Monday, April 02, 2007 Construction drives CV’s growth By Rianne C. Tecson Of Sun.Star Cebu
THE local construction industry will remain upbeat this year after showing a promising growth during the fourth quarter last year, development planners said.
The Central Visayas Regional Economic Situationer (RES) identified four factors for the construction boom in the region—expansion of information technology (IT), tourism and retail trade industries; increased demand for residential units for overseas Filipino workers (OFWs) and their dependents; preparations for the 12th Asean summit; and lower interest rates for borrowing.
“Both the government and the private sector spent millions in preparation for this big event—the government through various road improvement projects and the private sector through renovations of hotels, restaurants and other facilities,” development planners noted, citing the effects of the summit.
The construction boom began with projects implemented as early as the first quarter of 2006, but went into full swing up until the yearend.
Among the notable projects include the four-level building near the lagoon area of the Ayala Center Cebu, aside from the mall’s five-story annex that was started during the early part of 2006.
Other projects cited were the P200-million, eight-story Pioneer House Cebu at the Cebu Business Park, and the construction of two hotels—the GV Tower Hotel on Sanciangko St. and Hotel Fortuna on Magallanes St.
Outside Cebu, major construction projects undertaken were the McDonald’s restaurant and a shopping mall, all in Dumaguete City, Oriental Negros.
Real estate developments, as a result of an increased demand for housing units, also contributed to the positive performance of the construction industry.
Nearly 1,000 housing units in the region were built during the same period. These were undertaken either by private developers or through the Home Development and Mutual Fund.
Major players
The information and communications technology (ICT) sector also continued to perform well during the same period, with two major industry players establishing offices in Cebu.
Investments poured into the Asiatown IT Park in Cebu City and the Oakridge IT Center in Mandaue City were also cited as factors that led to an increase in employment opportunities.
“Overall, 2006 was a good year for the region’s IT industry. While relatively new, it has become a major source of growth for the Central Visayas economy,” the RES said.
Other gainers for 2006 were tourism, air transportation, retail trade and agriculture. The mining sector also showed signs of improvement as a result of the construction boom, with the increased demand for limestone and cement.
Losers
In contrast, the export and shipping sectors showed a dismal performance for the fourth quarter of 2006, as a result of the continued appreciation of the peso.
For 2006, exports reached a total value of $1.72 billion, lower than 2005’s figure of $1.82 billion.
Consumer manufacturers biz or those making garments, housewares, decors, toys and dolls, accessories, among others, experienced the biggest drop in earnings. Similarly, the number of food and resource-based plunged as a result of a decrease in production.
As for the shipping industry, development planners noted that while passenger traffic picked up during the fourth quarter of 2006, there were still fewer passengers who opted to travel by sea.
