₱4.91 Billion flood control projects for 24 river systems unleashed by DPWH

A soaking wet child sits on a post on a flooded street in suburban Manila, on August 8, 2012. More than one million people in and around the Philippine capital battled deadly floods on August 8 amid relentless monsoon rains, not predicted to let up until Thursday at the earliest. (Jay Directo/AFP/Getty Images

DPWH Philippines unleashed the Master Plan for flood control Project throughout the Philippines.

 Aside from its flood control master plan for Metro Manila and outlying provinces, the Department of Public Works and Highways has completed similar plans for effective and comprehensive flood management of 12 of the 56 river systems throughout the country that are on DPWH's priority list.

In a copy of a DPWH report furnished the Inquirer, the agency's Project Management Office for Major Flood Control Projects disclosed that feasibility studies are ongoing for 12 other river basins.

There are 421 major river basins all over the country, according to the DPWH.

The government has allocated at least ₱4.91 billion in the next two years for the construction of water impounding and other flood control structures in the 56 priority river basins.

The completed master plans cover the following river basins (with their respective budget allocations):

• ₱37.6 million - Amburayan in Region 1 and Cordillera Administration Region,
• ₱19.3 million - Agos in Region 4-A,
• ₱12.7 million - Balete in Region 4-B
• ₱9.68 million - Yawa-Basud-Quirangay in Region 5
• ₱28.4 million - Aklan in Region 6
• ₱9.23 million - Guinabasan in Region 7
• ₱9.52 million - Dungcaan in Region 8
• ₱12.3 million - Tumaga in Region 9
• ₱6.54 million -  Lipadas in Region 11
• ₱251 million - Silway-Popong-Sinaual in Region 12; Lake Maitum-Tubay in Region 13
• ₱6.7 million - Cagayan de Oro.

River basins with ongoing feasibility studies:

• ₱14.7 million - Bauang in Region 1 and CAR
• ₱27.8 million - Pamplona, Region 2 and CAR
• ₱8.53 million - Sta. Rita-Kalaklan in Region 3
• ₱44.4 million - Caguray in Region 4-B
• ₱42.03 million - Bago in Region 6
• ₱12.7 million - Daguitan Marabong in Region 8
• ₱113.8 million - Sibugay in Region 9
• ₱12.8 million - Iponan in Region 10
• ₱24.5 million - Buayan-Malungun in Regions 11 and 12.

Three other river basins — Tandag in Surigao del Sur and Amnay and Mag-asawang Tubig in Occidental Mindoro and Oriental Mindoro, respectively — are also undergoing feasibility studies. However, the DPWH did not disclose their respective budget allocations.

Despite the absence of master plans, other major river basins were also allocated funds, the biggest of which were the Mindanao River Basin and Agno Upstream in Pangasinan, with allocations of ₱626.6 million and ₱295 million, respectively.

On the same list are the following river basins:

• ₱100.9 million - Abra in Region 1 and CAR
• ₱66.3 million - Patalan-Cayanga-Angalacan in Region 1 and CAR
• ₱159.3 million - Sinocalan-Marosoy-Dagupan in Region 1 and CAR
• ₱192.09 million - Abulug in Region 2 and CAR
• ₱648.7 million - Nangalisan-Baggao-Pared in Region 2 and CAR
• ₱42.8 million - Angat in Region 3
• ₱410.1 million - Kabilugan-Velasco-Batu in Region 5
• ₱42.03 million - Bago in Region 6
• ₱188.5 million - Panay-Mambusao in Region 6
• ₱114.4 million - Jalaur in Region 6
• ₱49 million - Davao in Region 11
• ₱119.3 million - Upper Agusan in Region 11
• ₱103.6 million - Tagum-Liboganon in Region 11
• ₱126.8 million - Tuganay in Region 11
• ₱127.5 million Tago in Region 13, among others.

The DPWH master plan for flood management in Metro Manila and outlying provinces calls for at least ₱351.72 billion in infrastructure spending.

The plan covers a total of 11 infrastructure projects, including the construction of a large dam in Marikina that will cost ₱198.43 billion, according to Patrick Gatan, head of the DPWH PMO-MFCP.

"The construction of Marikina dam plus improvements on the Pasig and Marikina river embankments, as well as the West Laguna lakeshore landraising project, are considered very high priority projects of the department," Gatan told the Inquirer.

Between 2011 and 2016, the DPWH plans to spend at least ₱83.9 billion on flood control projects, including the construction of river walls and revetments, dikes, mini dams, drainage mains, and flood gates, as well as waterway improvements.

Earlier, the DPWH completed at least 11 major flood control projects. Five of them were in Metro Manila: the Napindan Hydraulic Control Structure in 1983; Mangahan Floodway in 1988; Effective Flood Control and Warning System in 2002; West of Mangahan Flood Control in 2008; and Phase 2 of the Kalookan-Malabon-Navotas-Valenzuela River Channel Improvement this year.

Finished projects outside the metropolis include Phases 1 and 2 of the Ormoc City Flood Mitigation Project in 2001; Phase 1 of the Pampanga Delta Development Project in 2002; Laoag River Basin in 2008; Agno River in 2010; Camiguin Island Flood Disaster Mitigation Project in 2011; and Phase 2 of the Iloilo Flood Control Project this year.

Some completed flood control projects were funded by international aid organizations like the Japan International Cooperation Agency. They include the Iloilo Flood Control Project 2, which had a budget of ₱230 million; the ₱241-million Mt. Pinatubo Hazard Mitigation Project and the ₱239-million Pasig-Marikina River Channel Improvement Project.

Aside from extreme rainfall, the other main causes of flooding in Metro Manila and other parts of the country are denuded watersheds, illegal logging, limited river channel capacity, inaccessible waterways, informal and illegal settlements, and indiscriminate dumping of wastes, according to DPWH.

Read more in Inquirer

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The Philippines is strongest performing Asian economy - Deutsche Bank AG

STANDOUT NATION. In an interview with Bloomberg Television, Michael Spencer, the Hong-Kong based chief economist for Asia at Deutsche Bank AG said strong export growth was helping the Philippines become a leader in the region. Screenshot from BloombergBusinessweek.

The Philippines is the brightest economic star in Asia now, according to an economist of multinational Deutsche Bank AG.

In an August 9 interview with Bloomberg's Susan Li, Duetsche's chief economist for Asia Michael Spencer touted the Philippines as the strongest as well as the safest place for funds to be.

"The strongest performing economy in Asia today is the Philippines," he said when Li asked him where the best place to be across the Asia-Pacific region.

This southeast Asian country recorded an impressive 6.4% growth in the first 3 months, making it the best performing economy in the region next to China.

Spencer's bold pronouncements is the newest addition to the long-awaited attention from foreign investors that had traditionally included only neighbors Thailand, Malaysia and Indonesia in their investment radar.

Already, eastward-bound hot money have made it to the Philippine Stock Exchange, which hit record highs almost 20-times since President Aquino took over in 2010.

Is Philippines safe for investments?

Bloomberg's Li quickly followed-up Spencer: "Safest, as well?"

It's a question constantly considered by fund managers who have been stuck in western countries previously considered safe but are now in economic crisis.

To stress that the Philippines is indeed safe, Spencer cited the country's relatively low trade exposure to the U.S. and Europe, both now experiencing fiscal pains.

"Historically it's at least been very less dependent on the U.S. and Europe. Although what's really been driving growth today is exports [which is] surprisingly enough for them," said Spencer.

"There seem to be exports to Japan. I suspect there's something of a Japan outsourcing after the earthquakes last year from the Philippines. They've suddenly have discovered a billion dollars a month almost is the last two or 3 months. For them it's huge," said the chief economist.

Other economists and investors have also noted the Philippines relatively low budget deficit of 2.6% of gross domestic product (GDP), a measure of the overall economy.

A low deficit-to-GDP ratio is a traditional indicator that the country has the ability to pay back its debts or repay its investors.

Philippine Exports

A day after Spencer's interview, on August 10, official exports data for June and the first 6 months of the year was released.

Exports in June slowed to 4.2% and volume stood at USD$26.75 billion for the month. This was a reversal of the impressive 19.7% growth of the exports sector in the month of May.

Overall for the past 6 months, exports grew 7.7%, or better than the 4.13% experienced in the first 6 months of 2011.

These show the sector's continuing vulnerability to conditions abroad.

A dampened global demand for trade products hit the Philippines hard in 2011, contributing the most to the deep cuts in the annual GDP growth to 3.7% in 2011 from 7.6% in 2010.

Nonetheless, Spencer focused on the Philippines' top destination for exports, Japan. This north Asian neighbor absorbs over 16% of Philippine exports.

Spencer surmised that after the earthquake and tsunami that devastated Japan in 2011, export orders poured into the Philippines to help support reconstruction efforts and fill the need for new products.

While exports to Japan shot up 81.5% in May, there was a sharp 24.7% drop in June.

"It's back to reality. The initial euphoria brought by a 19.7% increase in [total] exports [in May 2012] has been dashed back to a more realistic level in June," noted former budget secretary Benjamin Diokno.

Another reality check was the goings on in China, also a key trade partner of the Philippines.

Spencer and Li discussed the political revamp among China's top leaders, as well as inflation situation and monetary policy moves.

China's economy grew at its slowest pace in 3 years, as investment slowed and demand fell in key export markets such as the US and Europe. It reported a 7.6% GDP growth in the 2nd quarter, down from 8.1% in the previous first quarter.

Cooling growth in China has been a concern for other Asian economies and the global recovery. China is the destination for 12% of Philippine exports and a key source of investments and aid.

OFW (Economy Army) Remittances

Another source of dollars -- bigger than exports -- and also a major indicator of the strength of the Philippine economy is its resilient remittance story.

Millions of Filipinos working abroad have been sending about U$19 billion a year to loved ones abroad, fueling consumption, a pillar of economic growth.

Despite the global economic woes, which hit world trade, remittances to the Philippines maintained growth.

Remittance money has kept banks awash with cash (and helps them remain stable compared to peers in other crisis-hit countries), malls and other retail outlets active and thriving, and real estate investments thriving.

Remittances have also kept the country's levels of balance of payments and international reserves healthy.

Sustainable Growth?

In his 3rd State of the Nation Address (Sona), President Aquino touted the economic gains of the country under his watch.

He cited not just the impressive 6.4% first quarter growth, but also the 7 credit rating upgrades from international agencies and the historic highs achieved by the main stock index.

Can these be sustained?

The upcoming announcement of the Philippines' 2nd quarter growth rate this August will be telling. The economic managers have expressed optimism another 6.4% is attainable, though they are keeping year-end targets of 5% to 6% growth.

Already, neighbor Indonesia has announced an impressive 6.4% in the second quarter.

On Monday, August 13, a key Philippine economic indicator - the performance of the agriculture sector - was not impressive.

Farm output in the first 6 months of 2012 only grew a mere 0.93%, way below the government's year-long growth target of 4% to 5%.

The agriculture sector, hit by a fishing ban in the first two months of the year, makes up 1/5 of the economy and employs a third of the working population. Economists are mixed over whether the low initial figures will impact GDP growth for 2012.

Still, the Philippines has a number of factors working in its favor.

The country benefits from resilient consumers, a young population base that can boost consumption, and an expected pick-up in government infrastructure projcts this 2012 and 2013, financial analysts from COL Financial Group Inc recently told Rappler.

The government's capital-intensive infrastructure projects under the Aquino government's public-private-partnership (PPP) scheme was meant to take off in 2011 but were delayed due to good governance checks, officials said.

So far, the bidding for two big-ticket road projects -- the ₱20-billion LRT-Cavite extension project and the ₱13-billion NAIA Expressway project -- are scheduled to be finished this year.

When construction starts next year, the hope is these will spur economic activity through the supply chain and employment.

Meantime, the local stock market has been hailed the 2nd best performer in the world year-to-date, but also now the most expensive market in the region, twice as expensive as South Korea's Kospi and twice as expensive as Hong Kong's Han Seng.

The Philippines seems to be on an upward trajectory but there are bumps on the road. 

Rappler.com

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