The multi-trillion-peso pivot: Calibrating the ‘Build Better More’ roadmap

For decades, the Philippine economic narrative was one of the “missed connections” — a high-growth engine trapped in a low-gear logistics network. But as the first quarter of 2026 draws to a close, Metro Manila’s skyline and provincial corridors show developments.

The transition from the “Build, Build, Build” era to the current administration’s “Build Better More” program has evolved from a simple change in branding to a multi-modal strategy that is increasingly leaning on the private sector to bridge the nation’s P9.14-trillion infrastructure gap.

With a 2026 National Expenditure Program (NEP) earmarking P1.5 trillion (roughly 5.0% of the gross domestic product (GDP)) for infrastructure, the government is attempting a delicate balancing act: maintaining high-speed construction while navigating fiscal consolidation and renewed focus on transparency.

The PPP renaissance

The defining characteristic of the 2025-2026 infrastructure landscape is the resurgence of public-private partnerships (PPP). Following the full implementation of Republic Act No. 11966 (or the PPP Code), the pipeline of projects has elevated to higher levels.

According to the PPP Center, the project pipeline hit 251 projects valued at P2.81 trillion by last January. This marks a near-doubling of the pipeline from just two years ago. The shift is not merely quantitative; it is institutional.

The implementation of the PPP Code has served as a cornerstone for regulatory stability, addressing a long-standing demand from the private sector for greater predictability in long-term investments.

By institutionalizing a streamlined approval process for unsolicited proposals and offering a clearer definition of Material Adverse Government Action, the state has lowered the risk profile for high-impact ventures. This framework is credited with unlocking institutional capital that had been previously deterred by policy uncertainty.

A primary example is the Ninoy Aquino International Airport (NAIA) Modernization. Now into its rehabilitation phase under the San Miguel Corp.-led New NAIA Infrastructure Corp., the project serves as a litmus test for the government’s ability to hand over critical brownfield assets to private operators without the past legal entanglements.

Rail expansions

While aviation enhancements take place, the backbone of the “Build Better More” program remains the massive rail expansion aimed at decongesting the Greater Manila Area.

The Metro Manila Subway Project (MMSP), dubbed the “Project of the Century,” has seen a “banner year” in 2025 regarding right-of-way (ROW) acquisition. Transportation Acting Secretary Giovanni Z. Lopez reported last January that ROW acquisition for the subway had reached 90.76%, up from just 51% a year prior. This acceleration was attributed to the creation of the dedicated Right-of-Way and Site Acquisition (ROWSA) task force, which grew from 200 to 900 personnel to handle legal and social safeguards.

Though the full 33-kilomenter line is not expected to be fully operational until 2032, the Department of Transportation is eyeing partial operations for the East Valenzuela and North Avenue stations by 2028.

Parallel to the subway project is the North-South Commuter Railway (NSCR). The 147-kilometer elevated railway, stretching from Clark to Calamba, serves as a major example of connectivity developments. As of early 2026, the North Segment (Malolos to Clark) has cleared 56% of its land requirements. The government is currently in the process of bidding out the Operations and Maintenance (O&M) contract for the entire NSCR system, with an award expected by mid-2026 — another major PPP play that delegates technical efficiency to the private sector.

Regional dispersal

The 185 Infrastructure Flagship Projects (IFPs) currently on the Economy and Development Council’s list are notably more dispersed than previous iterations. While the National Capital Region accounts for a significant chunk of the value, 65% of the projects are region-specific or inter-regional.

In Central Visayas, the list grew to 11 flagship projects in 2025, including the Cebu Urban Mass Rapid Transit (UMRT) Central Line and the New Dumaguete Airport.

In Mindanao, the Davao City Bypass Construction Project and the Samal Island-Davao City Connector Bridge are moving toward critical construction milestones.

The prevailing strategy appears to be the creation of a national logistics network by connecting regional hubs. By lowering the cost of moving goods and people across the archipelago, the government can provide the physical foundation necessary to support the Ease of Doing Business Act.

Fiscal realities and ‘Governance Tax’

Despite the momentum, the path forward is not without friction. The Philippine economy faced a localized slowdown in the second half of 2025, with the GDP growth cooling to 5.1-5.3% as the country grappled with “governance concerns” and a corruption scandal that briefly paralyzed public construction in late 2025.

A World Bank 2026 report warns that sustaining growth will require “stronger execution of public investments and credible fiscal consolidation.” With the debt-to-GDP ratio still a point of concern for credit rating agencies, the government is increasingly looking toward the Maharlika Investment Fund (MIF), as well as official development assistance (ODA) from partners like the Japan International Cooperation Agency (JICA) and the Asian Development Bank (ADB), to supplement the national budget.

Furthermore, digital connectivity has become a priority. The 2026 budget allocates $1.53 billion for digital transformation, recognizing that physical roads and bridges are insufficient in a world where data is the primary commodity.

The road ahead

As the current administration enters the second half of its term, the focus is shifting from approving to delivering. The target of spending 5-6% of GDP on infrastructure annually remains the guiding principle. However, the true measure of success will be whether these projects can translate into a reduction in the country’s high logistics costs — currently among the highest in Southeast Asia.

By late 2026, the integration of the PPP Projects Dashboard with the Project Information and Management System is expected to allow for real-time monitoring of every major project — a move aimed at restoring investor confidence after the hurdles of 2025.

The Philippines is no longer just dreaming of a “Golden Age of Infrastructure.” It is paying for it, digging for it, and most importantly, systematically planning for it. Whether the momentum can survive the political cycles of the future remains to be seen, but for now, the gears of the “Build Better More” machine are turning faster than ever. — Krystal Anjela H. Gamboa