Investment Opportunities in the Transport Sector (Railways and Airports)

8/7/2019 Investment Opportunities in the Transport Sector (Railways and Airports)

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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


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


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


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


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


Traffic:

Status:

Proposed transaction advisory services underUSTDA

O&M tender to commence by June 2011 Contract award by November 2011


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


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


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


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


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


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


Scope Airside Landside

ProjectCost US$ 121 million US$ 32 million


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THANK YOU

Documents

Investment Opportunities in the Transport Sector (Railways and Airports)