(DP 2002-09) Notes on Infrastructure: Then, Now, and Tomorrow

Abstract

The Notes are an extended set of observations based on a review of Philippine public infrastructure. Philippine infrastructure development dating back to 1966 reviews various accomplishments in infrastructure investment. The record of infrastructure investment from 1966 to 1983 is very impressive. For almost one decade afterwards, infrastructure investment had not grown. Renewal of investment occurred during the 1994 to the present. The infrastructure development records of recent Philippine presidents are compared, excepting the current incumbent. The contributions of Ferdinand Marcos and Fidel Ramos represented the largest surge in infrastructure construction. The discontinuity of investment in infrastructure was caused by a mistake in failing to commission the nuclear power plant. Discussion of why the record in infrastructure was achieved in based on firsthand introspection of the author. In the past, much of infrastructure development was financed with the help of official development assistance and development loans from multilateral institutions. The current climate dominance of BOT- financing for infrastructure poses new challenges and opportunities. These are discussed in relation to procurement issues, the reduction of risk and contingent liabilities. Finally, the author adds some of his field notes on travel on road infrastructure throughout the country to round up the discussion.

Key words: Infrastructure, Philippine economic development, private financing of public inverstment, official development assistance.