International Construction Law Review
Regional Update: Building the Framework: CIAC’s Role in Philippine Construction Arbitration
Nicholas Turner, Mohammed Talib and Johanne Brocas
Pinsent Masons
Caloy F Cajucom, Juli Ann Rosette M Sibi and Pia Pollaine P Magaoay
Gulapa Law1
The Philippines is undergoing a significant infrastructure expansion, with the government allocating PHP1.507 trillion in 2025 (around 5 per cent of GDP) for development projects.2 This surge, supported by institutions like the Asian Development Bank, has led to a booming construction market, valued at US$39.4 billion in 2024 and projected to reach US$60.08 billion by 2033.3 This “infrastructure boom” has attracted international contractors to participate in the development work.
As more international businesses look to invest in projects in the Philippines, they need to consider the dispute resolution options available in the country. According to World Bank data,4 litigation in the Philippines can be time-consuming and costly, making arbitration an attractive alternative due to its efficiency, cost-effectiveness and confidentiality. Since the Philippines became a signatory to the New York Convention in 1967, it has become easier to enforce arbitral awards within or outside the country compared to foreign judgements. Thus, arbitration has become the preferred method of dispute resolution for internationally funded projects.
1 The views expressed herein are entirely those of the authors and not necessarily those of the firm or organisation with which they are affiliated.
2 2025 People’s Proposed Budget, Philippines Department of Budget and Management (September 2024), pp 3 and 32, https://www.dbm.gov.ph/wp-content/uploads/Our%20Budget/2025/2025-People’s-Proposed-Budget-(as-of-10.2).pdf (last accessed 20 November 2025).
3 Exploring Philippines Infrastructure Development Analysis Trends, Market Research Philippines, https://marketresearchphilippines.com/explore-philippines-infrastructure-development-analysis-trends/ (last accessed 20 November 2025).
4 Philippines – Dispute Resolution – Operational Efficiency – Court Litigation – Operational Efficiency of Court Processes – Time for Court Litigation, The World Bank, https://www.worldbank.org/en/businessready/economy/philippines?topic=DR (last accessed 20 November 2025); Philippines – Dispute Resolution – Operational Efficiency – Court Litigation – Operational Efficiency of Court Processes – Cost for Court Litigation, The World Bank, https://www.worldbank.org/en/businessready/economy/philippines?topic=DR (last accessed 20 November 2025).
Pt 1] Regional Update: Building the Framework
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