Gov’t rolls out P171-B railway project

Transportation Secretary Joseph Abaya INQUIRER FILE PHOTO

The Aquino administration has rolled out its biggest public private partnership (PPP) project to date, the P170.7-billion south line of the Philippine National Railways’ North-South Railway project.

The massive deal, which involves 653 kilometers of railway lines, including a link from Metro Manila to Legazpi, Albay, is expected to lure some of the country’s biggest players. Conglomerates San Miguel Corp., Ayala Corp. and Metro Pacific Investments Corp. have said they would be keen on the deal once it is rolled out.

“This is our biggest project yet: The revival of the oldest rail system in Southeast Asia, beginning with the Manila-Legazpi section plus additional branch lines totaling 653 kilometers,” Transportation Secretary Joseph Abaya said in a statement Wednesday.

The Department of Transportation and Communications (DOTC) said the railway deal would be implemented using a two-stage process, with the submission of prequalification documents set in the fourth quarter of 2015. The instructions to prospective bidders would be made available starting Aug. 31, 2015, the DOTC said.

The timing also indicated that the department was hoping to award the project before President Aquino steps down in mid-2016. The DOTC said the actual opening of bids would be held in January 2016 while awarding was set on March 2016.

The winning bidder will operate, maintain and upgrade the south line for a period of 34 years, including the construction period of four years, meaning the railway line will be operational by 2020.

“Rail systems are a driver for inclusive socioeconomic growth. They encourage trade and business activity, and provide access to employment and educational opportunities. The PNR, once a symbol of the country’s economic progress, should be modernized into a safe, convenient and efficient system by 2020,” Abaya said.

Upon full operations, the DOTC said there would be 10 daily trips with seven train sets passing through 66 stations.

It is expected to yield a demand of 316,000 passengers a day on its opening year and is projected to entice around 44,000 public and private vehicle users to shift their commutes to the modernized railway.

The private sector partner is expected to design, construct, install, commission, finance, operate and maintain the existing 56-km commuter rail line from Tutuban in Manila to Calamba City, Laguna.

It is also expected to do the same for the 478-km long-haul rail operations from Tutuban to Legazpi City with the possible spur lines extension of 58 km from Calamba City to Batangas City and 117 km from Legazpi City to Matnog, Sorsogon.

The PPP Center separately announced Wednesday that two of three interested groups have prequalified to bid for the P50.2-billion regional prison facilities project.

It said a review by the Department of Justice, which is implementing the project, showed that San Miguel Holdings Corp. and Mega Structure Consortium, led by Megawide Construction Corp., were compliant while DMCI Holdings did not pass the qualification phase.

The winning bidder will design, finance, construct, and maintain the modern prison facilities that will be constructed at Fort Magsaysay, Nueva Ecija.

The regional prison facilities PPP project will accommodate 26,880 inmates, including staff housing and administrative buildings, areas for rehabilitation (sports, work and religious activity) and will be installed with high security equipment.

The Aquino administration has awarded 10 PPP deals in the last five years.

These included the Muntinlupa Cavite Expressway (formerly DaangHari-Slex Link Road), PPP for school infrastructure project (Phase 1), Naia Expressway Project, PPP for school infrastructure project (Phase II), Modernization of the Philippine Orthopedic Center, Automatic Fare Collection System, Mactan-Cebu International Airport, the LRT-1 Cavite Extension, the Integrated Transport System-Southwest project and the Cavite Laguna Expressway.