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Construction sector in the Philippines - statistics & facts

The construction industry is a key sector within the Philippine economy, contributing a gross value added of about 336 billion Philippine pesos during the fourth quarter of 2020. In terms of capital formation, which refers to the total construction expenditures by private and public firms, the sector reported significant contractions in 2020, largely due to the disruptions caused by the global coronavirus (COVID-19) pandemic.

Impact of the COVID-19 pandemic

The unforeseen challenges caused by the global coronavirus (COVID-19) pandemic resulted in delays and cancellations of construction projects, both residential and non-residential. Local construction companies identified the difficulty to close projects due to the lockdown as a major challenge. As a result, most employees in the construction sector have been displaced or permanently lost their jobs, leading to a downturn in the current employment situation in the country. The government is now urging construction companies to go beyond the domestic market and to tap overseas opportunities to foster recovery efforts.

Status of the Build Build Build program

The Philippine government’s flagship infrastructure project labeled the" Build Build Build" program was also greatly affected by the lockdown restrictions due to the COVID-19 pandemic. The program was introduced based on the administration's intent to propel the country in achieving more developed and connected life among Filipinos and generate new jobs. However, government figures revealed that only several projects have been completed in 2021 while 31 others have yet to be completed in 2022.

One of the big tickets in the government's infrastructure development plan is the Metro Manila Subway Project which would be managed by the Department of Transportation (DOTr), with an average cost of around 357 billion Philippine pesos. Its targeted completion year was projected in 2025 and the excavation for the project was forecast to start on the fourth quarter of 2021. Other high-valued tickets in the pipeline were the North-South Commuter railway extensions (PNR North 2, PNR South commuter), PNR South long haul, Bataan-Cavite interlink bridge, Panay-Guimaras Negros bridge, Taguig integrated terminal exchange and the New Manila International Airport.

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