PHILIPPINES: Iloilo construction slows down amid shortage in cement

Iloilo has been experiencing a shortage of cement amid massive ongoing public works and real estate projects.

The shortage has been felt by contractors and traders for several weeks now as demand peaked during the summer season. “There has been increased demand and apparently suppliers have not anticipated the volume needed,” according to a construction supply store owner in the city, who spoke to the Inquirer on condition of anonymity. “But this is in a way positive because the shortage is due to high demand related to various projects,”the store owner added.

‘Yolanda’ areas

The shortage has also been felt in northern Iloilo, one of the areas worst hit by Super Typhoon Yolandalast year. “I don’t have any stock left. We are still waiting for our supply to arrive next week,” a cement trader in northern Iloilo said.

Demand is especially high for the Portland type of cement which is commonly used for government projects and in major construction works. Prices have remained stable despite the low supply with a 40-kilo bag of Portland cement costing from P240 to P245, while regular cement costs about P230 per bag, according to the store owner.

But a contractor involved in constructing residential buildings said prices had risen from P238 to P250 per bag in the past two weeks. “Some stores limit the volume of cement one can purchase only up to 10 bags because a lot of buyers are also waiting for their orders,” the contractor, who also asked not to be identified, said.

Project delays

The contractor said the shortage of cement had led to delays in construction projects and also to higher expenses. Major government projects are being implemented in Iloilo including the construction of the P1-billion Iloilo Convention Center, widening of the Sen. Benigno Aquino Jr. Avenue into a 10-lane road including bicycle and pedestrian lanes, the 14-kilometer Iloilo circumferential road and the six-lane widening road from Jaro District to the entrance of the Iloilo International Airport in Cabatuan town in Iloilo.

Multibillion-peso commercial and real estate projects are also being implemented in the city including those of Megaworld Corp., Ayala Land Inc. and DoubleDragon Properties Corp.