Country Overview
The Philippines is a global leader in infrastructure planning, with a public pipeline of projects and national infrastructure plan in place. The Philippines procurement processes for infrastructure projects are also strong, with one of the best systems for managing infrastructure contracts during delivery and operations out of all InfraCompass countries. To improve the efficiency and quality of its infrastructure investment, the Philippines could seek to deepen its financial markets and reduce procurement durations. It could also reform permit procedures and regulatory frameworks, where its peers in Asia and the Lower Middle Income Countries have made considerable progress.
See Full Overview Data
GDP per capita
3,294 USD
Population
108.3 million persons
Infrastructure quality
57.8 (0-100 best)
Infrastructure investment
3.7% of GDP
Private infrastructure investment
2,206 5-year average, USD millions
Infrastructure gap
0.5% of GDP

Driver Overview

This section shows a country’s rank, ranking change and score for each of the eight drivers. It also categorises each country’s driver performance on a scale from “Emerging” (score from 0-20) to “Global Leader” (score from 80-100).

Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Rank

Score /100

Best practice

59
-
46.5
Aspiring
32
5
62.8
Top performer
61
9
48.5
Aspiring
7
24
97.7
Global Leader
40
32
74.6
Contender
21
5
44.9
Top performer
39
1
36.9
Contender
36
1
38.2
Contender

Metric Overview

Strengths

Financial stability

The Philippines’ financial stability is well above the average of 83 for Lower Middle Income Countries. Stable financial markets facilitate the smooth flow of funds between infrastructure assets and investors. The impact of the COVID-19 pandemic is a concern.

PPP contract management

According to the World Bank, the Philippines’ management of contracts is world class. It has well-trained staff, effective guidance, milestone tracking systems, and public reporting of the contractor’s financial or operating performance.

Strength of insolvency framework

The Philippines has a solid framework for reorganisation and bankruptcy which governs formal insolvency. This ensures investors have appropriate protection and helps attract investment for potential infrastructure projects.

Financial stability

The Philippines’ financial stability is well above the average of 83 for Lower Middle Income Countries. Stable financial markets facilitate the smooth flow of funds between infrastructure assets and investors. The impact of the COVID-19 pandemic is a concern.

PPP contract management

According to the World Bank, the Philippines’ management of contracts is world class. It has well-trained staff, effective guidance, milestone tracking systems, and public reporting of the contractor’s financial or operating performance.

Strength of insolvency framework

The Philippines has a solid framework for reorganisation and bankruptcy which governs formal insolvency. This ensures investors have appropriate protection and helps attract investment for potential infrastructure projects.

Top Performing Metrics

Top Performing Metrics

This is defined by the metrics with the highest unweighted score out of 100. 

Lower middle income country average

Financial markets:
Financial stability

Regulatory frameworks:
Strength of insolvency framework

Opportunities to Grow

GDP per capita

The Philippines has a low GDP per capita of USD 3,294 but is growing at a long-term average rate of 5.8% per annum. Its long-term growth suggests there will be improvement in future capacity to fund major infrastructure. However the COVID-19 pandemic may impact this trend.

Stocks traded

At 9% of GDP, the Philippines’ value of stocks traded is significantly below the Lower Middle Income Countries’ average of 14% of GDP. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

Average procurement duration – transaction RFP

The average duration from announcement of a tender to contract award was 38 months. Lengthy procurement durations add costs, risks and down time to contractors bidding for and investing in infrastructure projects.

GDP per capita

The Philippines has a low GDP per capita of USD 3,294 but is growing at a long-term average rate of 5.8% per annum. Its long-term growth suggests there will be improvement in future capacity to fund major infrastructure. However the COVID-19 pandemic may impact this trend.

Stocks traded

At 9% of GDP, the Philippines’ value of stocks traded is significantly below the Lower Middle Income Countries’ average of 14% of GDP. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

Average procurement duration – transaction RFP

The average duration from announcement of a tender to contract award was 38 months. Lengthy procurement durations add costs, risks and down time to contractors bidding for and investing in infrastructure projects.

Metrics to Improve

Metrics to Improve

This is defined by the metrics with the lowest weighted score out of 100, such that these metrics would have the greatest impact on the overall score.

For metrics that have binary outcomes (yes=100/no=0), no comparative income group average is reported.

Lower middle income country average

Funding capacity:
GDP per capita

Financial markets:
Stocks traded

Detailed Data

This section shows country data for each of the 41 metrics. The figures in brackets denote the change in score since InfraCompass 2017. 

Note that all data has been normalised on a scale of 1-100. For raw metric data, please download the complete InfraCompass 2020 dataset. 

Where relevant, some metric scores have been inverted, such that all metrics have positive relationships with good infrastructure outcomes. For example, since lower compliance costs make it easier to invest in infrastructure, the normalised value of ‘number of procedures to start a business’ has been reversed such that lower number of procedures are scored closer to 100, and higher numbers closer to 0. In other words, a score of 0 indicates a poor performance, rather than 0 number of procedures.

Governance Regulatory Permits Planning Procurement Activity Funding Financial
Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Metric

The Philippines

Lower middle Income Countries Average

Source Link

28.2%

Recovery rate

The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.

21.1 (-0.2)
31.4

20.7%

Rule of law

World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.

40.4 (-2.5)
41.5

18.1%

Post-completion reviews

Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.

Yes
-

15.1%

Shareholder governance

Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).

33.3 (+6.7)
34.2

12.8%

Political stability and absence of violence score

Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.

31.3 (+4.3)
38.7

5%

Infrastructure or PPP agency

Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.

Yes
-

The Philippines

Lower middle Income Countries Average

21.1 (-0.2)
31.4
40.4 (-2.5)
41.5
Yes
-
33.3 (+6.7)
34.2
31.3 (+4.3)
38.7
Yes
-

Country Overview Data

The Philippines is a global leader in infrastructure planning, with a public pipeline of projects and national infrastructure plan in place. The Philippines procurement processes for infrastructure projects are also strong, with one of the best systems for managing infrastructure contracts during delivery and operations out of all InfraCompass countries. To improve the efficiency and quality of its infrastructure investment, the Philippines could seek to deepen its financial markets and reduce procurement durations. It could also reform permit procedures and regulatory frameworks, where its peers in Asia and the Lower Middle Income Countries have made considerable progress.
GDP per capita

3,294 USD

Population

108.3 million persons

Infrastructure quality

57.8 (0-100 best)

Infrastructure investment

3.7% of GDP

Private infrastructure investment

2,206 5-year average, USD millions

Infrastructure gap

0.5% of GDP

GDP

356.8 USD billion

GDP growth rate

5.7%

GDP per capita growth rate

6.1%

Gini coefficient

44.4 (0-100 worst)

Gross Government Debt

39.0% of GDP

Inflation rate

2.5%

Summary credit rating

61.0 (0-100 best)

Unemployment rate

2.4%

Urbanisation ratio

47.0% of total population

Road connectivity

51.6 (0-100 best)

Quality of road infrastructure

3.7 (1-7 best)

Efficiency of train services

2.4 (1-7 best)

Efficiency of air transport services

4.1 (1-7 best)

Efficiency of seaport services

3.7 (1-7 best)

Electricity access

88.3% of population

Electricity supply quality

9.1% of output lost

Exposure to unsafe drinking water

49.0% of population

Reliability of water supply

4.7 (1-7 best)

Digital Adoption Index

0.5 (0-1 best)

Mobile-broadband subscriptions

68.4 per 100 population

Fixed-broadband Internet subscriptions

3.2 per 100 population