1. Infrastructure and Governance
in Megacities
Metro Manila

2. Outline
• Megacities of the World
• Mega Manila
– History to Present:
• Private-led Development in Real Estate
• Poor quality and development in Transport and Social
Infrastructure
– Outlook:
• Private Participation in Infrastructure Development
– Capacity of the Private Sector (Financial and Technical)
– Philippine Constructors Association (PCA)
» Public-Private Partnerships (PPP) Program

3. Megacities of the World

4. Megacities: Framework
PUBLIC PRIVATE
Products
Gateway INFRASTRUCTURE
and
(Airport, Seaport, Roads) DEVELOPMENT
Services
Principles and Plans GOVERNANCE People

5. 10 Largest Cities of the World
(2011)
SEOUL
TOKYO
NEW SHANGHA
YORK DELHI I GUANGZHOU
MEXICO MANILA
CITY MUMBA
I
SAO
PAULO

6. 10 Largest Cities of the World
(Time Magazine, 2011)
Megacity Population Population GDP per Capita
(in Million) Density (USD)
(population/sq.km)
Tōkyō 34.4 4,750 42,994
Guangzhou 25.4 3,417 5,630
Seoul 25.2 16,700 11,548
Shanghai 24.9 13,400 9,357
Delhi 23.5 11,050 7,106
Mumbai 23.2 29,650 9,009
Mexico City 23.0 8,400 16,957
New York 22.0 2,050 63,909
São Paulo 21.0 9,000 18,476
Manila 20.4 10,550 7,304

7. Megacities
• Megacity: >10 million people (some consider 5-8 million inhabitants)
• Dynamics of urbanization not necessarily the
same
– Wealthier countries have much lower growth rates
– Megacities in other regions are expected to continue growing
• Two-edged sword
– Vast opportunities: Market and Income Concentration
– BUT with Challenges
• High Cost of Living with Congestion and Pollution
• Infrastructure AND Governance
• Government AND Private Sector
• Planning AND Implementation

8. Mega Manila

9. Philippines
Philippines
National Income USD 170 B
Land Area 299,764 km2
Population 88M
Population 300/sq. km.
Density
Per Capita USD 1,850
Income

10. Mega Manila
Metro Manila
(% of Philippines)
National Income 34%
Land Area 0.2%
Population 13%
Per Capita Income 7,304
(USD)

11. Megacities: Framework
Case of Mega Manila
PUBLIC PRIVATE
Products
Gateway INFRASTRUCTURE
and
(Airport, Seaport, Roads) DEVELOPMENT
Services
Principles and Plans GOVERNANCE People
Average Best
Poor Record
Performance Practice

12. Mega Manila: Present
• Mega Manila: a collection of 17 highly-urbanized cities
• High and concentrated economic growth
– Anchored on international airport and seaport, Agglomeration of
industries and markets inside
• Private sector-driven development for the last 5 years:
Especially in real estate development
– Residential, commercial, recreational and institutional buildings
• Infrastructure has lagged behind
– Poor quality of transport infra: rail, airport, seaports, and roads
– As well as social infra: schools and hospitals

13. Overall Infrastructure Performance
Japan
Legend
Taiwan
Korea
1 = poorly developed and
Hong Kong
inefficient
Singapore
Philippines
7 = among the best in the
Vietnam
world
India
Indonesia Average of 133
China countries
Thailand
Malaysia
Source: World Economic Forum,
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 “The Global Competitiveness
Report, 2009-2010

14. Private Sector-Driven Growth
(Especially Real Estate Development)
Case Study:
DATEM
Construction

15. DATEM Construction
We are a private construction company in the Philippines
established in 1984. We offer a wide range of services, from
technical consultancy to construction of complex projects such
as commercial buildings, residential structures, recreational
facilities, worship centers, healthcare facilities, industrial parks,
educational centers and other infrastructures.
Over the past few decades DATEM has steadily grown and
become a major participant in the reshaping and improvement of
the landscape of the Philippines ’ major urban centers,
particularly the megacity of Metro Manila.
In our projects, we put distinctive focus on value-engineering and
innovation, and providing our clients with the highest quality
products and services.

16. ONE ROCKWELL
Rockwell Drive, Rockwell Center, Makati City
2 Upscale residential condominium towers (45
and 55 storeys) with a 4-level common basement
parking area, and commercial and office spaces
at the Ground Floor.
Total CFA: 134,102.0 sq.m.
Contract Amount: Php 2,519,537,788.29 (USD 58.6M)
Commencement Date : May 2008
Completion Date: October 2011
Methodology:
Used the “Mevadec” formworks system (simple
and fast assembly and stripping; few proppings).
Used precast concrete for the stairs and ledges.

17. DISCOVERY PRIMEA
6749 Ayala Avenue, Makati City
A 67-storey luxury apartment (90 residential flats of 382 to
680 sq.m. each) with 6 levels of basement parking area. It is
presently under construction and it employed the “Top-Down
Method of Construction”.
Total CFA: 95,614.0 sq.m.
Contract Amount: Php 1,373,646,512.88 (USD 32.0M)
Commencement Date : July 2008
Completion Date: August 2013
Methodology:
Uses the “Mevadec” formworks system.
Uses structural precast concrete for the exterior walls and
precast panels (Ecowall) for the interior partitions.

18. ONE SHANGRI-LA PLACE
Edsa cor Shaw Boulevard, Barangay Wak-wak,
Mandaluyong City
A 60-storey twin-tower luxury residential condominium
with 10 floors of Podium and a 2-level common basement
parking area. At the Podium floors are retail and parking
spaces.
Total CFA: 165,000.0 sq.m.
Contract Amount: Php 4,015,623,269.25 (USD 94.0M)
Commencement Date : May 2010
Completion Date: April 2014
Methodology:
Uses the “Mevadec” formworks system.
Uses structural precast concrete for the slabs.

19. ARYA RESIDENCE
Lot 1 Block 4, Fort Bonifacio, Global City, Taguig
City
A 45-storey residential building with 5 basements.
The project is aiming for a LEED Certification of
Gold.
Total CFA: 64,743.20 sq.m.
Contract Amount: Php 1,018,000,000.00 (USD 23.6M)
Commencement Date : January 2011
Completion Date: June 2013
Methodology:
Uses structural precast concrete for the exterior
walls.

20. THE MIND MUSEUM
Fort Bonifacio, Taguig City
The Philippines’ first world-class Science
Museum. It has 3 levels of display/exhibit area
and training and learning center.
Total CFA: 7,595.0 sq.m.
Contract Amount: Php 316,360,815.36 (USD
30.6M)
Commencement Date : September 2010
Completion Date: December 2011

21. TWIN OAKS PLACE
Shaw Boulevard, Mandaluyong City
A 43-storey residential building with 3 floors of commercial
spaces and 5 basement levels of parking area.
Its amenities include state-of-the-art fiber optics and wireless
backbone that will allow the residents to enjoy a host of smart
building technologies and conveniences.
Total CFA: 68,743.20 sq.m.
Contract Amount: Php 1,100,523,828.30 (USD 25.6M)
Commencement Date : December 2010
Completion Date: April 2014

22. JOY NOSTALG CENTER
Ortigas Center, Pasig City
A 48-level hotel and office building with
6 basements.
Total CFA: - 80,000 sq.m.
Contract Amount: Php 489,160,216.64 (USD
11.30M)
Commencement Date : July 2007
Completion Date: January 2009
Methodology:
Used structural precast concrete for the slabs and
beams.

23. EAST OF GALLERIA
Topaz Road, Ortigas Center, Pasig City
A 45-storey residential Condominium with 2 basements.
It has commercial spaces as well as amenities for residents
(swimming pool and gymnasium) at the Ground Floor.
Total CFA: 35,186.00 sq.m.
Contract Amount: Php 422,421,847.72 (USD 9.80M)
Commencement Date : November 2008
Completion Date: April 2010
Methodology:
Used structural precast concrete for the exterior walls, slabs
and ledges

24. MDC 100
E. Rodriguez Jr. Avenue , Libis, Quezon City
A 33-storey office building with 5 basement levels.
A revolving restaurant sits on its topmost floor.
Total CFA: 103,210.0 sq.m.
Contract Amount: Php 745,966,011.81 (USD 17.0M)
Commencement Date : February 2009
Completion Date: March 2011
Used structural precast concrete for the slabs.

25. GATEWAY RESIDENCE
Pioneer Street cor. Robinson Road, Mandaluyong
City
A 33-storey residential Condominium with 2
basements.
It consist of 331 residential units.
Total CFA: 43,515.00 sq.m.
Contract Amount: Php 399,300,000.00 (USD 9.3M)
Commencement Date : June 2010
Completion Date: July 2012

26. Mega Manila: Outlook
Towards a More Balanced Development
• Private sector is pushing for infra development
– Local banks have CASH: USD 43.5 B net savings (>20% of
GDP)
– Local contractors have technical capacity at cheaper (<30-50%)
cost
• Developmental Governance
– Initiatives of Philippine Constructors Association (PCA)
• PPP Coalition
• Construction Industry Authority of the Philippines
• Improvement of Education for Construction Professionals

27. Excess Liquidity in the Economy
40,00
35,00
Savings
30,00
25,00
Kept at
Central
20,00
Bank
15,00
10,00 Investment
5,00
0,00
1982q1 1984q1 1986q1 1988q1 1990q1 1992q1 1994q1 1996q1 1998q1 2000q1 2002q1 2004q1 2006q1 2008q1 2010q1
Source: Raw data from NSCB

28. Unutilized Money in
Philippine Central Bank’s Vault
40 000
35 000
30 000
25 000
SDA
20 000
USD M
15 000
RRP
10 000
5 000
0
2007 2008 2009 2010 2011
Total of 43.5 B USD
Source: Bangko Sentral ng Pilipinas

29. Philippine Contractors’ Technical
Capacity
• Urban Spaces and Development
• Transportation and Telecommunications
• Engineering and Industrial Infrastructure
• Institutional Buildings

30. Urban Spaces and Development
TOP-DOWN CONSTRUCTION
DISCOVERY PRIMEA SUITES
Case Study: PROJECT
MAKATI CITY, PHILIPPINES
DATEM DISCOVERY PRIMEA SUITES IS A
67-STOREY
Construction RESIDENTIAL BUILDING WITH 6
BASEMENTS.
CONSTRUCTION WAS STARTED IN
SEPTEMBER 21, 2009 AND WILL BE
COMPLETED ON DECEMBER 28,
2013.

31. TOP-DOWN CONSTRUCTION
DISCOVERY PRIMEA SUITES
AYALA AVENUE, MAKATI CITY, PHILIPPINES
DISCOVERY PRIMEA
SUITES IS ADJACENT
TO AN EXISTING 28-LEVEL
RESIDENTIAL BUILDING,
“THE MAKATI TUSCANY”
THE MAKATI TUSCANY DISCOVERY PRIMEA
BUILDING SUITES

33. SHOTCRETE
SOIL NAIL

34. SHOTCRETE
SHOTCRETE
SOIL NAIL
SOIL NAIL

35. SHOTCRETE
SOIL NAIL

36. SHOTCRETE
SOIL NAIL

37. SHOTCRETE
SOIL NAIL

38. SHOTCRETE
SOIL NAIL
CONCRETE
GUIDE WALL

39. SHOTCRETE
SOIL NAIL
CONCRETE
DRILLING / EXCAVATION

40. SHOTCRETE
SOIL NAIL
CONCRETE
DRILLING / EXCAVATION

41. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

42. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

43. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

44. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

45. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

46. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

47. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

48. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

49. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

50. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

51. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

52. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

53. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

54. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

55. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

56. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

57. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

58. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

59. SHOTCRETE
SOIL NAIL
CONCRETE
DIAPHRAGM WALL
BORED PILE

88. Transportation and
Telecommunications
(Local Contractors’ Projects)

89. Engineering and Industrial
Infrastructure
(Local Contractors’ Projects)

90. Institutional Buildings
(Local Contractors’ Projects)

91. Philippine Constructors
Association
Private Sector-Led Infrastructure
Development Initiatives

92. Philippine Constructors Association
A trade organization composed of licensed construction contractors,
construction materials, equipment and service providers and other trade
organizations allied to the construction industry.
PCA members handle an average of 80% of the annual construction turnover of
the Philippines.
Recognized as the “voice of the construction industry”, among the PCA’s
advocacies are:
– Construction safety
– Manpower training and development
– The creation of a level playing field in the construction arena, especially in dealing with
foreign contractors.
The PCA is also represented in a number of government bodies tasked with
policy formulation and implementation. It is the founder of the International
Federation of Asian and Western Pacific Contractors’ Association (IFAWPCA)
and a regular member of the ASEAN Constructors Federation (ACF) and the
Confederation of International Constructors Association (CICA).

93. PCA Development Projects
• Crafted the Construction Industry
Roadmap that included three pillars for
development.
• Current implementation of the three pillars

94. The Three Pillars of the
Construction Industry Roadmap
1. The Strengthening of the
Construction Industry Authority
of the Philippines (CIAP); and
2. The Enhancement of Education
of Construction Professionals
and Upgrading of Skills
Standards of Construction
Workers
3. The Promotion of PPP as the
main engine for infrastructure
development in the country;

95. Construction Industry Authority of the
Philippines (CIAP)
• primary task to promote, accelerate, and regulate
the growth and development of the construction
industry in conformity with national goals
• To strengthen:
– must be lead by competent and industry-immersed
officers
– Restructure towards a common vision, realigning the
vision of each board to match with the overall vision
of CIAP
• Reviewing and clarifying the functions of the
different construction regulatory bodies

96. Enhancement of Education of Construction
Professionals and Upgrading of Skills Standards of
Construction Workers
• Devise learning programs and offer financial assistance for
education.
• Enhance elementary and secondary education
• Develop and implement a globally competitive and
internationally recognized engineering curriculum, in
concurrence with the ongoing application for Philippine
membership to the Washington Accord
• Strengthen industry-academe linkages
• Revitalize the Construction Manpower Development
Foundation (CMDF) as a pilot center for trainers’ training.

97. PPP Coalition
• PPP Coalition consists of
private sector associations
committed to:
– the promotion of BOT/PPP
Framework in infrastructure
development
– assist the Government in promoting PPP Coalition Members
good governance through an open, Left to Right: REID President Enrico Basilio; PCA
President Levy Espiritu; PCA Foundation President Roger
transparent and competitive Murga; BAP President Gigi Montinola; IHAP President
Raul Leopando
process for PPPs
– assist the Government in PCA Foundation
jumpstarting few PPP Infra
Projects
– assist the Government in pushing
for policy reforms

98. Promotion of Open, Transparent and
Competitive Process
“If we are truly interested in a square deal for all, then what we shake hands
on, should be what endures. To this end, what we will be doing in so far as
solicited projects are concerned, is to minimize your risk in a meaningful
and fair manner.”
President Aquino
“For PPP projects, the government will focus on the solicited mode. Priority
projects identified in the MTPDP/MTPIP and CIIP will undergo the solicited
mode and will be processed within 6 months.”
Press statement of Socio-Economic Planning Secretary Paderanga

99. PPP PROJECTS FOR 2012 ROLL-
OUT
School
Light Rails
Classrooms
• LRT Line 2 Ext
• Nationwide
• LRT 1 South
coverage
Extension
• Pilot in 3
regions
Airports
• Clark BT
Toll Roads • New Legaspi
• NLEX-SLEX (Daraga)
Connector • Puerto
• NAIA Princesa
Expressway • New Bohol
2 Airport
• Daang Hari- • Laguindingan
SLEX Link
• CALA
Expressway

100. Conclusion
• Megacities are the future of the world.
• Balanced development of infrastructure and governance must
be emphasized to ensure inclusive and sustainable growth.
• Our case in Mega Manila demonstrated the possibility of a
private sector-led development
• The private sector associations (e.g. PCA) have a role in
supporting their government agencies in their developmental
and regulatory functions.
– Strengthening the industry authority
– Public-Private Partnership (PPP) Program in infrastructure
development

101. Annex
• Details on Infrastructure Performance
• Details of the PPP Initiatives