Friday, November 13, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
THE CONSTRUCTION sector will likely end the year with slower 6%-8% growth, still largely driven by private sector projects, an industry group leader yesterday said.
"From [roughly] 9% growth in 2008, our conservative projection is near that level for 2009: 6%-8%," Philippine Constructors Association, Inc. executive director Manolito P. Madrasto said in a press briefing for the Phil-construct 2009 trade fair.
The deceleration, he said, is partly due to the slow implementation of government-led projects bogged down by right-of-way problems, Mr. Madrasto said.
He cited the delayed completion of two projects: Light Rail Transit 1 South Extension and the Tarlac-La Union Toll Expressway.
Private sector-driven
As such, the growth will be driven by private residential and commercial developments, he said.
Last year’s growth of 8.2% was largely driven by private-sector projects as well, data from the National Statistical Coordinaton Board (NSCB) show.
The first half of this year saw the sector growing 16.9%, as construction peaked in summer, against the 14.6% recorded in the fist semester of 2008.
The group’s incoming president, Levy V. Espiritu, concurred: "Most developers have been doing low-level residential [projects] this year."
The industry, however, expects better prospects next year even for government projects, even as the election ban on such projects starts Jan. 10.
"Next year, we’re bullish. Developers will be targeting middle to high-level markets for residential units. We expect the boom will continue for the Philippines," Mr. Espiritu said. -- J. A. D. Hermosa
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