The critical infrastructure imperative: Powering growth and resilience

As of last month, the Marcos Jr. administration has identified 207 infrastructure flagship projects (IFPs) under the Build Better More program. These projects, whose cost amounts to P10.433 trillion, are intended to facilitate smoother trade flows, attract long-term investments, and support inclusive national development.

Additionally, 49 of these IFPs have been declared open to public-private partnership (PPP) funding. They are in various sectors such as physical connectivity, housing, power and energy, digital connectivity, health, and water resources.

The IFPs that have been identified are complemented by the Luzon Economic Corridor (LEC), launched in April 2024 during the US-Japan-Philippines Trilateral Summit. The LEC serves as a platform to accelerate industrial development, enhance regional connectivity, and integrate the Philippines more deeply into global supply chains. It also links key growth centers through modern railways, roads, ports, and energy systems. The corridor provides a platform to expand trade, foster innovation, and generate quality jobs for Filipinos.

More importantly, the LEC reflects the government’s vision of positioning the Philippines as a competitive, resilient, and reliable economic partner in the Indo-Pacific region. In August last year, the Department of Economy, Planning and Development listed 21 projects for the LEC, focusing on infrastructure development, modernization projects, and food production.

In an era marked by intensifying geoeconomic confrontation, investment in modern transport systems, energy facilities, digital networks, and climate-resilient structures is not only a development imperative but a national security priority.

Let me cite a few of the commendable initiatives toward these objectives.

Railway projects are truly vital to the government’s objective of enhancing connectivity. Most recently, last June, the Philippines signed an agreement with the US for technical assistance in the construction of the Subic-Clark-Manila-Batangas Railway, a major component of the LEC. The North-South Commuter Railway System is currently being implemented by the government through the Department of Transportation (DoTr), with financial assistance from the Japanese Government and the Asian Development Bank.

Ports are equally essential in advancing the country’s national development agenda since the Philippines is an archipelago. Modernizing and expanding port infrastructure is essential to facilitating the efficient movement of goods, reducing logistics costs, and supporting the country’s integration into regional and global value chains. These include the New Container Terminals 1 and 2, located within the Subic Bay Freeport Zone, as well as the Luzon International Container Terminal, located in Bauan, Batangas, both of which are being managed and developed by the International Container Terminal Services, Inc.

Airports are also part of critical infrastructure as they facilitate trade and tourism, and support economic activity across regions. At present, seven airports have been placed under PPP, while the government plans to have 10 more airports placed under PPP by 2028.

Dams and power generation facilities are other vital components of national infrastructure. They serve key functions in water security, irrigation, flood control, and energy supply. A significant milestone in this area is the completion of the Prime Infrastructure Capital, Inc.-developed Upper Wawa Dam in June, which is expected to make a major contribution to enhancing the country’s water security and supporting the growing needs of Metro Manila and surrounding regions.

Energy security is another paramount concern. The country’s capacity to maximize and diversify its energy resources, particularly indigenous natural gas and renewable energy sources, will be essential to ensuring both the reliability of supply and the affordability of power.

Currently, the Philippines relies on a single indigenous natural gas asset: the Malampaya Deep Water Gas-to-Power Project. Supplying about 20% of Luzon’s electricity demand at present and having powered as much as 40% at its peak, Malampaya fuels the Batangas power generation complex that underpins the LEC, a critical hub of industrial and economic activity. Its ongoing expansion through Phase 4, which involves drilling new wells, is expected to extend the field’s life by seven to 10 years, ensuring a continued supply of reliable indigenous natural gas.

Among renewable energy sources, solar power stands as one of the most abundant and readily available resources in the Philippines. Meanwhile, offshore wind remains untapped, still in the early stages of development. These will be critical pillars of the country’s clean energy transition.

Beyond roads and ports, today’s critical infrastructure also includes fast, reliable digital networks and world-class data centers. These facilities are essential for cloud computing, e-commerce, fintech, and secure government services.

There is also a surge of private and foreign capital flowing into ICT infrastructure nationwide, with the LEC emerging as a focal point. International and local players are jointly financing new facilities and long-haul networks, turning the corridor into a magnet for technology investment.

This week, I was a speaker at the CSIS Manila Strategy Forum, where I talked about 21st Century Infrastructure. Today’s global environment is marked by geoeconomic confrontation, investments in modern transport systems, energy facilities, digital networks, and climate-resilient structures. These are not only imperatives for development — critical infrastructure projects support industrial growth, yes, but these are also a national security priority.

Critical infrastructure, in all its many forms, is the backbone of long-term economic growth as well as national resilience. Achieving our country’s lofty aims will entail close strategic collaboration with the private sector and with international allies. Whatever other issues may come up, the government must not lose focus.