President Rodrigo Roa Duterte's administration launched in 2016 a 10-point socioeconomic agenda that includes accelerated infrastructure spending in which PPPs play a key role. The administration's "Build, Build, Build" infrastructure drive focuses on transport programs, new master plans for cities, and digital infrastructure. The administration plans to increase public spending on infrastructure over its 2017-2022 term, starting with at least 5% of GDP in 2017 and increasing this to 7.1% by 2022.
The infrastructure program aims to make the approval process easier for PPPs by cutting red tape; for example, by eliminating the need for approvals by the National Economic and Development Authority and the Investment Coordination Committee for projects under
5 trillion ($96 billion). Under the program, the social discount rate-the interest rate used in public projects- was lowered to 10% from 15%, and funding increased to regional development councils and local governments for feasibility and engineering studies for infrastructure projects (NEDA 2016).
The infrastructure drive is mainly handled by the National Economic Development Authority, the Department of Transportation, the Department of Public Works and Highways, and the Bases Conversion and Development Authority, a government-owned corporation under the Office of the President mandated to transform former United States military bases into productive facilities for civilians. As a key infrastructure agency, public works and highways received a 30% budget increase to
397.1 billion ($7.6 billion) for its 2016 fiscal year, and that amount is scheduled to rise to
637.9 billion ($12.28 billion) in 2018. The Duterte administration expects the infrastructure drive to create 2 million jobs and a further 730,000 jobs from the new master plan for cities.