Right of way woes unsolved will hurt Build Better More
Infrastructure is the way to go. This is evident in the emphasis given to infrastructure building by the administration of President Ferdinand Marcos, Jr. saying it is a cornerstone and a priority of his term.
The Build Better More program, for instance, is composed of 197 projects ranging from physical connectivity, water resources, agriculture, health, digital connectivity, power and energy, and other infrastructure.
The aggressive pursuit of infrastructure is backed by action in terms of budget allocation. From the years 2017 to 2021, annual public infrastructure spending ranged between 4.2% to 5.8% of Gross Domestic Product (GDP). During this administration, until 2028, spending will grow to 5% to 6% of GDP.
Supporting this articulated priority of the government is the Philippine Development Plan (PDP), which covers the years 2023 to 2028. The PDP acknowledges the need not just for infrastructure but for sustainable infrastructure. It lays down the path for promoting the inclusivity and seamless connectivity of road, maritime, air, and railway transportation facilities.
In ensuring the long-term resilience and sustainability of structures, the PDP acknowledges the crucial role played by the private sector in infrastructure development. After all, such projects cannot be delivered to the people solely by the government — it is simply not the core competence of government to build and operate infrastructure projects. Its human and financial resources, no matter how carefully planned, will also always be insufficient for undertaking these capital-intensive projects.
Thus, it needs to team up with private corporations for the financing, design, and construction of infrastructure projects. This is only possible through meaningful public-private partnerships (PPP). The private sector, for its part, has thus been invited to participate more fully in revitalizing the economy through increased partnerships.
Unfortunately, while partnerships between the government and the private sector are ideal in principle, there remain operational and practical hurdles like right of way (ROW) issues that need to be overcome as these, for many administrations, have caused delays in the completion of the projects, and hence in the people’s enjoyment of the benefits of these projects. These ROW issues could sometimes drag on for years, casting uncertainty in the future of what was once thought to be a viable and necessary undertaking. Costs increase, much to the dismay of the private partners that invested huge resources at the invitation of the government.
As a result of such roadblocks, not only will the project not be completed, but the national reputation of the country is also damaged, becoming viewed as an investment risk. The investors we need will instead go to where they are confident their investments will prosper.
Thus, if ROW and other similar hurdles are not properly addressed, all the lofty pronouncements extolling the partnership between the public and private sectors will amount to nothing.
STREAMLINING
A recent forum held in Makati attempted to shed light on the matter. During the event, it was highlighted that streamlining the acquisition process for ROW can reduce, significantly, project delays. If ROW issues are addressed and resolved right away, then the private sector will meet their project timelines on time and avoid costly disruptions. The right policies and institutional frameworks and regulations are needed for this. Specifically, the objectives of Republic Act 10752 or the Right of Way Act must be defined clearly and unequivocally.
The Public-Private Partnership Code of the Philippines, passed just in December 2023, focuses on establishing a transparent, rules-based, and efficient PPP framework aiming to address the Philippines’ P23-trillion investment gap. The Code also underscores the need to address ROW issues to fast-track the implementation of PPP projects.
The government must do all it can to help solve the ROW problem. Specifically, the government should take the initiative to expropriate for ROW before project implementation. There should be a clear separation between building infrastructure and ROW matters. Introducing a separate contract for ROW before project identification should be done.
ROW issues can frustrate the vision that our nation has set especially in terms of economic advancement. To prevent ROW from causing delays, additional costs, frustration to affected property owners and inhabitants, and disenfranchisement among private investors, the government must ensure that these operational details are taken care of for the expeditious implementation of all national infrastructure projects.
Victor Andres “Dindo” C. Manhit is the president of the Stratbase ADR Institute.