BCDA explores rail deal with Japan firm
STATE-RUN Bases Conversion and Development Authority (BCDA) is in talks with Japan Overseas Infrastructure Investment Corp. for Transport and Urban Development (JOIN) to explore a partnership in the development of the P200-billion Clark Rail Transit System, which will likely run from Malolos, Bulacan to the Clark Green City.
BCDA president and CEO Arnel Paciano D. Casanova said a consortium was needed to bankroll the 125-kilometer project because of the amount of resources and technology expertise needed.
“You really need a consortium to do that (railway) project. There are Japanese companies who are experts in providing the coaches and the technology, but they do not necessarily have to be involved in the operation and maintenance of the railway system,” Casanova said.
“You also need someone familiar with real estate development because train systems would get their revenue through the real estate development [near and surrounding] the stations just like what they do in Tokyo, Hong Kong and Singapore,” he added.
JOIN is a Japanese government corporation that aims to invest and participate in transport or urban development projects involving Japanese companies, such as bullet trains, airports and so-called green cities.
Its target investment worldwide is 30 trillion yen by 2020.
So far, JOIN already has a cooperation agreement with BCDA to look into the possible establishment of joint venture companies. These firms will separately conduct the feasibility study and grant concession rights of the various individual projects that will make up the Clark Green City project.
According to Casanova, the BCDA is looking at the public private partnership (PPP) model for its part in the railway project, while the Department of Transportation and Communications (DOTC) has already secured a $2-billion official development assistance loan from the Japan International Cooperation Agency (Jica) for the construction of the railway from Tutuban in Manila to Malolos in Bulacan.
“We are going to coordinate with the DOTC so that it’s a seamless operation of the railway system. We may agree on having only one concessionaire but we have to secure the capital funding separately,” Casanova added.
The package of contracts for the Clark Rail Transit System will comprise not only of the construction of a railway from Malolos to Tarlac City but also the development of the commercial real estate areas along the line, and operation of a multimodal transport system within the Clark Green City, which covers areas in Pampanga and Tarlac City.
Based on earlier plans, the winning bidder will also have the right to develop the stations and the substantial property along the line into commercial areas.
The whole project is expected to cover some 150 hectares of available land within Clark Green City.
The winning proponent will likewise have the right to develop and operate a multimodel transport system within what is touted to become the country’s first smart, green and disaster-resilient metropolis.
BCDA will have a minority share in the project. Start of construction for the Clark Rail is targeted for 2016.
