The incoming administration’s pronouncement of a possible review of the Build, Build, Build projects and the rechanneling of their funds will have a significant impact on the demand for cement in the country over the next five years, according to the Cement Manufacturers Association of the Philippines (CEMAP).
“The incoming administration has mentioned (it will) restudy, (it will) revisit the numbers for Build, Build ,Build projects. That definitely will affect demand for the Philippine cement industry,” said CEMAP executive director Cirilo Pestano, at a Tariff Commission hearing last week.
With no data to back up his personal claim, Pestano went on to say he sees demand from private sector continuing “because we still see construction activities that are just starting.”
“If the Build, Build, Build (program) is allowed to proceed, then my opinion is that demand should continue and compared to 2021, there might be some improvement,” Pestano said
Incoming National Economic and Development Authority Secretary Arsenio Balisacan was earlier quoted as saying he would like to review the infrastructure projects as he hinted the possibility a channeling some of the funds to education and other priority sectors.
According to Pestano, historically, demand for cement was split at a ratio of about 60 to 70 percent from private construction and 40 to 30 percent form government construction.
“But when the Build, Build Build projects were implemented; the ratio hit 50:50,” he said.
Based on their own forecast, Cemap sees a rather flat demand despite an additional 19 million metric tons (MMT) of capacity coming on stream between 2022 and 2025.
Capacity is expected to reach 66 MMT by 2025, from 46.8 MMT in 2021. – Irma Isip
