There are many challenges and opportunities for Infrastructure Philippines. In this article, we will identify the priorities, risks, and opportunities for this infrastructure project. Taking these steps to improve infrastructure in the country will help make it more attractive to foreign investors. In addition to addressing these challenges, the government must also address the issues that hinder the successful implementation of the project. This is especially true in light of the ongoing financial crisis. In the meantime, we will discuss the key drivers for infrastructure development in the country.

Challenges

The Philippine economy is endowed with tremendous natural and human resources, which present a vast opportunity for economic development and poverty reduction. However, overall development outcomes have fallen short of the country's potential. This is primarily due to weak public institutions, which result in low public service quality and a lack of trust among citizens. Reversing this vicious cycle requires increasing government revenue and trust, which are both crucial to the development process. The Philippines' poor infrastructure contributes to these problems and must be improved.

In the country, there are several urgent infrastructure needs, including adequate power supply and increased efficiency. Poor transportation networks are overcrowded and cause significant congestion. Electricity prices are also high, which hurts the economy's competitiveness. Figures 70 and 71 show industrial electricity costs in the Philippines and six Asian economies. This shows how much infrastructure improvements are needed for a country with such a high population density. The Philippines has also been unable to award a major light rail project, and has struggled with urban sprawl and flood control for years.

Opportunities

The Philippines' infrastructure needs a facelift. The country has a high gross domestic product (GDP), which is around five percent this year, and a slight decline from 2013 to 2014. The country is also a great location for foreign direct investments (FDI), which have a positive impact on the economy by creating jobs and increasing the standard of living. The Philippines' economic growth is expected to continue in the coming years, and this is great news for foreign investors.

The Philippines' infrastructure has a great potential to attract international investors. The government has invested in large-scale infrastructure projects to support industrialization, municipal utilities expansion, and other growth sectors. The rising personal income level and growing household base are expected to support increased construction spending. Population migration is also expected to create a need for improved road infrastructure and construction facilities. The government is actively seeking the involvement of the private sector in infrastructure projects. A successful partnership between private sector investors and government will create more jobs and better infrastructure for the country.

Risks

The Philippines is home to one of the largest construction markets in the world, but it faces significant political and operating risks, according to a note by Fitch Group's BMI Research. The Philippines' infrastructure industry is highly regulated, with robust PPP laws and ambitious infrastructure spending initiatives. As a result, the Philippines' construction industry is ripe for foreign investment, and foreign firms can benefit from this by participating in the Philippines' infrastructure development program.

Although the Philippines is now entering its "golden era" of infrastructure development, it continues to fall behind its neighbors. Poor infrastructure has deterred manufacturers, creating profit-draining transportation bottlenecks, and costing the country $17.5 billion every year. The Philippines has a long way to go to catch up. However, there are plenty of challenges ahead for this ambitious infrastructure push. Here are some ways the country can make it happen: