Infrastructure Spending Exceeds Target

Government spending on infrastructure from January to September hit P641.5 billion, exceeding the nine-month target by 8.9 percent, due to the construction of more airports, railways and roads.

The latest Department of Budget and Management (DBM) data on Wednesday showed that end-September expenditures on infrastructure and other capital outlays surpassed the P589.3-billion program and jumped 42.1 percent from P451.5 billion a year ago.

In a report, the DBM noted that the P190-billion increase in public infrastructure spending contributed more than half of the P353.6-billion rise in the national government’s total disbursements in the nine months to September.

“The implementation of various road infrastructure projects of the DPWH (Department of Public Works and Highways) nationwide, aviation and rail transport foreign-assisted projects of the DOTr (Department of Transportation) such as the Tacloban, Kalibo and Bukidnon airport projects and the Metro Manila subway project phase one, and projects under the DND’s (Department of National Defense) revised Armed Forces of the Philippines modernization program” boosted the end-September spending, the DBM said.

The DBM also attributed the above-target nine-month infrastructure expenditures to the settlement of accounts payables and faster implementation of infrastructure activities of the DPWH amid the looser community quarantine restrictions.

In the third quarter, infrastructure spending amounted to P214.9 billion, up 39.9 percent from P153.5 billion last year and 26.6 percent more than the P169.7-billion goal.

In September alone, the amount spent on infrastructure grew by a fourth to P71.2 billion from P56.9 billion a year ago mainly on the back of the “implementation of DPWH projects nationwide, such as the construction, repair, rehabilitation and improvement of access, bypass, and diversion roads, bridges, flood mitigation structures and drainage systems, and the construction of multipurpose building; and projects under the revised AFP modernization program of the DND,” the DBM said.

Lower subsidy releases

If the infrastructure components of equity and subsidies injected into state-run corporations as well as transfers to local government units were included, overall nine-month infrastructure disbursements would amount to P807.5 billion, up 35.7 percent from P595 billion a year ago and 1.2 percent larger than the P797.5-billion program.

However, the DBM said the growth of total infrastructure disbursements was tempered by the lower-than-programmed subsidy releases to the Bases Conversion and Development Authority and the National Irrigation Administration which were based on their special budget requests.

For the rest of the year, the DBM said the national government’s overall spending would continue to be driven by infrastructure and other capital outlays based on the submission of progress billings for completed/partially completed projects that were started in the earlier part of the year, and the reopening of classes that would jack up expenditures in the education sector.

The Cabinet-level Development Budget Coordination Committee had planned to spend P1.02 trillion on infrastructure development this year, equivalent to 5.1 percent of gross domestic product.

In a report this month, the UK-based think tank Oxford Economics said the Philippines’ ambitious “Build, Build, Build” program would provide vital support to the domestic construction sector.

Source: Inquirer.net

Masons influence homebuilders’ choice of cement, but most are untrained

Eighty two percent of low-income incremental builders (or homeowners who build their homes in increments, depending on the availability of funds) rely on the recommendations of masons for their home construction, according to a market study on the Visayas region’s wood and cement industries by Habitat for Humanity’s Terwilliger Center for Innovation in Shelter. Most masons, however, are either semi-skilled or unskilled, and have limited knowledge of the right building materials to use.

“The skills and training of masons is important for the selection of construction materials,” said Zoe M. Sibala, chief sustainability officer of cement manufacturer Holcim Philippines Inc.

The strength requirements needed for concrete — which is composed partly of cement — is different for high-rise buildings and for low-rise residences, Ms. Sibala cited as an example.

As per the study, 76% of low-income to lower middle-income homeowners in the Visayas region do not have a cement brand preference. Another 41% do not have an idea as to what type of cement they use.

RECOMMENDATION MISMATCH

Masons make recommendations based on affordability and accessibility. Discounts also factor in their recommendations, as well as suppliers having complete stocks of items. Apo/Cemex is the most recommended brand by masons due to its strength and durability, followed by Republic Cement, due to its affordability and availability.

“When buyers go to hardware stores, the [salesperson who] engages them offer what’s available,” said Margaret Ann T. Gravador, a consultant of the Development Consulting Group, a Cebu-based research group that the Terwilliger Center commissioned for the study. Even if they don’t have a preference, hardware stores push what’s in stock, she added.

More than two-thirds (or 69%) of small and medium hardware stores in the Visayas, the study further found, do not receive any orientation on the cement products they carry.

Households select masons based on word-of-mouth within the community, Ms. Gravador told the participants at the event. “This is one area of opportunity,” she said.

“Masons do not get formal training in terms of their trade, but are very influential to households.”

Among the study’s recommendations is an improvement in partnerships between government agencies and private companies in order to improve the way skills trainings are accessed by masons and other construction workers. Education, as mentioned in the webinar, will address the mismatch between the type of cement that is needed, versus the type of cement that is recommended.

The Technical Education and Skills Development Authority, the government agency tasked to manage and supervise technical education and skills development in the Philippines, offers skills training for masonry.

Source: BusinessWorld

The 10 Green Building Principles aiming to get real estate to net-zero

Net zero commitments have surged this year as cities, investors, businesses and educational institutions signal their intent to help create a more sustainable future. This shared ambition, boosted by the UN’s Race to Zero campaign, indicates that we are moving in the right direction. But we need more. Next year must be when we turn talk into tangible action plans.

Real estate and the built environment – responsible for close to 40% of global carbon emissions – have a significant role to play.

JLL’s Decarbonising the Built Environment report found that only 18% of organizations have an action plan for their real estate portfolio. While much attention is focused on new, state-of-the-art buildings that achieve the highest sustainability certifications, 70% of buildings that exist today will still be here in 2050, highlighting the need to repurpose spaces, retrofit older buildings and refurbish in line with circular economy principles.

Companies needed a roadmap to get their real estate to net zero carbon emissions. Now they have one. To guide real estate investors and occupiers on implementing and achieving their net zero carbon targets across their portfolios, JLL has partnered with the World Economic Forum to establish 10 Green Building Principles. It also complements existing initiatives, for example by explaining what companies need to do to deliver against the WorldGBC Net Zero Carbon Buildings Commitment.

The 10 Green Building Principles cover five key areas:

1. Adopting a data-driven approach

One of the first steps is knowing exactly what needs to be addressed. Businesses need to calculate a robust carbon footprint of their portfolios in the most recent representative year to inform targets.

2. Setting goals along the journey

The scale of the challenge facing us in the coming decades is daunting. It’s important that companies set a target year for achieving net-zero carbon as part of their longer-term strategy. This needs to be no later than 2050, though we’re seeing many companies and governments aim for sooner. Our new principles recommend interim targets for reducing at least 50% of these emissions by 2030.

3. Tackling embodied carbon

Businesses need to maximize emissions reductions for all new developments and major refurbishments in the pipeline to ensure delivery of net-zero carbon by their final target year.

Measuring and recording the embodied carbon emissions associated with the materials and construction processes for new developments and major refurbishments is essential. The World Green Building Council estimates it will account for half of the entire carbon footprint of new construction between now and 2050. Reducing it through measures such as low-carbon materials, modular construction and implementing a circular economy approach will be a critical factor in real estate’s ability to reach net zero.

4. Focusing on clean energy

Reducing the energy buildings consume is central to a net zero future. This means businesses need to drive energy optimization across both existing assets and new developments. They also need to maximize the supply of on-site renewable energy, and make sure all off-site energy is procured from renewable-backed sources where available.

Any residual emissions need to be compensated for by purchasing high-quality carbon offsets. A lot of guidance has come out in the past year, but there’s more to come, especially through the SBTi’s Net-Zero Standard.

5. Collaborating widely

Reaching net-zero carbon emissions by 2050 is going to require teamwork at nearly every stage. Our principles call for engaging with stakeholders in the value chain to reduce Scope 3 emissions (indirect emissions in the wider value chain). Businesses also need to develop more partnerships to better identify opportunities and equitably share the costs and benefits of interventions.

There is no time to waste. Investors and occupiers need to deliver against the commitments they have boldly laid out in the last year. With the 10 Green Principles framework, it’s no longer a question of how can we reach net zero, but how can we push ourselves to get there faster. Let’s build on the momentum and make 2022 the year that real estate turns commitments into action.

WEF_Green_Building_Principles_2021

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Source: World Economic Forum