The transformative power of infrastructure

Originally published in Aboitiz InfraCapital's monthly column, InfraTalks, in The Manila Times.

INFRASTRUCTURE forms the foundation of modern society, underpinning virtually every aspect of our daily lives. From the roads we travel on to the water systems that supply our homes and the power grids that keep our lights on, infrastructure is essential for the smooth functioning of communities. It enables the movement of goods and people, supports economic activities, and facilitates access to essential services like health care, education and public safety. Without robust infrastructure, societies would struggle to maintain economic stability and quality of life.

Recognizing the critical need to upgrade and expand the country's infrastructure to support its growing population and dynamic economy, the Philippine government has embarked on developing and delivering projects that have significantly enhanced connectivity, boosted tourism and improved the overall quality of life for Filipinos.

One of the more effective strategies the Philippines has employed in its infrastructure development is the use of public-private partnerships (PPPs). These partnerships have allowed the government to leverage private sector expertise, efficiency, and financing to deliver complex and large-scale projects that might otherwise be difficult to execute. The Mactan-Cebu International Airport is a prime example of how a PPP can lead to the rapid and efficient completion of vital infrastructure, substantially improving the airport's capacity and services and significantly enhancing customer experience. Similarly, the development of road networks like the Tarlac-Pangasinan-La Union Expressway (TPLEx) has enhanced regional connectivity, reduced travel times and eased congestion, driving economic activity in previously underserved areas.

These collaborative efforts between the public and private sectors have not only accelerated infrastructure development but also ensured that projects are delivered on time and within budget. The PPP model was also instrumental in addressing social needs, as seen in the nationwide classroom shortage that was tackled through the PPP for School Infrastructure Project (PSIP). By bringing in private sector innovation and resources, the government was able to build thousands of classrooms across various regions within two years, providing safe and conducive learning environments for students.

Building on the success of past projects, the Philippines is poised to continue this momentum with upcoming PPP initiatives, both at the national and local levels. One of the significant local projects is the Davao City Bulk Water Supply Project, a PPP undertaking of Apo Agua Infrastructura and the Davao City Water District in Davao City that provides a sustainable water supply for residents and commercial establishments. This project involves the construction of a water treatment facility and a pipeline system that delivers over 300 million liters of water daily. Apo Agua is not just an engineering feat; it represents a vital step toward ensuring water security in one of the country's major urban centers, reflecting the transformative impact that well-planned infrastructure can have on communities.

To fully realize the transformative power of infrastructure, it is essential to develop an ecosystem that supports continuous improvement, innovation, and sustainability. This involves not just the construction of physical infrastructure but also the integration of digital technologies, new operating concepts, environmental considerations and resilient design principles.

The PPP model continues to play a crucial role in fostering a sustainable infrastructure ecosystem in the Philippines. Upcoming projects are increasingly designed with sustainability in mind, ensuring that new infrastructure supports not only current needs but also the future well-being of communities. The Apo Agua project is a prime example of this, as it not only addresses the immediate need for a reliable water supply but also integrates environmental considerations, such as sourcing water from the Tamugan River to reduce dependence on groundwater and utilizing the water-power nexus. With its own hydroelectric power plant to energize the water treatment facility and the use of gravity to deliver water, the project is 100 percent green.

Infrastructure is the backbone of any nation's progress, and in the Philippines, it is a powerful force for transformation. Through strategic development and the effective use of public-private partnerships, the country is building the foundations for a more connected, resilient, and prosperous future. As the country continues to invest in its infrastructure, the focus must remain on creating an ecosystem that supports sustainable growth, leverages private sector innovation, and delivers tangible benefits to all Filipinos.