The cement industry expects a flat growth in sales this year, due to the slow approval of infrastructure projects under the public-private partnership scheme and a projected lower expansion of the construction industry.
“The general momentum is positive, but not sufficient or not moving fast enough. PPP projects, though taking a tad too long, would definitely help improve sales,” the Cement Manufacturers Association of the Philippines said over the weekend.
Cement sales grew 5.9 percent in 2013 to 19.445 million metric tons from 18.356 million MT in 2012. The cement sector posted a growth of 17.5-percent growth in 2012, the highest over the last 15 years.
Cement sales increased 3.2 percent in the second quarter to 5.519 million MT from 5.349 million MT a year ago and 5.7 percent in the first half to 10.718 million MT from 10.136 million MT in 2013.
CMAP said, however, PPP projects were not moving fast enough to start construction this year.
Cement companies are currently expanding capacity to support the expected increase in government spending for road construction, repair and rehabilitation to improve road networks and spur economic growth.
CMAP said demand for cement and construction materials would be led by the need to put up more infrastructure projects.
Three PPP projects were moving this year, including phase 1 of school infrastructure project with estimated cost of P16.28 billion, Daang Hari-South Luzon Expressway link road project and Naia expressway project.
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