PHILIPPINE CONSTRUCTION INDUSTRY

SITUATIONERAND THE ROLE OF CIAP AND ITS IMPLEMENTING BOARDS

Undersecretary Ruth B. Castelo

Competitiveness and Ease of Doing

Business

CONTRIBUTION OF CONSTRUCTION INDUSTRY TO ECONOMIC GROWTH (GDP)

PhP

4,233.1 TOTAL GDP IN BILLION

PhP

271.6 CONTRIBUTION OF CONSTRUCTION INDUSTRY TO GDP IN BILLION

6.4%PH ECONOMY

% SHARE OF THE CONSTRUCTION INDUSTRY TO ECONOMIC GROWTH

1st semester 2017

USD 84.01

USD 5.4

PUBLIC & PRIVATE CONSTRUCTION DEMAND

2008– 2017 1ST SEMESTER

(IN 2000 BILLION PESOS)

Government

TOTAL

0

100

200

300

400

500

600

700

800

900

2008 2009 2010 2011 2012 2013 2014 2015 2016 20171st

Sem

Government 116.8 138.5 144.3 88.2 103.6 122.1 120.4 151.2 193.4 121.5

Private 294.2 279.1 346.4 362.1 425 460.7 511.8 550.6 614.1 300.6

TOTAL 411 417.7 490.7 450.3 528.6 582.8 632.2 701.8 807.5 422.1

Government Private TOTAL

*Source: Philippine Statistics Authority As of August 2017

SHARE OF CONSTRUCTION INDUSTRY TO CAPITAL INVESTMENTS

PhP 422.1 B(USD 8.4 B)

Total Construction InvestmentsFor 1st Semester 2017

PhP 121.5B(USD 2.4 B)

GOVERNMENT INFRASTRUCTURE PROJECTS

PhP 300.57 B(USD 5.97 B)

PRIVATE CONSTRUCTION ACTIVITIES

35.3% share of construction to 1,196.44 B over all capital investments in the country.

=

CONTRIBUTION TO EMPLOYMENT

8.5%TOTAL

EMPLOYMENT1st SEMESTER 2017

3.863 MCONSTRUCTION

WORKERS

The construction industry provided jobs, employing an average 3.863 million workers as of July 2017

Additional 2.5 M workers are needed

THE POWERHOUSE OF CONSTRUCTION

Government Privatetendering agencies Real Estate Developers/

Investors(national, local, GOCCs) Businessmen/ Industrialists

Individual homeowners

CONSULTANTS, DESIGNERS, OTHER CONSTRUCTION

PROFESSIONALSCumulative Total Registered

Civil Engineers -143,139Electrical Engineers - 59,762Mechanical Engineers- 90,747Geodetic Engineers - 9,532Sanitary Engineers -2,665Master Plumbers -8,559Architects -29,892Interior Designers -2,727Landscape Architects - 345

CONTRACTORSCFY 2016-2017Domestic FirmsFilipinos - 9,412Foreign - 35 (Special)(Chinese 17, Japanese 5, Korean 7, Italian 3, Singaporean 2, and Australian 1)

(A of 23 November 2017)

Overseas Firms Registered Contractors - 32Consulting Firms - 5

INDUSTRY/PROFESSIONAL ASSOCIATIONS

CMDF – COMTCPTotal - 322

Const. Project Manager -253Const. Project Superintendent -69

As of October 2017

MANUFACTURERS OFMAJOR CONSTRUCTION

MATERIALSCement -19Rebars -16Lumber -95G.I. Sheets/Pipes -17Aggregates (MMla) -34

CONSTRUCTION WORKERSJuly 2017

3.8 M

OTHER SUPPORT SECTORS Funding Agencies Regulatory Bodies Policy Institutions Research & Development

Organizations Construction Safety Officers Surety Firms Training Institutions

Accredited CPEs1,557

As of 17 November 2017

CONSTRUCTION EQUIPMENT DEALERS/ LESSORS

Dealers (light equipment) - 24 firms Lessors - 91 firms

CIAC Accredited Arbitrator – 89 / Mediator

- 28As of 17 November 2017

LICENSED FILIPINO CONTRACTORS BY CATEGORY

CATEGORY 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

2017-2018

(As of 9 Nov

2017)

AAAA 9 13

AAA 200 221 234 265 284 321 362 366

AA 109 107 115 121 126 129 148 157

A 663 710 760 816 863 934 1,077 1,105

B 1,185 1,209 1,279 1,429 1,564 1,761 2,030 2,030

C 693 700 724 833 889 1,031 1,241 1,179

D 2,325 2,249 2,418 2,654 2,688 2,930 3,408 3,258

TRADE/E 241 506 428 743 1,074 1,154 1,429 1,294

TOTAL 5,416 5,702 5,958 6,861 7,488 8,260 9,704 9,412

PUBLIC INFRASTRUCTURE SPENDING

8.4 Trillion

2016-2022347.8B

466.3B

22.1B

6.8B

4.2B

Road

Rail

Air

Maritime

Others

847.2BGovernment

Allocated Budget

for Infrastructure2016-2022 2017

8.4 T2016-2022

847.2B

2017 ALONE

8.4 Trillion

2016-2022

ACCELERATE ANNUAL INFRASTRUCTURE SPENDING TO ACCOUNT FOR AT LEAST 5% OF GDP!

BUILD. BUILD. BUILD.

Opportunities in the

INVESTMENT PRIORITIES PLAN (IPP) 2017:

8.4 Trillion

2016-2022

• Aimed at fostering a soundbusiness environment across theregions

• Infrastructure, social masshousing, and public-privatepartnerships are included aspriority investment areas

• The first step in achieving thegoals of PDP 2017-2022 andAmBisyon Natin 2040

INVESTMENT PRIORITIES PLAN (IPP) 2017:

8.4 Trillion

2016-2022

IRON & STEEL INDUSTRY ROADMAP

The manufacture of basic iron and steel products, steel grinding balls, long steel products (billets and reinforcing steel bars), and flat hot/cold-rolled products is among the preferred list of activities in the IPP.All iron and steel products must be compliant with the applicable Philippine National Standards (PNS).

INVESTMENT PRIORITIES PLAN (IPP) 2017:

8.4 Trillion

2016-2022

CEMENT INDUSTRY ROADMAP

Cement production is among the preferred list of activities in the IPP.

All cement products must be compliant with the applicable Philippine National Standards (PNS).

INVESTMENT PRIORITIES PLAN (IPP) 2017:

8.4 Trillion

2016-2022

PLASTICS INDUSTRY ROADMAP

The Philippine plastics industry envisions itself to be a proactively adaptive downstream industry that is able to fully supply the growing and changing demands of the domestic and export market, create employment opportunities with a positive well-informed on the environmental image and perception.

INVESTMENT PRIORITIES PLAN (IPP) 2017:

8.4 Trillion

2016-2022

RUBBER INDUSTRY ROADMAP

The Philippine rubber industry aims to propel domestically-produced rubber products to become a key contributor to Philippine economic development by transforming the industry to produce world-class, competitive and high quality rubber products.

It seeks to achieve this by (1) upgrade manufacturing skills, (2) adopting technical and market standards, and (3) linking with both the local and export markets.

INVESTMENT PRIORITIES PLAN (IPP) 2017:

8.4 Trillion

2016-2022

CERAMIC TILES INDUSTRY ROADMAP

The Philippine ceramic tile industry envisions itself to have efficient, competitive and environment-friendly manufacturers with sustainable and profitable operations, contributing to society and to the country's economic growth.

It seeks to maintain and sustain its competitiveness, its products to be the preferred choice of local consumers, level up the industry's concern for the environment while ensuring its profitability.

CONSTRUCTION

INDUSTRY

AUTHORITY OF THE

PHILIPPINES

PLANS & PROGRAMS

• Access of CIAP services in regions (DTI Regional Offices)

• Shortened Licensing Period (Faster PCAB Licensing)

• Speedy construction contract dispute resolution

• Strengtened Partnership with constructors associations, government infra agencies

• Enhanced capacity building for Human Resources in the construction industry

• Promotion and development of Filipino contractor capabilities in the international market

• Monitoring and ensuring quality services from contractors through CPES

CIAP WINDOWS

FOCUS GROUP DISCUSSIONS

To encourage wider and larger participation of local industry players

to undertake government infrastructure projects

DIALOGUE WITH INDUSTRY STAKEHOLDERS

1st Dialogue

2nd Dialogue

3rd Dialogue

SHORTENED LICENSING PERIOD

TYPE OF

APPLICATION FROM

New and Upgrading 30 working days

Renewal 15 working days

Special License 7 working days

Category Trade/E 10 working days

TO

15 working days

10 working days

5 working days

3 working days

SPEEDY RESOLUTION OF CASES

•CIAC’s target: Six (6)months from TOR signing/ approved time extension

•Present accomplishment:4.3 months

No. of cases

resolved

30

AmountP 4.906 B

Dispute Resolution

PH CONSTRUCTION CONGRESS

CIAP hosts the Philippine

Construction Congress in support of

the Golden Age of Infrastructure

Participants of the 1st Congress drafted the “Call to

Action Manifesto” recommending the following:

Simplified bidding process

No RED TAPE, no CORRUPTION in the bureaucracy

Strengthened human resources

CAPACITY BUILDING FOR CONSTRUCTION HUMAN RESOURCE

Regular Programs of CMDF :

Trainor’s Training Certification Program

Managerial and Supervisory Program

Construction Safety and Health Training

Upgrade Trade Skills Program

Basic training on Painting,

Tiling and Welding Works for:

Rehabilitated drug addicts

Out-of-school youth

Unemployed citizens

1ST PHILIPPINE CONSTRUCTION HR FORUM

ASEAN+6 CONSTRUCTION FORUM

Organizers and panelists of the ASEAN +6 Construction Forum join hands at the forum to signify their commitment in building sustainable infrastructure across ASEAN+6 member economies.

OVERSEAS OUTBOUND MISSIONS

Royal Regalia Sultan’s MuseumBrunei Darussalam

Goro Nickel ProjectNew Caledonia

Wine RefineryUSA

Sea PalaceAbu Dhabi, UAE

END