“People tend to look at output… but actually, we should look at the outcome. What does this piece of infrastructure have to do with the social and economic development of that location?” points out Arup’s East Asia Region Chair, Michael Kwok.

“That is why Belt and Road makes so much sense – not only in terms of supporting the development of a country, but actually in supporting the ambitions of shaping a better world.”

Speaking in a video for the Hong Kong Trade Development Council, Michael described the BRI – an ambitious, large-scale programme to connect Asia, Africa and Europe via land and maritime networks – as a very important initiative not just for China, but for the world.

He believes that Hong Kong is playing a vital role in helping to shape the Belt and Road Initiative due to its internationalism, openness and pragmatism.

Pioneering digital transformation work in Hong Kong, particularly around 3D printing, automation and artificial intelligence, should be seen as a benchmark for other BRI projects in the Region, said Michael.

“The expertise in Hong Kong needs to be exported, because the Hong Kong expertise is so relevant for many Asian countries now. A lot of people look at Hong Kong as a role model,” he said.

Arup has been operating in Hong Kong for over 40 years, and our office serves as our headquarters in the East Asia Region. Our major work in the East Asia Region as part of the BRI includes the Hong Kong-Zhuhai-Macau bridge, which opened in 2018 and is the longest sea crossing in the world, and development work in the growing economic area of Shenzhen.

Image used under license from shutterstock.com

The government of the Philippines has embarked on an ambitious “Build, Build, Build” infrastructure programme to spur economic growth throughout the country. According to the government, a total of PhP8.4 trillion (US$170 billion) will be spent for infrastructure during the six-year term of the Duterte administration. This will increase the infrastructure spending in the GDP from 3.4% in 2016 to 7.4% by 2022.

Challenges facing

The Philippines is one of the fastest growing economies in Asia averaging more than 6% growth over the past decade. However, infrastructure spending has lagged behind its neighbours. The crumbling infrastructure has resulted in transport and economic woes and has been identified as one of the most significant constraints sustaining to the country’s economic growth.

Underdeveloped infrastructure is attributed to the following factors:

• inadequate infrastructure investment
• lack of inter-agency coordination
• inadequate or incomplete infrastructure plans and implementation programmes
• limited access to international expertise and constrained technical and management know-how in project preparation and implementation; and
• inadequate sustainability of infrastructure.

“Access to international sources of advice and best practice will enable the government to incorporate innovation and expertise in project formulation and implementation and this is where global firms like Arup come in,” said Raul Manlapig, Arup’s Manila office leader.

Making it work

To realise their ambitious goals, the government requested the Asia Development Bank (ADB) to help the Department of Public Works and Highways (DPWH) and the Department of Transportation (DOTr) – the two key agencies responsible for national public infrastructure projects – to conduct pre-investment activities which will in turn help the government expedite the review and approval process and shorten start-up periods for priority infrastructure projects.

The US$100 million loan facility was the ADB’s first technical assistance loan to the Philippines. The total cost of the facility is US$164.06 million, with the government of the Philippines contributing US$64.06 million.

In October 2017, after a rigorous pre-qualification process, the ADB invited tenders for the following outputs:

• Output 1 – Road and bridge projects
• Output 2 – Water projects
• Output 3 – Rail, public transport, port and airport projects

Arup is currently working on Output 1 and Output 3. Under Output 1, the firm is helping the DPWH prepare feasibility studies and detailed engineering designs for the new inter-island bridges, tunnels and highways. Under Output 3, it is supporting the DOTr in a strategic transport planning review that covers rail, aviation, sustainable transport and maritime sectors and will recommend the priority of projects as well as assisting in the preparation of high priority projects.

Opportunities ahead

The Philippine government’s “Build, Build, Build” programme coincides with the Chinese government’s Belt and Road Initiative with aligned infrastructure goals.  The ambitious programme requires international expertise in infrastructure planning, design, delivery and consulting services that realistically address local challenges and make sure the projects are truly resilient – delivering for the economy, for the environment, and for the people.