Spending on transport infrastructure has fallen by over 40% since 1984. As a result, many main roads are in need of repair. Traffic jams in Manila are a growing problem and are holding back economic growth. Air transport is the only means of getting around the islands quickly. In 1992, the state airline, Philippines Airlines, was privatized. It is planning to buy $1.2 billion-worth of new aircraft and to add to its regional route network. Subic Bay, the USA's largest overseas base until 1992, when the US navy decided to leave, has a prime strategic location, which the government is now exploiting. Opening onto the South China Sea, its deep natural harbor is being developed as a free port and enterprise zone. The Taiwanese are the biggest investors in this project.
