327.68 million) to 2021 (103.79 million),2
for their rides, and, when they get one, stand ridership increased by at least 23.45 percent
inside buses or trains overcrowded with other from January (9.14 million) to May 2022
commuters. (11.94 million).3 Should this trend continue and
as the economy opens up after the coronavirus
The Philippine rail system’s capacity disease (COVID-19) pandemic, the existing rail
is inadequate to meet the ridership network will not be able to accommodate the
post-pandemic. The country has four increasing demand, which rose as high as 29.4
operational rail lines with a total length of million monthly ridership in 2019 to the 2022
76.9 km.1 Meanwhile, the number of train cars total capacity of about 31.8 million per month.4
increased to 978 in 2022 from 224 in 2016.

Chapter 12 Expand and Upgrade Infrastructure | 253

Transport facilities are deemed inaccessible Board Service Contracting Program (SCP)
and unsafe, especially for vulnerable Phase III, versus the target of 93,000,000.
groups. According to the National Council on While the SCP has provided a means for public
Disability Affairs, the physical design of the transport operators and drivers to sustain their
rail infrastructure falls below the standards set operations as more economic sectors open
in the 1982 Accessibility Law,5 and thus makes post-pandemic, the program does not cover
them difficult to access and use by pregnant the whole country and cannot be sustained
women, parents with very young children, given the tight fiscal space.
older people, and persons with disabilities
(PWD). Stations with non-functional Use of active transportation is still not
elevators and escalators, defective restrooms, popular. The Department of Health (DOH)
missing signages, poor security measures such has issued guidelines promoting the safe use
as lack of security cameras, overcrowding, of active transport, while the Department of
and insufficient lighting in passenger set Public Works and Highways (DPWH) has
down further aggravate the risks of accidents, issued an order prescribing the standards on
crime, and violence faced by commuters, the design of bicycle facilities along national
especially females. Gender-based violence, roads.7 To fund the building and maintenance
sexual exploitation, abuse, and harassment of bike lanes and other active transport
and discrimination are common and possibly facilities, the government allocated total of
under-reported in public spaces including the PHP 3 billion from 2020 to 2022. While there
transport sector.6 are four households that own bicycles to each
household that own a car,8 only 29 percent of
Shortage of road-based public transportation households use their bicycles to go around
persists in many urban areas. Since 2003
public transport services franchising has been Road traffic fatalities are increasing in the
under a moratorium. This has not helped Philippines. Road traffic accidents exact a
reduce the shortage of public transports in heavy toll. Approximately 12,000 Filipinos
many cities. Besides being obsolete, most of die on the road each year, while the resulting
the public transport fleet in 2022 also do not injuries cost about 2.6 percent of the country’s
comply with modern design and emission GDP in 2018.9 The government does not have
standards. Meanwhile, the rollout of the a yearly budget allocation for road safety.
Public Utility Vehicle Modernization Program
While progress has been made in maritime
launched in 2017 has progressed slowly since
transportation, issues on infrastructure
many vehicle owners found the financial terms
quality remain. Improvements were pursued
of the program unattractive and the funding
with the opening of the Matnog, Sorsogon
support from the government in the form of
to Bogo City, Cebu roll-on/roll-off (RORO)
subsidy for vehicle procurement was limited.
route, and the issuance of the revised rules
As of September 14, 2022, a total of 174,164,758 in the grant of missionary route status for
riders have benefitted from the Land RORO passenger ships, and the development
Transportation Franchising and Regulatory of the Maritime Route Rationalization and

254 | Philippine Development Plan 2023-2028

Information System.10 Nonetheless, only in prolonged or repeated closure of roads and
a limited number of RORO vessels can be higher construction costs.
accommodated under the size of the country’s
RORO ports in 2022. RORO vessels that serve There are no operational cargo and/or
medium-sized ports are smaller compared to freight rail services in the country. The
RORO ships that use the Port of Manila. The movement of goods over land is limited to
fleet of inter-island ferries is also aging, posing road-based transportation options; rail-based
safety risks to commuters. transportation options are non-existent. As
such, long-, medium-, and short-distance
Little progress has been made to improve shipping by land is done by trucks, which adds
airport infrastructures. The country has a to road traffic congestion and to logistics cost.
total of 90 airports in operation—comprising The roads leading to ports and airports often
11 international, 41 domestic, 38 community— experience congestion and deteriorate faster
and 3 airports not in operation in 2022. due to heavy truck loads.
However, not all the country’s international
airports and principal Class 1 and principal Port and ancillary facilities are insufficient
Class 2 airports comply with modern safety and underdeveloped. As of December 2021,
design thresholds, particularly the minimum about 336.56 million metric tons (MMT) of
runway strip threshold width and night cargo was transported through the country’s
landing capabilities. Proposed improvements port system compared to 133.74 MMT through
to major gateways in the country were put airports. Meanwhile, 99.98 percent of the total
on hold and are being re-assessed to consider domestic trade in 2021 was transported by sea,
new projections in aviation demand. Travel and the rest (0.02%) via air.11
limitations, lockdowns, and hampered Despite the maritime sector’s critical role in
business operations due to the COVID-19 the transport of goods, most of the country’s
pandemic caused the decline in passenger ports are operated inefficiently due to their
traffic by 33.47 percent from 2020 to 2021. inadequate equipment and ancillary facilities.
Over the same period, air traffic movement Such inefficiency is evident in the long queues
likewise decreased by 54.70 percent. of cargo trucks at port areas. Cargo trucks
sometimes wait for days before they are able
Civil works and utilities installation along
to board a RORO vessel. Such delays result
roads are not coordinated. Road widening
in poor reliability in the delivery cargoes and
activities are not in sync with the relocation
spoilage of perishable goods, further straining
of electrical and communication poles, as well
the food supply chain, among others.
as pipe laying and other waterworks, causing
traffic jams, road accidents, and other roadside Government-operated ports, especially
friction. Prevalence of overhead electrical and those of local government units (LGUs),
telecommunications cables and poles along have insufficient cargo-handling equipment.
major thoroughfares poses hazards to road Existing LGU-operated ports have limited
users. Meanwhile, the lack of coordination financial resources to procure the necessary
between road works and waterworks results equipment and support infrastructure such

Chapter 12 Expand and Upgrade Infrastructure | 255

as cold chain facilities leading to increased (Mbps) in September 202213 (from 4.3 Mbps in
logistics costs. 2016). In this aspect, however, the Philippines
consistently lags behind Singapore, Thailand,
Automated logistics processes are not yet Malaysia, and Vietnam. Moreover, the
integrated. To upgrade the country’s logistics domestic prices of fixed and mobile broadband
network, Unified Logistics Pass (ULP) prices14 remained high, at 11.56 percent and
was launched in 2022 that features a quick 2.04 percent of monthly gross national income
response (QR) code issued to cargo trucks. (GNI) per capita, respectively. Both rates are
This ensures unhampered movement of goods above the global affordability threshold target
and eliminates the various permits, licenses, (of below 2%). As evidence of the persistent
and pass-through stickers being required by digital divide, only about 18 percent of Filipino
economic zones, ports, and local government households have internet connections,15 far
units. In addition, a single Transport below the average household penetration rate
Accreditation Permit and Pass for Ports of 53.40 percent in the Asia-Pacific region in
(TAPPP) is being implemented in all ports 2019.16
under the jurisdiction of the Philippine Ports
Authority. While these initiatives have already Climate change is not systematically
been introduced and implemented, their integrated in planning, design, operation,
application is not yet integrated well in port and maintenance. Climate change does not
operations across the country. Thus, trucks adversely affect connectivity alone, but also
operating in both PPA and non-PPA ports, places a strain on the country’s economy. The
such as those in the economic zones, need to resulting economic losses could be massive and
have the two systems installed. This translates would require significant additional financing
into additional overhead cost that could have to rehabilitate the damaged infrastructures.
been avoided in an integrated system. Due to Typhoon Odette in 2021, 36 percent
of seaports were rendered inoperational,
Movement of information through digital creating logistics challenges and disruptions
infrastructure steadily improved, but still in supply chains, especially for isolated islands.
not enough. Driven by increasing demand In addition, some municipalities had limited
of Filipinos to stay informed and connected, access to communication services for six
recent years saw steady improvement in the weeks, which further hampered disaster relief
quality of internet services with broadband and recovery operations.
speed,12 reaching 78.69 Megabits per second

Water Resources
The country has limited water resources. The groundwater. Based on the water permits
annual freshwater potential of the Philippines issued by the National Water Resources Board
is estimated to be about 146.0 billion cubic (NWRB) about 86 billion m3 (or 58% of the
meters (m3), of which roughly 125.8 billion total freshwater available) is allocated annually
m3 is surface water and 20.2 billion m3 is for various uses, whereby about 7.6 billion m3

256 | Philippine Development Plan 2023-2028

(5.6 billion m3 from surface water and 2.0 Irrigation service provision remains inefficient
billion m3 from groundwater sources) is used and wasteful. National Irrigation Systems (NIS)
for domestic and municipal water use. use about 68 billion m3 of water annually (about
80 percent of the country’s annual available
Universal access to safe, affordable, and freshwater) to irrigate around 1.9 million
sustainable water supply and sanitation hectares (ha) of farms (mostly planted with
services have yet to be achieved. Based on rice). In comparison, only around 52 billion m3
the 2020 Annual Poverty Indicators Survey annually on average is used in other countries
(APIS) of the Philippine Statistics Authority, to irrigate the same area and crop type (for two
the main sources of water supply for Filipino cropping seasons per year). This suggests that
families were water piped into their dwelling about 25 percent of the water delivered by the
(54.1%), sourced from protected wells NIS is wasted that can be otherwise saved with
(21.5%), communal sources such as public proper management.
taps, and developed springs (16.0%). Less than
10 percent of them rely on “unsafe sources” The country is highly vulnerable to water-
such as unprotected wells, undeveloped related hazards. In a typical year, the
springs, rivers, ponds, lakes or rainwater, Philippines experiences about 20 typhoons,
or bought from tanker trucks and/or water of which eight make landfall and often hit
peddlers. several regions. Major typhoons such as
Odette (international name: Rai) in 2021 and
In terms of access to sanitation facilities, about
Ompong (international name: Mangkhut)
80.4 percent of Filipino families had “basic
in 2018, to name a few, have devastated the
sanitation service level” (i.e., used an improved
country. These two typhoons led to 487
sanitation facility not shared with another
fatalities, about PHP 63.6 billion in damages
households), 13.5 percent had “limited-service
to infrastructure, and PHP44.4 billion in
level” (i.e., used an improved sanitation
damages to agriculture. Besides typhoons,
facility shared with two or more households).
monsoon rains, the inter-tropical convergent
Again, less than 10 percent had no sanitation
zones and severe thunderstorms also visit and
facility (i.e., practicing open defecation), or
leave damages in the country.
use “unimproved service level” (i.e., used pit
latrines without a slab or platform, hanging
latrines or bucket latrines).

Energy
Affordability, accessibility, and reliability are especially energy-intensive FDI—one reason
the three aspects of energy security. domestic manufacturing growth has lagged
in recent decades relative to its neighbors. A
The Philippines, historically, has one of the previous study18 shows that high electricity
highest electricity prices17 in the Asian region prices are one of the contributory factors why
(See Table 12.1). Consequently, the country the economic transformation of the Philippines
fails to attract foreign direct investment (FDI),

Chapter 12 Expand and Upgrade Infrastructure | 257

did not follow the usual development patterns reveals that the Philippines has limited power
seen in high-income countries.19 supply and low per capita consumption
(See Table 12.1). Electricity consumption per
As a net importer of energy, the Philippines capita in the Philippines is the lowest compared
is highly susceptible to volatility in the prices to the other countries in the Association of
of fuel in the international market. Any major Southeast Asian Nations (ASEAN). The lower
event affecting the value chain of fuels, such as electrification rates and high prices in the
the attack on two Saudi Aramco oil facilities Philippines partly explain the low per capita
in 2019 and the recent Russia–Ukraine war, consumption. As of 2019, the Philippines had
impacted domestic prices. The continuing a 26.2 gigawatt (GW) capacity serving 111
escalation of fossil fuel prices in 2021 and million Filipinos. In comparison, Thailand,
2022 increased the risk of fossil power plants Malaysia, and Singapore each has large power
becoming stranded assets. capacities serving smaller populations than
the Philippines. Transmission and distribution
Power supply is limited and per capita losses have also been relatively high (9.4% of
consumption is low. Comparing key economic the total electricity output), suggesting an
and energy indicators in select economies20 inefficient grid and distribution system.

Table 12.1 Key Economic and Energy Indicators in Select Countries

Per capita Per capita Net Share of Population Per capita Electricity Residential
electricity electricity installed renewables (million), GDP transmission Electricity
generation consumption electricity in electricity 2021 (constant and Prices
(MWh/ (MWh/cap), capacity production* 2015 US$), distribution (USc/
cap), 2020 2019 (GW), 2019 (%), 2020 2021 losses** (% of kWh,)
output), 2014 Dec 2021
Philippines 0.88 0.90 26.2 23.5 111.0 3,412.6 9.4 16.3
Indonesia 1.00 1.00 66.8 13.2 276.4 3,855.8 9.4 9.6
Thailand 2.53 2.90 45.3 14.8 70.0 6,270.4 6.1 10.4
Malaysia 4.69 5.10 34.2 12.2 32.8 10,827.3 5.8 5.00
Singapore 8.60 9.50 12.6 2.0 5.5 66,176.4 2.0 18.3
China 5.37 5.10 2,064.7 28.3 1,412.4 11,188.3 5.5 8.1
Japan 7.44 7.90 346.5 24.6 125.7 35,278.4 4.3 32.6
South Korea 10.75 10.90 132.1 8.9 51.7 32,644.7 3.3 10.0
New Zealand 9.28 8.40 9.4 78.8 5.1 40,779.0 6.5 18.6
GDP = gross domestic product, GW = gigawatt, MWh/cap = megawatt-hour per capita.
* Renewables include electricity production from hydropower, solar, wind, biomass and waste, geothermal, wave, and tidal sources.
** Electric power transmission and distribution losses include losses in transmission between sources of supply and points of distribution and in the distribution to
consumers, including pilferage.
Notes: Per capita electricity generation from Our World in Data; per capita electricity consumption are from International Energy Agency; and net installed electricity
capacity are from United Nations Statistics Division. Population data, per capita GDP, and electricity transmission and distribution losses are from World
Development Indicators. Residential electricity prices are from Global Petrol Prices.
Sources: Our World in Data. https://ourworldindata.org; International Energy Agency. https://www.iea.org; United Nations Data. http://data.un.org ; UN Statistics
Division. https://unstats.un.org ; World Development Indicators. https://data.worldbank.org Global Petrol Prices. https://www.globalpetrolprices.com

Shocks brought changes in supply and dramatically. Power generation from natural
demand patterns. Electricity consumption gas plants decreased, but its percentage share
dropped during the lockdown at the height of in terms of total generation increased. The
the COVID-19 pandemic. Coal generation fell generation of other sources stayed at about the

258 | Philippine Development Plan 2023-2028

same levels prior to the pandemic, with solar modernization of the grid to accommodate
and biomass generation growing slightly.21 The more renewable energy is moving at a slow pace.
indigenous Malampaya gas generates a third Right-of-way issues exacerbate the problems
of the electricity in Luzon. With its impending and delays in completing transmission projects.
depletion and absence of an indigenous There is also continuing threat to the resiliency
replacement, there is an aggressive push of the grid due to disasters, both natural and
to develop the liquefied natural gas (LNG) man-made. With insufficient level of ancillary
industry. Two of the six projects approved services that helps maintain the proper flow
by the Department of Energy (DOE)22 are and direction of electricity and address
expected to supply the requirements of the imbalances between supply and demand,
existing anchor markets of Malampaya. the problems on reliability of energy supply
continue to persist. The national grid remains
The frequent forced and unplanned outages of fragmented with the delayed implementation
power plants resulted in supply deficiency that of the Mindanao–Visayas Interconnection.
disrupted business operations.
Total electrification is yet to be achieved. As
Restrictions on foreign ownership of of 2021, 5 percent of Filipino households still
inexhaustible energy projects have been live without electricity, bereft of the benefits
relaxed. The Implementing Rules and including increased welfare and productivity,
Regulations of the Renewable Energy Act of education, and improved indoor air quality.23
2008 restricts the exploration, development Majority of these un-energized households are
and utilization of renewable energy (RE) located in Abra, Albay, Masbate, Basilan, Sulu,
resources to companies or corporations that Tawi-Tawi, and Lanao Del Sur and are being
are at least 60-percent owned by Filipino catered by ailing and problematic electric
citizens, following the provisions of Article XII cooperatives (ECs). Nonetheless, as electricity
of the Constitution. access is viewed a tool to uplift the lives of
Filipinos, the government issued Executive
Nonetheless, the Department of Justice (DOJ)
Order (EO) No. 156 series of 2021 and
recently released a legal opinion exempting
RA 11646 or the Microgrid Systems Act.11.
inexhaustible RE sources from 60:40
foreign equity/ownership restriction. On 15 Many ECs are ailing financially. Outside of
November 2022, Department Circular No. the Meralco franchise area, electricity is mainly
2022-11-0034 was issued allowing 100 percent supplied by ECs. Most ECs face management
foreign ownership of RE projects where issues, such as lack of long-term power supply
applicable. This move is aimed at achieving the agreement, high incidence of power pilferages,
government’s target to increase the share of RE unreliable distribution system (due to obsolete,
in the power generation mix to 35% by 2030 aged or dilapidated distribution facilities),
and 50% by 2040. and inability of customers to pay. Some ECs
charge lower rates than private distribution
Grid congestion continues to hamper
utilities, but more brownouts and low-voltage
the reliability of the energy supply. The
episodes attend their power supply.24 To

Chapter 12 Expand and Upgrade Infrastructure | 259

avoid unreliable power supply, firms that can Delays in the processing and approval of
potentially provide jobs and contribute to energy projects unnecessarily increased
rural development choose to locate instead in the cost of doing business. Processing and
areas served by private distribution utilities. approval of energy projects takes an average
Consequently, the failure to attract more of 1,876 calendar days with 359 signatories
investments that would increase demand in from 74 agencies required. The enactment
their services areas, in turn, contributes to the of RA No. 11234 established the Energy
low financial viability of these ECs. Virtual One-Stop Shop System to streamline
the permitting processes for new power
generation, transmission, or distribution
projects.

Social Infrastructure
The health system is characterized by an facilities.26 In addition, climate-related events
inadequate and inequitable access to health have also negatively affected the health sector.
facilities. While the country has a total For instance, during Typhoon Odette in 2021,
capacity of 109,346 hospital beds in 2021, 210 health facilities were destroyed while the
this translates to about one bed only per resulting water shortage increased the risks of
1,000 population. As of October 2021, only disease outbreaks.
68 percent of barangays are covered by a rural
health unit and health center as opposed to Meanwhile, inadequacies in infrastructure
DOH’s target of 80 percent. As reported in support continue to hamper the attainment
the Philippine Health Facility Development of the goals in the education sector. As of
Plan (PHFDP) 2020–2040, only 50 percent of August 2022, there is still a shortage of around
Filipinos in 2020 have access to frontline health 91,000 classrooms, which is about 10 percent
facilities, i.e., within 30 minutes of travel time. of the total needed classrooms.27 There are
still 2,298 “Last Mile Schools” in remote or
There are lingering inefficiencies still in marginalized areas with substandard and/or
the implementation of the Health Facilities inadequate facilities and services.28
Enhancement Program, wherein unutilized,
unimplemented, and improperly executed The outbreak of the COVID-19 pandemic only
contracts have been identified as a source exposed the insufficiency of infrastructure
of wastage in the use of funds, per a 2021 investment in the sector, particularly in
report from the Commission on Audit.25 information and communications technology
Project implementation was also sidelined at (ICT) support for learners, which made
the height of the pandemic in 2020 and 2021 distance or blended-learning more difficult
when temporary treatment and monitoring for them. As of 2021, only about 80 percent of
facilities and other COVID-19-related health schools have functional computers while 65 to
facilities (e.g., isolation and quarantine 70 percent have stable internet access. 29
facilities) were prioritized over frontline

260 | Philippine Development Plan 2023-2028

Nevertheless, there have been some gains coming from Metro Manila. Only 39 percent
in the provision of other basic facilities. of all barangays are served by material
For instance, 92 percent of public schools recovery facilities (MRF), and only 29 percent
have access to electricity in 2021. Meanwhile, by sanitary landfill facilities (SLF)31. Solid
in terms of water, sanitation, and hygiene waste diversion (i.e., recycling, composting)
facilities, the ideal ratios for all levels of basic remained low at 54 percent as of 2021.
education were achieved in 2021. The ratio for
the primary levels (K to 6) of 1:25 surpassed The National Solid Waste Management
the target of 1:30. Meanwhile, at 1:39 for junior Commission (NSWMC) passed a resolution
high school level and 1:35 for senior high adopting Total Solid Waste Management
school level, both ratios have already met their Solution that will maximize waste diversion
common ideal ratio of 1:40. and optimize use of waste disposal sites.
Nonetheless, diversion of plastic waste has
Damages to or suboptimal use of classrooms been very low at nine percent with only 489
caused significant disruptions in classes. LGUs adopting ordinances to regulate single
From 2015 to 2020, the Department of use plastics.
Education reported 10,675 schools as heavily
damaged by natural disasters (e.g., tropical The Department of Environment and Natural
cyclones, earthquakes). Meanwhile, 35,648 Resources (DENR) has issued guidelines
classrooms in 11,522 schools in the country governing waste-to-energy (WtE) facilities
have been used as temporary evacuation for the Integrated Management of Municipal
centers, thus displacing or suspending the Solid Wastes. Likewise, DOE has issued
usual teaching or learning activities in them.30 policies and implemented programs that aim
to promote WtE facilities as baseload RE and
Solid waste continues to be a significant prescribed policies and programs to enhance
environmental issue. In 2020, the estimated the participation of the electric power industry
volume of waste generated was close to 17 players in the development of WtE facilities.32
MMT, with almost a third of the materials

Challenges
Infrastructure is critical to the economic coordination of plans and programs across
transformation of the country. The provision agencies and across levels of government, and
of adequate, quality, sustainable, resilient, ensuring asset preservation and resiliency.
and safe infrastructure will require well-
coordinated, huge investments not only for new
constructions, expansions and improvements,
but also for adequate maintenance and
rehabilitation. Thus, the major challenges for
the sector include financing of investments,

Chapter 12 Expand and Upgrade Infrastructure | 261

Connectivity
The implementation of the National and potholes), and lack separate lanes for
Transport Policy is difficult without active transport.
a National Master Plan and sufficient
data. Due to limited transport-related Pursuing or expanding the current PUV
data and guidelines for data collection and Service Contracting Program requires
management, most of the existing demand appropriate balancing between enhancing
data do not reflect evolving travel patterns service standards and fiscal sustainability.
under new normal conditions. Transport Implementation of innovative transport
demand surveys and master plans are not schemes such as service contracting first
regularly undertaken or updated, and usually introduced in Metro Manila have yet to
done only when assistance from development be replicated in other parts of the country.
partners is available. Meanwhile, most transport operators and
drivers remain strapped financially since they
Public high-capacity transportation is unable are mandated to keep fares affordable despite
to meet current and future demand. Mass high inflation and rising fuel costs. Extending
transportation supply in the form of modern them coverage under the service contracting
public utility vehicles (PUVs), busways, scheme however will require huge fiscal
railways, and ferry systems is still inadequate. resources, which may not be sustainable, and
As a result, the use of lower-capacity transport therefore needs to be carefully considered.
modes like private vehicles is still prevalent and
contributes to worsening traffic congestion, Air traffic congestion is likely to persist, if
especially in highly urbanized cities. Transit not worsen, without the needed investments
stations and intermodal interchanges lack in developing, upgrading and improving
service standards and remain inconvenient, airports. Airport capacities in 2022 will
uncomfortable, and inefficient. Poor last-mile be inadequate to cater to domestic and
connectivity also discourages private motorists international aviation demand, which is
from shifting to public mass transportation. expected to recover by 2025. Aggravating the
congestion in many domestic airports is their
Active transport will remain nonviable for lack of night landing capabilities. Meanwhile,
commuters without adequate infrastructure the expansion of some existing airports may
and support facilities. Although most not be technically and/or financially feasible.
Filipinos are not car-owners, for them active
transport is still a nonviable commute option. Achieving universally accessible and
For one, support facilities (e.g., bike storage gender-responsive transport facility designs
and parking, shower facilities, and lockers) needs a shift in construction priorities and
are insufficient. Moreover, transport corridors practices, and in carrying out coordination
are designed to serve private motorists, are and advocacy. Although there have been many
non-climate-responsive and unsafe (e.g., with laws and regulations that require transport
poor lighting, uneven pavement, road hazards, facilities to be accessible for people with

262 | Philippine Development Plan 2023-2028

special mobility needs, compliance has been This is largely due to low-quality infrastructure,
incomplete due to minimal investments in inconsistent regulations, and inefficient
past decades. The physical designs of various operations. Flow of goods to and from
infrastructure do not conform to the standards ports is limited by low on-site capacity for
of the Accessibility Law, which is supposed to container storage and management. Funding
ease the access to and use of such facilities by to modernize and equip government-operated
those with special needs. Addressing the needs ports and LGU-operated ports is inadequate.
of pedestrians, cyclists, PWDs, and public Intermodal transport facilities must be
transport users by modifying the priorities prioritized to move goods effectively and
and changing existing policies of road projects efficiently. However, there are only a few
by national and local agencies are the major inland container terminals, and none of them
challenges. Despite the enactment of the is connected to the port by freight rail.
Safe Spaces Act and other laws, efforts have
been weak and uncoordinated in addressing Transport corridors supporting airports and
gender-based violence-sexual exploitation, ports will continue to impede movement of
abuse and harassment and discrimination goods if not upgraded. Movement of goods
in public spaces, especially in the transport and services from gateways and production
sector. areas to markets is currently limited to road-
based transportation options. However, the
Ensuring travel safety on road transport roads leading to ports and airports are often
corridors while aiming to increase travel congested and deteriorate faster due to heavy
speeds poses a challenge. Travelling along truck loads. Moreover, lack of coordination
existing primary national roads could be among government entities results in
slower than 30 kilometers per hour when non-uniform and fragmented regulations
passing through an urban area with over such as truck ban policies and pass-through
100,000 people. Adding to the travel delays requirements. Addressing these issues as well
and to the hazards faced by road users, if not pursuing the plans to establish long-haul
addressed, are the slow-moving vehicles plying freight rail and waterway transport lines will
along the national roads, uncontrolled PUV speed up the transport of goods across the
loading and unloading in road intersections; country.
faulty traffic signals; illegally parked vehicles;
on-going construction, maintenance, and The disparity in access to and high
water works; electric and telecommunication costs of digital services in the country
poles erected in roadside kerbs; and ambulant indicate inadequate investments in digital
vendors plying their trade along carriageways. infrastructure. The outdated laws and
existing regulatory regime are ineffective
Low-quality infrastructure, inconsistent to address high entry barriers in the digital
regulations, and inefficient operations leads services market, thereby limiting competition
to high logistics cost. The Philippines has among service providers, affecting broadband
one of the highest logistics costs and rates of prices, and restricting investments for
congestion among ASEAN member-states.33 infrastructure buildup and expansion,

Chapter 12 Expand and Upgrade Infrastructure | 263

especially in geographically isolated and disabilities) also remains digitally excluded
disadvantaged areas (GIDAs). A segment of with the existing digital services not designed
Filipino population (including persons with to cater to their special needs.

Water Resources
Effective management of the country’s water when comprehensive land use plans are
resources is faced with numerous challenges. divorced or unharmonized from water use
These include the multiplicity of water-related and resource plans.
agencies without a clear and/or unified
objective, increasing hydrologic variability Hydrologic variability and erracity further
and irregularity under a changing climate, the complicates water resources management
inadequacy of water-related information, the and planning. The increase in hydrologic
poor planning and financing of infrastructure, variability (i.e., large fluctuations of seasonal
the unaddressed competing and changing rainfall or extreme weather events) as an
priorities of water infrastructure uses, and the impact of climate change is another major
inefficient water utilization and delivery of challenge to the sector. Extreme weather events
irrigation systems. such as intense rainfall (resulting in floods),
strong winds and typhoons (resulting in storm
The weak and fragmented institutional set- surges), and prolonged hot seasons (resulting
up continues to be a fundamental hindrance in droughts and decreased agricultural
in the sector. As of 2021, there are over 30 productivity) have become more frequent in
water-related agencies with overlapping and recent years. Weather patterns fluctuate over
at times conflicting mandates or functions time and vary widely in different parts of the
over the country’s water resources. The lack country, thus requiring location-specific flood
of coordination between said government and drought mitigation schemes, as well as
agencies and the varied users of the resource water infrastructures that are adaptable to
results in unintegrated or “siloed” planning and changing climate conditions. Climate change
policy-making, characterized by subsector-, effects on the water cycle will continue to
program-, or project-specific government strain built infrastructures through increased
interventions in water supply, sewerage and evaporation, salinization, and physical
sanitation provision, irrigation delivery, flood damages. These will not only affect service
management, watershed management, and provision efficiency, but also incur recovery
coastal management, without proper regard costs, economic losses, and societal impacts.
for the other uses of the resource. Water
decisions and financing priorities are often Water-related data collection remains
made according to political jurisdictions and inadequate. The inability of the government
influences without due regard for hydrologic to properly assess the state of water resources
boundaries such as river basin or aquifer in the country is due to insufficient and
boundaries as planning or management units. scant water-related data collection, in as
Said fragmentation issue is further aggravated far as time–space sampling frequency and

264 | Philippine Development Plan 2023-2028

consideration of climate projections on water Competing and changing priorities of
cycle are concerned. For instance, the DPWH’s water infrastructures remain unaddressed.
Bureau of Design only has a total of 249 A challenge in multi-purpose water
streamflow gaging stations all over the country. infrastructures is the competing priorities
Groundwater data is also scarce and generally of the different water users involved with
collected either on project basis or during the its operations. For example, when a dam’s
conduct of well development pumping tests design is built for the purposes of water
for one-time water permit applications. There supply, irrigation, and hydropower, the
are no proper management or surveillance reduced irrigation water allocation due to the
techniques to detect users that extract surface conversion of agricultural areas to residential,
water or groundwater excessively. The impacts commercial, and industrial areas, results in
of watershed degradation especially by the under-utilization and reduced power
deforestation, which results in excessive soil generation of its hydropower plant. Likewise,
erosion and reduced water infiltration, are not a multipurpose reservoir with water supply as
properly monitored. its primary purpose will prioritize conserving
water for the dry season by accumulating water
Poor water infrastructure planning, during the wet season, and yet its flood control
financing, and management persists. The function would require ensuring available
absence of an updated and comprehensive reservoir capacity for flood allocation storage
inventory of all water-related infrastructure by releasing water before the expected heavy
(e.g., water supply, irrigation facilities, and rainfall.
flood control infrastructures) hinders the
facilitation of a harmonized rehabilitation Existing irrigation infrastructure facilities
and maintenance program, leading to require significant overhaul or redesign. The
the unmanaged deterioration of many use of open irrigation ditches or canals is prone
water-related infrastructures. Said challenge to leakage due to damages during the typhoon
is exacerbated by the inadequate financial and season. Likewise, open canals are susceptible
technical capacities of institutions in planning to sedimentation, thus, reducing the canal’s
and implementing water related infrastructure capacities resulting in water spillage and slow
projects. water conveyance.

Energy
The challenges in the sector are making energy Electric Vehicle Industry Development Act is
more secure and cost-competitive, achieving desirable for low-carbon growth, the switch
an optimal energy mix and adequate energy to electric vehicles is expected to increase
supply, and ensuring efficient delivery of electricity demand. Thus, there is an urgent
electricity and judicious use of energy. With need for a replacement to the depleting
Ambisyon 2040, electricity consumption was Malampaya gas to avoid supply shortage.
projected to grow to nearly four times its 2019 Mandatory and preferential dispatch of RE34
level by 2040. While the implementation of is expected to boost RE investments; however,

Chapter 12 Expand and Upgrade Infrastructure | 265

such policy must not conflict with the objective an immediate challenge. Achieving energy
of reducing energy costs. Likewise, cushioning security likewise requires resiliency against
the impact on low-income households of rising climate-related events that cause power
energy prices brought about by the continuing disruptions.
disruption in the global value chain is also

Social Infrastructure
The state of the Philippine health inadvertently constrains the public’s access to
infrastructure has to catch up with globally health care.
accepted standards. The country’s public
spending on health is at 1.69 percent of GDP Poor implementation and disasters resulted
(in 2019), which is among the lowest in the in the weak delivery and inefficient use of
ASEAN35 and is very far from the 4–6 percent education facilities. Disbursement of the
of GDP level of spending needed to attain Basic Education Facilities Fund remains
universal health coverage.36 The country’s low with average rate of 48.4 percent from
health system remains hospital-centric. 2017 to 2021.38 This resulted in the actual
Hospital care accounted for 50 percent of delivery of only 44 percent of the targeted
total health spending in 2018. Primary care classrooms from 2018 to 2021.39 Among the
accounted for only 4 percent in same year.37 problems encountered in the implementation
Corollary to this, average bed density in of school infrastructure projects include
the Philippines is way below the four beds site unavailability, rigid pricing and
per 1,000 population recommended for an specifications, procurement issues, and
upper-middle-income country. delayed identification of project list.40

As proven during the COVID-19 pandemic As the country is highly vulnerable to natural
and in times of natural disasters, the health disasters, the lack of infrastructures dedicated
infrastructure is still not ready to respond for disaster and calamity preparedness and
to public health emergencies. In addition to resilience will continue to exacerbate the
the continued provision of essential services, inadequacy of classrooms, which are used as
capacities for basic epidemiology and disease temporary evacuation centers.
surveillance, especially at the subnational
level, need to be enhanced. Solid waste management (SWM) facilities
remain inadequate to cope with the increasing
While the Philippine Health Facility rate of waste generation, especially in urban
Development Plan 2020-2040 was formulated areas. Majority of local areas are still unserved
to guide the equitable development by common waste facilities, including material
of the country’s health infrastructure, recovery facilities and by sanitary landfill
its implementation is challenged by facilities. The sector continues to be hampered
uncoordinated planning and lack of sustained by the following challenges, among others:
financing causing substantial delays and

266 | Philippine Development Plan 2023-2028

 a. lack of updated data on sources and e. availability, suitability, and social
composition of waste; acceptability issues in site selection for
b. lack of clear policy direction on common waste disposal facilities; and
clustering of LGUs; f. limited segregation-at-source
c. lack of technical and financial due to low awareness on waste
capacities of LGUs in implementing recycling, recovery and composting
solid waste management projects; technologies.
d. low willingness of LGU constituents
to pay for SWM services;

Strategy Framework
To enable economic transformation for a prosperous, inclusive, and resilient society, the
overarching objective for the infrastructure sector over the medium term is to “Build Better
More.”

Figure 12.1 Strategy Framework to Expand and Upgrade Infrastructure

SUSTAINABLE, RESILIENT, INTEGRATED, AND MODERNIZED

INFRASTRUCTURE FACILITIES AND SERVICES DELIVERED

PLANNING, PROGRAMMING, WATER SECURITY,

SEAMLESS AND INCLUSIVE AFFORDABLE,
ECOLOGICAL INTEGRITY OF ENHANCED SUPPORT
AND ASSET MANAGEMENT CONNECTIVITY ACHIEVED WATER SYSTEMS, AND ACCESIBLE, RELIABLE, AND TO SOCIAL DEVELOPMENT
IN INFRASTRUCTURE (VIA LOCAL AND RESILIENCY TO WATER
CLEAN ENERGY PROVIDED PROVIDED
ENHANCED INTERNATIONAL LINKAGES) HAZARDS ATTAINED

Implement integrated Move people, goods, Upgrade and expand Implement Ensure equitable
master-planning and information water infrastructure game-changing access to health
development and through modernized reforms to bring down and education
covergence programs and expanded transport Strengthen the cost of electricity infrastructure, in
and digital integrated water partnership with
Embed resilient and infrastructure resources Enhance delivery of the private sector
innovative solutions in mangement (IWRM) energy by
infrastructure design Address universal implementation coordinating Improve resiliency
mobility and investment in to support health
Fully implement asset connectivity needs Invest in water generation, and educational
management and infrastructure transmission, and outcomes
preservation Modernize the fleet and services provision distribution
provide quality ancillary Pursue optimal
services Provide accessible Provide an enabling solid waste
Undertake partnerships financing for water environment for the management
for financing Invest in advancing and supply and sanitation market to deliver an (SWM) solutions
investments expanding access to projects optimal fuel mix
digital infrastructure, Invest in or provide
and support open Enhance demand side financing for social
access through management infrastructure
strategic collaboration
Invest energy
innovation to respond
to increasing demand
and new markets for
clean technology
goods and services

The strategic framework for Chapter 12 subsectors: connectivity (physical and

(Figure 12.1) is geared toward the delivery of digital), water resources, energy, and social
sustainable, resilient, integrated, and modern infrastructure.
infrastructure systems. It comprises cross-
cutting strategies and specific strategies
corresponding to each of the infrastructure

Chapter 12 Expand and Upgrade Infrastructure | 267

Strategies
Planning, programming, and asset management in
infrastructure enhanced
Implement integrated master-planning Embed resilient and innovative
development and convergence solutions in infrastructure design
programs
The Philippines is highly vulnerable to climate
As master plans provide a sound basis for change and natural disasters. For this reason,
rational prioritization and a holistic approach mainstreaming resiliency and sustainability
to socioeconomic development, master considerations in the present infrastructure
plan formulation for infrastructure will be planning and investment is imperative to
harmonized and strategically integrated to withstand future economic shocks and to
guide the planning, programming, budgeting, reduce additional costs and financial burdens
and implementation of infrastructure projects. caused by climate change and natural disasters.
The different government master planning Enhancing the resilience of infrastructure to
processes will be enhanced and rationalized the impacts of climate-related extreme events
to ensure that master plans are coordinated can also protect lives and human health, as
across all government levels, and remain well as help sustain economic growth.
synergistic, responsive to the emerging issues
Resilient infrastructure will ensure continuous
and consistent with priority development
service delivery and extend the useful life of
strategies of the sector.
assets. Climate resilience will be mainstreamed
Moreover, the government will continue to in infrastructure planning and investment
implement convergence programs to ensure so that climate risks are considered and
complementarity of efforts in the roll out of managed across all types of infrastructure
infrastructure identified in sectoral or spatial and throughout the lifecycle of infrastructure
master plans. assets and operations. Moreover, innovative
technologies, including nature-based solutions
Over a reasonable transition period, the (NBS), will be employed in infrastructure
responsibilities for local infrastructure planning and design.
planning and development will be fully
devolved to local governments. Capacities of Fully implement asset management
local governments to assume the responsibility and preservation
and accountability for infrastructure outcomes To ensure the cost-effective management of
within their jurisdictions will be built. assets, the government will analyze the lifecycle,
capacity, and utilization of infrastructure
assets individually and collectively, with the
view to optimizing government funds and
targeting scarce resources to the most critical

268 | Philippine Development Plan 2023-2028

asset needs. The government will ensure that PPPs, the government will clarify allocation
infrastructure assets will be efficiently and of responsibilities to integrate climate risks
effectively maintained and rehabilitated, as in planning, management, or operation of
necessary, to maximize their economic life. infrastructure. To attract additional private
Undertake strategic partnerships for investors, the government will develop
financing investments projects and promote infrastructure plans
with prospects of good financial returns.
Annual public infrastructure spending
in 2017–2021 ranged from 4.2 percent to The government will continue to strategically
5.8 percent of GDP, which is about twice engage multilateral and bilateral development
as much as the average spending over the partners for external financing to capitalize on
previous five decades. Over the next Plan their comparative advantages and benefit from
implementation period, annual spending on knowledge and technology transfers.
infrastructure will be sustained at 5 percent
to 6 percent of GDP. In line with this, the To ensure that the increase of available
government will continue to tap viable funding financial resources of LGUs pursuant to
mechanisms to augment the public resources the Mandanas-Garcia ruling contributes
in financing critical infrastructure projects. maximally to socioeconomic development,
the national government will assist LGUs by
By leveraging the private sector’s efficiency, providing technical assistance and setting
resources, expertise, and innovativeness, service delivery standards. Together with
the government can reinvigorate PPPs in LGUs, the national government will explore
financing priority infrastructure projects. This appropriate cost-sharing arrangements in the
will ensure the sustainability of operations implementation of devolved infrastructure
of infrastructure facilities and free up projects. LGU capacity to prepare and
fiscal space for other social programs and structure PPPs will also be improved.
development priorities. While reinvigorating

Connectivity

Seamless and inclusive connectivity via local and

international linkages achieved
Move people, goods and information will integrate land use and urban planning
through modernized and expanded methodologies (e.g., transit-oriented
transport and digital infrastructure, development, township approach, and
with active participation of the high-density development), will guide the
private sector rational development of an intermodal
transport infrastructure network that takes
A National Transportation Master Plan
into consideration compatibility, economic
will be formulated and adopted. The
feasibility, comparative advantages, climate
National Transportation Master Plan, which

Chapter 12 Expand and Upgrade Infrastructure | 269

risks, and linkages of desired transportation sidewalks, lockers, and storage facilities will be
modes. Baseline data and information will be constructed.
regularly collected, updated, consolidated, and
managed. Safe and well-connected active mobility
networks will be established. This will
Intermodal transport facilities will be involve, among others, widening of sidewalks;
constructed and upgraded to achieve adding segregated micro-mobility corridors;
seamless connectivity. Rationalizing developing greenways, car-free zones and
intermodal linkages and hubs will provide bike-only roads, and other public open spaces;
order in passenger movement and decrease redesigning and reconstructing existing
traffic congestion inside urban centers and intersections; and re-evaluating interchanges
across regions. Trains and buses shall serve and grade separators to accommodate at-grade
medium- and long-distance travel demands. pedestrian crossings and bike turning spaces.
Last mile connectivity through active transport
shall be enhanced to improve access to transit Local government units and private developers
stations and encourage mass transportation will be incentivized to have pedestrian-friendly
usage. and bikeable developments and programs.
LGUs will also be encouraged to measure walk
Design standards for transit stations and scores, walkability, bikeability, and accessibility
interchanges shall be adopted with emphasis within their jurisdictions.
on convenient transfers, high levels of service,
universal accessibility, gender inclusivity, and Applicable mass transportation systems (i.e.,
sustainability. The standards and regulation railways, road-based, and ferry systems) will
for a national automated fare collection system be developed in metropolitan areas. Mass
shall be adopted to establish interoperability transportation systems will be prioritized.
across all transport modes. The roll-out of the planned rail infrastructure
projects will be pursued aggressively. Railways
Active transport networks will be developed. will be expanded from north to south and
Pedestrians and cyclists will be accorded from east to west, connecting growth nodes
highest priority in the hierarchy of road and strategic infrastructure. Inter-city rails
users. Provisions for active mobility will be will be built in metropolitan regions across
integrated into the transportation system. the country. Policies will be adopted to ensure
Existing thoroughfares and bridges will be availability of highly specialized spare parts
redesigned and retrofitted for the protection and supplies.
and expansion of bikers and pedestrians.
Shade trees will be planted in urban areas to Bus rapid transit systems will be adopted to
lessen the urban heat island effect, improve enhance the efficient use of public transport
climate resiliency, and improve biodiversity. vehicles and existing road spaces. Existing
Ancillary infrastructure such as segregated ferry systems will be upgraded and other
active mobility corridors, showers, widened coastal and inland waterways transport
systems will be established as an alternative

270 | Philippine Development Plan 2023-2028

sustainable transport mode to further improve through maritime education, technology, and
the connectivity of ports to the national innovations.
transport system.
The construction, expansion, and upgrading
Reforms in the provision of public transport of roads and routes that are aligned with the
services will be strengthened. Performance- nautical highway network will be pursued.
and incentive-based service plans and The missing links in the road network will
alternative financing arrangements will be be completed and viable inter-island bridges
explored. Transition of public transport will be constructed. Road transport corridors
operations from competition among individual leading to airports and ports will be upgraded,
operators toward industry consolidation and including installation of weighbridges to
common fleet management using higher prevent overloading.
capacity and environmentally sustainable
vehicles will be facilitated. Existing airports will be improved and
new ones will be strategically developed to
The Public Utility Vehicle Modernization address future demand. Existing airports
Program will be re-designed so that the supply will be upgraded to meet aerodrome design
of modern public transport can be increased safety standards set by international and local
while managing its resulting fiscal impact. airport authorities, including development
and improvement of access roads. Bundling
The nautical highway will be improved. of airports as possible PPP projects will
Seaports will be constructed and expanded to be pursued to encourage private sector
support economic sectors such as agriculture investments.
and trade. New linkages and strategic location
of new ports will be assessed to create new rural Gateway airports will be developed and
growth areas. The capacity of RORO facilities connected to feeder airports to facilitate access
will be increased and processes digitized to to the country’s various tourist destinations.
address congestion and delays. Larger RORO Development of new airports will consider
ports will be constructed to accommodate optimal sites outside urban areas to allow
larger-capacity RORO vessels. These will be rooms for future expansion and possible
supported with modern ancillary facilities upgrade to international airports.
for passengers. The application of electronic
terminal management systems such as Level of service standards will be adopted in all
electronic ticketing and manifest submissions airports to quantitatively measure the adequacy
will be streamlined. Aging fleets will also be of airport passenger facilities and plan for the
replaced or retrofitted to mitigate the risk of applicable interventions. To alleviate airport
maritime accidents. Implementation of the traffic congestion, “night-rating” of airports
Maritime Industry Development Plan will will be continued.
be continued to achieve a more sustainable
Cargo and freight rail infrastructure to
and globally competitive maritime sector
connect strategic infrastructure such as
ports will be developed and expanded.

Chapter 12 Expand and Upgrade Infrastructure | 271

Railway development for cargo and freight will Safety audits on transport corridors will be
be prioritized, particularly for long-distance continued to inform the allocation of sufficient
deliveries. Meanwhile, truck routes will budgetary support. Other potential financing
be established to service medium- and sources from congestion pricing and parking
short-distance deliveries. Dry ports and other levies, among others, will be explored.
inland cargo terminals will be connected by
freight rail to ease the movement of goods to Underground utility corridors for electricity
or from the ports. and telecommunications cables, water supply,
sewage, and other utilities will be established to
Cold chain logistics and management secure public safety. Through these corridors,
facilities will be developed. Government utility lines will be placed in accessible spaces
will implement cold chain logistics projects so as to minimize traffic disruptions and other
to secure the transportation throughout surface activities when system upgrades or
the supply chain of temperature-sensitive repairs will be done.
commodities and products, such as perishable
food products, medical supplies, and other Digital infrastructure will be modernized
pharmaceutical supplies. and expanded. Advancing the country’s
digital infrastructure entails effective
The implementation of the ULP and government stewardship of the sector, in order
Transport Accreditation, Permit and Pass to facilitate private sector investments toward
for Ports (TAPPP) will be made seamless modernizing digital infrastructures, to expand
and well-integrated. To facilitate the transport access in GIDAs, and to encourage strategic
of basic goods and necessities, the ULP and collaborations for pursuing open-access
TAPPP will be implemented cohesively networks that will benefit all market players.
throughout the country. This will further
streamline the varying and burdensome To foster effective competition and level the
pass-through requirements and restrictions playing field, the government will strongly
of ports, economic zones, and LGUs, as push for necessary reforms and undertake the
well as promote a more business-conducive following:
environment in the logistics sector.
1. Review the regulatory landscape and
Transport safety and security will be strengthen the policy and regulatory
ensured. The government will ensure that environment to encourage just and
transport hubs are equipped with additional transparent interconnection among the
safety features such as closed-circuit television, industry players and establish effective
baggage scanner, proper lighting, and real-time open-access network,
passenger information system. The Philippine
2. Nurture and promote facilities-based
Coast Guard will pursue its modernization
competition so that industry players
program involving, among others, the
consistently invest to advance their digital
procurement of modern air and floating assets
infrastructures, thereby benefitting the
and interoperable communication systems.
general public, and,

272 | Philippine Development Plan 2023-2028

3. Streamline bureaucratic processes and integrated in all phases of infrastructure
relax the administrative procedures and project development and implementation.
licensing requirements to ease market Facilities for the mobility needs of women and
entry. men commuters from all sectors (i.e., PWDs,
senior citizens, , and indigenous peoples)
To facilitate the roll-out of broadband will be provided. Gender mainstreaming,
infrastructure in less profitable or remote inclusion, and accessibility will be integrated
areas, the government will strategically use in the monitoring and evaluation (M&E)
of its existing assets and adequately invest to mechanism. Collection of sex-disaggregated
help meet the requirements in the domestic data and other gender and social inclusion
backbone and middle-mile segments. It will data will be strengthened.
also encourage infrastructure sharing among
industry players. Universal digital connectivity needs
will be addressed. To help in building a
Address universal mobility and digitally connected and inclusive society, the
connectivity needs government will promote accessibility and
Gender mainstreaming, inclusion, and assistive technology innovations. This will
accessibility will be main considerations in all further ensure equal access such that all people
stages of transport project implementation. are encouraged and empowered to use digital
The Philippine Harmonized Gender and services (See Chapter 8).
Development Guidelines (HGDG) will be

Water Resources

Water security, ecological integrity of water systems,

and resiliency to water hazards attained
The strategy in the water sector is to implement • maintain and enhance surface and ground
effective water governance through integrated water quality;
water resource management (IWRM) as
applied in the planning and management of • ensure good sanitation and drainage
land, water, and coastal resources. The major (including proper disposal);
pillars in this strategy are as follows:
• protect land, water and coastal resources;
• ensure water availability through efficient
• protect life and property from water and
water infrastructures and management;
coastal hazards including dam-related
• allocate and utilize water efficiently hazards; and
especially over competing water uses;
• manage flood effectively (with sediment
control) and mitigate droughts.

Chapter 12 Expand and Upgrade Infrastructure | 273

 c. Irrigation systems with pipe or closed
Upgrade and expand water conduits or conveyance systems.
infrastructure These will be prioritized rather than
open channel or gravity canals to
1. Implement the Philippine Water Supply
eliminate sedimentation problems.
and Sanitation Master Plan (PWSSMP),
d. Proper flood drainage systems in
the National Irrigation Master Plan
irrigation service areas.
(NIMP), the National Water Security
e. Flood control and coastal protection
Road Map (NWSRM) and various Flood
infrastructures with hybrid systems,
Master Plans for Metro Manila and major
that is, a combination of nature-based
river basins. As necessary, the master
solutions (NBS) and engineered or
plans should be revised and modified
gray structures. In NBS, floodplains,
based on location-specific conditions and
wetlands, and forests are to be
prioritization and timing of investments.
restored and enhanced to store
In essence, the plans shall be adaptive,
and attenuate flood waters, while
and the planning process iterative and
engineered structures such as flood
interactive.
walls, embankments, and detention
2. The following infrastructure will be ponds should be skillfully designed
prioritized: in combination with the NBS.

a. Effective and sustainable WSS 3. Country-wide guidelines shall be

services with cost-efficient and developed for rainwater harvesting
well-designed WSS structures. considering seasonal availability and
Adequate institutional capability regional variability of rainfall associated
to efficiently operate and maintain with water use, storage requirement,
WSS systems in terms of service and economic benefit. In urban areas
coverage, performance, and financial in particular, rainwater harvesting can
sustainability will be developed. be multipurpose, e.g., for household
b. Water storage reservoirs for water water supply, stormflow reduction and
supply and drought mitigation, or groundwater recharge. Investments in
multi-purpose dams with flood smart metering and pricing of household
control functions. Reservoirs should water use and demand management shall
be planned with infinite life so be promoted. Public–private partnerships
that sediment deposition can be (PPP) shall be encouraged to enhance
avoided through sediment flushing and strengthen investments in managing
(built-in facility and operations), and developing water infrastructures
and integrated with climate risks and services. Obstacles to private sector
assessments to increase the reliability participation shall be managed.
of service provision and asset life;

274 | Philippine Development Plan 2023-2028

Strengthen implementation of integrated for multi-stakeholder consultation and
water resource management public participation will be developed
and maintained. Such decision support
For integrated water resource management
system shall be based on digital ecosystem
(IWRM), management instruments include
framework with interoperable set of data,
water resources assessment, data collection
algorithms, methods, and analysis tools
networks, allocation and conflict resolution,
to provide real-time information and
allocation through market instruments, risk
actionable knowledge and insights that can
management tools, regulatory instruments,
be easily understood by decision makers
communication and information for informed
and stakeholders or citizens.
stakeholder participation, and use of
technology for research and development. 4. University- or college-based water
resource centers will be tapped to
The following priority strategies in terms of
undertake problem-oriented research,
management instruments will be pursued:
development, extension, and training
1. The institutional fragmentation of activities related to the water sector on
the water resources sector shall be a sustained basis. These centers provide
addressed. The main motivation of regional or local presence and can
applying institutional reforms within the proactively engage in developing the water
bureaucracy is to efficiently orchestrate, research program in the country taking
coordinate, and integrate the development cognizance of the public interest in general
and management of water resources using as well as facilitating interaction with
IWRM principles (covering integrated local or regional agencies, policymakers,
management and harmonization of land and stakeholders. Outsourcing to
and coastal resources with water resources university-based water resource centers is
including control of water-related hazards) more sustainable and efficient for provision
and science-based decision support of scientific and technical support
systems. especially with their experiences and
knowledge in water resources development
2. The government’s capacity to conduct and management in the countryside.
continuous scientific studies will be
ensured. The institutional capacities of 5. Investments in data monitoring systems
existing agencies to conduct continuous will be made. A rationally designed
scientific studies (i.e., data analyses, sampling network for long-term data
modeling, scenario simulations) will be monitoring of surface water, ground water,
enhanced, with adequate and regular water quality, and sediments data will be
funding provided. established all over the country. Proper
(statistically and/or physically based)
3. Decision support system for purposes temporal and spatial sampling frequency
of science-based water resources of data collection shall be ensured
planning and management as well as throughout the said network. Inefficient

Chapter 12 Expand and Upgrade Infrastructure | 275

 irrigation water utilization especially supply and sanitation projects, the economic
for upland rice production may be regulatory environment will be rationalized
addressed with “smart monitoring” of soil and strengthened to address the fragmented,
moisture conditions to optimize irrigation poorly enforced, and low-coverage regulatory
scheduling, and by timing the cropping regime in the WSS sector. This entails, among
season according to type of water calendar, others, the consolidation and harmonization
which is location-specific in the country of tariff-setting methodologies, setting
(i.e., the rice cropping season cannot be of performance and technical standards,
uniform for the entire country). and establishing policies and processes for
the granting and revocation of licenses. A
6. Dam safety measures shall be prescribed
credible and effective economic regulatory
and operations shall be stringently
regime is seen to induce the expansion
monitored. A dam safety body shall be
and improvement of services, encourage
created through executive action, with the
further private sector participation, protect
goal of ensuring that all dams are safely
the interests of consumers, and address the
operated, thereby protecting lives and
conflicts of interest inherent in the current
property particularly in times of extreme
regulatory agencies.
weather events. All dam operators shall
be made to comply with established safety In addition, a framework for rationally
standards in dam operations through allocating resources for WSS will be
rigorous monitoring and assessments. established, where government support
will be provided for viability gap funding to
Invest in water infrastructure services
economically viable but financially unviable
provision and provide accessible
projects, performance-based grants to enable
financing for water supply and
equitable access to WSS services, and funds or
sanitation projects
subsidies to leverage access to market-based
Public–private partnerships will be tapped lending or private equity.
to deliver needed water infrastructure
facilities and services. In particular, for water

Energy

Affordable, accessible, reliable, and clean energy

provided
Implement game-changing reforms cost and make energy more cost-competitive
to bring down the cost of electricity is to ensure the completion of the reforms
as stated in EPIRA and fast-track the full
Reforms stipulated in the Electric Power
implementation of Retail Competition and
Industry Reform Act (EPIRA) will be
Open Access (RCOA). The end goal is to
completed. The primary strategy to reduce
set up a competitive retail sector serving

276 | Philippine Development Plan 2023-2028

households and commercial customers by utilization of renewables as the policy provides
relaxing the requirements for participation of a quota for consumers (through the mandated
end-users in RCOA. The full implementation participants) to purchase RE from 1 percent to
of the Green Energy Option Program— 2.52 percent annually starting 2023. As more
RCOA’s counterpart with emphasis on RE— entrants venture into the sector, the country’s
also empowers consumers with a 100-kilowatt transmission network will need to be prepared
(kW) demand to choose RE as their preferred as well. The DOE’s exercise of oversight on
power supply. the transmission concessionaire is necessary.
The concessionaire will be responsible for
The tax (value-added tax) base will be
incorporating the proposed transmission
rationalized so that consumers are not taxed
projects in the Competitive Renewable Energy
for the electricity they do not consume. The
Zones.
government shall endeavor to accelerate
the privatization of assets, strengthen the The government will enhance the reliability
competitive selection process in securing of existing power plants and improve their
bilateral power supply contracts, and revisit maintenance scheduling. Complete adherence
the rules and regulations on cross-ownership to the Grid Operation and Maintenance
between retail electricity suppliers and Program (GOMP) is critical as it establishes
generation companies or distribution utilities. the timetable of scheduled outages of power
These measures will foster transparency and generating units and transmission facilities.
promote fair competition in the implementation The government will also pursue the conduct
of the retail competition and open access. of the Performance Assessment and Audit for
power generation facilities and distribution
The government will explore ways to open
utilities to identify the issues, challenges, and
and set up new windows of competition: the
appropriate policy measures to improve power
forward market, reserves market, and capacity
systems operations. Finally, the government
market. Such measures can help approximate
will take measures to incorporate climate
the full benefits of competition even with
risks in energy infrastructure operations and
a concentrated generation sector, provided
maintenance.
retailers and generators actively use them
instead of bilateral contracts. Nonetheless, Enhance the delivery of energy
these will be introduced in phases to allow by coordinating investment in
greater participation and adjustments as generation, transmission, and
challenges arise. distribution

The entry of more players in renewable energy The government will endeavor to enhance
due to the relaxation of the 60–40 ownership the market’s ability to coordinate
restriction will likely result in increased investment in generation, transmission,
generation capacity, consequently contributing and distribution infrastructure and achieve
to cost reduction.41 The recent issuance on total electrification across the country.
the Renewable Portfolio Standards furthers A well-conceived master plan, oriented to

Chapter 12 Expand and Upgrade Infrastructure | 277

coordination, not coercion, of key industry are progressively connected to the main grid.
players and that accounts for the existing Related policies have been issued on pushing
assessment of the industry and provides for off-grid development.44 Enhancing private
incentive-compatible arrangements will sector participation is a strategy that needs to
attract investors to bet on the country for the be reinforced and strengthened.
long term.
The shift from vehicles that rely on
The government will rationalize bureaucratic conventional fuel modes to electric vehicles
processes and remove local-central government will be pursued. Pursuant to the Electric Vehicle
impasse when undertaking investments in Industry Development Act,45 the government
generation. The LGU Energy Code42 also will implement the Comprehensive Roadmap
espouses a convergent framework to facilitate for Electric Vehicle Industry. While the switch
putting-up energy projects. The passage of the to electric vehicles is expected to increase the
Ease of Doing Business and the Energy Virtual electricity demand, such increase may also
One-stop Shop43 are promising ways forward. encourage the entry of more investments in
However, the implementation and practices the electric vehicle markets.
of the various permit-issuing agencies will be
reviewed to ensure the realization of the law’s Provide an enabling environment for
true intent. the market to deliver an optimal fuel
mix
The government will facilitate the upgrading
and modernization of transmission and Besides facilitating the market’s ability to
distribution lines to support efficient transition provide an optimal fuel mix, the government
to cleaner energy. The government will also should also provide correct market incentives
resolve transmission congestion, especially for appropriately clean and reliable power.
between Luzon and the Visayas grid, whether An optimal fuel mix is a combination of fuel
by adding transmission lines or avoiding sources that will deliver adequate and the
subsidies that cause the build-up of excess least-social-cost supply of energy toward a
capacity. Once the government has the needed smooth transition to cleaner energy according
fiscal space, it should revisit and reevaluate to the level of a country’s development. The
financing investment in transmission. social cost of pollution includes both the
Financing and investment will be separated domestic cost of carbon emissions and the
from the regulatory structure of transmission costs of local pollutants (sulfur oxides, nitrous
tariffs. Investment in transmission expansion oxides, and particulate matter) that impinge
offers enormous potential benefits for efficiency on health. The government will endeavor
by increasing access to low-cost generation, to provide an enabling environment for
improving reliability, and counterbalancing an efficient energy transition that respects
market power. technological neutrality and a level playing
field. New investment in generation will use
Energy will be delivered to consumers in off- the most cost-competitive fuel sources. For the
grid or missionary areas. The subsidies to market to promote these, regulations will be
these areas will be gradually reduced as they streamlined, and pollution taxes will replace

278 | Philippine Development Plan 2023-2028

mandates and feed-in-tariff subsidies to reflect needed to compensate for the intermittency of
the negative value of pollution. renewable sources. Electricity generated from
sources such as solar, wind, tidal, and wave
With the impending depletion of Malampaya are intermittent as they are not continuously
gas resources, the government will expedite available due to external factors that cannot
the development of the natural gas industry. be controlled. The natural gas industry’s
Importing liquefied natural gas (LNG) is an development will encourage investment in
immediate solution to this threat. To secure gas-fired generation plants with quick start
LNG supply overtime, investments in the and shutdown capabilities needed to balance
sector should be promoted and guided. the intermittent supply. Along with capacity
Toward this, creating an enabling legal and markets are innovative game-changers in the
regulatory framework for the natural gas sector for deployment such as energy storage
industry should be prioritized. New oil and gas systems and digitalization of energy systems
fields shall likewise be explored. As the LNG through the use of ICT (network-connected
industry develops, potential demand outside devices) and smart meters (for real-time
of electricity generation will also be explored.46 monitoring of energy consumption). Other
ways to address intermittency such as
Liberalization of foreign ownership of RE diversification of the wind-solar portfolio by
generation will be pursued to stimulate type and location and thermal storage (i.e.,
investments toward efficient energy heat water when solar makes price low or
transition.47 The government will revisit the make ice used later for air conditioning) will
Implementing Rules and Regulations of the be pursued.
RE Act to remove the nationality requirement
imposed on businesses engaged in the The government will explore the inclusion of
exploration, development, and utilization of nuclear energy in the mix. EO 164 on adopting
inexhaustible energy resources. The strategy a national position toward a nuclear energy
is to allow the entry of foreign capital into program has set the stage for re-evaluating
the country’s RE industry and thereby lower the entry of nuclear energy into the fuel mix.
the cost of RE projects, and make clean Rigorous scientific studies will be undertaken
energy more accessible to the public. All first before the government will allow
these measures will help achieve the targeted investment in nuclear plants. The government,
35 percent share of RE in the power generation through DOE, will also endeavor to make
mix by 2030 and 50 percent share by 2040. these scientific studies and actions to be taken
transparent, consistent with the guidelines
To facilitate the entry of more renewables, of the International Atomic Energy Agency
intermittency problems shall be addressed. and accepted by the public. DOE will closely
The mandatory and preferential dispatch of work with Congress and the Department of
RE is expected to facilitate the increase in Science and Technology in crafting the legal
RE investments. Capacity markets shall be and regulatory framework for nuclear energy.
developed to allow for more generation plants
with flexibility to adjust generated output as

Chapter 12 Expand and Upgrade Infrastructure | 279

The government will maximize utilization Program and Net-Metering program will be
of indigenous energy resources. To maximize encouraged.
the country’s existing indigenous energy
sources and enhance the promotion and Invest in energy innovation to
awarding of Petroleum Services (PSCs) in respond to increasing demand and
the country, the government will continue new markets for clean technology
its implementation of the PCECP. Moving goods and services
forward, the government will address the The government shall provide a conducive
challenges of the upstream sector related to environment to encourage the private
exploration activities in the West Philippine sector investments in game-changing
Sea.48 innovations that will facilitate entry of
Enhance the demand side cleaner energy in the market and respond
management to increasing demand. On the supply side,
Government will lead energy efficiency and the innovative solutions include thermal
conservation efforts. The Energy Efficiency storage, digitalization of energy systems
and Conservation (EEC) Act will be fully through the use of ICT (network-connected
implemented so that energy efficiency will devices), and development and deployment
contribute to improving national productivity of energy storage systems. On the demand
at the most reasonable cost. The EEC side, innovative technologies include smart
Roadmap and the National Energy Efficiency meters for real-time monitoring of energy
and Conservation Plan will be updated and consumption, and energy-efficient appliances,
enhanced to provide the policy and program among others.
direction on making EEC a way of life for all
energy consumers.

The government will lead by example through

the Government Energy Management
Program, which promotes fuel and electricity
consumption reduction by 10 percent. In the
medium term, a Demand Side Management
Circular will be issued on initiatives and
technologies that will encourage consumers
optimize their energy use. The government
will collaborate with the energy service
companies and the private sector to assess
the implementation of their respective EEC
projects. The Philippine Energy Labeling
Program will be expanded to cover more
energy-consuming products.49 Own-use
and participation in the Interruptible Load

280 | Philippine Development Plan 2023-2028

Social Infrastructure
Enhanced support to social development provided
Ensure equitable access to health partnerships will also be pursued to deliver
and educational infrastructure, in telemedicine, remote health care services,
partnership with the private sector emergency medical service through
ambulance and patient transport services,
Develop health infrastructure guided by the
and other innovations for health. The national
PHFDP 2020–2040. In line with the Universal
government will issue guidance regarding
Health Care Act, a health care provider network
appropriate financing for such services to
will be established in every province or highly
reach more underserved and unserved areas
urbanized city to ensure comprehensive and
with timely healthcare.
adequate provision of health care services.
LGUs and private providers will work with Issues in the implementation of the
the national government to ensure that the Basic Education Facilities Fund will be
primary care network (barangay health stations addressed. The Department of Education
and primary health care facilities), hospitals, (DepEd), in coordination with LGUs, will
standalone or specialized facilities, and improve the identification of classroom
other ancillary facilities (i.e., private medical gaps at the local level to better inform the
outpatient clinics, infirmaries, birthing homes, planning and programming, and facilitate
dental clinics), whether publicly or privately the implementation by DPWH. DPWH will
owned, are functionally integrated within the revisit the uniform pricing and specifications
health care provider network. for school buildings to account for possible
variances in prices and technical requirements
A comprehensive needs assessment of critical
by location. Procurement by lot or package
health facilities involved in service delivery
will be pursued, as applicable, to encourage
networks will be regularly conducted. The
more bid participants.
assessment results will form part of the
basis for determining which facilities will be Adopt modern learning spaces. The need to
constructed upgraded, or expanded under transform the education system to address
the Health Facilities Enhancement Program the enduring education crisis in the country
(HFEP). National government support for brings forth the need to modernize learning
health infrastructure will be guided by the spaces and ensure adequate, safe, and resilient
National Allocation Framework, which gives facilities for students. As such, classrooms
priority to low-capacity and high-gap areas. shortages will be addressed, while adhering
to ideal classroom size to maintain safety and
To ensure equitable access to quality and
health protocols and ensure optimal learning
affordable health care goods and services,
environment.
proposed interventions will prioritize GIDAs,
marginalized populations, and indigenous In all schools, universal access to basic utilities
people communities. Multisectoral such as electricity, internet and water supply

Chapter 12 Expand and Upgrade Infrastructure | 281

will be pursued. Provision of basic facilities, Social Inclusion (GEDSI)-responsive basic
including water, sanitation, and hygiene facilities constructed for families displaced
facilities, libraries, and science laboratories during emergencies.
will be ensured. Learning spaces will be
designed, configured, and equipped to emulate Health system structures that contribute to the
the classroom of the future.50 Government ability to prepare for and respond to diseases
allocation for education spending will be of public health concern will be established
prioritized while aid and resources from the and/or strengthened. Among the top priority
private sector, non-government organizations, structures are the proposed Virology and
and civil society organizations will be sought. Vaccine Institute of the Philippines, Center
for Disease Prevention and Control, and the
Improve resiliency to support health Philippine Public Health Laboratory System.
and educational outcomes
Pursue optimal solid waste management
In cooperation with the national government solutions
and private stakeholders, LGUs will identify
locations within their jurisdiction for health Facilitate clustering of LGUs to take
facilities, school buildings and evacuation advantage of economies of scale. The
centers taking into consideration not only Department of Environment and Natural
accessibility and demand, but also long-term Resources will assist the LGUs in consolidating
resilience to natural and anthropogenic their efforts, services, and resources for the
hazards and risks, including those associated purpose of delivering common facilities
with climate change. for waste management to take advantage of
economies of scale. This will alleviate their
National and local government funding, budget burden for capital-intensive projects
coupled with multi-sectoral partnerships, and enhance the financial viability of these
will be pursued to adequately provide for the projects, thus making them attractive to
construction, retrofitting, and repair of health private investors.
facilities and schools; to better withstand
the impact of hazards and calamities; and to Explore technology options and financing
minimize disruption of services or classes. schemes for SWM based on updated LGU
In every LGU there will be permanent waste data. Results of scientific research and
disaster-resilient evacuation centers, equipped development, and of demonstration projects
with adequate Gender Equality, Disability and shall guide the promotion and adoption of

282 | Philippine Development Plan 2023-2028

low-carbon (See Chapter 15), new modern, Supporting SWM programs will be
and innovative technologies, including intensified. Capacity-building programs
WtE. A menu of technology options and will be undertaken to develop the technical
financing schemes for the implementation capacities of LGUs to undertake waste
of SWM projects will be provided, taking analysis and characterization studies and
into consideration the composition of waste assess technical and financial options for
per source, the availability of suitable sites, implementing SWM projects. Information,
and greenhouse gas emissions avoidance education, and communication campaigns
and reduction targets under the country’s will be aggressively conducted to promote
Nationally Determined Contribution (NDC) greater waste diversion, thus, optimizing the
(See Chapter 15). Alongside these, waste use of disposal sites and enhancing willingness
analysis and characterization studies will be to pay for SWM services.
regularly conducted.

Legislative Agenda
Table 12.2 contains priority bills of the 19th Congress during the Plan period to expand and
upgrade infrastructure.

Table 12.2 Legislative Agenda to Expand and Upgrade Infrastructure

RESPONSIBLE
LEGISLATIVE AGENDA RATIONALE/DESCRIPTION
AGENCY
General Infrastructure Policy

Public–Private Partnership This amends the Build–Operate–Transfer (BOT) Law to enhance the principal framework Public-Private
(PPP) Act governing PPPs in the Philippines by fostering a more competitive and enabling Partnership Center
environment for PPPs, addressing the ambiguities in the existing law, and addressing the (PPPC), National
bottlenecks and challenges affecting the PPP program. Economic and
Development Authority
(NEDA)

Amendment of RA No. 10752 This will address difficulties in complying with the law’s strict requirements (such Department of Public
[The Right-of-Way Act (ROWA) as valuation, compensation and expropriation problems) and further expedite the Works and Highways
implementation of infrastructure projects; to provide clearer, fairer, and simpler terms for (DPWH)
ROW acquisition for both property owners and the government.

Physical Connectivity

National Transport Policy Act This aims to help achieve a safe, secure, efficient, competitive, dependable, integrated, Department of
environmentally sustainable, and people-oriented Philippine transportation system by Transportation (DOTr),
setting forth policies that will serve as boundary conditions to guide all entities involved Department of Public
in the transportation sector in the exercise of their functions, including the creation of Works and Highways
metropolitan transit authorities, and clarifying the roles and responsibilities of national and (DPWH)
local governments.

Magna Carta for Commuters This seeks to address the long-standing plight of Filipinos in public transportation by DOTr
laying down the rights of the commuting public; promoting an efficient, safe, convenient,
accessible, and inclusive public transportation system; and setting key performance
indicators and service standards for commuters.

Chapter 12 Expand and Upgrade Infrastructure | 283

 RESPONSIBLE
LEGISLATIVE AGENDA RATIONALE/DESCRIPTION
AGENCY
Enactment of a law This aims to shift the role of bicycles and other forms of non-motorized and active DOTr
institutionalizing the use of transportation, from being an “alternative mode” toward an institutionalized mode of
bicycles and other active transport that is integrated in the transportation network of the country. This will be done
and sustainable modes of by providing the necessary infrastructure and support services, establishing safety and
transportation, including design standards for universally accessible and safe pathways and green open spaces,
updating standards for and increasing public awareness on road safety and road sharing among motorists,
accessible and safe pathways, cyclists, and pedestrians.
and green open spaces

Rationalizing the mandates of This seeks to separate the regulator and operations functions of existing government DOTr
transport agencies entities; empowering local government units to assume greater responsibility and
accountability for transportation and mobility outcomes

Creating an independent This will place all transport safety and security matters under a single independent body DOTr
body for transport safety and that will, among others, investigate transport accidents and provide transport safety
security recommendations, thereby eliminating conflicting and overlapping functions of existing
agencies or entities.

Digital Connectivity

National Broadband Act The bill proposes to institutionalize the National Broadband Program, public safety and DICT, Department
emergency communications, and policies for the use of other passive infrastructures— of Energy (DOE),
poles, ducts, and dark fiber. Department of National
Defense, and DPWH

Amendment to the National This seeks to ensure that buildings are capacitated toward achieving universal access DICT, DPWH
Building Code to quality, reliable, and secure ICT services by incorporating minimum electronic
requirements, i.e., telecommunications facilities, in multi-dwelling buildings, commercial,
buildings, government buildings, office buildings, schools, and hospitals, among others.

Water Resources

Department of Water This will address the weak and fragmented institutional set-up in the sector by NEDA
Resources streamlining all water-related functions in the government, and separate resource
regulation from economic regulation.

Water Regulatory Commission The body will create a business and regulatory environment that is fair, transparent, and NEDA
conducive for public and private domestic and foreign investment in water supply and
sanitation services by implementing fair, just, and reasonable tariffs, rates, and charges for
water supply and sanitation services.

Energy

Revisit RA 9136 This revisits the policy thereby ensuring its responsiveness to the power industry. DOE, ERC, NEA
Electric Power Industry Reform
Act)

Development and Regulation This aims to consolidate and enhance various executive issuances and policies governing DOE
of Philippine Midstream & the natural gas transmission, distribution, and supply.
Downstream Natural Gas

Drafting of the Comprehensive This will create a nuclear regulatory body for the peaceful uses and application of nuclear DOE, DOST
Atomic Energy Regulatory energy
Framework

Revisiting RA 10531 This is to enhance and streamline the mandate of NEA to ensure quality, reliability, and DOE, NEA
[National Electrification security of electric power supply.
Administration Reform Act of
2013]

Enhance Energy Regulatory This will provide a more streamlined and stronger power regulatory body DOE, ERC
Commission (ERC)

Amendment of RA 8479 This clarifies the functions of DOE, Department of Trade and Industry (DTI), and Philippine DOE, DTI, PCC, DOF
(Downstream Oil Industry Competition Commission (PCC) to ensure regulatory compliance of oil companies
Deregulation Act of 1998)

Amendment of RA 9367 This aims to provide for time-bound suspension or reduction of the biofuels component in DOE, DILG
(Biofuels Act of 2006) the event that oil prices are lower than biofuels.

284 | Philippine Development Plan 2023-2028

 RESPONSIBLE
LEGISLATIVE AGENDA RATIONALE/DESCRIPTION
AGENCY
Amendment of PD No. 87 This seeks to revitalize interest and encourage more drilling activity in the country DOE, Department
(The Oil Exploration and of Environment and
Development Act of 1972) Natural Resources
(DENR), DILG, DOF

Amendment of PD No. 972 This will revise the income/sharing scheme and incentives granted to industry DOE, DENR, DILG, DOF
(The Coal Development Act of stakeholders; to increase the government share in coal operations and define the role of
1976) mining operators in environmental protection.

Social Infrastructure

Public Schools of the Future in This aims integrate digital technology and innovation into public basic education by, among DepEd
Technology (PSOFT) Act others, ensuring adequate investment in digital and technological infrastructure in public
schools.

Waste-to-Energy Act this bill will provide the necessary regulatory framework for facilities utilizing WtE, the DOE/DENR
insufficient safeguards against potential environmental and health concerns surrounding
WtE, ambiguities in the roles of government agencies and inefficiencies in carrying out
these roles, and lack of investor confidence.

Notes: The Open Access in Data Transmission Act is discussed in Chapter 6; the e-Government Act is discussed in Chapter 14.

Results Matrix
Table 12.3 contains year-by-year and end-of-plan indicators and targets that the government
seeks to attain within each of the outcomes during the Plan period to expand and upgrade
infrastructure.

Table 12.3 Results Matrix: Expand and Upgrade Infrastructure

TARGETS RESPONSIBLE
BASELINE MEANS OF AGENCY/
INDICATOR
(YEAR) 2023 2024 2025 2026 2027 2028 EOP VERIFICATION INTER-AGENCY
BODY
Public 5.9 5.2 5.1 5.0 5.0 5.4 6.0 6.0 Actual All concerned
infrastructure (Q1–Q3 2022) spending implementing
spending agencies,
increased (% Development
share in gross Budget Coordination
domestic product Committee (DBCC)/
[GDP]) a Department
of Budget and
Management (DBM)

Physical Connectivity

Travel time 3.285 3.272 3.258 3.246 3.233 3.220 3.207 3.207 Agency Metro Manila
(decreased) via (2019) reports Development
land per key Authority,
corridor (hours) 2.38 Department of
(2021) Public Works and
Highways
(DPWH)

Percentage 29 30.00 31.00 32.00 33.50 35.00 36.00 36.00 Agency Department of
of cycling (2020) reports; Transportation
households in Third-party (DOTr)
the Philippines independent
increased (% of surveys
total households)

Chapter 12 Expand and Upgrade Infrastructure | 285

 TARGETS RESPONSIBLE
BASELINE MEANS OF AGENCY/
INDICATOR
(YEAR) 2023 2024 2025 2026 2027 2028 EOP VERIFICATION INTER-AGENCY
BODY
Passenger trips 1.00 11.00 12.00 12.50 13.00 13.50 14.00 14.00 Agency DOTr, Light Rail
via rail in Metro (2021) reports Manila Corporation
Manila increased (LRMC)/ LRT
(% share to total Line 1 Project
passenger trips, Management Office
cumulative) (PMO)
Light Rail Transit
Authority,
Philippine National
Railways (PNR),
DOTr-MRT3

Passengers 35.72 million 158.54 166.47 174.79 183.53 192.71 202.34 202.34 Agency DOTr,
transported via air (2021) reports Civil Aviation
and sea increased Authority of the
(number of Philippines (CAAP),
passengers, MIAA, Mactan Cebu
cumulative) International Airport
Authority (MCIAA),
Clark International
Airport Corporation
(CIAC), Davao
International Airport
Authority (DIAA),
Philippine Ports
Authority (PPA),
Cebu Port Authority
(CPA)

Cargo transported 470.30 1,302 1,400 1470 1570 1700 1850 1850 Agency DOTr,
via air and sea million reports CAAP, MIAA, MCIAA,
increased (2021) CIAC, DIAA,
(international and PPA, CPA, Subic
domestic) (metric Bay Metropolitan
ton, cumulative)​ Authority, economic
zones

Road traffic 3.85 3.50 3.40 3.30 3.00 2.75 2.50 2.50 Vital Statistics DOTr
accident (crash) (2021) Report,
rate reduced Philippine
(number of Statistics
incidents per Authority
100,000
population) -
incidents of
accidents ​(crash)

Digital Connectivity

Average download 78.69 100.00 125.00 150.00 200.00 250.00 300.00 300.00 Ookla DICT
speed (Mbps) (Sep 2022) Speedtest
Global Index

Households with 17.70 35.00 40.00 45.00 50.00 55.00 60.00 60.00 ITU
internet access (% (2019)
total HHs)

Affordability of ITU DICT

mobile and fixed
broadband service
(% GNI per capita)

Mobile 2.04 2.00 2.00 2.00 < 2.00 < 2.00 < 2.00 < 2.00
broadband (2021)

Fixed 11.56 8.50 6.50 5.00 4.00 < 3.00 2.00 2.00
broadband (2021)

Water Resources

286 | Philippine Development Plan 2023-2028

 TARGETS RESPONSIBLE
BASELINE MEANS OF AGENCY/
INDICATOR
(YEAR) 2023 2024 2025 2026 2027 2028 EOP VERIFICATION INTER-AGENCY
BODY
Safe water 91.60 93.28 94.12 94.96 95.80 96.64 97.48 97.48 Data from MWSS/
supply coverage (2020) surveys WDs/ Rural WS/
(% of families) (e.g., Annual WSP
Poverty
Indicators
Survey [Annual
Poverty
Indicators
Survey(APIS),
Family
Income and
Expenditure
Survey [FIES])

Access to basic 93.90 95.12 95.73 96.34 96.95 97.56 98.17 98.17 Data from MWSS/ WDs/
sanitation (2020) surveys (e.g., Rural WS/WSP
(% of families) APIS, FIES)

Zero open 43.02 80.12 95.01 100 100 100 100 100 DOH Admin DOH, LGUs
defecation (ZOD) (as of data
(based on % of August
municipalities 2022)
with ZOD)

Energy

Proportion of 95.41 95.50 TBD TBD TBD TBD TBD TBD DOE Annual DOE
households (2021) Report
with access
to electricity
increased
(% of total
households) b/

Electricity 804.21 897 945 996 1,051 1,110 1,172 1,172 DOE Annual DOE
Consumption (2021) Report
per capita
increased
(kilowatt-hour/
person)

Share of 22.40 24 26 28 30 32 33 33 DOE Power DOE

renewable (2021) Statistics
energy in
the power
generation mix
increased (%)

Social Infrastructure

Percent of 33.30 35 40 45 50 55 60 60 DOH Admin DOH

provinces with (2020) Data
adequate hospital
bed-to-population
ratio increased
(%) c/

Percent of 20.90 25 30 35 40 45 50 50 DOH Admin DOH

provinces with (2021) Data
adequate primary
care facilities
increased (%)

Classroom-to-
pupil ratio

Chapter 12 Expand and Upgrade Infrastructure | 287

 TARGETS RESPONSIBLE
BASELINE MEANS OF AGENCY/
INDICATOR
(YEAR) 2023 2024 2025 2026 2027 2028 EOP VERIFICATION INTER-AGENCY
BODY
Primary 1:32 1:32 1:32 1:32 1:32 1:32 1:32 1:32 Enhanced DepEd
(2021) Basic
Education
Information
System
(EBEIS),
Department
of Education
(DepEd) data

Junior High 1:44 1:43 1:42 1:41 1:40 1:40 TBD1:40 TBD1:40 EBEIS, DepEd DepEd
School (HS) (2021) data

Senior HS 1:41 1:41 1:40 1:40 1:40 1:40 1:40 1:40 EBEIS, DepEd DepEd
(2021) data

Water and
sanitation facility
to pupil ratio

Primary 1:26 1:26 1:26 1:26 1:25 1:25 1:25 1:25 EBEIS, DepEd DepEd
(2021) data

Junior HS 1:39 1:39 1:38 1:36 1:32 1:30 1:28 1:28 EBEIS, DepEd DepEd
(2021) data

Senior HS 1:35 1:35 1:34 1:32 1:30 1:28 1:26 1:26 EBEIS, DepEd DepEd
(2021) data

Proportion of
public schools
with internet
accessed/

Primary 64.20 70 75 80 85 90 98 98 EBEIS, DepEd DepEd

(2021) data

Junior HS 72.20 75 80 82 88 92 96 96 EBEIS, DepEd DepEd

(2021) data

Senior HS 67.30 72 80 84 88 92 96 96 EBEIS, DepEd DepEd

(2021) data

Proportion of 41 43 45 47 49 51 53 53 Department of DENR-EMB/NSWMC

barangays served (2021) Environment
by material and Natural
recovery facilities Resources
(DENR) -
Environmental
Management
Bureau (EMB)
data

Proportion of 32 35 38 41 44 47 50 50 DENR-EMB DENR

cities and/or (2021) data
municipalities
served by by
sanitary landfill
facilities
TBD = to be determined.
a
Indicative and subject to updating. Projections pertain to disbursements from national government (NG) infrastructure, infrastructure subsidy and/or equity
to government-owned and controlled operations, and transfers to LGUs intended for infrastructure activities. Includes payables from current year’s budget and
prior years’ obligations. 2022 figures are programmed (Source: 183rd Minutes of DBCC Meeting, 5 December 2022).
b
Targets will be provided upon completion of the national electrification Master Plan by March 2023.
c
Based on the Philippine Health Facility Development Plan 2020–2040, the adequate hospital bed-to-population ratio is 2.7 beds per 1,000 population. The
PHFDP 2020–2040 recommends having an average hospital bed-to-population ratio of 2.7 per 1,000 population to meet the present health needs of the
population. This gap may be addressed by constructing new hospitals or by expanding the existing hospitals or infirmaries.
d
Targets are schools located in areas with internet signal.

288 | Philippine Development Plan 2023-2028

1
Department of Transportation (DOTr). Railways Sector. https://dotr.gov.ph/railways-sector.html.
2
DOTr. Annual Report, 2021. Pampanga; data from the Philippine National Railways.
3
DOTr. Railways Sector Data Sets. https://dotr.gov.ph/data-sets/railways-sector-d1.html (accessed day Month year), excluding PNR data.
4
Based on DOTr Ridership Data, excluding PNR data, and assuming a 30-day operation period per month.
5
National Council on Disability Affairs. Batas Pambansa Blg. 344: An Act to Enhance the Mobility of Disabled Persons by Requiring Certain Buildings, Institutions,
Establishments and Public Utilities to Install Facilities and Other Devices. https://www.ncda.gov.ph/disability-laws/batas-pambansa/batas-pambansa-blg-344/.
6
In the MRT Incident Monitoring System 2016–2018, there were 30 reported cases of sexual harassment against women, and six against men.
7
Currently, two major policies have been issued for the continued integration of active transport in the transport infrastructure network: DOH–DILG–DPWH–DOTr
Joint Administrative Order No. 2020-0001 covering the promotion and safe use of all types of active transport during and after the COVID-19 pandemic; and
DPWH Department Order No. 88, Series of 2020, that prescribes standards for bicycle operating spaces and classification of bicycle facilities in our roadways.
8
Based on Social Weather Stations. 2022. Survey on Bicycle Ownership, Usage, and Attitudes of Filipino Household Heads on Cycling as Transportation . ____.
9
World Health Organization. 2022. New WHO Report Highlights Progress, but Cites Need for More Actions to Tackle Road Safety in the Philippines. https://www.
who.int/philippines/news/detail/21-12-2018-new-who-report-highlights-progress-but-cites-need-for-more-actions-to-tackle-road-safety-in-the-philippines.
10
The Maritime Route Rationalization and Information System estimates the number of vessels required per route through a route capacity measurement system,
and determines the number of possible trips, passenger capacity, and perceived profitability of the fleet in a selected route.
11
Philippine Statistics Authority. 2022. Highlights of the Domestic Trade Statistics in the Philippines First Quarter 2022 (Preliminary). https://psa.gov.ph/sites/
default/files/attachments/itsd/specialrelease/1_Textual%20Analysis%201st%20Qtr%202022%20DomStat%20v2_TSD_ONS-signed.pdf.
12
Fixed broadband download speed.
13
Speedtest Global Index. 2022. Philippines Mean Country Speeds. https://www.speedtest.net/global-index/philippines (accessed day Month year).
14
The United Nations Broadband Commission for Sustainable Development targets to bring the cost of entry-level broadband services below 2 percent of GNI per
capita by 2025. See International Telecommunications Union (ITU). ICT Price Baskets (IPB). https://www.itu.int/en/ITU-D/Statistics/Dashboards/Pages/IPB.aspx
15
Department of Information and Communications Technology (DICT), National ICT Household Survey 2019, DICT Website https://dict.gov.ph/ictstatistics/
nicths2019/ (accessed day Month year).
16
ITU. Digital Trends in Asia and the Pacific in 2021: Information and Communication Technology Trends and Developments in the Asia-Pacific Region, 2017–2020.
https://www.unapcict.org/sites/default/files/2021-03/Digital%20Trends%20in%20Asia%20Pacific%202021.pdf.
17
See Ravago, M.V. 2022. “The Nature and Causes of High Philippine Electricity Price and Potential Remedies.” Ateneo Department of Economics Working Paper No.
2022-01. Quezon City: Ateneo de Manila University.
18
Ravago, M.V., A. Brucal, J. Roumasset, and J. Punongbayan. 2019. “The Role of Power Prices in Structural Transformation: Evidence from the Philippines.” Journal
of Asian Economics 61:20–33.
19
Rodrik, D. 2016. “Premature Deindustrialization.” Journal of Economic Growth 21(1): 1–3.
20
For a more detailed comparison, see Ravago, M.V. 2022. “The Cost Structure of Electricity in the Philippines and Other Asian Countries: A comparative note.”
Ateneo Department of Economics Working Paper 2022-02. Quezon City: Ateneo de Manila University..
21
For a discussion on this paradoxical result, see Ravago, M.V. and J. Roumasset. 2021. “COVID-19, Generation Fuels, and the Energy Transition in the Philippines.”
Transactions National Academy of Science & Technology Philippines No. 43. https://transactions.nast.ph/wp-content/uploads/2022/02/2021-Plenary-Paper-
Ravago-MV.pdf.
22
See Annex A, which provides the list of projects approved by the Department of Energy (DOE), with FGEN LNG Corporation and Linseed Field Corporation
expecting to fill the gap of the depleting Malampaya gas, in Gas Policy and Development Project. 2022. Natural Gas Development Plan. http://gpdp.online/
outputs-reports/technical-assistance-to-government/natural-gas-development-plan/.
23
Chakravorty, U., K. Emerick, and M. V. Ravago. 2016 “Lighting the Last Mile: The Costs and Benefits of Extending Electricity to the Rural Poor.” Resources for the
Future Discussion Paper No. 93. https://2012.ateneo.edu/ls/soss/economics/publication/10/08/19/lighting-last-mile-costs-and-benefits-extending-electricity.
24
Fabella, R., D. Bajaro, and J. Gapay. 2018. “Electric Cooperatives: What’s the Score and Where Do We Go from Here?” In M.V Ravago, J. Roumasset, and R. Danao,
eds. Powering the Philippine Economy: Electricity Economics and Policy. Quezon City: University of the Philippines Press.
25
Commission on Audit. Annual Audit Report 2021. https://www.coa.gov.ph/reports/annual-audit-reports/aar-ngs/#49-5456-department-of-health-1658122476.
26
National Economic and Development Authority. 2021 Socioeconomic Report. https://neda.gov.ph/wp-content/uploads/2022/07/SER-2021-Chapter-19.pdf
27
Based on a report by DepEd during the Senate Hearing of the Committee on Basic Education held on 19 August 2022.
28
Department of Education (DepEd). 2022. Basic Education Development Plan 2030. Pasig City. https://www.deped.gov.ph/wp-content/uploads/2022/05/DO_
s2022_024.pdf.
29
DepEd. 2022. DepEd Data: Functional Computers and Internet Connectivity SY 2020-2021. https://www.deped.gov.ph/wp-content/uploads/2022/04/DepEd-
Databits-Functional-Computers-and-Internet-Connectivity-4.pdf
30
Department of Education (DepEd). 2022. Basic Education Development Plan 2030. Pasig City. https://www.deped.gov.ph/wp-content/uploads/2022/05/DO_
s2022_024.pdf.
31
Based on data obtained from 2021 Philippine Statistical Indicators on Philippine Development, as reported by DENR-EMB/NSWMC.
32
Department of Energy. DOE Department Circular No. DC2022-02-002: “Prescribing the Policies and Programs to Promote and Enhance the Development of
Biomass Waste-to-Energy (WtE) Facilities”. Taguig City.
33
World Bank. 2018. Logistics Performance Index. https://lpi.worldbank.org/international/global (accessed day Month year). Washington, DC; TomTom. 2020.
Annual Traffic Index. https://www.tomtom.com/traffic-index/ (accessed day Month year).
34
A recent policy issuance accorded preferential dispatch to all qualified and registered generating units utilizing RE in the wholesale electricity spot market.
Intermittent or variable RE, which includes wind, solar, run-of-river hydro, and ocean energy, retain their “must dispatch” status. Meanwhile, the option to enjoy
“preferential dispatch” is given to those that are not “must dispatch” such as biomass, geothermal, and impounding hydro plants.
35
World Health Organization. 2022. Global Health Expenditure Database. https://apps.who.int/nha/database/ViewData/Indicators/en (accessed 27 December
2022).
36
World Health Organization. 2010. World Health Report, 2010. Geneva. https://www.who.int/publications/i/item/9789241564021.
37
Department of Health. Philippine Health Facility Development Plan 2020–2040. Manila. https://doh.gov.ph/sites/default/files/publications/DOH_PHILIPPINE%20
HEALTH%20FACILITY%20DEVELOPMENT%20PLAN%202020_2040_0.pdf.

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38
DepEd. Various years. Statement of Appropriations, Allotments, Obligations, Disbursements and Balances (SAAODB) 2017–2021. Pasig City.
39
DepEd. Annual Physical Report of Operations/Physical Plan 2018–2021. Pasig City.
40
Navarro, A.M. 2022. School Infrastructure in the Philippines: Where Are We Now and Where Should We Be Heading? Quezon City: Philippine Institute for
Development Studies. https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps2210.pdf.
41
The Green Energy Auction in June 2022, which accommodated around 1,966.9 MW of RE capacity that will be online 2023, is seen to contribute to reduction of
cost.
42
Department of the Interior and Local Government and Department of Energy. 2020. Joint Memorandum Circular No. 2020-01: Guidelines for LGUs to Facilitate
the Implementation of Energy Projects. 30 April.
43
RA 11032 in 2018 and RA 11234 in 2019.
44
This includes off-grid electrification, Renewable Portfolio Standards for off-grid, and omnibus guidelines in enhancing off-grid power development.
45
See details in RA 11697.
46
Ravago, M.V., K. Jandoc, R. Fabella, R. Friaz, and J. Magadia. 2021. “Gauging the Market Potential for Natural Gas among Philippine Manufacturing Firms.” Energy
237: 121563.
47
As cited in the Department of Justice’s opinion, exploration, development, and utilization of inexhaustible renewable energy resources are not subject to the
60:40 onstitutional foreign equity limitation.
48
Currently, PSC holders are required to secure clearance from the National Task Force – West Philippine Sea; and the Security, Justice, and Peace Coordinating
Cluster prior to any activity to be conducted in the West Philippine Sea area.
49
These products include: (a) Cleaning and Laundry Appliances; (b) Cooking and Food Processing Appliances; (c) Cooling, Heating and Ventilating Appliances; (d)
Grooming and Personal Care Equipment; (e) Information and Communication Technology (ICT) Equipment; and (f) Lighting Products
50
Classroom of the future is an arrangement conducive for teaching and learning (i.e., expanded expertise of teachers and stimulated learning of students)
characterized by sufficient, flexible space, and excellent facilities that are resilient and adaptive to climate change, disasters, urban migration and land shortage;
and by the adoption of technology and developments in ICT, including online classes, among others.