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Construction of MRT-LRT common stationAfter 8 years of delay, the construction of Metro Rail Transit-Light Railway Transit (MRT-LRT) common station is scheduled to begin in December 2017 following the signing of a memorandum of agreement (MOA) by concerned companies and government agencies. The completion of the P2.8-billion common station project is set for 2019.

Under the MOA, the common station for the MRT and LRT will connect 3 main lines of LRT-1, MRT-3 and the MRT-7 (from North Avenue, Quezon City to San Jose, Del Monte Bulacan). Signatories of the MOA were SM Prime Holdings Inc. (SM Prime), Universal LRT Corporation Limited (ULC) of the San Miguel Corporation (SMC); Light Rail Manila Corporation (LRTC); North Triangle Depot Commercial Corporation, Department of Public Works and Highways (DPWH); Light Rail Transit Authority (LRTA); and Department of Transportation (DOTr).

The stakeholders met last September 28, 2016 to sign a memorandum of understanding (MOU), which lacked details, but considered an important event that gave way to the agreement by all concerned parties to finally work together for the completion of the common station project. The DOTr will undertake the financing and construction of the project, which it said, will have the benefits of seamless transfer from one line to another, bigger space and connection to both SM North and TriNoma malls in Quezon City.

The proposed design will be presented to concerned constituents, representatives of various organizations and local officials to obtain their feedback before coming up with the final design, according to the DOTr. The proposed common station consists of 3 areas:

h Area A — location of the platform and concourse for LRT-1 and MRT-3;

h Area B — location of the 2 concourses connecting Areas A and C; and

h Area C — location of the platform for MRT-7. The MOA includes a blueprint for the implementation of the

common station and the role of each stakeholder in the project. It contains the design parameters of the 13,700-square meter

(sqm) station, passenger flow within the common station, as well as traffic management for the roads below, and commitment by both public and private entities involved on specific expenses.

It is also seen as an end to a legal row that has badly affected commuters of LRT-1 and MRT due to the absence of a connection to the 1.2-kilometer (km) disrupted tramline along EDSA, a piece of property that is now being used as parking lot by the TriNoma mall.

The project has been delayed for 8 years as Sy family’s SM North Edsa and Ayala Group’s TriNoma fought to acquire the right for the common station location. According to the DOTr, after the completion of the detailed designs by 4Q2017, it is expected that an appeal for the dismissal of the case filed by SM Prime that led to the Supreme Court (SC) issuance of a temporary restraining order (TRO) in 2014 will result in the final resolution of the case.

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The new location of the MRT-LRT common station as compared to earlier proposed sites. Source: Department of Transportation (DoTr)

The common station will have 3 areas.Source: Department of Transportation (DoTr)

The MRT-LRT common station will be built at a cost of P2.8 billion.

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The case stemmed from an agreement signed by the government and SM Prime in 2009 for the construction of a common station near the annex mall of SM City North Edsa. SM Prime paid the government P200 million in the deal that also included naming rights. But the project was delayed when a change of government took place in 2010. A legal battle ensued when the Aquino government decided to transfer the location of the common station near TriNoma citing that construction cost would be P1.4 billion lower than in the original site. But the common station near TriNoma was criticized as commuters would need to walk farther.

In the proposed location of the common station under the MOA, commuters transferring from MRT-3 to LRT-1 and MRT-7 need only walk up 50 to 200 meters, depending on which train they use. In addition, the passenger concourse can be expanded depending on future needs.

At the Senate hearing, some senators agreed that the current location is the best option although the Senate committee wants “someone to be held liable for the P200-million naming rights contract of SM Prime, which was not even auctioned off.”

The senators also questioned the increase in project cost to P2.8 billion from P1.4 billion at 2,500 sqm in 2014, and P2.4 billion at 7,200 sqm in 2009. The DOTr responded that the new location is bigger at 13,700 sqm and almost double the capacity of the original 2009 design. The original design had single tracks and narrower concourses, while the latest design has dual tracks to reduce headway to around 2.5 minutes, while the platform will span 6 meters compared to 3 meters from the previous plan.

Thirteen foreign and local business groups have urged the government to fast-track completion of the common train station, a major transport project that was being derailed by prolonged discussions in Congress given the questions on the construction cost. The joint statement issued by the business groups urge the “expeditious completion of the common train station to link the LRT-1, MRT-3 and the ongoing MRT-7 rail commuter lines in a location that will conveniently serve the expected 1.5 million commuters,” as they threw full support to the MOA signed.

New timeline for regional airports PPP project

The Department of Transportation (DOTr) announced the new timeline for the regional airports under the public-private partnership (PPP) project.

The revised timeline for the regional airports project involves finance, design, construction, operation and maintenance of the Bacolod-Silay, Davao, Iloilo, Laguindingan, and the New Bohol (Panglao) airports under the PPP scheme.

Under the PPP, the private partner will undertake the operation and maintenance of the airport and build additional facilities and other necessary improvements for passenger safety, security of the facility, passenger and cargo movement, and overall operational efficiency under an agreed concession period.

The submission of qualification documents has been set on May 11. Then, DOTr will release instructions to bidders and draft concession agreement on June 1. Bid proposals submission date is on December 8, while the issuance of the notice of award is expected to take place by January 2018.

The Aquino administration offered the regional airports project in 2 bundles: Bundle 1 consisted of Iloilo Airport and Bacolod-Silay Airport, while Bundle 2 consisted of Davao Airport, New Bohol (Panglao) Airport and the Laguindingan Airport. To speed up the selection and awarding of the contracts, however, the Duterte administration opted to unbundle the 5 regional airports PPP project.

Below are the indicative costs of the regional airports. All airports are existing except for the Bohol (Panglao) airport, which is being constructed by the joint venture of Mitsubishi and Chiyoda corporations.

Prior to the issuance of the revised timeline, several concerns were raised by interested bidders on the DOTr requirements. A request for the extension of the submission of qualification documents was put forward by Filinvest Development Corp. Two firms, Metro Pacific Investments Corp. (MPIC) and Aboitiz InfraCapital voiced their concerns on the requirement that an airport operator of the participating group should have a 10% stake in the consortium.

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AIRpoRT IN bIllIoN pESoS

New Bohol (PaNglao) 2.34

laguiNdiNgaN 14.62

davao 40.57

Bacolod-Silay 20.26

iloilo 30.40

ToTal 108.19

indicative costs of 5 regional airports

Philippine Airports Consortium – which includes MPIC, Aeroports de Paris, and ADP Ingenierie – was pre-qualified by the Aquino administration to bid for the project. But its foreign partner, Aeroports de Paris, pulled out from the consortium after the Duterte administration announced its decision to unbundle the airports. Unbundling the PPP project into individual airport places uncertainty on the operator’s returns since each airport is small. As a result, MPIC is now looking for another foreign partner.

Under the Aquino administration, the conglomerates that were pre-qualified to bid were:

h Filinvest-Jatco-Sojitz Consortium - composed of Filinvest Development Corp., Japan Airport Terminal Co. Ltd, and Sojitz Corp.;

h GMR Infrastructure and Megawide Consortium - composed of Megawide Construction Corp. and GMR Infrastructure Singapore Pte. Limited;

h Maya Consortium - composed of Aboitiz Equity Ventures Inc. and VINCI Airports SAS;

h Philippine Airports Consortium (Metro Pacific Investments Corp. and Philippines Airport Management Co.; and

h SMHC-IIAC Airport Consortium - composed of San Miguel Holdings Corporation and Incheon International Airport Corp.

The 5 regional airports have total indicative cost of P108.19 billion.

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Three major railway projects outside Metro Manila

The Japanese government committed to provide funding for 3 railway projects in the Philippines amounting to $8.8 billion. These projects are included in the flagship infrastructure projects of the Duterte administration.

A f t e r m e e t i n g w i t h J a p a n I n t e r n a t i o n a l Cooperation Agency (JICA), the National Economic and Development Authority (NEDA) announced that 3 priority projects of the Duterte administration will be financed by the Japanese government. These projects are:

h the $4.3-billion initial phase of the Mega Metro Manila subway system connecting Taguig City to Quezon City;

h the $2.7-billion commuter line from Laguna, the south line of the North-South railway project; and

h the $1.9-billion high-speed rail from Clark of the North-South Commuter Railway connecting Manila and Bulacan.The official development assistance (ODA) for the

subway projects are expected to be signed during the ASEAN Summit hosted by the Philippines in November, which Japan Prime Minister Shinzo will attend.

The feasibility study for the initial phase of the subway is set to be completed by September, while that of the commuter rail to Laguna is yet to be started. The feasibility for the railway to Clark will be completed in April 2018.

Details of the Mega Metro Manila subway were also announced. To start construction by 4Q2020, the project will apply Japanese tunneling expertise and is targeted for completion by 2Q2024. Once operational, the subway can accommodate 350,000 passengers daily. Phase 1 is from Quezon City to Taguig City, a trip that can take only 30 minutes. The proposed 13 stations are along Mindanao Avenue, North Avenue, Quezon Avenue, East Avenue, Anonas, and Katipunan in Quezon City; Ortigas North and Ortigas South in Pasig City; Kalayaan Avenue in Makati City; Bonifacio Global City, Cayetano Boulevard, and Food Terminal Incorporated in Taguig; and the Ninoy Aquino International Airport in Pasay City.

During the first meeting of the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation in Tokyo, the Philippine government presented its priority projects for possible Japan ODA financing as part of Prime Minister Abe’s pledge to provide ¥1trillion (about $9 billion) of ODA and private sector investments to the Philippines. The priority projects include road and flood management projects, irrigation systems, energy generation projects, industrial zones and railways.

Source: CNN Philippines

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The Mega Metro Manila subway can accommodate 350,000 passengers daily.

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STATUS oF bIG TICKET INFRASTRUCTURE pRoJECTS IN THE pIpElINE AS oF MARCH 2017

PRoJecT TiTle iMPleMeNTiNg ageNcyFuNdiNg SouRce

civil woRKS TiMeFRaMe PRoJecT coST STaTuS / iSSueS

RoadS

Manila-Taguig expressway Project dPwh PPP TBd P40.99 billion The dPwh is currently reviewing the eligibility and completeness of project documents.

aiR aNd waTeR PoRTS

New Bohol (Panglao) airport operations, Maintenance & development Project

doTr & caaP PPP TBd P4.57 billion The MPic is looking for a new foreign partner to bid for the projects after its French partner, aeroports de Paris, backed out of the consortium.

Three more firms have shown interest in the unbundled regional airport projects:1. Filinvest development corp.;2. ac infrastructure holdings corp.; and3. asia’s emerging dragon corp.

The deadline for the submission for qualification documents is on May 11, while the issuance of draft concession agreement is on June 1. Bid proposal submission is scheduled on december 8.

laguindingan airport operations, Maintenance & development Project doTr & caaP PPP TBd P14.62 billion

davao airport operations, Maintenance & development Project doTr & caaP PPP TBd P40.57 billion

Bacolod airport operations, Maintenance & development Project doTr & caaP PPP TBd P20.26 billion

iloilo airport operations, Maintenance & development Project doTr & caaP PPP TBd P30.40 billion

Naia PPP Project doTr & Miaa PPP TBd P74.56 billionac infrastructure holdings corp. from the ayala group is still interested to participate in the bidding of the project.

davao Sasa Port Modernization Project doTr & PPa PPP TBd P18.99 billion

The PPa said that this project is still open for “any privatization” after it was withdrawn from the list of PPP projects approved by the Neda Board.

New Manila international airport Project doTr PPP TBd TBd

The doTr is currently reviewing the eligibility and completeness of project documents.

clark international airport PPP Project doTr PPP TBd TBd

The Filinvest group and Jg Summit holdings, inc. submitted a P186.64-billion unsolicited proposal for the project.

The gMR-Megawide consortium (Megawide construction corp. and gMR infrastructure ltd.) wants to clarify to the doTr why their proposal for this project last year was “abandoned”.

RailwayS

operations & Maintenance of lRT line-2 doTr & lRTa PPP TBd No caPeX

Bid submission for the project is delayed.

lRT line 6 Project doTr PPP TBd P65.09 billion The project is still under evaluation.

North-South commuter Railway Project doTr oda 2018-2022 P260 billion

The Neda investment coordination committee – cabinet committee (icc-cabcom) approved the use of ODA to finance this project.

china is interested to fund the long-haul portion of the project, while Japan is keen to finance the commuter part of the railway.

however, the operations and maintenance componenet of the project will still be procured through PPP.

east-west Railway Project PNR PPP TBd TBd The project is under on-going evaluation by the icc.

uTiliTieS

New centennial water Source – Kaliwa dam Project MwSS & dPwh oda TBd P18.72 billion

The icc-cabcom decided to use the oda from china to fund this project.

Batangas-Manila (BatMan) 1 Natural gas Pipeline Project PNoc PPP TBd P14.72 billion

The doe and PNoc are reviewing the scope and structure of the project.

oTheR PRoJecTS

Manila Bay integrated Flood control, coastal defense and expressway Project

dPwh PPP TBd P5,034 billion The icc is currently reviewing the project.

Regional Prison Facilities through PPP doJ & Bucor PPP TBd P50.20 billion China has expressed its interest to finance this project.

Philippine Travel center complex Project doT & ia PPP TBd P1.75 billion

The project is withdrawn from the PPP. The doT and TIEZA will finance this project using their respective budget.

New Nayong Pilipino at entertainment city Project doT PPP TBd P1.47 billion The project is awaiting approval from the icc-cabcom.

chico River Pump irrigation Project Nia oda TBd P2.7 billion The icc-cabcom decided to use the oda from china to fund this project.

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acRoNyMS

Bucor Bureau of corrections

caaP civil aviation authority of the Philippines

ciac clark international airport corporation

deNR department of environment and Natural Resources

doJ department of Justice

doTr department of Transportation

doT department of Tourism

dPwh department of Public works and highways

ia intramuros administration

icc investment coordination committee

lRTa light Rail Transit authority

Miaa Manila international airport authority

MPic Metro Pacific Investments Corporation

MwSS Metropolitan waterworks and Sewerage System

Neda National economic development authority

oda Official Development Assistance

PNoc Philippine National oil company

PNR Philippine National Railways

PPa Philippine Ports authority

PPP Public-Private Partnership

PRa Philippine Reclamation authority

TBd To be determined