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Undersecretary Ruben S. Reinoso, Jr.Department of Transportation and Communications
8 February 2011, Makati City
Investment Opportunities in theTransport Sector
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Development IssuesTransport
Developmentand AssetPreservation
Low transport infrastructure investment
Poor quality of facilities and services Inefficient transport pricing High transport cost
InstitutionalLinkages
Overlapping agency functions Conflict of interest situation in agency operation
and regulation Uncoordinated plans and programsLow participation of private sector
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DOTC Mandate and StrategiesMandate Apex agency for transportation sector policy
formulation and plan integration
DevelopmentVision
Safe, secured, seamless and sustainabletransportation system
StrategicOutlook
Integrated national network and seamlessoperation
World class gateways
Decentralization and local/regional growthopportunities
Environmentally sustainable transportLow carbon development and climate-prooffacilities
Compliance to international safety and securitystandards and best practices
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DOTCs PPP ProgramPPPGoal Merge private capital and efficiency in developing
and managing transport infrastructure andservices
IncreasePossibilityFrontiers
Expanded resource baseNeed to improve efficiency in service delivery
Private PublicSectorParticipation
Private Sector contribution:
- Financial investments- Better management practices- Efficiency in operations and service deliveryPublic Sector contribution limited to:- Financial viability gap support
- Providing fair and transparent regulatoryenvironment
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DOTCs Priority List ofProjects4 Railway and 4 Airport projects
Ready feasibility studies and preliminaryengineering designs
Advanced stage of right-of-way acquisition
Positive economic and financial viabilityindicators5 billion fund support in CY2011
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Project Title MRT/LRT Expansion Program: Privatization of LRT 1
Operation and Maintenance
Description
Integration of LRT Line 1 operation andmaintenance to a private sector service providerduring the interim period of 3-4 years
After this O&M interim period, the LRT Line 1 SouthExtension Project contractor is expected to assume
overall responsibility for the integrated LRT Line 1and MRT Line 3 systems
Implementation: 2011-2014
Traffic: 490,000 passengers per day (2010)
Status:
Contract packaging, preparation of bid documentsof projects for PPP to be undertaken by DOTCconsultant
Bidding forInterim O&M provider by June 2011 Contract award by October of 2011
PPP Structure Government Private
Scope Grant Usufruct Perform O&M
Project Cost US$ 175 million
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Project Title MRT/LRT Expansion Program: Privatization of MRT 3
Operation and Maintenance
Description
Integration of LRT Line 1 operation andmaintenance to a private sector service providerduring the interim period of 3-4 years
After this O&M interim period, the LRT Line 1 SouthExtension Project contractor is expected to assume
overall responsibility for the integrated LRT Line 1and MRT Line 3 systems
Implementation: 2011-2014
Traffic: 495,000 passengers per day (2010)
Status:
Contract packaging, preparation of bid documentsof projects for PPP to be undertaken by DOTCconsultant
Bidding forInterim O&M provider by June 2011 Contract award by October 2011
PPP Structure Government Private
Scope MRT 3 buy-out and grant usufruct Perform O&M
Project Cost US$ 140 million
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Project Title MRT/LRT Expansion Program: LRT 1 Cavite Extension
Description
Construction of 11.7 km LRT extension Eight (8) stations with provision for 2 additional
stations Satellite depot for light maintenance at the
southern terminus Intermodal facilities at high demand stations
Provision for additional rolling stocks to meetadditional load requirements once the LRT Line 1and MRT3 are integrated
Implementation: 2011-2015EIRR: 28.0%FIRR: 12.0%
Traffic: Additional 350,000 passengers per day
Status: Contract packaging, preparation of bid documents
of projects for PPP to be undertaken by DOTCConsultant
Tender to commence by July 2011 Contract award by March 2012
PPP Structure Government Private
Scope Civil Works and Electro-mechanical Rolling Stock and O&MProject Cost US$ 960 million US$ 600 million
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ProjectTitle MRT/LRT Expansion Program: Line 2 East Extension Project
Description
Construction of a 4-kilometer eastern extension Two (2) additional passenger stations The projected increase in passengers will
improve profitability of the line
Implementation: 2011-2014EIRR: 17.6%FIRR: 4.2%
Traffic: 200,000 passenger per day (2010)
Status:
Pre-FS completed in March 2010 Update FS and PPP structure preparation underJICA assistance
Tender to commence by November 2011 Contract award by June 2012
PPP Structure Government Private
Scope Civil Works and Electro-mechanical Rolling Stock and O&M
ProjectCost US$ 201 million US$ 50.00 million
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ProjectTitle Privatization of Laguindingan Airport Operation and Maintenance
Description
Privatization of the airport operation andmaintenance
O&M through concession covers the newlyconstructed airport on a 393-hectare propertycomplete with facilities of international standards
Implementation: 2011-2014
Traffic:
Status:
Proposed transaction advisory services underUSTDA
O&M tender to commence by June 2011 Contract award by November 2011
PPP Structure Government Private
Scope ANF procurement and grant usufruct O and M
Project Cost US$33 million
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ProjectTitle New Bohol (Panglao) Airport Development
Description
Construction of a new airport of internationalstandards in Panglao Island to replace the existingTagbilaranAirport
Construction of a new 2,500m x 45m runway,taxiway, apron and provision of air traffic control andnavigational equipment and landside facilities
Implementation: 2012-2014
EIRR: 23%
FIRR: 16%
Traffic: 600,000 per annum
Status:
JICA to start airport PPP structuring work by mid-
December 2010 Tender to commence by August 2011 Contract award by January 2012
PPP Structure Government Private
Scope Airside facilities Landside facilities
ProjectCost US$ 119 million US$ 32 million
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ProjectTitle Puerto Princesa Airport Development
Description
Rehabilitation/ improvement of the existing airportto meet international standards
Construction of new landside facilities on the northwest side of the existing runway
Construction of new apron and connectingtaxiways, upgrading of the existing 2.6-km runwayand its strip, and the provision of new navigationaland traffic control equipment
Implementation: 2011-2014
EIRR: 20%
FIRR: 14%
Traffic: 600,000 per annum
Status:
Singapore SCE/Temasek to provide transactionadvisory services through PWC (Singapore)Updated FS report and draft bid documents forsubmission to DOTC by March 2011
Tender to commence by August 2011 Contract award by February 2012
PPP Structure Government Private
ScopeA
irside LandsideProjectCost US$ 68 million US$ 29 million
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ProjectTitle New Legaspi Airport Development
Description
Construction of a new airport in Daraga, Albaythat will replace the existing Legaspi Airport
Construction of new a 2,100m x 45m runwayand other airside and landside facilities
Implementation: 2011-2014
EIRR: 17%FIRR: 12%
Traffic: 500,000 passengers per annum
Status:
Singapore SCE/Temasek to provide transactionadvisory services through PWC (Singapore)
Tender to commence by August 2011 Contract award by February 2012
PPP Structure Government Private
Scope Airside Landside
ProjectCost US$ 121 million US$ 32 million
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