Dict acting sec eli ril

Karen sison
Parag khana
Rep of priv sectors
Investors
Financial inst
Agencies

Welcome to APBest 1GFIS

Happy to report gathered here today

Members of duterte admin
Build build prog
Intensive infra spending plan
8-9tril 17-22
s75 big ticket changing proj this admin aims to complete
hope to see and understand in this forum the courses procedure of action to see
4 intensify coordination among key agencies
5 intensify gatekeeping roles of departments

2017 –economic growth; HIGH –fastest growing country in region

2018 – strong growth trajectory; bright prospects
even foreign worldbank, ADB, ajura, others
enactment and implementation of TRAIN law sustain robust and hale healthy economic growth

golden age of infrastructure by Duterte

how to compare with asia
at present ph falls behind in terms of infra qual and spending
unprecedented bold move = duterte boost public spending and realize this commitment
CREATION of bul bild program
Historical first to coordinate
This event gathers all –
Access to market crit to role of
Bolster trade and commerce
Not for benefit of p holy – connectivity mechanism now ongoing to geog
Belt and road forum in china – duterte before foreign heads
ASEAN masterplan on connectivity
Connect mainland china and asia to 60 countries in the world – Africa, Europe
Duterte sheppards the PH to this prog of China
Finally, bring priv sectors up to date as to status of this program of duterte
What are these? To implement and accomplish

Where are we now?

Parag Khanna

Global picture – actual map showing geog of transportation energy and comm networks
Connectivity – wireless more often
All human connectivity
Financial tansactions
Other than face to face
Physical infrastructure – no connectivity without infra
Comprehensive map that brings it all together
Beautiful image
Building new skeleton onto planets body
Exoskeleton around it facilitating growth of connected human civilization
Every citty has a right to that
THIS IS REAL
Build build build local and global connections
Imperative to continue
1 of most important global conequences is reshaping of global trade landscape – essential for
all to participate in to grow, bring capital, move up the vaue chain
regional clusters, north America asia, Africa any…. Pick any pair and see them thriving trade
of course of growing connectivity
very significant date = steady long term dynamics = growt has rebounded not only gdp BUT
ALSO GROWTH IN TRADE
ONCE AGAIN GROWING SAME PACE W GDP
GEOGRAPHY LAGERGER AXOS OM PAST GENERATOIPNNS SINCE world war
Transatlantic econ relationsjhip
Today, asia trades more with Europe than it does w america
Tectonic shift underway
Look across the pacific to exports in US but looking more in more on EURASIA more than 1.5
tril
Europe has free trade only beginning with japan and korea
Europe has bigan huge market for Asian goods
Take advantage of opportunities
Look for rising food exports to gulf countries in the middle east
Energu omports
Supply, diversifications, supply and demand,
Countries like us bnefit the most – review subsidies and concentrate on investments because oil
is cheap
Sjemzem = little town in 1979 – skyrcrapers industrial parks, advanced innovation zones = how?
Deng shao ping transformed it with foreign investments – hired more, chnese exports and buit
trade surplus and capital reserves
China is now massive in acquisiiotno of companies, telecoms, belt and road infra
Owes itself to that moment in 1979 – began with that story
Capturing supply chain = ingredient of becoming a power: strategic diplomacy, investment
NOT ONLY china: all in asia= largest volume to GFDP is in asia this model is spreading
We can do more
Attract more people in urbanization = acceleratedworldwide
Special economic zones, industrial parks, actual map of distribution of population clustering
effect that exists = urban civili most of human popu
Asia has largest number
Manila is on this map as MEGACITY, many in asia
Not just an optimictic picture = also reinfoing message that national initiative to spread
opportunity
That is represents 1/10 of popu in Indonesia
Circumstances in Jakarta not similar in ph
Rest of country has lng way to go
How to use that to develop newer industries, to wage competitiveiness, to disincentivize masss
migration
NOT JUST ONE CITY = China mandated that there should be 24 megacities to be taken
advantage of = STRATEGIC PLANNING
Infra spending is growing rapidly
Nearly tripled dozens of new countries were created that have not the budget to und the infra
Now it is very strategic
Tremendous growth
Moral responsibility to finance and invest in basic need of popu
Concern – ludicratic 5-10% of popo driving growth, middle income has stagnated, people lack
platform access to markets and services
No one will achieve growth without connectivity
What investments needed to achieve that access
Monetary policyenvironment – projected by US –
Asian – more cautions – ability to not simultaneous to lockstep with western
Important tjomg” no built the sae way = efficiently, bundling, integrated, think ahaead
Don’t have ministries competing, work together, build build build NOT in the same places
Smworldwide trillions of dollars in demand HUNDREDS of MILLIONS PH is forecasting
Monetary policy envi is commodating on this standpoint but also global financial sector
Keen to see this happen
Buying into long term long maturiry debt,
So much more can be done to draw global investor community
There is regulatory systems to adapt to assure legal requirements for foreign investments done
thru momentum to political consensus
Remind investors that Ph as one of the key-country in investments
Belt and road = maritime and terrestrial one thing for sure = not just what china is doing =
underwriting its bilateral investments and multi, NOW other countries like Japan and India
launched investments for east Africa
End state = as travel here in PH and talk with people, EVERYWHERE he gone, what do you want
to bui;d? what infra? Which neighbours? Which industries to support? What do u want to be
financed for?
ANSWERS: map of east meets west belt and road project
Fully integrated euearsian megaspace
This is circle capturing most of humanity
No scenario that any other part of the worlf comes any close to this picture
Asia’s aging = japan and china and korea = PH (young) and ASEAN YOUNG demographic tail
winds to keep momentum going to think about future of ASIA
Big believer of ASEAN
Singapore as a hub to anywhere
Asean attracts more FDI than into china
Asean can compete with China
GDP of ASEAN as ointegrated unit = 2 and ½ tril dollars = with half the popu of china and india
So much complementarity industrial powers, financial centers
Youth popu strong women in workfoce growing labor mobility
Urbanizations, demographics, connectivity, investments – DRIVERS
Asian has been critical to resilience = made region attractive
Interasean trade+ trade with other countries of ASIA = 10th year of wester financial crises
Copycat economies and not sufficient, depend to imports to west
How are they able to grow tho?
Internal integration = taking place
Wealth gap as an opportunity for investment and integ
Rising intra regional trade buffers against low growth west and china slowdown
PH is relatively low compared to other countries
Differnce bet riches of 50 states is 60000 maryland misssipi = 30000
ASEAN as a country = think about inequality. Brunei to Myanmar – 40-1
But the mentality in ASEAN is that we are not turning it into a political risi but as OPPORTUNITY
Billions of people need tobe lifted up = need more connectivity
Over investing? REaLLY? ARE YOU LOOKING AT THE MASSS OF PEOPLE AT BOTTOM OF
PYRAMID?
Attack the proverty problem and connectivity problem
Now, 1 to be done = invest in financial markets = has to take off.to what extent is there
anenabling financial envi to acess capital to participate
Ph= relatively low
Increase share
MAINTAINING LIQUIDITY AMIDST CURRENCY PRESSURES = PRIVATIZATION (MAJOR TREND)
NECESSARY FOR FUNDING INVESTMENTS
VOETNAM INDONESIA THAILAND some areas here in PH are privatized like casino Filipino
Part of a broader wave
If there are new ways of privatization = call it ASSET RECYCLING = take it, recycle, and direct it
as investment
Tgey want to ocntinue connectivity drives
Today, gov committed new resoutces to this 2025 connectivity master plan
Ph will benefit smoother withforeign investors, businessmen, tourists, good relations with
neighbors
Look at philipppines infrastructure spending by admin
I could easily write speeches of president aquina, etc. and now pres duterte
Easily write Asian politician’s speech = JUST SAY INFRA! Indian budget – going to COPEX
Build build build version of something prominent trend political viability
Fy 847.2 B
2017-2022 P8-9T
10-15 years
8%
india = a lot worse than PH
last year important milestone for ph in bond offering = very modest yield = have to double that
rate to get capital inflow in the PH
some of major projects are the following
MAJOR PROJECTS LISTED
Poverty level is high – slums to smart cities = they don’t have benefits of electicity clean water,
survival – basic –advanced – quality of life
Most of world popu live in basic and advanced
Just a fact
Don’t gorget non metro popu the rural
Spent my time in a lot of Asian countries = lahor, power going on and off, significant limitations
Achieved if no power not ransport no water
Start to move popele up the chain
When u get to a popu of 3-5 M of broader = start to get self sustaining economy =
Trade dispiutes,, labor automations by robots, lots of volatility in the traditional arc of
development
Fomr agri, industry, services
We are good in developing industries, take advantage of wages, geography, agreements
Forcing foreign investors, if u want to sell, procure in this market
Large popu is in skilled workforce
Focus on enabling people to oppotyinieis to access
How to move to smart city
Economic masterplanning = what skills what jobs which industries what companies thru
vocational popu what about global chains supply chains how to plan infra
Helps unlock potential of service economy
Work where they live = use bicuycles
Supporting everything from local education to more coworking spaces
Save on the cost and time associated in the idea
Now the national picture – how is there a strategy how to reinforce from national local
Integrated top to bottom strategies
People move to cities, not just 10 but 15 FUNCTINOAL urban structures
Key policies innovation:
1. Supply led growth – housing and transport healthcare and polycentric cities and having
people to stay and move there
2. Administrative alignment – coordination across levels of authority, envi sustainability
3. Fiscal devolution – who has the control of the money; listen to needs of people; local
has say in economic planning; devoliution is proven as best solution
4. Economic master planning – economic master planning: coordination across key stake
holders. New city with industrial parks and urban zones = LED lighting** clearly theres
 just competition in China. Now we have to integrate and forecast about competitive
advantage of our people
5. Connectivity – magic word of the day – about 3 levels of linkages within city – make it
easy as possible – LIKE UBER – SOLVES A PROBLEM; bike sharing companies are solving
A PROBLEM; second layer, between cities = railroads, stretch north and south,we always
underestimate infra demand. Biggest infra projects in the world, no one’s going to use
that. UNDERESTIMATE how much people want connectivity. BUILD SUFFICIENT
CONNECTIVITY. IMPORTANT:INTERNATIONAL LEVEL OF CONNECTIVITY – TO THE
WORLD. VAST AMOUNT OF SHARING INFO AND KNOWLEDGE. Connectivity driving us
toward growth
Manila can be an important HUB in thie growing civilization but BUILD SMART.

BEN DIOKNO SUMMARY:

The esteemed Budget Secretary of the present Administration, Ben Diokno, supplied an
emphasis on the budget for the most ambitious program of the government after decades of
underdevelopment. In his brief speech, he recognized infrastructure development as one of the
major requisites to achieving the real change. Having been left behind compared to neighboring
countries, the next six years of the administration will focus on reversing the poorly executed
infrastructure initiatives of the past which continue to hamper productivity, trade mobility, and
accessibility of public services.

In this 8.9 Trillion-budget masterplan to usher the country into the golden age of infrastructure,
the Budget Secretary confided the overview of the massive development. A ramp-up of annual
infrastructure spending by 2022 envisions a boost in economic activities, investments, creation of
jobs, and improve transport systems within and between cities and provinces. One of the initial
steps taken this year is the increase in the budget of two major infrastructure agencies of the
government, DPWH and DoTr. He promised that the government will be sculpting, flesh and
bones, the promise of change, for the people and by the people. There are 75 big-ticket projects
included in this masterplan. Two of which are the Metro Manila Subway Project Phase I and the
Clark International Airport Expansion project. Both scheduled to start development this 2018.
Secretary Diokno, with a concrete plan, envisions a modern Philippines where effective
governance, prosperous relations, and economic growth is a reality.

FINANCING THE PHILIPPINES INFRASTRUCTURE PROGRAM

USec. Karen Singson

The deplorable state of infrastructure spending of the previous governments has left a lot of things
wanting. To close this backlog, a feasible and sustainable financial plan was deliberately
constructed by the efforts of the present administration in the presentation of their ‘Build, Build,
Build!’ project. Undersecretary Grace Karen Singson of the Department of Finance reiterated that
the Duterte administration will increase infrastructure spending to P8-9 trillion from 2017 until
2022. Unlike in the past, the Philippines is now in a better position to implement this, given that it
already has the fiscal space to scale-up investments. This is complemented by the effectivity of
the TRAIN Law which made the tax system simpler, fairer, and more efficient on top of generating
P786 billion in 5 years.
Moreover, the strong economic outlook, together with the improvement in the creditworthiness of
the Philippines, boast of the matched opportunities that have surfaced from enlivened industries
that do not only contribute to massive roll out of investments, but also demand the creation of
livelihood and human productivity. Looking outward, foreign relations would also benefit from this
initiative. Most of the big-ticket projects will be funded by loans and ODAs as economic relations
with Japan and China continue to improve.

In a comparison of devices, the past has proven that PPPs can be cost and ineffective thus
rendering its continuity freckled with suspicions. However, the government, in a rotational
analysis, recognizes its misevaluated potential. On the onset of this reuse, guidelines for
unsolicited proposals were laid out in the hope of capturing better the stake of the people, public
necessity, improvement of lives, quickness of timetable, among others. USec Singson challenged
the private sector to take more risks.

Nonetheless, the DOF is aware of the effects of massive borrowing and spending. It has
committed to keep the government deficit at 3% of the GDP which will allow the debt-GDP ratio
to continue its downward trend.

Tungpalan:

Ripe with the same stellar inclination to the perceived trajectory of the infrastructure
initiatives, NEDA representative Rolando G. Tungpalan discussed further the viable entries of
improvement that will, if not completely, comparably at a greater extent, reverse the
drawbacks of previous efforts. The comprehensive plan described the fluidity of schedule that
would trump the poor quality of past initiatives that hampered economic progress. With an
increase in volume of infrastructures and more crowding of inputs such as private investments,
the soon-to-tower infrastructures can positively impact poverty level as well, aiming to pull it
down to 7.3% by the end of President Duterte’s term. Furthermore, strategic infrastructures
will facilitate the improvement of quality of life in line of sustainable development, and
generate economic activities with positive spillovers in different economic aspects.

Tungpalan introduced the 3 pillars of change: Malasakit (weaving of social fabric), pagbabago,
and patuloy na pag-unlad.

Address poor quality of infra that hampered economic growth

Promote success in achieving plans if not ahead, on schedule
Increase in volume of infra
Crowding in inputs such as private investments
Infra can impact poverty level – improve health, education, outcomes
Strategic infra will facilitate improvement of quality of life in line of sustainable development
Generate economic activities with positive spillovers
Philippine Development Plan (2017-2022) – top prio of govt to improve rural and urban
communities
Malasakit (Social fabric), pagbabago, patuloy na pagunlad – 3 pillars of change
Accelerate public spending on infra on 2022.
Upsurge envisioned to boost national economy
Estimate using NEDA input ouput simulator = GDP growth will generate 1.7M of employment
by 2022.
Construction sectore stellar performance accelerate economic growth
Public investment Program (2016-2022)

To improve connectivity and inclusive growth, 98 interregional and over 4000 regional projects
amounting to 2.1

President chairing NEDA – key component is the set of infra flagship projects – promotion of
growth centers – 45 in Luzon (Luzon samar link – game charger) 22km
Mobilizing feasibility studies funding – as of January 24 of 75 have been approved. The rest are
ongoing.
2018 is roll-out year. 12 pasig river, marikinia river and manggahan floodway bridges
BGC and ortigas – sta. monica Lawton bridge
Intramuros – binondo bridge -
Panguil bay connecting tangub in misamis occi and tubod of Lanao del norte
New bohol airport
Mindanao rail project connects tagum davao digos segment – 35B
MM subway proj phase I
Mrt lrt common station – mrt 3, mrt 7
PNR North 2 – Malolos – Clark – 69KM of extension
PNR South long-haul
Los banos – Legaspi
Legazpi matnog
Calamba – batangas
Manila-los banos

PMFI Task Force: NEDA, DOF, DBM, OCS, DPWH, DOTr, BCDA – institute policies and processes
to reverse issues of bottlenecks, congestions and provide recommendations from inception to
completion

Enabling environment for infra development

To ensure that government retains promise – Public expenditure management public financial
management
More and better infrastructure – build, implement, operate, encourage competitiveness,

Q AND A

TRAIN project I –gonna raise 90B pesos.

Spend more, borrow more – the whole banking sector, lot more economic activities
President, Dominguez and Diokno – most projects will be done at turnkey basis – after its done,
gov’t should pay in 15 days.
Tax reform and infrastructure
Are there more countries willing to participate in this conversation? – Japanese, can’t say that
there is any region that is not interested into the Philippines

Japan’s interest in the Philippines? – One of the countries committed and seeing the Ph’s high
economic growth. Duterte went to Japan in oct 2017
Passionate observations toward traffic – 2.4B pesos a day in 2014. We are already 4 years after
that. Now in the final stage of that upgrade plan. Not only in Metro Manila.
Veer away from Manila-centric developments
Population density in manila one of the highest in the world
200000 in Manila, Tokyo – 140k – expand transportation as backbone of abridging south and
north Luzon from Manila
Where do you see road blocks ahead? Where do you see positively? Market will be very solid
and on an upward trajectory for the rest of the year.
PSE addressed the potential capital requirements of companies from infrastructure industry –
laxes the rule – not a 3-yr profit track record BUT projects going for 15 years
We will see the banks to fill up their portfolio – advised everyone to go capital markets
Ayala and San Miguel – can already be infra companies in the market
PPP only about to take off
2018-2019 bring companies to the market
Infrastructure – internet… What is the plan? Building a broadband that will increase capacity of
bandwidth by 4x.

Undersecretary Maria Catalina Cabral – Golden Stage of Infrastructure

As often reiterated time and again, the ‘Golden Stage of infrastructure’ has reached our
lifetime, bringing a swarm of arching bridges and stretched roads traversing and connecting
regions and provinces we only fancied in thought before. The government has aligned power
programs for the six-year term, targeting at best to strengthen the GDP growth to 7%, reduce
unemployment to 3-5%, and encourage greater trust in the government. With the overhead
synthesis of the present government, and its implementation to be spearheaded by the
Department of Public Works and Highways, the divined grand reconstruction and improvement
is already expected to materialize in the next 15 years.

The DPWH budget of 651B, topping the 2018 budget, will be extremely used for convergence
projects with DoT, DTI, DND, DOST, Phivolcs, and other government agencies to ease the
laborious structure of its plans.

These projects include:

- Building of water reservoirs, sewerage, water supply, catch basins
- Strengthened risk reduction programs
- Vulnerability assessment of buildings in Manila (in preparation for the BIG ONE)
- Improvement of safe access roads
- Integration of hazard maps in identifying areas no build
- Flood Control and Management masterplan
- River basins across different regions
- Mitigation of flooding in Cavite
- Leyte Tide Embankment
- Extension of Expressways