We are pleased to share with you free access to Stratbase ADR Institute’s Special Study entitled, “The Build, Build, Build Program: Will it Live Up to the Expectations?”, written by Dr. Epictetus E. Patalinghug, Trustee and Program Convenor of the Stratbase ADRi and Professor Emeritus of Economics and Finance at the University of the Philippines.
This paper examines the program and efficiency of the infrastructure policy of the current administration. Comprised of four sections, the first section tackles the different assumptions on the impact of scaling-up of public investment, the taking for granted of the presence of limited absorption capacity and the impact of these on government’s project selection.
The second section deals with the evaluation of the existing Public Investment Framework. It draws lessons from the World Bank in terms of improving core capabilities of line agencies, the quality of project proposal and of cost-benefit
Thirdly, an assessment of the performance of the BBB program is presented by examining the status of the various infrastructure projects that have been planned, implemented, or completed. This includes railways, airport, and road related projects.
And fourth, the study concludes and recommends based on three lessons on using infrastructure to steer development: 1) the expected gains from coordinated pushes in complementary infrastructures can only be attained if absorptive capacity exists; (2) reaping the benefits of greater investment in infrastructure requires an improvement in investment efficiency; and (3) private participation in infrastructure can increase efficiency and bring expertise, but possible risks that can occur must be understood in order to determine the appropriate regulatory framework.